Travel & Tourism - Nigeria | Statista Market Forecast

The Travel & Tourism market in Nigeria is expected to experience a significant rise in revenue in the coming years.
By 2024, the projected revenue is estimated to be US$3.31bn, and the market is expected to grow annually at a rate of 11.23%, resulting in a projected market volume of US$5.64bn by 2029.
The largest market in Nigeria is the Hotels market, which is projected to have a market volume of US$1.44bn in 2024.
Furthermore, the number of users is expected to amount to 18.78m users by 2029, and user penetration is anticipated to increase from 11.3% in 2024 to 13.0% by 2029.
The average revenue per user (ARPU) is expected to be US$127.80.
Additionally, by 2029, 70% of the total revenue in the Travel & Tourism market in Nigeria will be generated through online sales.
It is noteworthy that in comparison to other countries globally, United States is expected to generate the most revenue in the Travel & Tourism market, with a projected revenue of US$214bn in 2024.
Nigeria's tourism sector is growing, with a focus on cultural and eco-tourism, but the lack of infrastructure and security concerns remain challenges.

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

Business trips
Other forms of trips (e.g. excursions, etc.)

The Travel & Tourism market in Nigeria is experiencing significant growth and development, driven by various factors shaping the industry in the region.

Customer preferences: Travelers in Nigeria are increasingly seeking unique and authentic experiences, moving away from traditional tourist attractions to explore off-the-beaten-path destinations within the country. This shift in preferences is fueled by a desire for cultural immersion and a deeper connection with local communities.

Trends in the market: One notable trend in the Nigerian travel market is the rise of domestic tourism. More Nigerians are choosing to explore their own country, leading to a boost in the hospitality sector and the development of new tourism offerings tailored to local tastes. Additionally, there is a growing interest in sustainable and eco-friendly travel practices, with travelers actively seeking environmentally conscious accommodations and activities.

Local special circumstances: Nigeria's diverse cultural heritage and natural landscapes play a significant role in shaping the travel and tourism market. The country's rich history, vibrant music scene, and bustling markets attract a wide range of travelers looking for authentic cultural experiences. Moreover, Nigeria's stunning national parks and wildlife reserves offer opportunities for safari adventures and nature-based tourism.

Underlying macroeconomic factors: The improving economic conditions in Nigeria, coupled with government initiatives to promote tourism, are driving the growth of the travel industry in the country. Investments in infrastructure development, such as the expansion of airports and road networks, are making it easier for both domestic and international tourists to explore Nigeria. Additionally, the government's focus on diversifying the economy is leading to increased support for the tourism sector as a key contributor to economic growth.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Business or corporate travel is the tourism segment that focuses on people who travel for work or professional purposes and the related tourism services. This branch also includes the meetings industry, which refers to business events, conferences, congresses, trade fairs, and exhibitions. According to the World Travel and Tourism Council (WTTC), business travel accounted for 20 percent of the global tourism expenditure in 2021. In that year, it was estimated that business travelers spent more than 740 billion U.S. dollars worldwide, with Chinese tourists topping the ranking of the biggest business travel spenders.