Abuja

Tourism Tattler - - BUSINESS & FINANCE -

Abuja ho­tels saw an in­crease in oc­cu­pancy in 2015 de­spite the Boko Haram in­sur­gency. Av­er­age room rate did not per­form as well with a sub­stan­tial de­crease from $325.00 to $275.00. Like La­gos, this is due in large part to the lack of in­ter­na­tional guests and an in­crease in lo­cal guests. Many new ho­tels are planned for Abuja over the next five years, which il­lus­trates the con­fi­dence in which the mar­ket is held for the longer term. Ac­cord­ingly, both La­gos and Abuja ex­pe­ri­enced re­duced ho­tel val­ues, how­ever these re­duc­tions were less se­vere than 2014.

Abuja is strug­gling to re­gain the con­fi­dence of tourists and in­vestors. The fall in prices of gas and oil slowed the econ­omy down in 2016, se­cu­rity is a mas­sive con­cern for trav­el­ers and the ac­ces­si­bil­ity to both cities is not im­prov­ing. The level of de­mand and oc­cu­pancy is ex­pected to be down. Hence, Abuja will see a drop in val­ues of 2.1%, suf­fer­ing from a mas­sive drop in oc­cu­pancy. The im­prove­ment of the se­cu­rity sit­u­a­tion and the eco­nomic re­cov­ery will partly con­di­tion the fu­ture of the ho­tels in­vest­ment play­ground in Nige­ria.

For de­tailed anal­y­sis visit http://hvi.hvs.com/mar­ket/africa/Nige­ria_-_Abuja

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