Hotels, nightclubs, restaurants, luxury car rentals fueled Lagos’ US$75M tourism surge in December

NIGERIA – Independent research by advisory firm MO Africa Company Limited shows that between November 19 and December 26 2024, tourism and hospitality spending surged to US$75 million, revealing what the firm refers to as ‘hidden opportunity.’

Lagos, Nigeria’s commercial hub, continues to attract a growing number of travelers during the festive season, particularly during the period known as ‘Detty December’.

Recent data highlights how this annual celebration significantly contributes to the country’s economy.

The research by MO Africa Company Limited indicates that from November 19 to December 26 last year, Murtala Muhammed International Airport (MMIA) in Lagos processed around 550,000 inbound passengers.

Almost 90% of these visitors were Nigerians residing abroad, traveling primarily for leisure and tourism purposes.

Kayode Omosebi, CEO of MO Africa Company Limited, mentioned that his team gathered data by surveying hotels, airports, short-let agents, and nightclubs.

The research revealed that the United States, Canada, Italy, South Africa, and the United Kingdom were the top five countries of origin for visitors.

The majority of these travelers headed to Lagos, Edo, Delta, Ondo, and Ogun states, with Lagos alone attracting approximately 1.2 million tourists.

Notably, 60% of these visitors were domestic travelers, a result of ongoing insecurity in southeastern Nigeria.

The influx of tourists drove significant growth in various sectors.

Hotel bookings and short-let apartment rentals surged, with December hotel revenue in Lagos reaching N54 billion (US$36 million) from 15,000 bookings.

Short-term apartment rentals contributed an additional N21 billion (US$13 million), with nearly 6,000 bookings at an average nightly rate of N120,000 (US$74.7).

The nightlife sector also saw impressive gains. The top 15 nightclubs and lounges generated N4.32 billion (US$2.7 million), with some clubs earning as much as N1.2 million per night (US$746.7).

Additionally, beaches and resorts accounted for 70% of the N4.5 billion (US$2.8 million) generated from recreational activities.

Lagos’ event centers hosted 1,175 bookings, bringing in N1.2 billion (US$804,000), while luxury car rentals earned N1.5 billion (US$937,500) from 750 bookings.

Omosebi emphasized the increasing reliance of Lagos’ hospitality sector on cryptocurrency platforms for payments, noting that up to 85% of conversions to Naira and payments were conducted via these platforms. He suggested that with improved infrastructure and security, the ‘Detty December’ festival could contribute up to US$2 billion in foreign exchange by 2026.

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