In the complex web of global connectivity, the relationship between aviation and tourism is pivotal. The relationship between these two industries is not just about transportation; it’s a catalyst for economic growth, cultural exchange, and societal development. For instance, the value chain of Nigeria’s tourism economy is vast, ranging from the hospitality sector to aviation and transportation, destination management, souvenir production, event packaging, carnivals, festivals and cultural promotions, among others. The opportunities of leveraging this key growth sector to create jobs, shore up revenue and add to the nation’s GDP are limitless.
Understanding the interdependence of aviation and tourism is crucial to unlocking the vast potential of the tourism sector and enhancing the aviation industry to support this growth. The new Ministry of Tourism offers the required growth structure for promoting the country as a destination of choice for many across the world, particularly as the demand for Nigerian tourism is strengthening and gearing up to surpass the 2018 pre-COVID levels when international tourist arrivals accounted for over 2.2 million people with receipts in excess of $1.4 billion. Globally, tourism has recovered by 80 percent of its value post-COVID, while Africa has recovered by as much as 88 percent. The opportunities for domestic growth in the sector are, therefore, very apparent.
There is optimism that domestic tourism, which is six times larger than international tourism and constitutes more than 70 percent of tourism markets, will result in an increase in inbound tourism. This will be virile for the economic development of Nigeria’s rural communities, where a lot of tourist sites are located. Similarly, growth in major tourist destinations, particularly urban destinations, will also stimulate air transport demand and strengthen the air transport supply remarkably. As demand is recording consistent growth and the same trend is forecasted, the destinations will be pressurised to expand the aviation infrastructure as well. Once better infrastructure is implemented, all forms of aviation services, such as LCCs, Full-Service Carriers (FSCs) and Charter Airlines, will see the scope of increased services.
By the second half of the last century, the majority of international tourists now depend on the mode of air transport for their onward and return journeys. Almost in the same era, tourism too got into a new stage of evolution, often remarked as the beginning of modern tourism. Both sectors have grown together to become large economic sectors in the world towards the end of the 20th century. In the new millennium, the new airline business models and the increasing rate of dynamism in it, along with a few other factors, spurred tourism growth further to become one of the top five economic sectors in the world. There exists an inextricable link between both sectors, and it is of paramount importance to discuss the interrelationship between both sectors in depth.
The terms “travel” and “tourism” are often used interchangeably to denote the movement of people from one place to another for visiting, primarily to return to their original place. Yet, while considering it as one of the largest economic sectors, the term “tourism” is used as a comprehensive one to encompass a range of industries that provide the services and products to cater to the travelling population. Tourism has evolved as a major socio-economic sector in the world from the basic urge of people to move, which has existed since the early era of the evolution of human beings and has grown over the last several centuries. Therefore, from a historical perspective, travel is the root cause of tourism.
Air transport is considered an ideal mode of transport in international tourism, and travellers benefit from better transportation and accessibility as their trips become more accessible and more comfortable. Furthermore, a good aviation system can reduce travel costs by improving efficiency, increasing airline competition, lowering operational expenses, and making destinations more accessible. However, it can also raise costs if significant investments are made in airport infrastructure, as these expenses are often passed on to passengers through higher fees or taxes. During peak travel periods, increased demand can drive up ticket prices, and compliance with aviation regulations, such as environmental standards, may also add to costs. Additionally, premium services like business or first-class seating can further increase travel expenses.
International tourist destinations now increasingly depend on air transport for tourism flows. A fluctuation in air transport demand directly affects the tourist flow into the destinations. Air transport is the prime transport mode in many destinations, and up to 100% in some of the destinations, and cheap air services constitute a driving force in tourism growth. Airlines are instrumental in channelising tourism demand, and they perform the task of transporting tourists from the city of origin to the destination and, in return, utilising the services of airports, another major segment in the air transport sector. “Without airlines, some continents, many countries, regions, and islands would have remained inaccessible for most of us, and even established destinations would have had far fewer tourists”.
The affordability of air transport directly impacts air travel and tourism demand, as the greater the affordability, the greater the demand for travel and tourism. The increasing rate of affordability of air transport among more sections of society has been contributing well to the rising demand for tourism worldwide. Travel is fundamental in the process of tourism, and international tourism involves covering more distances and crossing borders. Air transport is the preferred mode of transport in the arena of international tourism; this trend has been increasing for several decades. While we analyse the tourism demand trend and the cost factors involved, one comes to notice that travel costs, particularly international travel costs, are one of the largest. For many destinations, travel costs are still acting as a major bottleneck in the progress of tourism. The affordability of air transport, especially in the case of leisure tourism, is a determinant in tourism demand, as leisure tourists are price-sensitive.
The incredible growth of tourism created profound impacts on air transportation in multiple ways. The air transport industry depends on diverse sectors to generate demand, and of those sectors, tourism is a major one having varying effects. In addition to the inducement in the air travel demand, tourism progress could alter the global geographical spread of the aviation sector, changes in the industry structure, shifts in traffic flows, industry expansion and quality and efficiency enhancement. In some regions, the effect on air transport demand is high, like in the case of remote and island international tourist destinations.
The developments in the tourism sector are reflected in the air transport sector as well. Certainly, the phenomenal expansion of the tourism industry at the global level has had a critical effect on the air transport geography. The growth rate in air traffic is also pegged with rising figures in international tourist arrivals for the last seven decades or so. From an economic perspective, in addition to the revenue potential, tourism contributes a share in generating employment opportunities of varied kinds within the air transport sector.
Tourism has enormous economic significance, and its development necessitates the development of transport infrastructure as well. As part of tourism development, developing airports, creating a multimodal transport system, enhancing interconnectivity, negotiating for international connectivity through air service agreements, etc., become inevitable for the host country/region. All of these factors can help the aviation sector flourish further.
Bringing it back home
Nigeria possesses immense tourism potential. Unlocking this potential heavily relies on an efficient, robust aviation sector. Air transport remains one of the most vital modes of international travel for tourists visiting Nigeria. The Nigerian aviation sector faces several challenges that hinder its ability to fully support and enhance the tourism industry. Inadequate infrastructure, high operational costs, regulatory constraints, safety concerns, and limited connectivity within the country are among the significant challenges.
However, leveraging the Open Skies Agreement and the Single African Market can potentially transform Nigeria’s tourism landscape by removing restrictive air travel regulations. This will foster greater connectivity and accessibility in the movement of international tourists to explore Nigeria’s tourism assets. Improved air transport infrastructure, combined with streamlined visa processes, will attract a larger number of visitors, providing a significant boost to the tourism industry.
Furthermore, a functional Tourism Development Fund and an enabling environment for tourism investors to thrive and drive the development of tourism sites, assets, and destination marketing are needed. Financial institutions should also be incentivised to act as partners in progress by providing single-digit long-term development loans to the industry.
A strengthened aviation sector can exponentially impact Nigeria’s tourism landscape. Enhanced connectivity, improved infrastructure, and streamlined operations will attract more tourists, boost revenue, create employment opportunities, and stimulate economic growth across various sectors. Additionally, a thriving tourism industry can help showcase Nigeria’s cultural heritage, natural beauty, and historical sites globally, attracting diverse tourists and fostering cultural exchange.
Conclusion
The synergy between aviation and tourism is a catalyst for Nigeria’s economic growth and global visibility. By addressing the challenges faced by the aviation sector and implementing strategic improvements, Nigeria can unlock its tourism potential, attracting more visitors, fostering economic development, and promoting cultural exchange. Collaboration between the government, industry stakeholders, and international partners is key to realising this vision and propelling Nigeria towards a brighter tourism future.
Author: ACoE Marketing
Contact Person: Adebola Bello