VALUE PROPOSITION - RAISE A TOURISM BOND IN 2015, SAYS SALLY UWECHUE-MBANEFO, DG, NTDC

Tourism is about providing assets for people to invest in. But people will not invest in assets unless there is a revenue stream from that investment and a return on their capital. What are the assets we have in Nigeria? Nigeria is blessed with waterfalls, caves, hotels, parks, sandy beaches, large lakes, and historic sites. Nigeria is able to offer a range of tourism experiences applicable to the general holidaymaker as well as the traveller looking for something off the beaten track. To invest in tourism there must be clarity on how people can invest their tourism dollars for a fixed period, how they can monetize this tourism investment and how they can see a clear path for exit or onward – sale of their investment if need be. My idea is to identify for investment, tourism projects aimed at specific tourists and to create an enabling environment that respects and encourages this investment.

And the first step is to identify six projects in the six geopolitical zones that will benefit from investment and bring these investments up to a world – standard. I see a read-across for Nigerian tourism with countries like Morocco, Tanzania, Vietnam, Zambia, Rwanda, South Africa, parts of the Caribbean and even Peru in terms of creating a unique experience not to mention beach experience and golfing experience, where with the right type of investment will provide alternatives to Morocco and parts of the Caribbean. We are a friendly nation welcoming of visitors. Once identified, I intend to put the six (specific) projects into a prospectus which should be a document that forms the compendium of opportunities we are inviting people to invest in.

To generate revenue we would need to achieve a world standard tourism experience. To do this we will target for cooperation those who have had experience managing emerging markets tourism experiences and turning those into benchmarks that attract hundreds of millions of tourism dollars annually. Tourism in Nigeria is where telecoms was, say twenty years ago. Today as an investment proposition Nigerian telecoms is probably the best in the world. The same will be said of tourism in 5 – 10 years from now if appropriate measures and initiatives are taken

The investors will be given long term tenure for their investment and where applicable the underlying asset will either revert back to the government after the project investment period lapses or continue with the pioneer investor once revenue has been created for the government and a generous return on capital achieved for the investor.

With this plan we can achieve Nigeria's goal of being tourism destination hot spot where people come to spend their dollars, yen, euros, yuan, rand, ringgits and British pounds and this is achievable within 5 – 10 years  

But first, we must define what makes the world class standard experience unique to Nigeria. We cannot be everything to everyone from day one but we can entice them by knowing what they want and what there alternatives are.

What we want to create is a must – have experience that meets a world – standard benchmark for these tourists and investors.

For example, a tourist may have seen the slave trade story from other African countries' perspectives but the story is not complete until they have visited Nigeria for the last part jigsaw. They may enjoy golf and so want to be playing in sunshine which we have an abundance of, but be surrounded by first-class amenities at a price that represents value. The tourist may want to travel across water to an offshore beach resort just as he does in Tanzania or Zanzibar. He or she may want an ecological experience and yet know that when they get back to base they too have comfort, a great meal and seamless internet connections. The tourist may want a well-planned tour of durbars and festivals but know that at each place he will be spending the night in comfortable world – class accommodation that enhances the experience. We want to create family – holiday destinations whether these are at beaches; water parks or even focused around Nigeria’s numerous lakes. There are ideas that we need to focus and galvanize to create a product that meets all health and safety requirements.

WHY A BOND?

We intend to launch a tourism bond underpinned by what will be a secure revenue –stream generated from a prospective tourism development levied on departures. The bond will give us the money we need for investment in the six projects today and these investments will create jobs; careers, transfer of skills and the right product. The yield on the bond will recognize that we want investment and recognizes where we are on the tourism ladder today. It’s all about upside.

WHAT DO WE HAVE TODAY?

In Lagos for example, we have Lakowe Lakes Golf and Country Estate. We have a burgeoning resort at Epe Health Resort and Spa that aims to be a market leader. We have Old Lagos which we should use to create a heritage experience full of small café’s. We can partner with Lagos State to make Old Lagos a heritage site with good access and paved roads and sidewalks. There could be a law that protects the heritage of those (historical) buildings in the old Lagos and whose architecture tells a compelling story that is of interest to many people around the world.

In Abuja for example we have Jabi Lake which is a tourism gold-mine which must be developed by tourism investors that the bond will attract.

In Obudu Mountain Resort Calabar we have ecological experiences that require further investment to make it comparable with ecological experiences in Rwanda and Uganda and Zambia.

In Rivers and Bayelsa we have hotels to be renovated and turned into real 5-star experiences. We have riverine communities in which boating experiences can be turned into a world – class product.

The Festivals and Durbars of the North are a rich and vibrant tapestry of color and enchanting mystery that is sought after around the world. 

The vast geographical features of Nigeria have long been an object of fascination for people around the world who want to spend a great deal of time enjoying its inherent assets.

These are just some examples.

WHAT OTHER PRODUCTS CAN WE OFFER FOR SALE TO TOURISM INVESTORS?

Sports Tourism - Polo is a huge selling point for Nigeria. But we must have a world class standard because Polo lovers are so passionate and can travel anywhere for a polo game experience.  

Art Tourism – Art, sculpture is also a selling point for Nigeria, where if properly nurtured the bespoke tourist looking for that experience will pay his or her hard earned money to Nigeria to enjoy that experience.

We have a fast growing middle class who want to enjoy their lives and want to spend their hard earned money but want in turn, value for their money. They do not want to be cheated. We need to create and develop top quality tourism products for them and their families. That is why we want to launch a bond.

THE WAY FORWARD
In 2015, we intend to form a tourism committee, and I would like for Mr President and the minister to form a committee with people with international exposure to contribute to the new tourism journey. I would like for Mr President to give them a 6 – month tenure to come up with a template.

TOURISM - A VALUE PROPOSITION

Historically, tourism in very much where the telecom industry was 20 years ago, and as a value proposition, it is an attractive investment. My role and the role of the committee is to answer the tourism question in terms of creating viable business opportunities for investments that enhance the Nigerian tourism experience. Being a business, we must not forget that investors must see appreciable value and a handsome ROI (return on investment). For the investor it is not just about a Durbar, a Sango Festival, a New Yam Festival, or a beach, it is about a sustainable business with handsome returns.

EMPHASIS

Nigeria cannot remain a mono hydrocarbon economy. We must create and exploit our other natural resources which are our landscape, our dynamic people, our plethora of young people, our sunshine, our lakes, our beaches and our warm friendly nature in order to attract the billions of tourism dollars looking for destinations and looking for choice. Tourism should rightly be a considerable contributor to our GDP. As an investment value – proposition it is unrivalled.

HOW WOULD YOU CONCLUDE

I would conclude by saying that tourism is an imperative for healthy living and not just a pastime. Rest and relaxation are the cornerstone of any civilized society. Nigeria needs to ratchet up this asset we have and make Nigeria open for tourism business in a meaningful way. Government should not and cannot do this but Government should create the right enabling environment and investment incentives that foster investment. Government owns tourism assets which are underutilized or underperforming. Investment in these is required.

For 2015, we are talking with and partnering with State Governments, oil companies, the manufacturing sector and banks to see what role they can play. We are looking at issuing a bond.   We would like to partner with strong brands like General Electric (GE) and brands like AEG to create music venues for our youths. Attached to these venues will be streaming rights so both investor and artists make money and the world gets an on-line insight into what a vibrant country Nigeria is. As mentioned, we will be talking to oil companies to partner to create recreational experiences and similarly to banks on what they need for their staff and families and see how we can partner with them to build something bespoke that will be branded by them and form the nucleus for wider investments. In all of this the bench-mark is WORLD STANDARD. Nigerians expect so much more today in the 21^st Century and don’t want to be cheated. Tourists around the world expect similar because they have choices and it is not ‘by force’ they come to Nigeria.

It is my job to point Government in the right direction in order to create the right enabling environment because Nigeria is a destination for Polo lovers, golf lovers, eco-tourism, sun sand and beach experiences, music lovers, heritage lovers, people who love being around lakes and for domestic tourism couched both in term of short and long term breaks. Others are interested in the history of Nigeria, for example, the Benin bronzes; our natural caves and waterfalls. Every tourist has a requirement and Nigeria’s other natural resource can provide everything.

I want Nigeria to be a Country where people can work, live and holiday, and it must be comparable to what other countries in the Far East, in South Africa, East Africa have to offer. Tourism is not a luxury but is a modern social imperative.

Tourism is and must be a major contributor to Nigeria’s GDP. Tourism creates jobs, capacity and career opportunities for our youth. Taking a holiday to rest and be with family is extending our lives and building strong family units. Tourism creates well – being. All work and no holiday leads to a stress-filled life and short life span.