The drop in the value of the naira
forces many summer travellers to explore other alternatives, leaving
local tourist resorts smiling all the way to the bank and airline
operators suffocating
Chisom and Chioma Onubugu watched
excitedly as children their ages walked in front of the compound
carrying buckets of water on their heads. Born and raised in Magodo, a
posh neighbourhood in the heart of Lagos, Nigeria’s main commercial
city, the siblings had never come close to such sight. Attending one of
the most expensive schools in the city and having no need to worry about
domestic chores, the kids have a life splashed with comfort. At the
close of each academic session, they are flown to Europe or the United
States of America to spend the summer holiday with relations. It is an
annual ritual Chisom, nine, and Chioma, seven, had been used to almost
all their young lives. But the soaring rate of the US dollar against the
Nigerian naira has ensured that the children had to be dispatched to
Ihiala, Anambra State, this time to spend the long break with their
paternal grandmother. For the siblings, it has been a different kind of
experience.
Mrs. Stella Onubugu, their mother, who
is warming up to go bring them back to Lagos next week ahead of the new
academic session in September, told Saturday PUNCH that the children found it quite difficult adapting to the village setting in the first one week of their arrival there.
According to her, if not for the high
exchange rate, they would have been in Munich, Germany, by now,
spending time with their relatives. However, she concedes that the
development had afforded the kids the opportunity of exploring their
father’s hometown and see life from the other side.
“The first one week was very tough for
them,” she said. “They couldn’t understand why there was always noise
here and there and why they couldn’t have electricity supply all the
time to watch television. That was not the only thing they worried
about, they sometimes would scream and run for cover whenever they saw a
goat or sheep running in front of the compound. It was a bit shocking
to them.
“On one of those days I was still in the
village with them before I came to Lagos, they saw children of
different ages carrying buckets of water on their heads one morning and
were amazed. They had only seen such in the television and not in real
life because of the type of environment we live in Lagos. That day, I
never rested from their barrage of questions.
“But after one week, they adjusted and
became used to the village setting. Their grandmother told me a few days
ago that they already have new friends and are beginning to enjoy the
life over there. The disappointment of not going to Europe this holiday
as a result of the high exchange rate has been a blessing for them. It
has in fact availed them the opportunity to explore their native land,”
she said.
Indeed, the traffic gridlock most
holidaymakers usually experience at the Murtala Mohammed International
Airport, Lagos, especially during the summer season has greatly reduced
this year.
When our correspondent visited the
airport during the week, it was observed that the check-in points were
devoid of crowd as not so many people were travelling unlike before.
And to corroborate the story, a member
of staff of Checkport, a security service company that deals with travel
documentation at the international airport, told our correspondent that
he never knew summer period could be this ‘sane’ as it is at the
airport this period.
The member of staff, who didn’t want his
name in print for personal reasons, said he and his colleagues usually
dread summer time because of the high influx of travellers they would
need to profile and check their documents.
“This is amazing. Now, I agree that the
economy is bad and it affects even the rich in this country. Before now,
people didn’t mind the high cost of living; nothing would stop them
from going on summer holiday abroad.
“This is my seventh year in this company
and this is the first time ever I see the number of summer travellers
reduced by more than 70 per cent.
“I am not saying people no longer
travel, no. People still travel. But I tell you, those who are
travelling are those who are relocating, going for medical treatment or
have something very important to do abroad. But for those going to have
fun for just a few weeks of summer holiday, the number has decreased.
“Before now, you would see so many kids
running around the airport and getting excited for the trip. But it
wasn’t the same this year. It is obvious parents decided and wisely too,
against such unnecessary expenditure. More so, we don’t even know how
the pendulum would still swing in this country in the coming weeks,” he
added.
A traveller, who identified himself as
Greg, and who overheard when the Checkport staff was discussing with our
correspondent, added that his family was a living example of people who
shelved summer holiday because of drastic high cost of living.
“I tell you, I work in an oil company in
Nigeria and I can tell you I am comfortable. But I think it would have
been stupid to go to America just to have ‘fun’ and play in the sand,
while coughing out a whopping ridiculous N3.5m for tickets alone for me
and my family in the process, something that was less than N1.4m before
now.
“I have yet to include the amount it
would have cost us to get an apartment, rent a car, shop and of course,
feed in the US. By the time we calculate the Naira equivalent with
today’s foreign exchange rate, you would know it would be foolish for
anybody to embark on such an expensive expenditure. It is not worth it
at all.
“If not that I have an important meeting
in London, I wouldn’t have gone anywhere. I was even surprised it was
my 14-year-old son that advised us that we shouldn’t bother travelling
this year because of the economy.”
Also, another member of a staff of the
Quarantine department in the airport, who pleaded anonymity, confirmed
that the number of summer travellers drastically reduced this year.
“I personally used to dread summer
period in this airport. This is the period so many travellers travel
with fish, meat and other foodstuff and you would get tired of checking
and off loading and telling them you wouldn’t travel with this or that.
“But this year, this place has been kind
of sane. The number reduced and I don’t need anybody to tell me it was
because of the economy. How many people can actually afford the high
cost of travelling abroad especially with this forex rate? This is the
first time I see the economy affecting the poor, the middle class and
even the elite,” he said.
Apart from the likes of Onubugu kids,
Moyosore and Olamide Adelaja are another set of regular travellers to
Europe and America during the summer holidays who have been forced to
spend time in their native Ilisan, a sprawling town in Ogun State, as a
result of the high exchange rate.
Raised under a relatively comfortable
roof in their Ikeja GRA, Lagos, neighbourhood, their parents – Mr. Yemi
and Mrs. Dupe Adelaja – a civil engineer and lawyer respectively, felt
spending so much money on the children’s US trip this year would put
some strain on the family’s resources especially at this time of
economic meltdown and schools set to resume in the coming weeks.
Mr. Adelaja who spoke to us
earlier in the week said he and his wife decided to use a fraction of
the amount they would have spent sending the children to the US for
summer holiday to take them to some resort centres in the South-Western
part of Nigeria before moving them to Ilisan to also savour the
tranquillity of village life.
“It was a tough decision for me and my
wife to make,” he said. “But in the face of present realities it was
perhaps the wisest thing we could have done. By the time we calculated
how much the children’s summer trip to US would cost this year, we
realised it wasn’t a sensible thing to do at this time especially with
schools set to resume in September. Besides they’ve always travelled
abroad for summer, so we felt if they missed the trip this year it won’t
make much difference.
“Already we have taken them to Ikogosi
Warm Spring Resort in Ekiti State; they really loved the place and had
plenty of fun. Right now, they are at Ilisan with their grandparents and
from the feedback I have been getting, they seem to be enjoying the
place. It is the best we can do for them at this very difficult time,”
he said.
Like the Adelajas and Onubugus, dozens
of children and even adults who regularly travel to other continents of
the world to spend summer holidays and family vacations have been forced
to explore available alternatives across the country as a result of the
high cost of purchasing the US dollar – the currency mostly used to
transact business and purchase goods globally. Pegged at around N190 to
one US dollar before the Central Bank of Nigeria introduced a new fiscal
policy last year, the disparity in exchange rate has risen steadily to
about N390 to one US dollar today – more than double the previous
amount. While many, unable or unwilling to splash out such cash now use
the opportunity to spend time in their ancestral hometowns and connect
with the local tradition, scores of others are putting a fraction of
their holiday budget into visiting known tourists destinations in parts
of the country.
According to findings by us,
major holiday destinations in parts of the country have been recording
slight increase in visits in recent weeks, pushing up income for
operators of such places.
For example, at Ikogosi, a staff
confirmed to one of our correspondents that business had been quite
impressive over the last one month and that most of their visitors had
been children and their parents who wanted a special holiday treat.
“We have been having a lot of visitors
these days, especially children and their parents who are not too used
to environment such as ours,” the official who asked not to be named,
said. “Those ones who are a bit open tell us that they decided to try
out the resort after they couldn’t take their children abroad this year
for holiday. They say Ikogosi was recommended to them by some friends
and that is why they had come here. Many of them have been impressed so
far with what they have seen here,” the source further revealed.
At a popular resort located in Ada, Osun State, the situation has almost been the same. A worker who spoke to Saturday PUNCH
revealed that the inability of many individuals and families to travel
abroad for summer holidays has been a blessing in disguise for them as
business was witnessing a sharp rise.
“People have been visiting the resort a
lot these past few weeks. But a lot of them come with their little and
teenage children, asking us what special package we have to make them
really enjoy their stay especially the young ones.
“A few days ago I overheard one of our
supervisors telling some of my colleagues to ensure that these guests
are well attended to because most of them are used to the life and
facilities abroad at this time of the year. He was saying this so that
the guests could have a positive impression about the resort and always
look forward to coming back. We are hoping that things will remain like
this and even improve so that at least our jobs can be guaranteed,” the
source said.
Destinations such as Olumo Rock, Idanre
Hills and Osun Groove in Ogun, Ondo and Osun States respectively have
also witnessed increased patronage in recent weeks, according to
findings by us. Despite the cash crunch in the
country, workers in many of these places confirmed that they had been
receiving visitors in recent weeks, many of whom disclosed how friends
recommended such places to them after they couldn’t make their annual
summer trips abroad as a result of the forex crisis.
But while operators of tourist centres
in most parts of the South-West appear to have been blessed by the
latest development, the high rate of foreign exchange has been bad news
and pains for some others.
According to the President, National
Association of Nigerian Travel Agencies, Mr. Bankole Bernard, the
significant drop in the number of Nigerians travelling for summer
holidays in Europe, America and other continents of the world as a
result of the forex crisis apart from affecting the aviation industry
generally, could lead to thousands of job losses in the sector over the
coming weeks if the situation persists.
Bernard, who explained that this time of
the year was usually the peak period of business for travel agencies
and airline operators, said most of their over 6, 000 members have been
badly affected by the lull in activities with some already contemplating
closing shop or relocating to neighbouring Ghana if things remain the
same.
“Business has never been this bad for us
at this time of the year like this which is usually when we make the
most sales on flight ticket bookings, hotel reservations and other
related services for people travelling for summer,” the NANTA boss said.
“Our members are no longer able to make any reasonable sales, the
airlines are complaining bitterly and gradually leaving our market
because they are unable to repatriate their sales proceeds, everybody is
affected. If the airlines are not around, we as vendors can’t make any
sale and consequently those working under us would lose their jobs. It
is the same for airline staff and airport workers as well; their jobs
would not exist if nobody is travelling.
“All over the world, the aviation and
travel industry, being the first point of call in any country is very
critical to the survival of an economy. But in Nigeria it is a different
story, the sector and its stakeholders are at the mercy of government
policies.
“If the issue of forex scarcity and
foreign airlines leaving the country continue, things may get worse. Go
to the airport and you would see what I am talking about, the entire
place is almost empty,” he said.
While travel agencies in Nigeria sold
air tickets worth about $1.4 billion in 2015 alone, the sector is yet to
record even half of that amount this year, leaving many in the business
confused and in distress. Since the forex crisis began, airlines have
lost around N64bn – a development that has forced at least 14 of them to
withdraw their services from Nigeria due to low patronage. Iberia,
Delta, and United Airlines are some of the brands that have left the
country’s airspace.
“The loss of N64bn by the foreign
airlines was on account of repatriating $800m stuck in the economy in
the last one year, but released after the recent devaluation of the
naira. With the devaluation, the accumulated $800m from airlines’ sales
of tickets when the exchange rate was still N197 to $1 was taken out of
the country at the new rate of N320 to $1. Consequently, a substantial
amount was lost in the process,” Bernard explained.
Regional Manager, British Airways, Mr.
Kola Olayinka, said that for every $1m repatriated since the new forex
policy was introduced in Nigeria, airlines lose nothing less than N80m.
According to him, the immediate and
unfortunate effect of the new policy is that it is affecting all foreign
airlines that have funds sitting in Nigerian banks.
Worried by the development, the Senate
Committee on Aviation earlier on Monday expressed concern over the
constant withdrawal of foreign airlines in the country as a result of
the forex crisis and scarcity of aviation fuel.
Chairman of the Committee, Adamu Aliero,
who said it was time for the sector to be unbundled to allow for smooth
operations revealed plans to summon the Minister of Aviation, Hadi
Sirika, to appear before it and explain the reason behind the crisis,
adding that the situation was embarrassing to Nigeria.
Tourism enthusiast and travel consultant, George Eleki, told us that the present situation was a great opportunity for Nigeria to
develop her local destinations and rake in huge revenue from within and
outside the country.
According to the 41-year-old, if
properly developed and equipped with modern facilities that meet
international standards, most of those who travel out of Nigeria to
spend summer holidays and other types of vacation in Europe and America
including South Africa, would begin to look inwards, thus boosting the
sector and economy with those funds.
“I expected that by now the Ministry of
Culture and Tourism and all its related agencies would have leveraged on
the opportunity created by the forex crisis to quickly invest and
properly develop some of our natural tourists centres in the country.
Many of those who travel abroad for holiday do so because the
destinations we have here are not being properly cared for. From the
North to the South, Nigeria is blessed with a lot of attractions that
can attract a lot of revenue if the right thing is done.
“At least this year the situation seems
better because from the feedback I have received from some of my
contacts in the industry, I see that there have been improved visits to
some of these destinations.
“However, a lot still has to be done to
improve the situation. This is the right time for the government and
private individuals to catch in on the opportunity to improve local
tourism. We have the terrain, the food, the culture and all that is
needed to attract the rest of the world to our land, all that is left is
just the will and sincerity of purpose to make it work. We should not
be losing what should accrue to us naturally to other nations,” he said.
The CBN, on Tuesday, increased the
maximum amount of US dollars that could be sold to Bureau De Change
operators from the $30,000 it had previously placed it to $50,000 per
week. This followed the flexible exchange rate policy it introduced in
June 2016 in the hope that it would allow market forces determine the
true value of the naira. But with the situation showing no signs of
improvement and weekly demand for the US dollar still very high in the
face of a shrinking foreign reserves battered by falling global oil
prices, airlines, travel agencies and all whose sources of livelihood
are weaved around the steady flow of travellers out of Nigeria might
continue to reel in pain while smart operators of local tourist centres
cash in on the development.
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