A new normal is underway for the Nigerian hospitality sector in 2021, following the impact of the Coronavirus Disease, analysts, according to a report by Proshare, have said.
The COVID-19 has been known as harbinger of new normal in different human endeavours, especially business.
According to the report, the lockdown and social distancing measures pursued by the Nigerian government impacted negatively on the country’s hospitality sector.
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Low revenues were recorded across the entire hospitality ecosystem, the analysts added.
“The growth in the hospitality sector would be slow in 2021, hampered by the slow growth of the economy (estimated in some quarters to be between 2.1 per cent and 2.5 per cent in 2021), a decline in consumer disposable income, slow start to COVID-19 vaccine, a decline in consumer confidence and the enforcement of social distancing rules,” they stated.
The 2020 full year financial statements of Ikeja Hotels showed that the company recorded a loss of N1.75bn, while Capital Hotels and Transcorp Hotels lost N266m and N8.93bn respectively.
“Businesses that were concerned with staying relevant during the tough times had to re-imagine, re-strategise and re-think their business models to adapt, boost strategies and stay relevant during the pandemic,” the report quoted the analysts as saying.
The analysts were, however, optimistic that revenue of companies in the hospitality industry would improve in 2021, on the back of a full re-opening of the economy and COVID-19 vaccination.
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