Middle East Turmoil: Travel Bookings Nose-Dive by Nearly Half

The National Association of Nigerian Travel Agencies, NANTA, expressed its discontent with the ongoing crisis in the Middle East on Monday, stating that its members have experienced a significant decline in ticket sales, with losses ranging from 30 to 40 per cent due to disruptions in travel demand.

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This downturn has been further exacerbated by the substantial ticket refunds resulting from the war in the Middle East, according to the association, which also criticized the practice of some foreign airlines selling tickets in Nigeria exclusively in dollars.

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Yinka Folami, President of NANTA, condemned this practice, describing it as a hindrance to Nigeria's development and a sign of disregard for the country's currency.

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During a press conference in Lagos, held in advance of the association's 50th Annual General Meeting scheduled for April in Ibadan, Oyo State, Folami emphasized that while Bilateral Air Service Agreements and Open Skies Agreements may permit some foreign airlines to conduct transactions in foreign currency, completely excluding the Naira from transactions in Nigeria is unacceptable.

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Folami argued that the decision to operate solely in dollars in Nigeria constitutes economic distortion and undermines the government's efforts to stabilize the Naira and restore investor confidence.

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He noted that it is not only American airlines that sell tickets in dollars in Nigeria, but rather that the exclusion of the Naira from these transactions is a sign of disrespect towards the currency.

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Folami emphasized that he is not opposed to airlines selling tickets in dollars, but rather that they should also provide the option to trade in Naira.

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He cited the example of smaller countries that look up to Nigeria, stating that when this issue was raised in Kenya, the response was that it was impossible to exclude the local currency from transactions.

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Folami reiterated that the association is seeking the option to trade in both dollars and Naira, and that this would be a sign of respect for the Nigerian market and currency.

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The association is working closely with regulatory bodies, such as the Federal Competition and Consumer Protection Commission, to address complaints and provide feedback that supports enforcement actions against foreign airlines that mistreat Nigerian passengers.

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Daisi Olotu, a trustee of NANTA's Lagos Zone, lamented the excessive taxation imposed on travel agencies by government authorities, arguing that agencies are often taxed on their total ticket sales turnover rather than their actual earnings or commissions.

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Olotu disclosed that taxes and charges can account for up to 50 per cent of the total cost of an international ticket, placing additional pressure on both agencies and travelers.