The Tourist Company of Nigeria PLC (RC3781)
2022 ENVIRONMENTAL, SOCIAL &
GOVERNANCE REPORT
ENVIRONMENTAL SOCIAL RESPONSIBILITY UPLIFTMENT
PROTECTING OUR PEOPLE
ETHICS
TRUST AND
PASSION
2022 THE TOURIST COMPANY OF NIGERIA PLC Environmental, social and governance report | 1 |
The Tourist Company of Nigeria PLC (RC3781)
STRATEGIC LEADERSHIP
At The Tourist Company of Nigeria Plc (TCN) we are committed to a business strategy that incorporates economic, environmental, and social factors as incorporated into our organization's policies, practices, and processes to enable the shared value addition with long-term benefits for the respective external and internal stakeholders while being mindful of conserving and protecting resources as is demonstrated by our environmental, social and governance (ESG) activities.
Our sustainability journey continues to evolve as we face numerous challenges owing to the uncertainties due to impact that the Russia- Ukraine conflict may cause a deterioration in the trading environment through amplified inflationary pressure fueled mainly by rising food, diesel, and gas prices and supply disruptions. Albeit there is an overall steady improvement in the worldwide hospitality trading environment, we continued to assess and adjust our business model to expand on the cost saving initiatives leant from the challenges borne out of the pandemic to ensure a continued sustainable business strategy.
This includes a holistic ESG focus, allowing us to measure, monitor and evaluate our contribution towards minimising our impact on the natural and social environments we operate in, while ensuring sustainable value creation for all our stakeholders.
Our strategy included: improving our existing operations and our guest experience; protect our existing assets; grow our revenue streams, governance and sustainability and our people. During 2022, our strategic objectives were refreshed to align with our current operating environment and strategic outlook.
FORWARD-LOOKING STATEMENTS
This report may contain certain forward-looking statements other than the statements of historical fact, which cannot be construed as reported financial results. Investors are cautioned not to place undue reliance on any forward-looking statements contained herein, as they have not been reviewed or reported on by the company's external auditors. Such statements may include predictions of or indicate future earnings, objectives, savings, events, trends or plans based on current expectations, forecasts and assumptions. As with any forward-looking statement, prediction or forecast, there are inherently unexpected events which could cause uncertainty and unexpected change which have not, and could not, be accounted for. Whereas the company has made every effort to accurately and
reasonably ensure the accuracy and completeness of the information contained within this report, any forward-looking statements speak only as at the date that they are made. The actual results may vary materially from those expressed or implied and the company undertakes no obligation to publicly update or alter these or to release revisions after the date of publication of this report.
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The Tourist Company of Nigeria PLC (RC3781)
These strategic objectives are:
CUSTOMER
CENTRICITY
PEOPLE AND | OPERATIONAL |
EXCELLENCE AND | |
CULTURE | |
EFFICIENCIES | |
ENVIRONMENTAL, | MAXIMISE |
SOCIAL AND | SHAREHOLDER |
GOVERNANCE (ESG) | VALUE |
While ESG remains a distinct and significant objective, it is important to note that these ESG principles are woven into the fabric of all our other strategic goals.
We are steadfast in our pursuit of strategies that position us as leaders in sustainable environmental management within the hospitality sector. This includes addressing critical issues such as ensuring a sustainable energy supply in the face of rising energy costs, maintaining water quality and availability, and tackling growing concerns related to the scarcity of certified waste contractors and the volume of waste destined for landfills
Our dedicated team serves as the primary point of contact for our guests and customers, entrusted with curating unforgettable experiences. They truly represent the essence of our business, serving as its beating heart. Despite the trials of a challenging operating landscape, the unwavering resilience and determination of our team have been instrumental in maintaining our status as a thriving enterprise, consistently delivering exceptional experiences to all our guests. Our recently launched Sun Stars reward and recognition program will illuminate the exceptional efforts of those who consistently exceed expectations.
TCN remains steadfast in prioritizing the health, safety, and well-being of our employees and guests. We are pleased to report that for the year under review, there were no severe injuries or fatalities, affirming our commitment to maintaining a safe and secure environment.
The board remains steadfast in its commitment to foster an ethical culture that starts at the highest levels and actively engages with all stakeholders. We wholeheartedly embrace the fundamental governance principles of integrity, responsibility, fairness, transparency, honesty, and accountability for the benefit of all our stakeholders. These principles are integral to safeguarding our long-term sustainability and enabling us to continually create value for our stakeholders.
We extend our gratitude to our dedicated employees, whose unwavering commitment to elevating the customer experience has resulted in countless unforgettable moments for our cherished guests.
Chief (Dr) Anthony Idigbe, SAN | Mr David Kliegl |
Chairman | Executive Director |
28 July 2023 | 28 July 2023 |
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The Tourist Company of Nigeria PLC (RC3781)
SUSTAINABLE VALUE CREATION
Our ESG dimensions rest on the ethical principles of avoiding and or minimizing harm and optimizing benefits to all respective stakeholders within our operating environment. TCN's continuous efforts assist in minimizing environmental impact on our society and community and avoiding waste in all its forms wherever possible. Our successful sustainable value creation is aided by layer of checks and balances within the organization covering the Company's Board, Management and Investors, to enhance operations and the deliver optimal value creation and leaving a positive environmental and social footprint and throughout.
OPERATING ENVIRONMENT
Our macro-operating environment remains subject to ongoing influences from both external and internal factors, many of which lie beyond our immediate control. These factors encompass economic conditions, regulatory dynamics, and industry trends specific to Nigeria. Additionally, we confront the persistent challenges of escalating inflation rates, disruptions in our supply chain, surging energy costs, currency devaluation, and the enduring impacts of global conflicts that reverberate across our operational landscape. It is within this ever-evolving operating environment that we continually shape and refine our strategic approach, allowing us to adeptly respond to these trends as we chart our path forward.
Economy
Global
conflicts
Gaming &
HospitalityRegulation
industry
GLOBAL CONFLICTS
IMPACT IN 2022
Before the onset of the Ukraine conflict,
TCN diligently monitored the repercussions on recovering markets still grappling with the aftermath of COVID-19. This proactive approach aimed to equip us with the insights needed to enhance our preparedness for potential contingencies that could adversely impact the operations of Tourist Company of Nigeria Plc (TCN).
COMPANY INTERVENTIONS:
Cost optimization
OUTLOOK:
The swift escalation in global food and energy costs, stemming from the Ukraine invasion, will persist in influencing the company's trading outcomes. In light of this, it remains imperative that we steadfastly adhere to our energy conservation, fuel management, and cash preservation protocols.
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The Tourist Company of Nigeria PLC (RC3781)
ECONOMY
IMPACT IN 2022:
The National Bureau of Statistics (NBS) estimates Nigeria's economic growth at 3.52% in 2022 from the 3.98% increase recorded in 2021. Accordingly, in its National Gross Domestic Product report for Q4 2022, Nigeria's Gross Domestic Product (GDP) grew by 3.52% (year-on-year) in real terms in Q4 2022, showing a sustained positive growth for the Q4, albeit lower than the prior year growth of 3.9%.
Nigeria's Gross Domestic Product (GDP) grew by 3.52% (year-on-year) in real terms in the fourth quarter of 2022, following a growth of 2.25% in the third quarter of 2022 and 3.98% in the fourth quarter of 2021. The GDP performance in the fourth quarter of 2022 was driven mainly by the services sector, which recorded a growth of 5.69% and contributed 56.27% to the aggregate GDP. On the other hand, although the agriculture sector grew by 2.05% in the reference period, severe incidences of flood experienced across the country severely hampered performance, accounting for lesser growth than the fourth quarter of 2021, which was 3.58%. Moreover, the industrial sector experienced challenges, recording -0.94% growth and contributing less to the aggregate GDP than in the third quarter of 2022 and the fourth quarter of 2021. Overall, the annual GDP growth rate in 2022 stood at 3.10%, from the 3.40% reported in 2021. Thus, the performance of agriculture and industry reduced in 2022 relative to 2021, while the services sector improved in 2022.
The January 2023 World Economic Outlook Update projects that global growth will fall to 2.9 percent in 2023 but rise to 3.1 percent in 2024. The 2023 forecast is 0.2 percentage point higher than predicted in the October 2022 World Economic Outlook but below the historical average of 3.8 percent. Rising interest rates and the war in Ukraine continue to weigh on economic activity. China's recent reopening has paved the way for a faster-than-expected recovery. Global inflation is expected to fall to 6.6 percent in 2023 and 4.3 percent in 2024, still above pre-pandemic levels.
COMPANY INTERVENTIONS: | OUTLOOK: |
Ongoing cost efficiencies and optimization. | We are committed to ensuring the Company's profitability and |
applying solid strategies to compete on the price and quality of the | |
hospitality services rendered to customers and maintain the | |
property to the highest standard. |
GAMING & HOSPITALITY INDUSTRY
IMPACT IN 2022:
Despite the myriad challenges faced, TCN achieved commendable performance and experienced notable growth, particularly with a remarkable 57% increase in hospitality revenues. Furthermore, our gaming revenues also demonstrated substantial growth, achieving a 28% upswing. It's worth noting that the hospitality industry remains significantly influenced by the elevated travel costs and the constrained disposable income of consumers, stemming from financial uncertainty and various other socio-economic factors
COMPANY INTERVENTIONS:
- Implemented a new website booking engine
- Continued Global Hotels Alliance participation- world's largest alliance of independent hotel brands network.
- Focus on local leisure in the absence of
international travel options.
•
OUTLOOK:
Although economic challenges are expected to persist in the foreseeable future, the combination of soaring international air travel costs and the devaluation of the Naira has constrained travel options. This situation positions our hotel favorably to accommodate the growing number of domestic leisure guests.
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Tourist Company of Nigeria plc published this content on 11 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 October 2023 09:54:22 UTC.