ABSTRACT
This study aims at the significance of the tourism industry on economic development in Nigeria. A survey was carried out in four states (Ogun, Oyo, Osun and Ekiti) by using multi-stage sampling approach. A sample size of 220 (55 from each state) was used. 212 questionnaires were received and about 203 were validated after data clearing. The study has the following as it objectives: to investigate the contributions of tourism industry on economic development, to assess the challenges facing tourism industry towards economic development of the country andto inquire the contributions of the government to tourism industry to ensure economic development. Practical and theoretical contributions of the study are discussed, with future research suggested.
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Tourism is a tool used to generate economic stability and if properly taken care of, it has the capacity of wealth creation and also empowers the people and generates employment opportunities. The sector has been the economy’s mainstay of many countries worldwide. The authors affirmed that many countries, such as France, Egypt, Greece, Lebanon, Israel, the United States, the United Kingdom, Spain, Italy, Thailand, and many island nations, such as Mauritius, Bahamas, Fiji, Maldives, Philippines and the Seychelles are seriously reaping the benefits of this growing sector. The economic contribution of tourism as at 2011 was globally put at about $6.3million in GDP with about 200 million jobs directly created, thus, showing that the industry is contributing significantly to the service economy of the world with enormous potentials for socio-economic development.
Tourism and hospitality are industries that heavily depend on human contact, with the sheer volume of traffic and increasing spending power which has resulted to a rapid economic boom and also boosted the business travel market (Joffres et al., 2004). Tourism appears to many developing countries a promising source of economic development (Smith et al., 2003). Adventure tourism, given its emphasis on pure and pristine natural environments, lower barriers to entry for small business, and frequently reduced requirements for new construction in particular, is promising for countries with lower levels of capital investment and existing infrastructure. In some places, it is already worth more, in terms of export revenues and share of GDP, than traditional commodity based or manufacturing exports, and seems to offer opportunities for employment, earning foreign exchange and encouraging investment and economic growth. Many developing countries, therefore, are prioritizing attracting Foreign Direct Investment (FDI) in their tourism sectors. However, this form of FDI is complex, and its dynamics and impacts are not well understood. Today, tourism is important to the economy of over 125 countries. Stating the benefits tourism can bring, a 2004 UN World Tourism Organization news release explained that tourism can al1eviate poverty through the creation of small and medium-size tourism businesses and as such raise "environmental, cultural and social awareness". International tourism has become one of the world's largest and most rapidly expanding economic activities and tourism has now become an important and dynamic sector of the economy in many countries particularly developing countries that depend on primary exports like Nigeria.
Traditionally, tourism was placed below manufacturing or agriculture in terms of economic development potential since it was not seen as a significant or appropriate source of growth (Walle, 1997). In contrast, today, there is a significant re-appraisal taking place, which values tourism as a potential means of earning export revenues, generating large numbers of jobs including for young people and women promoting economic diversification and a more service-oriented economy, helping to revive urban areas and cultural activities, and opening up remote rural areas. Adventure tourism, although not called out specifically in this study, clearly has an edge over other forms of tourism in its ability to attract young business entrepreneurs and in addressing specific consumer demands also values and rewards local cultures; A significant part of tourism’s development potential stems from the fact that it links together a series of cross-cutting activities involving the provision of goods and services such as accommodation, transport, entertainment, construction, and agricultural and fisheries productions. Its industry structure encompasses a wide diversity of players, ranging from global TNCs to MSMEs. This enables participation in the industry at different scales and levels of the market; On the other hand, tourism has its downsides like; vulnerability to external shocks economic, environmental and political; ability to create problems of its own such as social and economic costs to communities and to the environment; potential low wages and a lack of good human resource development practices; and an association with an undermining of traditional values.
It has been discovered that in America, tourism served as an important source of tax revenue for local jurisdictions and this led to higher quality public services and lower local tax rates (Brown, 2009). Studies by scholars such as Rilley and Love (2000), Aniah et al. (2009) etc, have shown that tourism can be an important source of jobs creation and also offers business opportunities to local residents as well as but it can serve as firms to yield returns to start business locally. Tourism was also said to support local culture in rural areas by encouraging restoration of local and regional historic sites and a relatively clean industry that fostered local conservation efforts. With the establishment of tourist attractions centers such as Arguagu fishing festival, the Rafia (weaving) village of Ikot-Ekpene, the dye pits of Kano, the Yoruba Adire and Aso-oke traditional textile and community development and found that while local people were generally happy with tourism development in their community, the motivation for their participation in tourism activities was more of community driven than on their economy.
1.2 Statement of the Problem
Over the years in Nigeria, there has been so much dependence on crude oil exports and the growth of, the nation has been subjected to whatever fluctuations that take place in the oil sector. To generate a stable growth rate, the economy would have to be diversified to minimize the impact of changes in the crude oil industry. For most of the last three decades, economic growth in Nigeria has been very unsteady; it is being driven majorly by oil sector. It is obvious that discovery of oil has contributed to the negligence of other sectors like agriculture, manufacturing, tourism. In this regard, Nigeria economy has been characterized has mono-product, or an economy that is faced with Dutch disease2. More generally poor governance and corruption among other factors have been the cogs to the wheel of progress towards economic growth and diversification of Nigeria economy.
In view of this, the government can increase production in the non-oil sector of the economy by creating a level playing field for private sector led activity. The increased economic activity in the non oil sector will support stronger and steady increases in real GDP-growth. Such non oil sectors identified to achieve this include; Agriculture and Agro business, Solid minerals development, manufacturing, Natural Gas and Tourism. Tourism is now viewed as one of the key sectors to achieve economic development in Nigeria.
1.3 Research Questions
The following are some of the questions which this study intends to answer:
i) What are the contributions of tourism industry on economic development?
ii) What the challenges facing tourism industry towards economic development of the country?
iii) What are the contributions of the government to tourism industry to ensure economic development?
1.4 Objectives of the Study
The main objective of this study is to investigate the significance of the tourism industry on economic development of Nigeria. The specific objectives and are:
i) To investigate the contributions of tourism industry on economic development.
ii) To assess the challenges facing tourism industry towards economic development of the country.
iii) To inquire the contributions of the government to tourism industry to ensure economic development.
1.5 Research Hypotheses
Ho1: There is no significant contribution of tourism on the economic development in Nigeria.
Ho2: There is no significant contribution of the government to tourism industry to ensure economic development.
1.6 Significance of the Study
This study is designed toinvestigate the significance of the tourism industry on economic development of Nigeria. It is also intended to find out the challenges facing the contributions of tourism industry in the country.
1.7 Scope of the Study
This study investigates the significance of the tourism industry on economic development of Nigeria; it will therefore be carried out in some major tourist centres in the south western states in the country like the Erin Ijesha Waterfall in Osun State, Ikogosi Warm Spring in Ekiti State, Olumo Rock in Ogun State and The Old Oyo National Park in Oyo State.
1.8 Limitation of the study
The study will be faced with a lot of challenges and one it the problem of finance. There is not going to be enough funds to print questionnaires and to also transport the researcher to meet the desired respondents. Another one is time; the researcher is currently busy with the demand of his academics. A lot of assignments are available for the researcher to do and coupled with his desire to read and learn at the same time. These are the major challenges of this study.
1.9 Definitions of Terms
The following terms were used in the course of this study:
Tourism: is travel for pleasure or business; also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours.
Economic development: This is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time.
