ASSESSING THE SIGNIFICANCE OF THE TOURISM INDUSTRY ON ECONOMIC DEVELOPMENT OF NIGERIA (A CASE STUDY OF JOS, PLATEAU STATE)

Description

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

          Tourism involves the movement of people from their places of residence to new locations. It is the temporary movement of people to destinations outside their normal places of work and residence the activities undertaken during their stay in those destinations and the facilities created to cater for their needs. Economic growth is the increase in capacity of an economy to produce or increase in the value of goods and services produce by an economy.

Tourism is a salient platform for diversifying the economy of developing countries among which Nigeria is not exempted. It also enhances tranquility among countries that participate in tourism. Economic growth on the other hand is an important factor in the economic success of any nation; this is because economic growth has to do with the long-run rise in the capacity of a nation to supply increasingly diverse economic goods to its population using advanced technology. The day-to-day concerns of economic growth arises out of the fact that the greater the growth of the economy, the greater other things being equal, the increase in the level of well being of its populace (Bannock et al 1972).

Tourism industry is recognized by specialists as a sector which support and sustain economic growth recording important increases in different parts of the world. It has proven effectiveness as an agent for sustainable growth both in developed regions and in developing or poor regions (e.g. Africa or Asia). Tourism as a distinct component of the tertiary sector are closely correlated with the level and pace of growth of the economy in general and of each branch of activity, in particular trade, transport, construction, agriculture. Researchers and academics on the one hand, but also the tourism operators support the idea that tourism is a tool for economic growth.

According to Rostow (1962), economic growth passes through five stages in all economies as they, go through their development from fairly poor agricultural societies to highly industrialized mass consumption economies. Nigeria falls among the category of countries that are less developed (LDCs) and has been working her way towards economic growth. Among, the obstacles to Nigeria’s economic growth are the problems of statism and rent seeking, an unsupportive business environment, unstable and unsustainable macroeconomic policies and the turbulent nature of Nigeria’s transition from military to democratic civilian government (King, 2003).

Today, tourism is important to the economy of over 125 countries. Highlighting 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.

1.2     STATEMENT OF THE PROBLEM

Nigeria has over these years experienced boom-bust economic cycle which is directly related to over reliance on crude oil exports. So much dependence has been 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 disease. 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.

1.3     OBJECTIVES OF THE STUDY

The main objective of this study is to assess the significance of tourism industry on economic development of Nigeria. The specify objectives include the following:

1. To examine whether tourism enhances economic development of Nigeria.
2. To investigate the contribution of tourism industry towards economic growth of Nigeria.
3. To examine possible constraints to tourism development.

1.4     Research Questions

The following research questions were stated to guide this study:

1. Does tourism enhance economic development of Nigeria?
2. What is the contribution of tourism industry towards economic growth of Nigeria?
3. Are there any possible constraints to tourism development?

1.5     Research Hypotheses

The following research hypotheses were formulated to guide to guide this study.

Hypothesis 1

H₀:     There is no significant relationship between tourism and economic development in Nigeria.

H₁:     There is no significant relationship between tourism and economic development in Nigeria.

1.6     Significance of the Study

This research work highlights the assessment on the significance of tourism industry on economic development of Nigeria. Thus, this study would at a wide-range be of benefit to the society at large, as it would highlight the importance of tourism industry in the society.

This study would also be of benefit to employers and employees of tourism site in Nigeria.

It would also be of immense benefits to all the visitors who visit various tourist attraction sites in the state which are classified or grouped as national parks, museums, antiquities sites and cultural events as well as Share Hills being one of the tourist sites.

It would also be of immense benefits to students of higher learning who may wish to carry out research on the similar topic.

1.7     Scope of the Study

The study is limited to assessment of the significance of tourism industry on economic development of  Nigeria as in Okomu park.

1.8     Limitation of the Study

There is no study undertaken by a researcher that is perfect. The imperfection of any research is always due to some factors negatively affecting a researcher in the course of carrying out research.  Therefore, time constraint has shown no mercy to the research. The limited time has to be shared among many alternative uses, which includes reading, attending lectures and writing of this research, also distance and its attendant costs of travelling to obtain information which may enhance the writing of this study was a major limitation.

1.8     Definition of Terms      

1. a) Tourism: Tourism is defined as a collection of activities, services and industries which deliver a travel experience comprising transportation, accommodation, eating and drinking establishments, retail shops, entertainment businesses and the hospitality services provided for individuals or groups traveling away from home (Tugberk, 2010).
2. b) Development: The is the process of establishing or enhancing something to a better place or point (Bill Stewart, 2000).
3. c) Economic Growth: Economic growth is an increase in the capacity of an economy to produce goods and services, compared from one period of time to another (Adesoji and Chike, 2013).