The tourism industry has become an important sector to both developed and developing countries, including Nigeria. Acknowledging positive advantages of tourism, much research has been carried out on small business in the tourism industry. However, direct impact of tourism on business performance is totally ignored. This paper presents an empirical result of a study on the impact of tourism on small businesses performance operating on two main tourist destination islands in Nigeria. Employing primary data collected from small tourism businesses on the four islands and a multiple regression analysis, this study found that tourism as measured by tourist arrivals and tourist customers has significant positive impact on the financial and nonfinancial performance of the small businesses. This finding consolidates tourism development theory that tourism is an important catalyst for entrepreneurial development and small business performance. It also justifies the government efforts in promoting and developing the tourism industry in general and island tourism in particular. Field of Research: Tourism, small business, performance, Nigeria.



Tourism is now one of the worlds largest industries and one of its fastest growing economic sectors. For many countries tourism is seen as a main instrument for regional development, as it stimulates new economic activities. Tourism may have a positive economic impact on the balance of payments, on employment, on gross income and production, but it may also have negative effects, particularly on the environment. Unplanned and uncontrolled tourism growth can result in such a deterioration of the environment that tourist growth can be compromised. The environment, being the major source of tourist product, should therefore be protected in order to have further growth of tourism and economic development in the future. This is specially true with regard to tourism based on the natural environment as well as on historical cultural heritage. Sustainable tourism has three interconnected aspects: environmental, sociocultural, and economic. Sustainability implies permanence, so sustainable tourism includes optimum use of resources, including biological diversity; minimization of ecological, cultural and social impacts; and maximization of benefits for conservation and local communities. It also refers to the management structures that are needed to achieve this. The paper provides a theoretical framework for sustainable tourism. It comprises two parts. The first part presents general views on tourism and sustainable economic development, and some opinions on the relationship between tourism and the environment. The second part concentrates on strategies and policy instruments.


It is no longer news that the Tourism sector is relatively a budding enterprise in Nigeria, even amidst the countrys endowed climate vegetation and interesting natural features, which is a factor component in most tourism industrious economies. Over the past decades, the Nigerian economy been characterized by growing a dominance of the energy sector, which is highly supported by several government policies. However, while this was justified at the inception as the nation ben fitted from global energy booms and international power. These have lead to the collapse and choke off of other sectors in the economy. The resulting effect has been serious inequality and lopsidedness in the economy as increasing use and depletion of nonrenewable resource, amidst redundant underutilized renewable resources.

As the government attempts to address these issues in its overall plan to diversify the economy, certain questions are worth consideration.

What impact has fiscal policy measures had on the development of the tourism sector

What is the present magnitude of the tourism sector in respect of other sectors, especially the energy sector in Nigeria

Will a change in the magnitude of the tourism sector be beneficial to the economy of Nigeria

Are fiscal policy measures capable of bringing about the necessary change in the tourism sector

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