TOURISM: A PREFERABLE ALTERNATIVE SOURCE OF REVENUE GENERATION TO STATE

Description

THIS RESEARCH WORK IS ON TOURISM: A PREFERABLE ALTERNATIVE SOURCE OF REVENUE GENERATION TO STATE

ABSTRACT

The promotion of the tourism sector in developing countries is heightened by the numerous benefits of the sector, amidst the many problems typical to developing nations. Unfortunately in Nigeria, the tourism sector is poorly developed, unorganized and nonfunctional; hence the nation is eluded of the numerous benefits of the sector. On the other hand, fiscal policy in developing countries is seen as the most potent tool of economic planning, thus sectors that are critical or have the greatest linkages enjoy investment and support from government. This is aimed at spurring private sector and foreign direct investment in the nation, while the overall macroeconomic productivity is enhanced. This research work investigates the effects of fiscal policy as shown by federal budgets particularlyat the tourism sector level, so as to shed light on the responsiveness of the tourism sector on fiscal policies in Nigeria. This study uses multiple regression method of analysis in other to measure the response of the tourism sector to the execution of fiscal policies in Nigeria. The results reveal that federal government expenditure has a positive effect on the tourism sector, while federally collected revenue has a negative effect on the sector. In this light, the study proposes that in the quest for tourism development in Nigeria, fiscal policy should be designed so that government expenditure is properly focused to ensure that facilities required by tourism sector operatives are provided through public means, also the tourism sector needs to be restructured and reorganized so as to be better poised to benefit from government intervention.

CHAPTER ONE

1.0.INTRODUCTION:

Tourism is travel for recreation, leisure, religious, family or business purposes, usually for a limited duration. Tourism is commonly associated with international travel, but may also refer to travel to another place within the same country. The World Tourism Organization defines tourists as people traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes.

Tourism has become a popular global leisure activity. Tourism can be domestic or international, and international tourism has both incoming and outgoing implications on a countrys balance of payments. Today, tourism is a major source of income for many countries, and affects the economy of both the source and host countries, in some cases being of vital importance.

Tourism suffered as a result of a strong economic slowdown of the late2000s recession, between the second half of 2008 and the end of 2009, and the outbreak of the H1N1 influenza virus, but slowly recovered. International tourism receipts the travel item in the balance of payments grew to US1.03 trillion 740 billion in 2011, corresponding to an increase in real terms of 3.8 from 2010. International tourist arrivals surpassed the milestone of 1 billion tourists globally for the first time in 2012, the same year in which China became the largest spender in international tourism globally with US102 billion, surpassing Germany and United States. China and emerging markets such as Russia and Brazil had significantly increased their spending over the previous decade.

1.1. OBJECTIVES OF THE STUDY:

The fundamental rudiment of this study is to achieve the following:

1. To highlight the possibilities of harnessing tourism to boost economy

1. To enumerate the countries that have so far benefited from tourism

2. To suggest the possible ways by which Nigeria can harness the advantages of tourism to boost her economy.

HOSPITALITY AND TOURISM PROJECT TOPICS AND MATERIALS