Education - University Of Nigeria Nsukka · INVESTIGATIVE APPROACH NIGERIA Education Description...

OYIBO EDITH

PG/M.ED/11/58795

HOSPITALITY INDUSTRY AND ECONOMIC DEVELOPMENT IN NIGERIA; AN

INVESTIGATIVE APPROACH NIGERIA

Education

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PG/M.ED/11/58795

HOSPITALITY INDUSTRY AND ECONOMIC DEVELOPMENT IN NIGERIA; AN

Digitally Signed by: Content manager’s Name

Webmaster’s name

O= University of Nigeria, Nsukka

OU = Innovation Centre

ii

HOSPITALITY INDUSTRY AND ECONOMIC

DEVELOPMENT IN NIGERIA; AN

INVESTIGATIVE APPROACH

OYIBO EDITH OGECHUKWU

PG/MBA/11/60199

DEPARTMENT OF MANAGEMENT,

FACULTY OF BUSINESS ADMINISTRATION,

UNIVERSITY OF NIGERIA

ENUGU CAMPUS

JULY, 2013

iii

HOSPITALITY INDUSTRY AND ECONOMIC

DEVELOPMENT IN NIGERIA; AN

INVESTIGATIVE APPROACH

BY

OYIBO EDITH OGECHUKWU

PG/MBA/11/60199

BEING A PROJECT SUBMITTED IN PARTIAL

FULFILLMENT FOR THE AWARD OF MASTER

OF BUSINESS ADMINISTRATION

TO THE DEPARTMENT OF MANAGEMENT,

FACULTY OF BUSINESS ADMINISTRATION,

UNIVERSITY OF NIGERIA

ENUGU CAMPUS

JULY, 2013

iv

APPROVAL PAGE

This is to certify that this research work has been read through

and approved, for the award of Master of Business Administration

in Management.

By

………………………………………..

DR. ONODUGO .V. A

Supervisor

………………………………………...

DR. ONODUGO .V. A

Head of Department

………………………………………..

EXTERNAL EXAMINER

v

CERTIFICATION

I Oyibo Edith Ogechukwu, a postgraduate student of the

Department of Management, Faculty of Business Administration,

University of Nigeria Enugu Campus with Registration Number

PG/MBA/11/60199 have satisfactorily completed the requirements

of the course and research work for the award of Master of

Business Administration in Management.

The work embodied in this project report is original and has

not been submitted in part or full for any diploma or degree of this

or any other University.

................................... ...........................

Oyibo Edith Date

PG/MBA/11/60199

Researcher

vi

DEDICATION

This research work is dedicated to God Almighty the Author and

finisher or our faith for His all Sufficient Grace and unending

mercies and provisions.

vii

ACKNOWLEDGEMENT

My profound gratitude goes to my supervisor and Head of

Department Dr./Evang. V.A. Onodugo. All the lecturers in the

department of management like Prof. Ewurum U.J.F, Dr. Ezigbo

C.A, Dr. O.C Ugbam and all the lecturers in the faculty of business

Administration, University of Nigeria, Enugu Campus for their

wonderful contributions and all my classmates.

My immeasurable thanks goes to my husband Mr. Joseph Oyibo

and my kids Onyinye, Chukwuebuka, Chimaobi and Chidiebube for

their understanding and to my parents for their encouragement

and support and a lot of others I cannot mention for want of space

my gratitude is extended to you all.

To God be the Glory.

viii

ABSTRACT

This work was intended to investigate the extent to which hospitality industry contributes to the economy in both potential and in real term. Sufficient data was collected, analyzed and tested using the Chi square statistical method out of the 80 sampled stakeholders in the industry. The study found that the hospitality industry contributes veritably to economic development of Nigeria and reshaping of her national image in the diaspora. It was gathered from the study that a positive correlation exits between the hospitality industry and the GDP of the nation. From the findings the researcher recommends enhanced investment in the sector and provision of adequate infrastructure and enabling environment if the industry’s full potentials will be properly harnessed towards economic development of the nation.

ix

TABLE OF CONTENTS

Title page - - - - - - - - - i

Approval page - - - - - - - - ii

Certification page - - - - - - - iii

Dedication - - - - - - - - - iv

Acknowledgement - - - - - - - v

Abstract - - - - - - - - - vi

Table of contents - - - - - - - - vii

CHAPTER ONE:

Introduction

1.1 Background of the study - - - - - 1

1.2 Statement of the problems - - - - - 3

1.3 Objectives of the study - - - - - 4

1.4 Research questions - - - - - - 5

1.5 Research hypothesis - - - - - - 5

1.6 Significance of the study - - - - - 6

1.7 Scope of the study - - - - - - 7

1.8 Limitation of the study - - - - - - 7

1.9 Definition of terms - - - - - - 7

References - - - - - - - - 10

x

CHAPTER TWO

Literature Review

2.1 The Nigerian hospitality industry - - - - 11

2.2 History of hospitality industry in the world/Nigeria - 17

2.3 The hospitality economy - - - - - 21

2.3.1Economic importance of tourism in Nigeria - - 25

2.3.2 Factors affecting the hospitality industry - - - 28

References - - - - - - - 40

CHAPTER THREE

Research Design and Methodology

3.1 Research design - - - - - - - 42

3.2 Sources of data - - - - - - - 42

3.2.1 Primary sources of data - - - - - 42

3.3 Population of the study - - - - - 43

3.4 Sampling technique - - - - - - 43

3.5 Determination of sample size - - - - 43

3.6 Data collection instruments - - - - - 44

3.7 Method of data analysis - - - - - 44

xi

CHAPTER FOUR

Data Presentation and Analysis

4.0 Data presentation and interpretation - - - 47

4.1 Analysis of data (results) - - - - - 47

4.2 Test of hypotheses - - - - - - 54

CHAPTER FIVE

Summary of Findings, Recommendation and Conclusion

5.0 Introduction - - - - - - - 59

5.1 Summary of findings - - - - - - 59

5.2 Conclusion - - - - - - - - 61

5.3 Recommendations - - - - - - 62

Bibliography - - - - - - - - 63

Appendix - - - - - - - - - 65

Questionnaire - - - - - - - - 66

1

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The tourism and hospitality industries are one of the world's

largest sectors, amounting to 'over 10% of Gross Domestic

Product (GDP)' (Cooper et aI., 2005:4), and employing huge

numbers of people; ‘tourism employs 8% of the global workforce.

The hospitality industry, with its roots in the centuries old

tradition of Inn-keeping (Jones, 1996), has experienced huge

growth in recent years: it recorded between 1990 and 1998 'a

growth of over 25% in the number of units (Brotherton, 2003:9)

and a total of '29.4 million bed spaces In hotels and similar

establishments worldwide in 1997 (WTO, 2000). In the UK, the

hospitality industry employs '1.7 million people (6% of the working

population)'with the industry valued in the region of ‘£55-60 billion

a year’. BPP Learning Media (July 2009).

Fifty years now into its independence from British colonial

rule, Nigeria is gradually developing into a player on the world

economic stage. As of 2010, more than 170 million people live in

Nigeria, making it the most populated country in Africa and the

most populated country in the whole of black race.

Hospitality (Tourism) is becoming more and more a vital part of

2

the Nigerian economy with the rapid expansion and growth of the

hospitality industry even though most of the population is urban

with the rural gradually coming up and still works in agriculture.

Hospitality industry is a major sector in the tourism industry,

which, in turn is one of the most rapidly expanding fields in the

service industry.

According to the World Travel and Tourism Council (WTTC),

travel and tourism has become the leading economic contributor

to the world and national economies in terms of gross output,

value added, capital investment, employment and tax

contributions.

Hospitality industry has brought tremendous growth to the

global economy by providing services ranging from

accommodation, sightseeing as well as other services related to

the tourism industry. It not only provides employment but also

plays a vital role in the economic returns of a country in the form

of foreign exchange. Also the interaction with people from

different cultures, thus educating people, is brought about by the

hospitality industry. Hence, Hospitality industry plays a major role

in the development of economy of Nigeria.

In principle, it is expected that many people patronize the

hospitality industry when the economy is buoyant, thereby

3

signifying a positive correlation between the industry and the

economy. But is this true of the Nigerian situation? It is to

ascertain the extent to which hospitality industry contributes to the

economy in both potential and in real term that is the driving force

behind this study.

1.2 STATEMENT OF PROBLEM

In 2011, more than 2 million tourists visited Nigeria. The

various international church crusades and conferences coupled

with foreign investors on business tourism make the bulk of the

tourists and spent an equivalent of $3.7 million U.S. dollars, and

this figure is expected to rise by 10 percent in the coming year and

the growth also expected to increase year by year. Jacobson

(2012)

Nigerian population has continued to grow on daily basis

with the census population of 2006 and current estimates at 150

million and 170 million respectively. This places the country the

most populous country in Africa and black nation in the world.

Despite this trend, the country though endowed with diverse

natural resource and tourism potentials that gives it an edge over,

other countries have concentrated on the exploration of crude oil

4

as the main source of revenue and in turn the driver of economic

development. Studies from other countries portray that hospitality

cum tourism have contribute meaningfully to their economic

development contributing a significant percentage of the GDP and

employee a teaming population of the workforce.

Going by this it will be imperative to investigate the

contribution of this industry to Nigerian economic development by

so doing unearthing meaningful avenue for investment,

diversification and GDP growth.

1.3 OBJECTIVES OF THE STUDY

The objective of this study is to investigate the contributions

of the hospitality industry to economic development of Nigeria.

This study amongst others will pursue the following specific

objectives:

1. Investigate the contribution of the hospitality industry to

Gross Domestic Product (GDP)

2. Investigate the employment rate of the hospitality industry in

Nigeria.

3. Investigate the volume of foreign exchange generated via

the hospitality industry.

5

4. To identify the hindrances to the full exploitation of tourism

industry potential

5. To ascertain whether, the pre-requisites for effective

development of tourism industry.

1.4 RESEARCH HYPOTHESES

The following hypotheses are postulated to be tested in this study

to enable the researcher reach conclusions.

1. Hospitality Industry contribute to Nigerian economic

development

2. Hospitality industries employs a notable percentage of the

Nigerian workforce

3. Hospitality industries contributes meaningfully in boosting

Nigerian Gross Domestic Product (GDP)

4. The hospitality industries have contributed in reshaping the

image of the country thereby attracting investors.

1.5 RESEARCH QUESTIONS

To enable the researcher attain the above objectives, the

following questions are formulated?

6

1. Does the hospitality industry have any contribution to Gross

Domestic Product (GDP) of Nigeria?

2. What is the rate of employment of the hospitality industry in

Nigeria?

3. What is the volume of foreign exchange generated via the

hospitality industry in Nigeria?

4. What are the general contributions of the hospitality industry

in economic development of Nigeria?

5. Does the hospitality industry have a role to play in Nigeria

economic development?

1.6 SIGNIFICANCE OF THE STUDY

This study will explore the contributions of the hospitality

industries in the economic development of Nigeria an investigative

approach. It is intended to be of interest to policy makers,

hospitality industry operators and companies who would find the

study very essential as a guide in structuring the hospitality sector

make it a contributor to national economic developement, putting

all the necessary facilities in place to enhance efficiency and also

increase the level of their contributions.

7

1.7 SCOPE OF THE STUDY

The study is designed to cover the hospitality industries in Nigerian

while investigating operators in Enugu Zone. Efforts have been

specifically made to find out how the hospitality industries

contribute to national economy.

1.8 LIMITATION OF THE STUDY

This study is limited to Hospitality industries within Enugu Zone in

the investigation due to time and logistics constraints, which made

extensive coverage of other operators very difficult.

1.9 Definition of Terms

The following terms as embodied in the work will be defined.

Hospitality: hospitable treatment, reception, or disposition. Thus

hospitality industries involve the enterprises engaged in providing

hospitable treatment.

Industries: a distinct group of productive or profit-making

enterprises in a particular field of endevour.

Economic development: the process whereby simple, low-

income national economies are transformed into modern industrial

economies. Although the term is sometimes used as a synonym for

8

economic growth, generally it is employed to describe a change in

a country's economy involving qualitative as well as quantitative

improvements. The theory of economic development—how

primitive and poor economies can evolve into sophisticated and

relatively prosperous ones—is of critical importance to

underdeveloped countries, and it is usually in this context that the

issues of economic development are discussed.

Nigeria: country located on the western coast of Africa. Nigeria

has a diverse geography, with climates ranging from arid to humid

equatorial. However, Nigeria's most diverse feature is its people.

Hundreds of languages are spoken in the country, including

Yoruba, Igbo, Fulani, Hausa, Edo, Ibibio, Tiv, and English. The

country has abundant natural resources, notably large deposits of

petroleum and natural gas.

The new national capital is Abuja, in the Federal Capital Territory,

which was created by decree in 1976. Lagos, the former capital,

retains its standing as the country's leading commercial and

industrial city.

Gross Domestic Product (GDP): total market value of the

goods and services produced by a nation's economy during a

9

specific period of time. It includes all final goods and services—

that is, those that are produced by the economic resources located

in that nation regardless of their ownership and that are not resold

in any form. GDP differs from gross national product (GNP), which

is includes all final goods and services produced by resources

owned by that nation's residents, whether located in the nation or

elsewhere. In 1991 the United States substituted GDP for GNP as

the main measure of economic output.

Hotels: building that provides lodging, meals, and other services

to the traveling public on a commercial basis. A motel performs

the same functions as a hotel but in a format designed for

travelers using automobiles.

10

REFERENCE

Keith C. Su (1998) Economic Trends and Influence on Hospitality

Industry: The Case of U.S. Lodging Industry; Advances in

Hospitality and Tourism Research Volume III

Onodugo V.A et al (2010): Social Science Research: Principles, Methods and Applications. Enugu, Ed’mark publishers

Ozo, J. Ubata et’al (1999): Introduction Project Writing for Business

and Financial Studies. Enugu Sunny Enterprises.

11

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.0 INTRODUCTION

In this chapter, an attempt is made to review the related

literature to form a background, and conceptual frame work for

the study. This review also analyses the concept of hospitality and

the contributions of the sector to the economy, it also considers to

a large extent the critical views and opinions of intellectuals and

experts on the subject matter. Also an investigation into the

contributions, measures and systems, and the nature and

structure of the hospitality/tourism sector in Nigeria shall be

evaluated to determine the level at which past policies had

impacted and wedged the tourism industry in Nigeria. The purpose

of this is to have an understanding and put into perspective the

issues concerning the research topic.

2.1 THE NIGERIAN HOSPITALITY INDUSTRY

The hospitality industry provides services for people who are

away from home regardless of whether it is for long or short

periods of time. These services can vary according to the specific

needs of both the person away from home and the organization

operating those services (Baker et al, 2000). The hospitality

12

industry is important to the development of many parts of the

world.

In some regions, income from it is one of the main sources

of foreign exchange e.g. Fiji, the Caribbean and Hong Kong (Baker

et al, 2000). The industry is important because it contributes to

the growth of an economy by providing a lot of employment

opportunities for the people, funding a large percentage of a

country’s Gross Domestic Product, thereby helping to raise the

national income and by earning foreign currencies through the

goods and services provided to foreign visitors, thus improving the

balance of payments (Baker et al, 2005).

There is no doubting that hospitality industry is the livewire

of tourism at all levels. The United Nations World Tourism

Organization (UNWTO) confirms that between 70% and 75% of

international tourists’ expenditure goes to hospitality services on

annual basis (Akpabio, 2007). This confirms the strategic

importance of the sector to tourism.

It is estimated that there are over a million hotels in the

United States of America. But in Nigeria, there are only about 12

internationally branded hotels (Amadi, 2008a). Nigeria has so few

internationally branded hotels due to the former perception of the

country as a high – risk destination for investments, especially in

13

hotel businesses, which are capital intensive and require long –

term for the investor to recoup his money.

Investors in hotels hardly look towards Nigeria due to

exorbitant cost of landed property and high lending rates in

Nigerian banks. It is a lot easier and cheaper to acquire land and

build a hotel in USA than it is in Nigeria (Amadi, 2008a). Lending

rate in USA is about 6 per-cent with mortgage of about 25 years in

which investor has to pay back the money. But in Nigeria, the

lending rate could go as high as 25 percent, depending on who is

borrowing and for what purpose. Additionally, Nigerian banks will

only give the investor about three years to pay back.

The Nigerian hospitality industry is faced with a lot of

problems. Among them are: high hotel charges and the slow pace

on developing tourist sites that dot the various parts of the country

(Akpabio, 2007). Others are erratic power supply (Amadi, 2008a),

poor services (Nwosu, 2008a) and unethical behaviors by

professionals in the industry (Awoseyin, 2007).

In spite of these shortcomings, the hospitality industry in

Nigeria contributed N680.1 million to the Nigerian economy in

1980, N492.4 million in 1984 (using 1984 constant basic prices for

both periods), N477.9 million in 1990, N591.9 million in 2000

14

(CBN, 2003), N1950.0 million in 2004 and N2, 390.0 million in

2006 (using1990 constant basic prices) (CBN, 2006).

The Nigerian economy has not been stable over the years as

it depended mainly on international economic system in the early

1980s. This unfortunately, became increasingly hostile (Koleoso,

2007). The economy had been seriously affected by massive

devaluation of the national currency, the Naira, by the Structural

Adjustment Programme introduced by the military. Coupled with

this is the instability in the prices of crude oil in the international

market, crude oil being the major source of foreign exchange

earning for the country. Corruption in high and low places also

took its toil on the national economy.

Despite all these, the GDP fell from N68, 246.2 million in 1980, to

N62,474.2 million in 1984 (using 1984 constant basic prices for

both periods) but rose to N92, 238.5 million in 1990, N121, 207.8

million in 2000, N527,580.0 in 2004 and N593, 570 million in 2006

(using 1990 constant basic prices).

Having briefly discussed what hospitality industry is all about

and the state of the Nigerian economy in the last twenty-seven

years, the next question to ask is: to what extent has the Nigerian

economy affected the hospitality industry in the past 27 years

(1980-2006)?

15

CONCEPT OF TOURISM

Hospitality/Tourism has been practiced since the beginning

of human civilization even with the problems associated with travel

in earlier times, the barriers and difficulty on the modes of travel,

accommodation and services. There was barely enough time for

leisure, but still time to relax and wander was found by man. As

the quality of life became higher and better due to technological

advancement people began to move easily from one place to

another.

Shorter working hours, holidays and holy days contributed to

mass travel, relaxation and self-development. According to

(Bhatia, 1983), tourism has gradually transformed to a world-wide

leisure experience due to technological, political and social events.

Etymologically, the word “tour” is coined from both a Latin and a

Greek word tornare and tornos signifying the movement around a

central point. Hence, when the word “tour” and the suffix “ism” is

merged to indicate the action of movement around a circle, the

Dictionnaire universel du XIXiFme siecle in 1876 defined tourism as

travelling out of inquisitiveness and idleness (McIntosh, 1995).

Over the years a lot of scholars and institutions have

attempted to shed more light on this thought-provoking

phenomenon, and have drawn up many definitions to this regard.

16

According to Tribe (2009) tourism can only be contemporarily

comprehended when; Truth (Reality, Knowledge and Disciplines);

Beauty (Well_being, Aesthetics and Art); and Virtue (Ethics, Values

and The Good Life), are explored. Therefore, the use of three

Aristotelian transcendental entities, truth (verum) beauty

(pulchrum) and virtue (bonum) are the means to which tourism

can be understood.

The World Tourism Organization developed a definition that

disaggregates tourism into two parts Domestic and international. It

states that Domestic tourists are visitors from within the country

who stay a minimum of twenty-four hours and not more than one

year for pleasure, recreation, sport, business, visiting friends and

relatives, missions, conferences, health reasons, studies and

religion. Whereas international tourists are residents of one

country visiting another for many or all of the same purposes as

domestic tourists (World Tourism Organization, 1994).

Feifer (1985) regarded tourism as the science, art and business of

attracting and transporting visitors, accommodating them and

graciously catering to their needs and wants. It is in this regard

that the activities of the tourism sector are put into view, as

providing services to tourists.

17

2.2 HISTORY OF HOSPITALITY INDUSTRY IN THE

WORLD/NIGERIA

The hospitality industry, with its roots in the centuries old

tradition of Inn-keeping (Jones, 1996), has experienced huge

growth in recent years: it recorded between 1990 and 1998 'a

growth of over 25% in the number of units (Brotherton, 2003:9)

and a total of '29.4 million bed spaces In hotels and similar

establishments worldwide in 1997 (WTO, 2000). In the UK, the

hospitality industry employs '1.7 million people (6% of the working

population)'with the industry valued In the region of ‘£55-60 billion

a year’.

In the course of this work the history of the hospitality

industry shall be divided into sessions:

ANTIQUITY TO MIDDLE AGES

• Thermal baths in villages for rest developed by the Greeks

• Mansions to provide accommodation for travellers on

government business built by the Romans

• On Middle Eastern routes 'caravanserais’ established as a resting

place for caravans

• Monasteries and abbeys offered refuge to travelers

18

• Religious orders built inns (but they did not yet offer meals),

hospices and hospitals for those travelling

• Numerous refuges for pilgrims and crusaders on their way to the

Holy Land

• Inns appeared in most of Europe, eg L'Auberge des Trois Rois in

Basle

• About the year 1200, staging posts for travelers and stations for

couriers were set up in China and Mongolia

16TH TO 17TH CENTURIES

‘The start of the hotel industry’

• At the beginning of the 15th century, the law in France required

that hotels keep a register

• English law also introduced rules for inns at a similar time

• During the 16th century, more than 600 inns were registered in

England

• The first guide books for travelers were published in France

• Signs were displayed outside establishments renowned for their

refined cuisine

• At the end of the 1600s, the first stage coaches to follow a

regular timetable started operating in England

19

18TH AND 19TH CENTURIES

The industrial revolution, (1760s), triggered the

construction of hotels in mainland Europe, England and

America • In New York and Copenhagen, hotels were

established in city centres

• Early 1800s, the Royal Hotel was built in London and

holiday resorts constructed along the French and Italian

rivieras

• In Japan, Ryokan guest houses were established and in

India, government-run Dak bungalows provided

accommodation for travellers

• The Tremont House in Boston was the first deluxe hotel

in a city centre with inside toilets, locks on the doors and

an a la carte menu

• The Holt Hotel in New York City was the first to provide

its guests with a lift for their luggage

• Highway inns for stage coaches started to decline as

trains began to replace horse-drawn transport

20

• In New York, the New York Hotel was the first to be

equipped with private bathrooms

• In 1890 Le Grand Hotel, Paris was the first entire hotel

to be equipped with electric light

• The Fifth Avenue Hotel in New York City was the first in

that period to provide lifts for its guests

• In 1880, the Sagamore Hotel in New York was the very

first to provide electricity in all its rooms

• In 1890 the first school for hoteliers was founded in

Lausanne, Switzerland

20TH CENTURIES

• In 1919 the Barcelona Ritz had bathrooms with hot and cold

water

• The Ritz and Savoy in London, le Negresco in Nice the P1aza in

New York, the Taj Mahal in Bombay were all constructed during

this period

• 1950s saw Club Méditerranée (G Trigano) develop the club

village

• In the 1960s new tourist resorts grew up around the

Mediterranean: Spain, Greece,

development of city and beach hotels

• The 1970s witnessed the construction of hotels or business

people

• 'Black gold' (oil), attracted business people worldwide to the

Middle-East.

2.3 THE HOSPITALITY ECONOMY

The hospitality economy includes

Fig. 2.1 The Hospitality Economy

In the 1960s new tourist resorts grew up around the

Mediterranean: Spain, Greece, Yugoslavia thrived with the

development of city and beach hotels

0s witnessed the construction of hotels or business

'Black gold' (oil), attracted business people worldwide to the

THE HOSPITALITY ECONOMY

The hospitality economy includes:

The Hospitality Economy

21

In the 1960s new tourist resorts grew up around the

Yugoslavia thrived with the

0s witnessed the construction of hotels or business

'Black gold' (oil), attracted business people worldwide to the

22

Definition of Nigerian Hospitality Economy

The defining activities of the hospitality economy are:

• The provision of accommodation, meals and drinks in venues

that are outside of the home;

• Hospitality consumption occurs ‘on-site’ in the venue; and

• The creation of the context of consumption and

management of consumption are activities that differentiate

the hospitality industry from other businesses that provide

accommodation, food and drink.

More specifically, the definition of the Nigerian hospitality

economy, for the purpose of this study comprises the following

four elements:

• Hotels & related services (including camping grounds and

other accommodation)

• Restaurants & related services (including pubs, takeaway

food shops, licensed clubs and motorway service areas,

where hospitality services are the main activity for the latter)

• Catering [including corporate hospitality / contract catering

to both private clients (for example airlines) and public

sectors clients, and in-house catering across non-hospitality

direct sectors such as health and education]

23

• Event management (including conference and exhibition

organizers)

The diagram below summarizes the different activities above

which fall under the core hospitality definition. In addition to

these, but outside the core definition and not included in the

economic contribution estimates, are other activities carried out by

firms in the hospitality industry.

The Channels of Economic Impact

There are many channels through which the core Nigerian

hospitality industry makes a contribution to the Nigerian economy.

This contribution includes the following standard economic

impacts:

� Direct impacts – employment and activity in the core

Nigerian hospitality industry itself.

� Indirect impacts – employment and activity supported

down the supply chain to the core Nigerian hospitality

industry, as a result of Nigerian hospitality firms purchasing

goods and services from Nigerian suppliers. This includes, for

example, jobs in the manufacture of food & beverages,

business services (such as advertising and market research),

agriculture and communications.

� Induced impacts

those directly or indirectly employed in the

hospitality industry spending t

services in the wider

This helps to support jobs in the industries that supply these

purchases, and includes jobs in retail outlets,

consumer goods and in a range of service industries.

� There are also a number of additional economic catalytic

impacts (‘spillovers’) which result from the wider

hospitality has on the economy.

Fig 2.2: Channels of economic impact of the

hospitality economy

Induced impacts – employment and activity supported by

those directly or indirectly employed in the core

hospitality industry spending their incomes on goods and

services in the wider Nigerian economy.


purchases, and includes jobs in retail outlets, companies producing

consumer goods and in a range of service industries.

are also a number of additional economic catalytic

impacts (‘spillovers’) which result from the wider

hospitality has on the economy.

: Channels of economic impact of the Nigerian

hospitality economy

24

employment and activity supported by

core Nigerian

heir incomes on goods and


companies producing

are also a number of additional economic catalytic

impacts (‘spillovers’) which result from the wider role

Nigerian core

25

2.3.1 ECONOMIC IMPORTANCE OF TOURISM IN

NIGERIA

TOURISM is an increasingly vital part of the Nigerian economy.

Throughout the world, tourism brings money to cities and

countries. Tourism also provides jobs for the local residents,

further benefiting the destination. Nigeria has realized the profits

available from this sector. Thanks to its growing economy and

promoting itself as a culturally rich and diverse nation, Nigeria's

tourism industry now brings millions of dollars into the economy

each year.

Fifty years now into its independence from British colonial rule,

Nigeria is gradually developing into a player on the world

economic stage.

Tourism is becoming more and more a vital part of the Nigerian

economy with the rapid expansion and growth of the hospitality

industry even though most of the population is urban with the

rural gradually coming up and still works in agriculture, Nigeria

service-based economy has rapidly brought about a thriving

development, especially in the last 20 years when Nigeria

liberalized its markets.

26

The services sector employs about 30 percent of Nigeria's

workforce, yet provides about half of its output. Nigeria depended

on its large English-speaking, well-educated workforce to develop

a burgeoning technology sector, as well. Tourism is a growing

portion of Nigeria's economy with an earnings increase of more

than 10 percent from 2010.

The Nigerian government is currently playing an important role in

promoting tourism. Nigeria government, through the Nigeria

Tourism Development Corporation (NTDC) and its Tourism

Ministry, has developed a National Action Plan for Tourism to

develop this portion of the economy.

The plan sought to promote tourism as a way to boost socio-

economic development, increase employment, preserve the

nation's heritage and environment and promote international and

domestic tourists to visit Nigeria as a way to increase its share of

global tourism.

Through this plan, the ministry began advertising campaigns at

home and abroad. The successful campaign has brought more

27

tourists and their money to the country and boosted employment

in this sector.

In 2011, more than 2 million tourists visited Nigeria, the various

international church crusades and conferences coupled with

foreign investors on business tourism make the bulk of the tourists

and spent the equivalent of $3.7 million U.S. dollars, and this

figure is expected to rise by 10 percent in the coming year and the

growth also expected to increase year by year.

Thanks to the friendly incentives been offered to investors by the

government, foreign business travelers are descending on Nigeria

in large numbers. Many extend their trips, adding more tourist

money to the economy. In fact, foreign tourists from all over the

world spend more in Nigeria than almost any other country

worldwide.

Fig. 2.3 Standard Industry Classification of the Hospitality Industry

Fig. 2.4 Size and scope of the hospitality industry

2.3.2 Factors affecting the hospitality industry

PEST analysis can be performed to determine the factors that

affect any type of industry. External PEST


Size and scope of the hospitality industry

Factors affecting the hospitality industry


affect any type of industry. External PEST factors may have both

28


Factors affecting the hospitality industry


factors may have both

29

factors are outside its control the organization can only react by

planning a strategy which might turn potential threats into

opportunity.

Fig. 2.5 PEST analysis for an organization

Economic influences

Economic growth and a strong economy is extremely beneficial for

tourism and consequently, for the hospitality industry. Conversely,

slow economic growth (or negative growth - 'recession') can have

a very negative impact. As Dr Peter Tarlow states' the tourism

industry is an integral component of the global economy and there

30

is no doubt that tourism will be affected by the outbreak of global

economic volatility (www.eturbonews.com). As Bierman (2008)

states 'demand for luxury end of the market is likely to decrease

while demand for either low cost or perceived good value products

and services is likely to grow and there is likely to be a growth in

domestic travel or short haul international travel as people choose

to stay closer to home.

Economic impacts of tourism and hospitality

As stated, tourism is a huge industry, and with it, there are some

very attractive economic benefits: 'in 2oo4, worldwide tourism

receipts, excluding international fares, reached $622 billion (WTO).

It accounts for '11% of Gross Domestic Product (WTTC),

therefore, many countries, in particular developing countries are

constantly looking at tourism as a way to generate their

economies. Further, it is becoming cheaper and easier for people

to travel and the increasing wealth of some of the largest nations

on earth, most notably China and India, is making tourism an even

more attractive proposition for economic growth.

31

The positive economic impacts of the industry

Balance of payments

‘The quantity of a country's own currency flowing out of the

country minus the amount flowing in.

(http://economics,about,com).

Hospitality and tourism are good industries to reduce or minimize

a country's 'balance of payments'. Tourists bring the destination

currency into the receiving country (exchanged in the overseas

country), or they exchange their own currency in the destination.

This means that the money spent by the tourist in the destination

is 'credited' to the receiving country's economy, and 'debited' from

the tourist's own country, meaning that the host country is

receiving more money from outside its borders. This is extremely

beneficial for countries receiving tourists from 'high value' currency

countries, such as the European Union Zone, the United States

and the United Kingdom.

Employment

● Direct employment: these are jobs directly involved in the

industry, for example working in a hotel

● Indirect employment: jobs created in the supply sector, for

example a laundry company

32

● Induced employment: these are jobs created due to increased

wealth of the locals from tourism, and the locals spending more

money in their local economy

Fig. 2.6 Nigerian: Direct Hospitality employment

Income

Tourism creates money in a destination's local economy, through:

● Wages and salaries - from the locals' employment In the local

area (directly, indirectly or induced)

● Profits - with local businesses making money from the tourists

33

● Rent - from leasing accommodation to tourists and 'migrating‘

workforce

● Tax - the 'public purse' also benefits from tourist expenditure, in

the form of taxes, either a local tax or a national tax, such as

Value Added Tax (VAT), which can then go towards further

investment in the local or national economy.

Investment and development

Investment and development from the 'public' sector

(government) or private sector

● Public - The government may want to develop the area, by

investing in the infrastructure and superstructure of a destination,

to make it more accessible and attractive for tourism.

This may mean the construction of new roads, airports and

telecommunications

● Private - Many companies, in particular multinational companies

(MNCs), may see the area as being an attractive place to set up

some operations. This in turn can lead to further investment from

other ‘large‘organizations investing in the area: 'Multiplier Effect

34

Multiplier effect

Tourism can have many positive 'knock-on' effects, 'the Multiplier

Effect', meaning that' tourist expenditure WI Inject additional cash

flow into the regional economy and increase regional income

(Page & Connell, 2006:353)

● Employment multiplier: further jobs (indirect and Induced) are

created by direct tourism employment

● Income multiplier: additional income is created in an economy

as a result of direct tourist expenditure. The locals have more

money from the employment multiplier, which they in turn, spend

in the local economy in shops, supermarkets and so on.

'The money spent by tourists in the area will be re-spent by

recipients (other businesses and locals) in the area'. (Holloway,

2006:103).

The negative economic impacts of the industry

Dependency

Some countries are 'economically dependent on tourism and

hospitality, especially some less developed countries (LOC), which

may have few other industries. Therefore, if tourism is lost or

decreases in their country (credit crunch, natural disasters or

35

political instability), they could lose a lot of income and this could

have a huge impact on their national economies, in terms of loss

of revenue, balance of payments and taxes.

Inflation Generally with increased demand comes increased

inflation, which means that the prices and values of land and

products, increases. Locals may not be able to continue to afford

to live and invest in businesses in the area, which in turn could

lead to negative socio-cultural impacts of tourism.

Leakages

Money that drops out of circulation within a local economy, by

being saved or spent on goods and services outside the economy.

(Cooper et al 2005:794)

Tourism and hospitality may attract a lot of investment, but in

many cases the investment is from companies outside the borders

of the receiving country, especially 'multinational

companies‘(MNCs).

Many of these MNCs, have their headquarters (HQ) located in

different countries, therefore the profit made from the tourist

activity does not stay in the host destination, it goes back to the

country of residence of the company's HQ.

36

Leakage can also occur when a country or destination has to

purchase items from outside the economy 'import’(national or

local). This is a particular issue for small island states, which have

to 'buy-in' goods to satisfy the tastes and needs of tourists from

more larger, developed nations, especially 'Psychocentric Tourists'.

Opportunity costs (displacement effect)

Developing tourism at the expense of other activities or areas of

investment. (Page & Connell. 2006:350)

This is money (public) that if invested in tourism, is not available

for other uses. Local communities could lose out on facilities and

infrastructure that they need. A 'cost benefit analysis' can be

performed to determine the best way to invest the money, but in

many cases the local population's needs are neglected

The food service industry

Food service has developed into a huge industry. The number and

type of eating-out establishments has increased tremendously, as

suppliers constantly try to satisfy the changing demands and

tastes of the market. In the UK alone there are approximately

300,000 catering outlets, contributing £43 billion to the UK

economy (Foskett et al., 2008). Most towns and cities across the

37

world and Nigeria in particular offer a variety of eating

establishments with different themes and dishes, to satisfy the

needs of an increasingly knowledgeable and demanding

population.

THE CROSS RIVER/ENUGU EXPERIENCE

Cross River State is once again sustaining its leadership in the

tourism industry in Nigeria with a recent 100 percent growth

record in its hospitality sector.

Announcing the landmark feat, Obioma Liyel-Imoke, wife of the

Cross River State Governor, said hotel beds in the state have

increased from 2,000 to 4,000 with a short period of time. Imoke,

who was recently bestowed with the Tourism Man of the Year

2011 by Akwaaba and Abuja Bantaba, both travel and tourism

fairs, at Government House Calabar, identified the peace and

hospitality of the people of Cross River (the Nation’s Paradise) as

the key factor for the remarkable growth.

“This in itself has a direct impact on the livelihood of the people as

one of the dividends of the tourism/hospitality industry”, the First

Lady said and noted further that the Carnival Calabar, an integral

component of the state’s renowned 32-day festival, which has

come to be known as Africa’s biggest street Party, has given

38

Nigeria a place on the tourism map of the world as the number of

tourists visiting during the time goes up each year.

Besides the hospitality of the people and the carnival, she noted

that the many attractions in the state especially the Obudu

Mountain Resort, wooed a lot of visitors, put pressure on existing

hotels and resulted in the building of more hotels to accommodate

the growing influx of visitors.

“The recent elevation of the Obudu Mountain Resort to the first

position in the contest for the Seven Wonders of Nigeria and the

enlisting in the Guinness Book of Records as having the longest

cable car ride in Africa are further contributions the state has

made and still making in tourism development in Nigeria.”

She revealed that upcoming infrastructural developments in the

state that will further project the tourism potential of the state

include; the Calabar International Convention Center (that will

open in 2013) with its five star hotel, a four-screen cinema which

will be opened next month at the Marina Resort amongst others.

Imoke maintained that tourism in Cross River State is key to the

economic growth of not only the state but its people in general.

Ikechi Uko of AKWAABA and Abuja Bantaba who also spoke at the

event said Imoke was chosen for this year’s award because of the

tremendous success of the 2011 Carnival Calabar which was

39

adjudged the best on the African continent The Tourism Man of

the year Award celebrates individuals who have contributed

notably to the development of tourism in their states.

In Enugu state, the infrastructural development projects as

pursued by the government of Governor Sullivan Chime has led to

the proliferation of hotels and eateries in almost every corner of

the state. The number of hotels in the state has tremendously

tripled within the last five years making Enugu the largest growing

state in the hospitality business. It has been recorded that almost

all hotels rooms in the city are filled every weekend because of

influx of people from all corners of the country and beyond for one

reason or the other.

This has invariably contributed to the employment and other ripple

business effects in the states and its environs.

40

REFERENCES

Anyanwu, J. C. (1997). The Structure of The Nigerian Economy.

Onitsha: Joanee Educational Publishers Ltd

Barro, R., & Grilli, V. (1994). European Macroeconomics.

Macmillan.

Bhatia, A. K. (1983). Tourism Development. New Delhi: Sterling

Publishers

Feifer, M. (1985). Tourism in History. New York: Stein and Day

Publishers

Jafari, J. (Ed.). (2000). Encyclopedia of Tourism. New York, United

States of America: Routledge.

Ode, O. (2001). The provision of infrastructure for tourism

development.

Okpolo, U., Emeka, E., & Chris, D. (2008). Understanding Tourism.

Nsukka: Nsukka University of Nigeria Press Limited.

Tribe, J. (2009). Philosophical Issues in Tourism: Aspects of

Tourism. Bristol: Channel View Publications.

UNWTO,(2006). Nigeria Tourism Development Master Plan:

Institutional Capacity Strengthening to the Tourism Sector in

Nigeria . Madrid: UNWTO.

Jaja King (2009) Issues in grading and classification of Nigeria’s

hospitality sector; The Economy Newspapers.

41

Oxford economics (2010) Economic Contributions of the UK

Hospitality Industry

Cross River records 100% growth in hotels Business day

Newspapers 2012

British Hospitality Association (2011) Hospitality driving local

economies, London.

42

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 RESEARCH DESIGN

According to Kinnear (1989:133) “a research design is the basic

plan which guides the data collection and analysis phases of a

research project. It is the framework which specifies the type of

information to be collected and source of data collection

procedure.

A descriptive survey method was used for this study. It is

important to determine the method and procedure adopted in this

research report since it gives the reader background information

on how to evaluate the findings and conclusion.

3.2 SOURCES OF DATA

The data for this research work was collected from both

primary and secondary sources of data.

3.2.1 PRIMARY SOURCES OF DATA

The primary data used for this research work obtained from

oral interviews conducted by the researcher on stakeholders in the

hospitality industry within Enugu and its environs and structured

questionnaire The purpose was to get their personal views on a

number of issues.

43

3.2.2 SECONDARY SOURCES OF DATA

The secondary source from which data was collected includes:

textbooks from libraries, publications of the central banks of

Nigeria, and other publications on performance index and GDP

contribution and different website on the internet.

3.3 POPULATION OF THE STUDY

Since it is usually not possible to study the entire larger

population of the hospitality industry, the researcher has chosen

the Enugu zone as the studied population in order to find a

possible solution to which involve a total of 100 operators

(including hotels, restaurants, travel agencies, parks etc)

3.4 SAMPLING TECHNIQUE

The researcher utilized the statistical sampling technique in

determining the sample size for the study. He applied the simple

random sampling techniques owning to the nature of the study

population.

3.5 DETERMINATION OF SAMPLE SIZE

Sampling population is used to avoid possible errors in dealing

with population. The population size was narrowed down to

44

determine the sample size. A statistical formula was used in

determining the sample size.

Yaro Yamani formula as quoted in Nwabuokei (1986: 471) was

applied and it is stated as follows:

n= N

1+ N (e)2

Where n=sample size

N=total population size

1 is constant

e = the assume error margin or tolerable error which is

taken as 5%(0.05)

n = N

1 + N (e)2

Where N=250

e = (0.05)2 0.0025

n = 100

1 + 100(0.0025)

= 100

1.25

= _100

1.25

n = 80

45

3.7 DATA COLLECTION INSTRUMENTS

The research structured both open- ended and close- ended

questions. Double barrel questions that is, those questions capable

of attracting multiple interpretations were cautiously avoided. In

the close ended questions, respondents were given a number of

alternatives from which to select options they consider

appropriate.

In the open ended questions, respondents were provided

with blank spaces in which to write down their own answers in

their words. Dichotomous type of questions that demands “yes or

No” type of answers was also used. A total of 100 questionnaires

were administered. A total of 80 questionnaire representing 80%

return rate was collected.

ADMINISTRATION OF THE STUDY INSTRUMENT

The questionnaires were administered amongst the different

operators in the hospitality industry Enugu. The categories of

respondents ranged from senior managers, Middle managers and

subordinates.

3.7 METHOD OF DATA ANALYSIS

In analyzing the data collected using the questionnaire; the

researcher used the simple percentages method of data analysis.

46

The analysis was represented in tabular form for easy

understanding and it consist the number of respondents and the

corresponding percentage and chi – square was used as the

statistical tools used for testing more than two population using

data base on two independent random samples.

The test statistical thus becomes

X2 = ∑ (o1 – e1)2

e1

Where o1 = observed frequency

e1= expected frequency

This test is based strictly on the primary data gotten from

the use of questionnaire.

DECISION RULE: Reject Null Hypothesis if calculated value of

(X2) is greater than the critical value and accept Null Hypothesis if

calculated value of (X2) is less than the critical value.

The Degree of freedom = (n - 1) (k - 1)

Where Df =Degree of freedom

n = Number of rows

k = Number of column

47

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.0 DATA PRESENTATION AND INTERPRETATION

This chapter is designed to give and analyze the response to

the research questionnaire and test the hypotheses formulated

from the stated problems in chapter one of this thesis. It deals

with the presentation, analysis and interpretation of the data

collected. They were analyzed using tables and chi-square (X2)

statistical tool

Table 4.1: Questionnaires Distributed/Returned

Options Quantity Percentage (%) Returned 80 80 Not returned 20 20 Total 100 100

From table 1 above, 80 questionnaires representing (80%) were

returned out of the 100 questionnaires distributed, while 20 (20%)

was either not returned or wrongly filled and was disqualified.

4.1 ANALYSIS OF DATA (RESULTS)

Table 4.2: Length of service in the hospitality sector

Question 6: how long have you been in this Industry? Options Frequency of

Responses Percentage

(%) 1 – 5 36 45

6 – 10 24 30

11 years and above 20 25

Total 80 100

Source: Field survey 2013

48

Twenty (20) employees of the sector (35%) have worked for 11

years and above while the remaining 75% have just worked for a

maximum of 10 years.

Table 4.3: Contribution of Hospitality Industry to development

Question 7: Do you think the hospitality industry contributes to

economic development?


From the above data, one could say that a large percentage of the

respondents opined that hospitality industry contributes to

economic development.

Table 4.4: Contribution of hospitality industry to employment

Question 8: would you say that an increase in hospitality industry

will increase employment?


Options Frequency of Responses Percentage (%)

Yes 60 75

No 20 25

Total 80 100


Yes 46 57. 5

No 34 42. 5

Total 80 100

49

In the above table 46 of the respondents (57.5) agree that

increase in hospitality industries will increase employment hence

productivity would increase and positively affect GDP.

Table 4.5: Extent of Contribution of the Industry to development

Question 9: how would you consider the hospitality industry in relation to her

contribution to economic development in Nigeria?


From the above data, one could gather that the hospitality

industry is doing adequately well in relation to her contribution to

economic development in Nigeria?

Table 4.6: Working Conditions in the Industry

Question 10: how would you rate the effect of existing

relationship and working conditions in the hospitality industry?



Highly adequate 40 50

Fairly adequate 20 25

Not adequate 20 25

Total 80 100

Options Frequency of Responses

Percentage (%)

Increases productivity 74 92.5

Reduces productivity 6 7.5

Total 80 100

50

Seventy four (74) respondents (92.5%) agree that a good working

relationship and working conditions contribute immensely to

workers productivity in the hospitality industry. This is to conclude

that one should not rule out the effect of a good working condition

vis a avis good rapport with the employees.

Table 4.7: Relation of industry growth to economic growth

Question 11: would you say that development in the industry will

equal development in the economy?


It would be an understatement to say that development in the

industry will equal development in the economy. A majority of the

respondents agreed that this statement is basic; hence it should

be held in high esteem.


Percentage (%)

Yes 77 96.25

No 3 3.75

Total 80 100

51

Table 4.8: Extent of Patronage

Question 12: does your company experience high patronage?


It can be deduced that in majority of the hospitality industry

providers experience high patronage.

Table 4.9: Responses on whether the organization performance depends

on economic condition

Question 13: Does the performance of my organization depends mainly on the general economic conditions?


The economy has to be stable and booming before people can

patronize the hospitality industry. Thus when there is recession in

the economy the industry suffers.


Percentage (%)

Yes 74 92.5

No 6 7.5

Total 80 100


Percentage (%)

True 80 100

False - -

Total 80 100

52

Table 4.10: Effect of infrastructures on the sector

Question 14: do you think that infrastructures like power, good

road networks, communication, security etc can boost the sector?


The above table indicates that basic infrastructural facilities also

impacts on performance and productivity of the industry.

Table 4.11: Regulation and Supervision

Question 15: what kind of regulation/supervision do you think is

the best to boost the industry activities?


The above table indicates that regulatory/supervision type also

impacts on performance and productivity of the sector.


Percentage (%)

Yes 80 100

No - -

Total 80 100


Percentage (%)

Too strict - -

To withdraw operating license when laws are

violated

- -

Related in punishment 80 100

Total 80 100

53

Table 4.12: Operating environment of the sector

Question 16: is the operating environment conducive for an

improvement in the sector?


Seventy eight (78) of the respondents (97.5%) responded

positively by agreeing that a good operating environment is a pre-

requisite to improve performance.

Question 13: do you think the industry has contributed in

reshaping the image of the country?

Table 4.13: Responses on if the industry has contributed in

reshaping the image of the country.


From the above data, 68 out of the respondents (85%) say that

the operation of the industry can extensively contribute to


Percentage (%)

Yes 78 97.5

No 2 2.5

Total 80 100


Percentage (%)

Yes 68 85

No 12 15

Total 80 100

54

reshaping the image of the country while 12 (15% has a contrary

view.

4.2 TEST OF HYPOTHESES

Some of the hypothesis stated in the chapter one of this work shall

be tested using the chi square statistical method.

Level of significance used is 5% = 0.05

The degree of freedom is given by (C-1) (R-1)

Where C = Column

R = Row

Since we have 3 columns and four rows df = (3-1)(4-1)

2x 3 = 5

Therefore the critical value of 5% or 0.05 level of

significance under degree of freedom X2 = 0.05 = 5.99

Hypothesis One

Hospitality Industry contribute to Nigerian economic development

Calculation of Chi Square Value

Table 4.14: Analysis of (Yes) Responses

Question No.

Fo Fe (Fo-Fe) (Fo-Fe)2 (Fo-Fe)2

Fe

7 60 68.5 -8.5 72.25 1.054

11 77 68.5 8.5 72.25 1.054

2.108

55

Table 4.15: Analysis of (No) Responses

Question No.

Fo Fe (Fo-Fe) (Fo-Fe)2 (Fo-Fe)2

Fe

7 20 11.5 8.5 72.25 6.282

11 3 11.5 -8.5 72.5 6.282

12.564

Grand Total = 2.108 + 12.564 = 14.672

Comparing the test statistical with critical value X2

X2 Calculated = 14.672 > X2 table Value of 5.99

Decision

In the computation above, X2 calculated 14.672 is greater than the

X2 table value of 5.99. Thus the conclusion that the

hospitality industry contributes meaningfully to economic

development in Nigeria.

Hypothesis Two

Hospitality industry employs a notable percentage of the Nigerian

workforce.

Table 4.16: Chi Square calculation 1

Options Fo Fe (Fo-Fe) (Fo-Fe)2 (Fo-Fe)2

Fe

Yes 46 40 6 36 0.9

No 34 40 -6 36 0.9

Total 80 1.8

56

Table 4.17: Chi Square calculation 2

Aggregate chi square calculated = 1.8 + 9.99 = 11.79


X2 Calculated = 11.79> X2 table Value of 5.99

Decision

X2 calculated 11.79 is greater than the X2 table value of 5.99.

Thus the conclusion that the hospitality industry employs

a good percentage of the Nigerian workforce

Hypothesis Three

The hospitality industries have contributed in reshaping the image

of the country thereby attracting investors.

Using Table 4.13; Question 17: do you think the industry has contributed in reshaping the image of the country?


Fe

Highly adequate 40 26.66 13.34 177.95 6.67

Fairly adequate 20 26.66 -6.66 44.355 1.66

Not adequate 20 26.66 -6.66 44.355 1.66

Total 80 9.99


Percentage (%)

Yes 68 85

No 12 15

Total 80 100

57

Calculation of Chi Square


X2 Calculated = 39.2> X2 table Value of 5.99

Decision

X2 calculated 39.2 is greater than the X2 table value of 5.99 thus

the conclusion that hospitality industry have contributed

in reshaping the image of the country thereby attracting

investors.


Fe

Yes 68 40 28 784 -19.6

No 12 40 -28 784 -19.6

Total 39.2

58

CHAPTER FIVE

SUMMARY OF FINDINGS, RECOMMENDATION AND

CONCLUSION

5.0 INTRODUCTION

This chapter summarizes the findings, concludes and proffers

some recommendations.

5.1 SUMMARY OF FINDINGS

The researcher vigorously sought to achieve the objectives

of the study. The findings of the study are presented as follows:

1. A large percentage of the respondents opined that hospitality

industry contributes to economic development.

2. 46 of the respondents (57.5) agree that increase in

hospitality industries will increase employment hence

productivity would increase and positively affect GDP.

3. That the hospitality industry is doing adequately well in

relation to her contribution to economic development in

Nigeria?

4. Seventy four (74) respondents (92.5%) agree that a good

working relationship and working conditions contribute

immensely to workers productivity in the hospitality industry.

This is to conclude that one should not rule out the effect of

a good working condition vis a avis good rapport with the

employees.

59

5. It would be an understatement to say that development in

the industry will equal development in the economy. A

majority of the respondents agreed that this statement is

basic; hence it should be held in high esteem.

6. It can be deduced that in majority of the hospitality industry

providers experience high patronage.

7. The economy has to be stable and booming before people

can patronize the hospitality industry. Thus when there is

recession in the economy the industry suffers.

8. Basic infrastructural facilities also impacts on performance

and productivity of the industry.

9. Seventy eight (78) of the respondents (97.5%) responded

positively by agreeing that a good operating environment is

a pre-requisite to improve performance.

10. 68 out of the respondents (85%) say that the operation of

the industry can extensively contribute to reshaping the

image of the country while 12 (15% has a contrary view.

The researcher was able to decide from the test of hypothesis

that the hospitality industry contributes to economy development,

employment growth and reshaping of Nigerian Image outside the

shores of this country.

60

5.2 CONCLUSION

It was found that a positive correlation exists between the

hospitality industry and the GDP and that the industry depends

almost entirely on the economy, thereby confirming a priori

expectation. What this means in effect is that for the hospitality

industry to continue to be relevant, government must at all times

ensure a stable but steadily rising economy. The services sector

employs about 30 percent of Nigeria's workforce, yet provides

about half of its output. Nigeria depended on its large English-

speaking, well-educated workforce to develop a burgeoning

technology sector, as well. Hospitality is a growing portion of

Nigeria's economy with an earnings increase of more than 10

percent from 2010.

61

5.3 RECOMMENDATIONS

From the findings of this work, the researcher recommends the

following:

1. The researcher sincerely recommends the findings of this

research work to policy makers in Nigeria. The findings of

this work will be vital if the leaders and decision makers

sincerely want this country to be amongst the 20 most

developed countries in the year 2020.

2. The operating environment of the sector should be made

conducive enough to attract foreign investors who will

improve the level of service rendered by the operators in this

sector.

3. Nigerian investors in the industry should as well study

foreign hospitality industries and see how to adapt some of

their system to enhance theirs here in Nigeria.

62

BIBLIOGRAPHY

Anyanwu, J. C. (1997). The Structure of The Nigerian Economy.

Onitsha: Joanee Educational Publishers Ltd

Barro, R., & Grilli, V. (1994). European Macroeconomics.

Macmillan.

Bhatia, A. K. (1983). Tourism Development. New Delhi: Sterling

Publishers

Feifer, M. (1985). Tourism in History. New York: Stein and Day

Publishers

Jafari, J. (Ed.). (2000). Encyclopedia of Tourism. New York, United

States of America: Routledge.

Keith C. Su (1998) Economic Trends and Influence on Hospitality

Industry: The Case of U.S. Lodging Industry; Advances in

Hospitality and Tourism Research Volume III

Ode, O. (2001). The provision of infrastructure for tourism

development.

Okpolo, U., Emeka, E., & Chris, D. (2008). Understanding Tourism.

Nsukka: Nsukka University of Nigeria Press Limited.

Onodugo V.A et al (2010): Social Science Research: Principles,

Methods and Applications. Enugu, Ed’mark publishers Ozo, J. Ubata et’al (1999): Introduction Project Writing for Business

and Financial Studies. Enugu Sunny Enterprises.

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Tribe, J. (2009). Philosophical Issues in Tourism: Aspects of

Tourism. Bristol: Channel View Publications.

UNWTO,(2006). Nigeria Tourism Development Master Plan:

Institutional Capacity Strengthening to the Tourism Sector in

Nigeria . Madrid: UNWTO.

Jaja King (2009) Issues in grading and classification of Nigeria’s

hospitality sector; The Economy Newspapers.

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Cross River records 100% growth in hotels Business day

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British Hospitality Association (2011) Hospitality driving local

economies, London.

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APPENDIX

Department of Management

University of Nigeria,

Enugu Campus

Dear Respondent,

REQUEST TO COMPLETE RESEARCH QUESTIONNAIRE

I am a post graduate student of the above department of the

Faculty of Business Administration of University of Nigeria, Enugu

Campus. I am conducting a study on Hospitality Industry and

Economic Development in Nigeria; An Investigative Approach.

Kindly complete the questionnaire attached. Do not write your

name or your position. Your responses are used for academic

research and will be treated with utmost confidentiality. Thank you

for your cooperation.

Oyibo Edith Ogechukwu

PG/MBA/11/60199

Researcher

65

QUESTIONNAIRE

Please tick �� were appropriate

Section 1: Demographic Information

1. Gender Information?

Female ( ) Male ( )

Age Information 20 – 24 ( ) 25 – 29 ( )

30 – 34 ( ) 35 – 39 ( )

40 – 44 ( )

2. Educational Profile: High school ( )

Undergraduate degree ( ) Graduate degree ( )

4. Length of service in the hospitality sector 1 - 5 ( )

6 - 10 ( ) 11 years and above ( )

5. Do you think the hospitality industry contributes to economic

development? Yes ( ) No ( )

6. Would you say that an increase in hospitality industries will

increase employment? Yes ( ) No ( )

7. How would you consider the hospitality industry in relation to

her contribution to economic development in Nigeria?

Highly adequate ( ) fairly adequate ( )

Not adequate ( )

8. How would you rate the effect of existing relationship and

working conditions in the hospitality industry?

Increases productivity ( )

Reduces productivity ( )

66

9. Would you say that development in the industry will equal

development in the economy?

Yes ( ) No ( )

10. Does your company experience high patronage?

Yes ( ) No ( )

11. The performance of my organization depends mainly on the

general economic conditions?

True ( ) False ( )

12. Do you think that infrastructures like power, good road

networks, communication, security etc can boost the sector?

Yes ( ) No ( )

13. What kind of regulation/supervision do you think is the best

to boost the industry activities?

Too strict ( ) To withdraw operating license when laws

are violated ( ) Related in punishment ( )

14. Is the operating environment conducive for an improvement

in the sector? Yes ( ) No ( )

15. Do you think the industry has helped in reshaping the image

of the country? Yes ( ) No ( )

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