Economic contribution of tourism in Nigerian 1

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The economic contributions of tourism in

Nigeria and the strategies for increasing the

contributions in the future

PRESENTED

BY:-

IBRAHIM ZUBAIRU ABUBAKAR

January, 2014.

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INTRODUCTION

Worldwide, tourism grew phenomenally from 25 million arrivals in 1950 to 808 million in 2005,

with an average annual growth rate of 6.5 percent. In 2005, tourist arrivals in Africa registered

only 37 million (or 5 percent of the world as compared to 444 million arrivals (55 percent) in

Europe, 156 million (19 percent) in Asia/ Pacific, 133 million (16 percent) in the Americas, and

38 million (5 percent) in the Middle East Over the decade of the 1990s, Africa has experienced a

rise in tourist arrivals from 8.4 million to 10.6 million and receipts growth from $2.3 billion to

$3.7 billion, In spite of this, there are only few empirical studies that investigated the

contributions of tourism to economic growth and development for African economies. (Fayissa,

2007).

It’s understood that tourism contributed three per cent to Nigeria’s Gross Domestic Product in

2012 and 2.8 per cent of total employment. (Jimoh, 2013). According to the travel and tourism

competitiveness index (TTCI) 2013, Nigeria performed relatively well on three important pillars

of the TTCI:

The natural resource pillar (ranked 68/140),

The cultural resource pillar (ranked 98 out of 140) and

Environmental sustainability (63/140). We have what it takes to succeed. (Uche, 2013).

It is agreed that, if Nigeria must take a place in the committee of great nations, it cannot but

begin to make intentional efforts to source revenue outside of oil. One major area where Nigeria

could muster some financial strength is the tourism industry. (Spotlight magazine, 2013). The

federal government has restated its commitment to diversifying the nation’s revenue base, with a

plan to prepare the tourism sector to generate more earnings and create more jobs. (Gregory, &

Ajibola, 2013).

The tourism industry offers the opportunity to lessen the country’s dependence on oil revenue, if

properly harnessed. At the present level the industry annual revenue is about N80 billion.

(George, 2013). The important roles of the tourism sector as the main instrument in

socioeconomic development of any nation can be overstated. Although some of the tourist

centres in Nigeria are not well developed to promote socioeconomic development however,

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Nigeria’s tourism sector is still operating below capacity even as tourism becomes the fastest

growth industry globally. The tourism industry is a powerful driver of the economic train of the

nations. The industry generates over US$ 1 trillion per annum in direct earnings. Moreover the

lack of adequate empirical data has hindered policy makers and other stakeholders on the

viability of most of the existing tourism destinations in Nigeria. (Ajibola, 2013).

Depending on the reports tourism sector has seriously under performed. In 2011, only 715,000

tourists visited the country from 1995 - 2011. Nigeria’s highest earnings from tourism were a

meager 688 million dollars in 2008. International tourism generated 0.72 per cent of Nigeria’s

total export earnings in 2011, finally on the WTO rankings Nigeria is nowhere to be found in the

top ten travel destinations in Africa. According to analysts, Nigeria’s tourism sector has potential

to generate $4 billion yearly. The sector has been described as under-utilized contributing a

meager 0.5 percent to its GDP. However, it has since been selected as one of six priority areas

central to the revival of the country’s economy in view of declining global oil price. (Kehinde,

2013).

ECONOMIC CONTRIBUTION OF TOURISM TO GROSS DOMESTIC PRODUCT (GDP)

Nigeria does not have an accurate record of tourism contribution to GDP, as the tourism minister

hinted during a TV interview it materialized that the sector does not generate anything close to

the tourism earnings in South Africa and Dubai, even with almost 500 tourist sites and attractions

in the country. (Ajibola, 2013).

The fiscal impact of the tourism industry is usually assessed at the macroeconomic level and can

be measured in several, different ways. The conventional measurement focuses on tourism

receipts and the contribution of tourism to a country's GDP. (Olu, 2012). More recently, The

WTTC has reported titled travel and tourism economic impact 2012 put the total contribution of

travel and tourism to Nigeria’s GDP at N598.6 billion, which represents 1.6 per cent of the total

GDP, and 6.3 per cent per annum from 2012 to 2022. Furthermore, travel and tourism directly

supported 838,500 jobs or 1.4 per cent of total employment in 2011. This will be also expected to

rise by 3.7 per cent annually to 1,289,000 jobs or 1.6 per cent of total employment in 2022.The

report also puts investment in the travel and tourism sub-sectors in Nigeria in 2011 at N 251.5

billion, while forecasting growth in this area at 1.5 percent in 2012 and a rise of 2.4 per cent per

annum from 2012 to 2022 (Adewole, 2012). In another enlargement the contribution to GDP,

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according to WTTC travel and tourism contributed N1.232to (3.3 per cent of GDP) in 2011,

adding that the GDP was expected to rise by 10.8 per cent in 2012 and seven per cent per annum

to N2.691ten in 2022. (Agency Reporter, 2012).

ECONOMIC CONTRIBUTION OF EMPLOMENT TO TOURISM SECTOR

According to George, (2013), the tourism industry offers marvelous opportunities in jobs

creation and strengthening of the nation’s economy. The statistics indicate that Nigeria will gain

a rise in employment of 897,500, which will translate to N252bn in investment equivalent to 1.6

per cent increments and 1.4 percent annually with the aim of hitting 5.4 percent in 2022. Around

840,000 Nigerians are currently employed directly within the country’s tourism industry,

representing 1.4% of the labor force. WTTC expects the figure to rise to 1.6% over the next 10

years. The number of jobs created both directly and indirectly by the industry should reach

almost 1.9m this year, according to the WTTC, and is expected to rise to 2.9m by 2022, making

up 3.5% of total employment. In another expansion WTCC’s estimate, Nigeria’s visitor numbers

should increase by 3.5% per year over the coming decade, with the country expected to welcome

a total of 1.8m international travelers this year. The number is forecast to rise to 2.9 m over the

next 10 years. By comparison, the WTTC expects South Africa to see 9.7m international tourist

arrivals in 2012 and 13.9m per year by 2022. (Oxford Business Group, 2012).

The tourism sector has made momentous contributions to the nation’s Gross Domestic Product

and boosted employment assess in the past four years. (Agency Reporter, 2012). WTTC further

forecasts in their reports, that in 2012 alone, some 897,500 jobs, representing 1.4 percent of

Nigeria’s total engaged workforce will be generated by the travel and tourism industry. With

about N1,232.2 billion (3.3 percent) contribution to the GDP in 2011; rises by 10.8 percent in

2012 and further increase by 7.0 percent annually to hit N2,690.8 billion in 2022, the Nigerian

travel and tourism industry is fast opening up to huge investments. Travel and tourism generated

838,500 jobs directly in 2011 (1.4 percent of total employment), and this was forecast to grow by

7.0 percent in 2012 to 897,500 jobs, stated in the WTTC reports, which give details that the

expected jobs include employment by hotels, travel agents, airlines as well as the activities of the

restaurant and leisure industries directly supported by tourists and other passenger services

(excluding commuter services). (Obinna, 2012).

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ECONOMIC CONTRIBUTION OF TOURISM SECTOR TO FOREIGN EXCHANGE

Foreign Earning or Exchange: The tourism industry makes room for foreign earnings in the

Nigerian economy. It is accomplished by attaining foreigners from other countries to Nigeria e.g.

The Tinapa or Obudu Cattle ranch in Cross River State attract foreigners to the state annually for

site seeing and holiday visits. Also tours agriculture encourages foreign exchange through

international trade e.g. cocoa exportation, rubber exportation etc. (Naijaedu, 2012).

In 2011, more than 2 million tourists visited Nigeria, in various international 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 are expected to rise by 10 percent increase

year by year. Tourists are attracted by Nigeria’s cultural diversity, scenery and festivals each

region of Nigeria offer something for foreign visitors, from Obudu Cattle Ranch, Osun Osogbo

Groove, Olumo Rock, Agbokim Water Falls in Calabar and a number of beaches and coastal

cities.

The World Tourism Organization (WTO) predicts that the number of global tourists will reach

almost 1.6 billion by the year 2020 (as opposed to 565m in 1995), and that international tourism

receipts will exceed US$2.0 trillion. The estimated growth of world global tourism arrivals of

4.5% per annum will pose enormous challenges and opportunities for many countries such as

Nigeria. (Industry & Sector, 2007). Many analysts of the tourism sector in Nigeria agree that the

sector has the potential of not only contributing to foreign exchange earnings but also can

support the reduction of the concentration of foreign exchange sources. (Abiodun, 2012:74).

ECONOMIC CONTRIBUTION OF TOURISM SECTOR TO INVESTMENT

According to specialists, nations that have recognized the monetary importance of tourism and

invested in the sector early enough are today reaping the benefits of such investments. (Udeme,

2010). The report is reproduced in WTTC’s Travel and Tourism Economic Impact on Nigeria

2012. The report also noted that travel and tourism is expected to attract capital investment of

N252.5 billion, which is also rising in 2012 by 2.3%, and rise by 6.5% per annum over the next

10 years to N483.4 billion in 2022. The WTTC also forecasts that domestic travel spending will

grow from 1.5% in 2012 to N119.4 billion and rise by 2.4% per annum to N151.5 billion in

2022. (Noah, 2012).

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Tourism became a cardinal stone for achieving Nigeria’s 7-point agenda and its vision 2020

program and also attracting foreign direct investment. The downstream economic impacts from

the “export” revenues of international tourist spending were estimated to generate additional

gross revenue of N29 billion. (Bivnze, 2013). Industry watchers also note that the sector boosts

Foreign Direct Investments (FDIs) in the country. They attribute it to the availability of good

hotels in the country, among others. (George, 2013).

ECONOMIC CONTRIBUTION OF TOURISM SECTOR TO REGIONS

We are convinced that the Nigerian tourism provides a veritable platform for a more inclusive

economic growth that will boost the revenue profile of local councils and provide local jobs that

are sustainable. The federal government remains committed to diversifying the economy from

the volatility of crude oil earnings to more sustainable sources of revenues and community based

jobs which Nigeria’s tourism potential across all the 36 states of the federation. (Bivnze, 2013).

The tourism industry is one that encompasses different areas, and also creates jobs for various

people such as hotels, restaurants, car rental agencies, tour companies, service stations, souvenir

shops, sports equipment rentals, and much more. All of these make different levels of

employment for people in a given community. In many places, the introduction and development

of tourism allow local people an opportunity for economic and educational growth that would

not otherwise be available. (Udeme, 2010).

ECONOMIC CONTRIBUTION OF TOURISM SECTOR TO TAXATION

Tourism industry sector contribution to taxation was put on government revenue from levies on

the hospitality sector (registration and other charges) recorded 1.149 m in 2004, considered

grossly inadequate as compared to over 100 m in 2009 and company tax generated by the

hospitality sector which recorded 313m in the year 2005. (National Bureau of Statistics, as cited

by Ijeoma, 2010).

ECONOMIC CONTRIBUTION OF TOURISM SECTOR ON OTHER INDUSTRIAL

SECTORS While niche segments such as Nigeria’s thriving Nollywood industry the world’s

third-largest film production market are helping to raise the country’s profile, especially in the

expanding African market. (Oxford Business Group, 2012). The tourism industry sector is

encompassing different areas, hotels, restaurants, car rental agencies, tour companies, service

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stations, souvenir shops and sports equipment. All of these create different levels of employment

for people in the nation and governments do use this great opportunity to get more revenues in

earnings in both national and international tourist. Tourism also here works through what we

called multiplier effects. Tourism provides different level of jobs at subsistence and commercial

level in the Nigerian economy e.g. transportation, small scale farming, trading, hotel, restaurants,

car rentals, marketing etc. Which provides income, employment and which reduces poverty?

Tourism is a business of activities connected with providing accommodation services and

entertainment for people who are visiting i.e. tourism sector contributes to the Nigeria through

providing opportunity (Job opportunity) to the hotel management, entertainers. (Naijaedu, 2012).

ECONOMIC IMPORTANCES OF DOMESTIC CONTRIBUTION TO TOURISM SECTOR

Not only the foreign tourists’ travel to Nigeria, after the awareness created by the NTDC.

Nigerians have also started taking more domestic vacations, as well. The country’s gradual

monetary growth has increased its middle class population. This group is contributing the most

to inland travel. (Naijaedu, 2012).

While the incidence of marital leisure travel may be low, the total size of Nigeria’s population

means that there is a considerable contribution to the demand for tourism services from domestic

travel activity. The revenue value of this influence is unknown. The revenue generated from

travel within the country by employees and staff of Federal Government departments and

agencies generates a demand for an estimated US$68m/N8.8B of transport and hospitality

sectors. State governments also make a considerable contribution to the transport and hospitality

sector in the undertaking of authorized travel activities. (Report, 2006)

The domestic tourism market has very high revenue and job creation potential. If we assume that

a low estimate of 20 million out of 160 million Nigerians travel locally for business, leisure,

culture, religion or sport yearly, and they spend only 10 per cent of Nigeria’s per capita income

of $2000 year, we will have $4 billion domestic tourism market and hence our focus at NTDC is

on developing domestic tourism as the foundation for attracting international tourists. (Gregory,

& Ajibola, 2013). The reports also forecast that domestic travel spending was increased by 1.5

per cent in 2012 to N119.4bn and rise by 2.4 per cent per annum to N151.5bn in 2022.

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It expected to rise to 6.5 per cent per annum was envisaged over the next 10 years. (Agency

Reporter, 2012).

It’s imperative to the positive effect of Nollywood, as Nigeria’s booming film industry was

recently detailed at last year’s World Travel Market (WTM) 2012, industry reports and WTM

Global Trends Reports. The report states that the popularity of Nollywood all over the continent

(it names Sierra Leone, Cameroon, Gabon, Kenya, South Africa, Democratic Republic of Congo

and The Gambia) means Nollywood films attracts domestic and regional African tourists to

Nigeria, visiting film locations. The report went on to predict a 3 per cent rise in tourism to

Nigeria in the next four years claiming that in addition to leisure tourism drawn from the

industry, growing revenue generated by Nollywood will attract business travellers. The report

also discusses the hotel room in Nigeria’s city Lagos. (Bivnze, 2013).

ECONOMIC IMPORTANCES OF INTERNATIONAL CONTRIBUTION TO TOURISM

SECTOR

The principal conclusions from the analysis of the economic impact of tourism on the economy

of Nigeria conducted by the project are: spending by international tourists has a direct impact on

the national economy estimated at US$280m/N36b. Downstream economic impacts from the

“export” revenues of international tourist spending are estimated to generate additional gross

revenue of US$224m/N29b. (Report, 2006). Expenditure by international tourists that has a

direct impact on the national economy estimated at 1.35b in 2005, 2.2b in 2006, 2.69B in 2007,

16.8B in 2008 and 53.5B in 2009. (Ijeoma, 2010).

With international arrivals scaling 7, 000 daily, Nigeria is reported to lead the sub-Saharan

Africa region in terms of appreciable growth in the tourism sector of the economy. This figure,

of course, is relatively boosted by the oil and gas industry in addition to marginal improvements

of growth in the service sector. In the third quarter of 2011 alone, Nigeria attracted 3,937 rooms,

according to a release by Lodging Econometrics, out of Africa’s total hotel construction pipeline

figures of 190 projects and 37,141 guest rooms and only came second to Morocco. (Bivnze,

2012). With more flights and frequencies and applications for licenses by international airlines,

the tourism industry in Nigeria, with particular reference to the business travel market, in

addition to the hospitality sub-sector appear to be the biggest beneficiaries of this boom in the

tourism industry. (Bivnze, 2013). And Africa’s total visitor numbers to increase by at least 4.5%

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this year and in 2013, which is 1-1.5% higher than forecasts for Nigeria’s arrivals in the coming

five year period. (Oxford Business Group, 2012).

CURRENT STRENGTH OF TOURISM INDUSTRY

Many analysts of the tourism sector in Nigeria agree that the sector has the potential of not only

contributing to foreign exchange earnings but also can assist the reduction of the concentrated oil

industry. A Potential tourist paradise which boasts of good tropical weather, a variety of wildlife,

awe-inspiring waterfalls, historical relics, captivating beaches, and rolling hills, coupled with the

warm-hearted and culturally active populace. The weather, vegetation, and climate make Nigeria

a tourism destination of variety. Attractive, weather and climate notwithstanding, the number of

tourist attractions is the ultimate key to the demand for tourism in any economy. About 101

tourist attractions in Nigeria, spread across the six geopolitical zones and spanning different

types of tourism assets such as rocks, plateaus, hills, springs, lakes, waterfalls, beaches,

museums, shrines, cultural festivals, parks, gardens, game reserves, zoos, etc. (Abiodun,

2012:74). Natural attraction (e.g. forests, parks and caves), cultural attractions (e.g. Traditional

lifestyles, festivals, music and dances), and historic and heritage sites (e.g. Museums,

archeological sites, historic towns) are in abundance in Nigeria. Nigeria is well-positioned to also

exploit the growing interest in organic food and in natural products in virtually every part of the

globe. (Uche, 2013).

There are countless festivals and carnivals organized across the 36 states of the federation. Many

of these cultural events are probable income gainers on their own both for the government and

the community. There is an Arugungun festival in, Eyo in Lagos, Osun festival in Osogbo, Ogun

festival in Oyo, Ojude obey Festival in Ijebu, Ofala Festival in Anambra, yam festival in

Abuja/suleja. (Ajibola, 2013).

STRATEGIES TO INCREASE CURRENT STRENGTH OF TOURISM INDUSTRY

TOWARD ECONOMIC CONTRIBUTIONS

The success of tourism and hospitality industry in any country depends on the ability of that

country to sufficiently improve, manage and market the tourism facilities and activities of that

country as most developing countries depend mostly on tourism for economic growth and

diversity. The Nigerian tourism industry is a very huge business that offers a lot of possibilities

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in terms of finance generation, employment and re-positioning of the country image

internationally. The nation’s should improve the economy by expanding business environment as

well as, efforts by the government to develop a competitive travel and tourism industry this will

boost the sector and ultimately stimulate economic growth because tourism business is beyond

the private sector it must lead by the government.

Fortunately, Nigeria has a wide range of tourist attractions, such as extended and roomy river

and ocean beaches idyllic for swimming and other water sports. The country should boast the

unique wildlife, vast tracts of un corrupted nature, ranging from tropical forests and magnificent

waterfalls, new rapidly growing cities and climatic conditions particularly conducive for

vacationing. The opportunities are unbelievable: Land Mass, naturally occurring structures, a

large population of diverse peoples, a wide range of cultures with attendant ceremonies, festivals,

cuisines, artifacts and crafts and others mention above as the strength of the country. The

government should build the tourism brand, convert the strength in demand and visitation,

developing the tourism product to contribute towards a more globally competitive tourism

industry.

The government should seek for investors and stakeholders to partner in improving the figures

through viable investments in the tourism sector. One of such efforts was the call of the recently

concluded Arabian travel market in Dubai, UAE to over 215 investors from all over the world at

over $200 billion investment in the country’s tourism industry. The investment would help in

building tourism and hospitality infrastructure, manpower and drawing global attention to the

hospitality, transportation, eco-tourism and sports sectors of the economy.

The government has identified 100 heritage sites in the country need restoration, activation and

promotion the only way to realize the important roles of tourism is through a well-developed

packaged and promotion of our tourist attraction to other nations with significant tourism

potential demand.

Nigerians do not spend their holidays in hotels; and those who can be able usually travel out of

the country. The low level of awareness is a direct result of nearly complete lack of information

about the tourism resorts in Nigeria and the poor dissemination of such information. There is

need to do more in terms of tourism awareness in Nigeria when the hotel and others sub sector is

well known and it will be fully articulated this means more money to the industry. The tourism

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sub-sector is not so well known. Promotion and marketing of tourism activities in Nigeria could

sell our brand easily especially to those who cannot afford for a transcontinental trip.

WEAKNESS AND BARRIERS TO TOURISM INDUSTRY DEVELOPMENT

Poor records of tourism activities in the country have been identified as one of the variables

militating against tourism progress in Nigeria. (Mohammed, 2009). The sector lacks reliable

statistics and market information, no information exists on land frontier arrivals, the existing

incentives and investment procedures are not attracting investment in the tourism sector and the

sector lacks reliable statistics and market information. (Report, 2006). A survey of tour operators

in the UK, Europe and the United States of America indicated lack of information or knowledge

about Nigeria as a tourist destination, the current marketing approach is very weak, the

marketing of Nigeria as a tourist destination is underfunded and it lacks a strategic marketing

approach, the marketing collaterals are not up to international standards; while they are not

informative and not customer friendly. (Report, 2006). It is difficult to put a figure of tourism

contributions due to poor records of tourism activities in the country have been identified as one

of the variables militating against tourism development in Nigeria. (Isaac, 2012). Tourism

remains the biggest and highest employer of labour all over the world, and the problem is that

Nigerians have not been able to identify the proper role of tourism and what it can do for our

people; we look for investments where we cannot find. (Udume, 2010).

STRATEGIES TO REDUCE OR ELIMINATE CURRENT WEAKNESS AND BARRIES TO

TOURISM DEVELOPMENTS

A significant increase in marketing expenditure will be required to overcome the lack of

awareness of Nigeria as a tourist destination and the very poor image of the country in the main

global markets. A budget of US$15million over five years (2006-2010) is the minimum

recommended for marketing purposes and niche marketing approach should be adopted to

succeed in the future as cited by Kotler create value and communicate the value.

Nigerians must be encouraged to spend their disposable funds in their county, this will save

leakage and facilitate the development of the tourism industry with the attendant advantages as

well as promote understanding, acceptance and social integration among the diverse peoples and

cultures in Nigeria as well as, regional income distribution.

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Nigerian physical environment is a strategic competitive advantage when improved in presenting

and packaging its festivals and events can be highly marketable, the poor standards in public

sector enterprises underlines the need for privatization private sector operator hotels are

performing poorly with the exception of a limited number of “boutique” style hotels.

Encouraging Nigerians to take domestic holidays: There is the need to embark on an active

campaign to encourage Nigerians to regularly take and enjoy their holidays in the country. The

current practice is that many governments’ public servants are compelled to work during their

leave periods or to reschedule such leaves. This is not part of the best interest of the worker.

There are lots of reserves and tourist destinations in Nigeria that form exceptional settings for

holidays. In countries of the former Eastern bloc, organizations are even encouraged to build

holiday resorts, mostly along the seaside for summer vacation for staff and members of their

families. Comprehensive information package on affordable tours, mostly subsidized by the

state or individual organization is regularly made available to interested people. Major Nigerian

companies can embark on such a strategic investment locally instead of encouraging their

employee to take their holidays in foreign countries.

OPPORTUNITIES TO ENHANCE TOURISM ECONOMIC DEVELOPMENT

Nigerian abundant natural and cultural resources are the business opportunities and other

fundamentals point out the country great chance to rake in good fortunes from tourism. Nigeria,

with its vast landmass, physical features, rich cultural diversity, and numerous wildlife zone

clearly has several advantages over other countries. (Udeme, 2010). Nigeria, with its over 250

ethnic groups, has ample opportunities for cultural tourism in terms of historical sites, annual

traditional festivals, and folk art such as crafts, carvings, and sculpture. Apart from these unique

tourism assets Nigeria is a peaceful country relative to further develop and developing countries.

This comparative peace should attract tourists diverting attention from violence prone countries.

(Abiodun, 2012:82).

STRATEGIES TO ENHANCE OPPORTUNITIES TO TOURISM ECONOMIC

DEVELOPMENTS A country uses its strengths to build on the opportunities that arise. Nigeria

believes that its environment, natural and cultural resources focused will result in superior

returns even in a price sensitive market.

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Grow demand from Africa while marketing investment across a balanced portfolio of markets is

required, Nigeria has a unique opportunity to drive demand from Africa. Over the 2013-2020

periods, Africa and Asia are expected to contribute more than half of the projected growth in

international visitation with 30 percent of that growth expected around the world.

With potentials and opportunities abound in this sector; taking these to the level where they

would become a major income earner for the state requires numerous challenges to be overcome.

The future of tourism in the solid economic growth of Nigeria largely depends on the

opportunities and challenges being exploited and addressed, and stressed if the opportunities and

potentials which Nigeria has, are exploited and the challenges met, substantial investment in

planned and strategic marketing of Nigeria as a desirable tourist destination would be required

and could make a positive impact for economic growth and tourism development.

More fundamentally, governments at all levels should catchphrase on the marvelous gains of

tourism and get to work with the attracting massive investment in the tourism industry. Though

this is perhaps one task that should have happened a day before, but 2014 brings another

opportunity to re-engage with this undertaking, and the time is ticking.

A national awareness and patronage survey in 1998 revealed that less than 20 percent of

Nigerians who spend their holidays out of the country had visited the Yankari Game Village or

the Obudu Cattle Ranch, and more than 50 percent of the regular visitors to these resorts were

foreigners. Low awareness and inadequate information about Nigeria’s tourism resorts contribute

to the problem. Tourism in Nigeria represents a gigantic potential for investors and has recently

seen an increase in foreign direct investment, the report said. In search for high-growth markets,

international hotel chains including Hilton, Sheraton, Best Western and Marriot have moved to

gain a foothold in the country. The government should do more exertion to promote a

competitive travel and tourism industry which are expected to boost the sector and ultimately

stimulate economic growth and development.

Nigerian Tourism’s Foreign exchange potentials could rival that of the oil sector, it is not in

doubt that the foreign exchange potentials of the Nigerian tourism industry are enormous. In a

number of developing countries, a significant proportion of gross domestic product is generated

by activities designed to satisfy local and international tourism, which depending on the level of

development could represent an important export activity.

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Nigeria is a country of 167 million creative minds and has been identified by the rest of the

world as accommodating the world’s happiest people. The diversity of cultural attractions, the

friendly disposition of the people, a revamped national tourism organization, human resources

development and a new convention bureau provide key opportunities.

THREAT THAT NEED TO OVER COME

The tourism industry in other African countries such as Kenya, Gambia, Tanzania, Ghana, and

the Republic of Benin has been witnessing an unprecedented boom. (Udeme, 2010). It is

reported also that tourism contributes about 25% of the Kenya’s Gross Domestic Product (GDP)

and that about 70% of Kenya’s tourism revenue come from wildlife tourism alone.

A total of 73, 282 Nigerian tourists visited South Africa last year, contributing almost R800

million ($88.6m) to the country’s economy, but Nigerians are known for travelling to many far-

flung destinations all over the world. We have also seen a zealous interest from Nigerian

business in investing and doing business in South Africa across a number of sectors. Nigerian

tourists contributed $88.6m to the South African Economy (Mzwandile, 2013).

About 47% of Nigerians visited India in the year 2012 for medical attention, according to the

Indian high commission. 18,000 medical tourists spent $260 million (N42bn) in meager foreign

exchange in the process. Each patient spent $15,000 or N2.3m. (Weekly Trust, 2013). In another

related development Nigerians spent N250 billion annually on imported medical cares. (Henry,

2013). All the above mention in one way or another, we may see it as a threat or leakages to

tourism developments in Nigeria because South Africa and others became our core competitors

in spite, of oil revenues that can be diversified to develop tourism sector or the brand as the giant

of Africa.

Sundry of Nigeria’s competitors have much more friendly visa regimes with some requiring no

visa for nationals of the tourism generating countries. This issue is addressed as a matter of

priority. (Report, 2006). Considering the burgeoning population of Nigeria, it is expected that

should at least perform much better than Kenya, Uganda, Tanzania, Egypt and Morocco. These

are the other African countries reaping the dividends of a vibrant tourism industry. (Ajibola,

2013).

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STRATEGIES TO REDUCE OR TO OVERCOME THREATS TO TOURISM

DEVELOPMENTS

The tourism industry in other African countries such as Kenya, Gambia, Tanzania, Ghana, and

the Republic of Benin has been witnessing an unprecedented boom. Nigeria can find a niche

market in the tourism industry. Wildlife tourism, rainforest tourism, cultural tourism, and

historical tourism are all options worth exploring. Countries like Kenya, South Africa and

Zambia have made conscious efforts to develop tourism and such, efforts have started yielding

enormous benefits.

If things are put in place, our incomes from tourism should be about two to three times above all

these additional countries. This is perfect because every week alone, we have 114 flights into

Nigeria from all the major airlines in the world, the patronage is indeed overwhelming. In other

areas too, we have to see that we make focus on tourism a very profitable venture for our

country. However, should embark on a mammoth marketing campaign to attract African tourists

to visit our country.

Unless tourism is seen as strategically important to the economy of the country, the necessary

plans, policies, actions and resources to support the sector put in place, tourism will continue to

be a missed opportunity.

No doubt, the country has huge tourism potentials, but this all important sector to be productive

and add value to the economy of the country there must be a pragmatic policy that will improve

the sector. Indeed, there is need to emulate France that has put policies in place that will drive the

tourism sector from now till 2020. Or, Dubai that has tourism projection of 300 billion

Dirham’s, the United Arab Emirates’ currency; a plan they intend to achieve through the

construction of 160,000 hotel rooms that will attract more than 20 million tourists from the

present 10 million tourists that visit the country by 2020.

RECOMMENDATIONS

If Nigeria desires to be one of the top 20 economies by 2020, we must do what the top 20

economies are doing; they have invested in tourism and are using culture as major collateral.

State governments should pay more attention to the sector with a view to confronting

unemployment and mass poverty ravaging our nation, as tourism cannot flourish where we have

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to tour operators without vehicles to facilitate the tours. Partnership with countries such as the

U.S. and other European tour operators will also encourage tourists to Nigeria. The government

should show enough will and commitment towards tourism development. Without the

government leading the approach, private investors will not show adequate interest in tourism.

Experts and stakeholders said. The success of Nigeria’s tourism industry depends on

government’s sustainability, as well as, private sector responses. Government should

continuously promote the tourism sector by encouraging capacity building. Government should

set up an intervention fund to assist tourism operators, so as to tap the full potential of the sector.

Concerted efforts should be made to encourage investments in tourism infrastructure, as this will

affect positively to the sector and the national economy.

Most tourist sites and attractions are located in the rural areas of Nigeria. There is a need for

massive rural road reconstruction which would lead to poverty reduction and ultimately boost

economic growth. Also there is a need to repackage the nation’s culture which is the most

effervescent in Africa and a very important resource that could be a goldmine to the economy.

Investment resources should be allocated to a number of sites of regional significance which are

unique to Nigeria and offer the country a competitive strength. Encourage the progress of

international three star hotels.

As observed by stakeholders in the industry, local tourist sites in the country are in dire need of

attention as part of a general infrastructure facelift needed to attract tourists into the country for

leisure since it is now obvious that the rising figure of international visitors streaming into the

country are business travelers, which the newly opening hotel establishments are intent on

cornering hence their orientation towards that market.

Human resource development: The need for good quality manpower training for the Nigerian

tourism industry can never be over-emphasized. There is a need to recognize the potential

contribution of high quality research on tourism progress in Nigeria.

Infrastructure development: Government agencies responsible for the development of tourism

were charged to liaise with relevant national development agencies to ensure that infrastructure

facilities were provided, e.g. good roads, water, electricity, communication, hotels in areas of

tourist attraction. This was expected to accelerate progress for the purpose of fully exploiting

destinations with tourist value.

17

The Nigerian Tourism Development Commission (NTDC) should collaborate with the Ministry

of Tourism, Culture and National Orientation to assure the rapid development of the tourism

industry. Tourism is a money spinner which will increase the revenue base and make

employment for the teeming population of the unemployed.

Increased in the levels of community attachment will be all so, add the degree in which

perceived benefits and support, for sustainable tourism development among most residents.

Economic benefits was believed to result from the conservation of natural and cultural resources

and directly assists both local communities and nations in achieving sustainable environmental

development. A community that plans and uses tourism as an alternative means of strengthening

its economy must develop sustainable tourism to meet the needs and demands. Community-

based tourism has become a viable option for developing traditional rural industries because it

can provide economic benefits to the local and greater environmental awareness as well as, high-

quality experiences for the visitors.

Local governments should provide opportunities for most residents to participate in tourism-

related activities and to invest in the development of community-based tourism. Tourism related

activities are not only creating direct jobs but also create opportunities for indirect jobs. Also if a

community resident we are allowed and encourage to invest is equally directly or indirectly leads

in community participation, community participation can boost the value of a community by

enhancing the positive effects of tourism and reducing its negative effects based on the notion

that citizen.

CONCLUSION

It was unfortunate that the nation’s tourism industry had not been bestowed adequate priority by

all tiers of government. If properly harnessed, the industry will be capable of creating about two

million jobs and would account for about 10 per cent of the nation’s Gross Domestic Product by

2021. This can be achieved by establishing a good tourism policy framework as well as effective

and efficient institutions and private sector should be proactive to exploit the comparative

benefits of tourism also, a national tourism development strategy must be formulated and must

inevitably address issues beyond the sector. Due to its huge potential, tourism should be

accorded more attention by the Federal Government, the policy makers and stakeholders. Today,

the volume of tourism business in developed nations equals or even surpasses that of oil, food

18

and automobiles. Tourism has become one of the major players in international commerce and

represents one of the major sources of income for many developing countries. The World

Travel and Tourism Council had predicted that the travel and tourism industry would be

one of the world’s fastest growing sectors between 2011 and 2021.

Finally, progress cannot be completed without education. Schooling is a vital tool in the

sustainable development of any country. For our tourism industry to compete favorably with its

counterparts across the world, the appropriate education policy should be endorsed for the

promotion of our tourism industry. We cannot continue losing what we have because of illiteracy

among our people, but let us all join hands together to make our beloved country Nigeria tourist

heaven.

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