education - university of nigeria nsukka · investigative approach nigeria education description...
TRANSCRIPT
OYIBO EDITH
PG/M.ED/11/58795
HOSPITALITY INDUSTRY AND ECONOMIC DEVELOPMENT IN NIGERIA; AN
INVESTIGATIVE APPROACH NIGERIA
Education
Description
Content manager’s Name
Digitally Signed by
DN : CN = Webmaster’s name
O= University of Nigeri
OU = Innovation Centre
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.
This helps to support jobs in the industries that supply these
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
This helps to support jobs in the industries that supply these
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
Fig. 2.3 Standard Industry Classification of the Hospitality Industry
Size and scope of the hospitality industry
Factors affecting the hospitality industry
PEST analysis can be performed to determine the factors that
affect any type of industry. External PEST factors may have both
28
Fig. 2.3 Standard Industry Classification of the Hospitality Industry
Factors affecting the hospitality industry
PEST analysis can be performed to determine the factors that
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?
Source: Field survey 2013
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?
Source: Field survey 2013
Options Frequency of Responses Percentage (%)
Yes 60 75
No 20 25
Total 80 100
Options Frequency of Responses Percentage (%)
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?
Source: Field survey 2013
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?
Source: Field survey 2013
Options Frequency of Responses Percentage (%)
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?
Source: Field survey 2013
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.
Options Frequency of Responses
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?
Source: Field survey 2013
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?
Source: Field survey 2013
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.
Options Frequency of Responses
Percentage (%)
Yes 74 92.5
No 6 7.5
Total 80 100
Options Frequency of Responses
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?
Source: Field survey 2013
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?
Source: Field survey 2013
The above table indicates that regulatory/supervision type also
impacts on performance and productivity of the sector.
Options Frequency of Responses
Percentage (%)
Yes 80 100
No - -
Total 80 100
Options Frequency of Responses
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?
Source: Field survey 2013
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.
Source: Field survey 2013
From the above data, 68 out of the respondents (85%) say that
the operation of the industry can extensively contribute to
Options Frequency of Responses
Percentage (%)
Yes 78 97.5
No 2 2.5
Total 80 100
Options Frequency of Responses
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
Comparing the test statistical with critical value X2
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?
Options Fo Fe (Fo-Fe) (Fo-Fe)2 (Fo-Fe)2
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
Options Frequency of Responses
Percentage (%)
Yes 68 85
No 12 15
Total 80 100
57
Calculation of Chi Square
Comparing the test statistical with critical value X2
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.
Options Fo Fe (Fo-Fe) (Fo-Fe)2 (Fo-Fe)2
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.
63
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.
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.
64
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 ( )