TOURISM AND ECONOMIC GROWTH IN NIGERIA (1996-2016).
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TOURISM AND ECONOMIC GROWTH IN NIGERIA (1996-2016).
Chapter one
INTRODUCTION
1.1 Background of the Study
Tourism is defined by the United Nations World Tourism Organisation as the activities of people who travel to and stay in places other than their usual environment for no more than one year for any reason, including holidays, leisure and recreation, business, health, education, or other related reasons.
According to the World Tourism Organisation, tourism has a considerably broader reach than the old definition of visitors, which comprised only individuals going for leisure. (UNWTO Statistics Database, 2015).
Tourism is the temporary movement of individuals to locations other than their usual places of work and housing; it also includes the activities they engage in while studying in those locations, as well as the facilities built to meet their demands. (Mathieson & Wall, 1982).
Tourism is the sum of the phenomena and relationships that emerge from the interactions of tourists, business suppliers, host governments, and host communities during the process of attracting and hosting these and other visitors. (Mackintosh and Goeldner, 1986).
Tourism’s current function in increasing economic opportunity in developing countries has been puzzling. Over the last decade, policymakers, development specialists, and business leaders have given increasing attention to the contributions of the tourist sector, particularly in developing nations.
The United Nations Environment Programme encourages sustainable tourism, and the United Nations World Tourism Organisation is not only dedicated to tourism, but has also established an international foundation to further its contribution to development. (Ashley, Caroline, Peter, Amy and Hannah, 2007)
Today, tourism is a significant source of money and employment in both developed and developing countries. Tourism has an impact on both the source and host countries’ economies, and it can be critical in some situations.
Tourism has become a phenomenon in both developed and developing economies around the world, thanks in part to the unique potential for income generation, job creation, and poverty elimination, as well as the exploration of development variables associated with intangible products (Andriotis, Georg, & Athanasios 2008).
Tourism development has a clear advantage in addressing social economic issues such as higher living standards, poverty reduction, job creation, and income redistribution in an economy (Aliyu, Abdulkadir, & Aliyu 2013).
Tourism has had a significant economic impact on every aspect of society, making it one of the world’s fastest expanding sectors. Tourism is a significant contributor to global trade and a primary source of income for many underdeveloped countries.
As tourism expands, destinations are becoming more diverse and competitive. Tourism in developed states has led to economic and employment gains in various industries, including construction, agriculture, and telecommunications. (UNWTO Statistics Database, 2015).
Tourism has a significant economic impact; the UNWTO—the United Nations World Tourism Organisation (2010) estimates that tourism accounts for around 9% of global GDP and 8% of global employment.
However, determining the economic impact of tourism to a national economy is a difficult undertaking. There are statistical challenges that need to be addressed, particularly the definition and classification of categories connected to both the demand and supply sides of tourism. (Candela&Figini, 2012).
Tourism is one of the fastest growing industries, with an annual average growth rate of roughly 5%, and the number of international travellers may nearly quadruple by 2020 compared to 2006.
Tourism, which grew by 25% between 1995 and 2005, now contributes for 10% of many developing countries’ foreign exchange profits.
Tourism ranks around sixth in international trade, following trade in fossil fuels, telecommunications and computer equipment, automobile products, and agriculture. (UNDP, 2005)
Nigeria welcomed its first international tourists in 1472, when Portuguese merchants arrived in quest of trade. There are also historical records of trans-Saharan and caravan migrations. Since then, the country’s tourism business has grown steadily. (Bola, 2010)
The Nigerian Tourist Association (NTA) was created in 1962 by the government, and it is responsible for promoting domestic and international tourism in the country.
Tourism as an economic activity came to Nigeria during the military regimes with the decision of Olusegun Obasanjo’s determination and subsequent decree No. 54 of 1976 creating the Nigeria Tourism Board (NTB) to tap into the country’s natural riches (Bola, 2010).
The Tourism Board of Nigeria was eventually renamed Nigeria’s Tourism Development Corporation (NTDC) by decree No. 86 of 1991, giving it preferred sector status.
The Nigeria Tourism Development Corporation is in charge of tourism in Nigeria, promoting the country as a local and worldwide tourist destination. Tourism development suffered under the military government and has since recovered with the rise of democracy.
The Nigerian Tourism Development Corporation (NTDC) was established by the government to reposition tourism as a key component of the diversification of the economy.
In 2006, the government identified tourism as one of six top priority areas and commissioned a thorough National Tourism Development Master Plan (NTDMP) from local and international players, including the UNWTO and UNESCO.
The entire global tourist export was $265 billion in 1989 and increased by over 100% in 1998 to $508.9 billion. Nigeria’s participation was merely $6 million in 1989, increasing to $25 million in 1994 and $81 million in 1998. These correspond to a proportion of 0.002%, 0.006%, and 0.015% in those years. (Abiodun, 2002).
Inskeep’s (1991) definition of the tourist industry distinguishes clearly between the components of the travel and tourism industries, which serves as the foundation for this research.
The WTO (1999) defines the travel industry as a collection of public and private organisations active in the development, manufacture, distribution, and marketing of products and services to meet the needs of travellers. (Munzali 2011).
Nigeria, one of the world’s most privileged nations, offers numerous features such as mountains, hills, and highlands; caves and valleys (with waterfalls and water streams); and stunning vegetation (dense high forest, savannah, and Sahel).
The tourism business in Africa is developing at a reasonable rate of 7.2% per year, with the potential to be much higher. (Munzali 2011).
Nigeria is equipped with a varied range of natural and manufactured tourism resources. According to Smith (2007), the economic benefits of tourism are determined by the destination’s image and facilities, which generate favourable word of mouth and repeat visits by tourists.
The history of the slave trade is one of Nigeria’s and Africa’s most significant. The Nigerian slave route identifies the key routes used to transport slaves from West Africa throughout the world. Following the Europeans’ discovery of Nigeria in the 15th century, Portuguese explorers stayed there.
They started the slave trade industry, and its success piqued the curiosity of other foreign traders, including the Dutch, British, and other European commercialists, who entered the enterprise.
Evidence suggests that Nigerian slaves played an essential role in the evolution of America to Cuba and other Caribbean countries, ultimately leading to Brazil. (Munizali, 2011)
Tourists, adventurers, and historians would be particularly interested in the Nigerian slave trade route. It would also be beneficial since it demonstrates how Nigerians are dispersed all over the world. (NTDMP; 2006).
This likely contributed to the large number of young footballers in British countries who are now being pursued by the Nigerian Football Federation.
Historical events such as Mungo Park and Richard Lemon lander’s exploration of the River Niger, both of whom died in the process, contributed to Nigeria’s global exposure.
Also, Mary Slessor prevented the death of twins who were considered to be possessed by evil spirits. She also, in the second half of the 17th century, abolished the concept of women being viewed as inferior “than cattle” in society, particularly in the country’s eastern areas. (Munizali, 2011)
According to Tunde (2012), the only way to realise tourism’s crucial tasks is to develop, package, and promote tourist attractions.
Tourism has been recognised and considered as one of the fastest expanding sectors of the global economy. The emphasis on tourism’s ability to help the economics of poor countries such as Nigeria was based on existing study and data, rather than political tendencies.
This movement gained traction in 2005 during the United Nations’ Millennium Development Goals review. The debate was that tourism had the capacity to propel developing countries towards reaching the MDGS (Holden, 2008).
At the summit, tourism was encouraged to play a role in national development in order to help accomplish the goals outlined (World Bank, 2002). Because of the importance and relevance of tourism, practically every developing country is today promoting some form of tourism related to its development (Marafa, 2000; Yunis, 2004).
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