Nigeria’s Economic Diversification with an Emphasis on Hospitality and Tourism Sector as a Necessity

Abstract

The need for economic diversification as Nigeria's economic crisis heightens and the apparent neglect of the hospitality and tourism sector jointly motivate this study. The paper analyzes the contribution of the hospitality and tourism sector to Nigeria's national development. The study uses the Ordinary Least Squares (OLS) regression method to analyze the data which span from 1981 to 2017. The results show evidence of a positive and strong relationship between the contribution of the sector and real gross domestic product (RGDP) in Nigeria. Hospitality and tourism sector is estimated to contribute a total of 48.96% variation in RGDP between 1981 and 2017 in Nigeria. From the regression result, the contribution of the hospitality and tourism sector is having a significant positive impact on RGDP. The study is suggesting that the government ought to make an empowering situation for the area to thrive and affect more on national advancement. The examination suggests the arrangement of satisfactory foundations, financing, security, and good roads enhance patronage and accessibility to various tourism destinations in Nigeria.

Tourism and Economic Growth in African Largest Economy

“…Consequently, the Nigerian government has identified tourism as one of the ways by which her revenue could be expanded by making it more attractive to both local and foreign tourists. Although, the efforts of Nigerian government on the attractiveness of tourist centers have not been noticeable (Ayeni, 2013;Omodero, 2019). The impressive growth in the number of tourism locations and activities in Nigeria had however attracted the interest of researchers.…”

“…The impressive growth in the number of tourism locations and activities in Nigeria had however attracted the interest of researchers. Several authors have argued that the development of all the potential tourist centers across the country is a veritable avenue for diversification of investment from crude oil for the purpose of widening and boosting income generation for the nation (Ayeni and Ebohon, 2012;Eneji et al 2016;Okon et al 2017;Omodero, 2019).…”

“…Most other studies had focused on the national impact of tourism on the economic advancement of the country using various parameters and methodologies as evident in the work of Ovat (2002); Esu (2013); Ayeni (2013); Yusuff and Akinde (2015); Ogbeba et al (2016); Asuquo et al (2016) and Eneji et al (2016) among others. In this category, the empirical findings of Otu (2015); Yusuff and Akinde (2015); Matthew et al (2018) and Omodero (2019) have established a case for tourism as driver of economic growth in Nigeria. Whereas, other findings such as Ovat (2002); Adeleke (2008); Asuquo et al (2016) and Ogbeba et al (2016); Yusuff (2016) are at variance with this position.…”

“…The inconsistency in findings was rather common with the quantitative studies (Ovat, 2002;Yusuff and Akinde, 2015;Asuquo et al 2016;Ogbeba et al 2016;Matthew et al (2018;Omodero, 2019). Essentially, studies that utilized a range of much older statistical data tend to establish positive relationship between tourism and economic growth in the country (Matthew et al 2018;Omodero, 2019).…”

“…The inconsistency in findings was rather common with the quantitative studies (Ovat, 2002;Yusuff and Akinde, 2015;Asuquo et al 2016;Ogbeba et al 2016;Matthew et al (2018;Omodero, 2019). Essentially, studies that utilized a range of much older statistical data tend to establish positive relationship between tourism and economic growth in the country (Matthew et al 2018;Omodero, 2019). Whereas, recent studies in other countries and continents tend to focus on more recent data ranging within 10-25 years for more realistic results (Ivanov and Webster, 2013;Shakouri et al 2017;Yalcinkaya et al 2018).…”