Journal of Research in Hospitality, Tourism and Culture (ISSN: 2251-0028) Vol. 1(1) pp. 1-14, February, 2013
Available online @http://www.interesjournals.org/JRHTC
Copyright ©2013 International Research Journals
Review
Strategies for harnessing investment opportunities
through tourism in Nigeria
Bassey Benjamin Esu
Department of Marketing, University of Calabar, Nigeria
E-mail: esubenjamin@yahoo.com
Abstract
Tourism development in Nigeria is gradually becoming concern of many stakeholders. One reason for
delay in the growth of the tourism sector of the Nigerian economy is low political will of policy makers
and lack of knowledge on the tourism potentials and investment opportunities in Nigeria by
entrepreneurs. To fill this gap, this paper x- rays the tourism potential of the country using the five
cluster arrangement conceptualized in the Nigeria Tourism Development Master Plan. The investment
opportunities of each cluster were highlighted on product bases. The paper also presented conceptual
framework for harnessing the investment opportunities that abound in the tourism sector of the
economy. The paper posit that for the country to attain a competitive edge in the international tourism
market, its natural and cultural potential must combine with the right policy environment to produce
tourist products that will have the right drawing and pulling power to compete in a global market for
consumers.
Keywords: Tourism destination, Tourism Development, Investment opportunity, Tourism Master Plan, Tourism
cluster.
INTRODUCTION
Tourism has been recognized and accepted as the fasted
growing sector of the global economy. UNWTO has since
upheld this position and subsequently has followed
through with the tourism and sustainable development
relationship nexus gospel. The belief in the potential of
tourism to catalyze the economies of developing nations
was based on extant research and empirical evidences
and not just political inclination. Retrospectively this
campaign came to fore in 2005 at the review meeting of
MDGs at the UN. The proposition was that tourism has
enormous potential for driving the developing nations
toward achieving the MDGs (Holden, 2008). At that
meeting, tourism was called upon to take its place in
national development to help achieve the set targets
(World Bank, 2002). Because of the importance and
relevance of tourism, nearly every developing country is
now promoting some brand of tourism tied to its
development (Marafa, 2000, Yunis, 2004). Nigeria is no
exception. The UNWTO and other international
development agencies such as the World Bank, Regional
Banks, International Development Bank (IDB) and United
Nation Environmental Programme (UNEP),
have
identified tourism related projects and are funding them
appropriately
with the overall aim of promoting
sustainable rural development, increase local income
generation and infrastructural development just to
mention a few (Elliot and Mann, 2005). In Nigeria, the
recognition of the socioeconomic benefits of tourism has
been endorsed by the Federal Government of Nigeria
with the formulation of the Nigeria Tourism Development
Master Plan in 2005. The plan has suffered delay
implementation indeed. Moving forward, the Federal
Ministry of Culture, Tourism and National Orientation in
September, 2011 held a sensitization meeting in Abuja
for tourism managers in the public sector on the
implementation of the Nigeria Tourism Master Plan.
Objectives of the Study
The following objectives were formulated to guide and
shape the content of the paper:
a. Examine the extant literature on the nature and
scope of tourism destination, tourism development nexus
and historical perspective of tourism in Nigeria.
b. To extensively examine the tourism potentials;
2 J. Res. Hosp. Tourism Cult.
assets and resources of Nigeria as an emerging tourism
destination.
c. To conceptualized a model for harnessing
investment opportunities in the tourism sector of the
Nigerian economy.
d. To suggest strategies that will galvanize or harness
the numerous tourism and hospitality opportunities in
Nigeria into a viable tourism industry.
This paper relies on secondary sources of data from the
internet, published materials like the Nigeria Tourism
Development Master Plan (2006), numerous unpublished
materials from workshops organized by the Federal
Ministry of Culture, Tourism and National Orientation and
brochures.
Review of literature
Nature and Scope of Tourism Destinations
Baggio (2008: 2-3) defines tourism destination (TD) “as a
geographical location (city, region, resort, etc.), with a
pattern of attractions, facilities, and services, which
tourists choose for a visit”. Contextually this definition
qualifies Nigeria as a tourism destination. From a
structure point of view, a destination can be defined as
system composed by a number (usually not too small) of
elements that share some kind of relationship. The
elements in this case comprise of a number of elements:
the tourism operators, the support structure, public and
private organizations and associations (Baggio, 2008).
There are forces that affect or influence the overall
performance of the tourism industry and/or destinations.
The success of a tourist destination is anchored on the
manager’s ability to identify, adapt and/or overcome
forces that may confront its operations in the market.
What motivates a tourist to choose or select a destination
is the expected or perceived benefits and experience
following pervious visit to the destination or expectations
created by marketing information. Suppliers of tourism
services compete in the volume and quality of tourists
they attract and retain. The competition may be between
or among destinations in the region, country or in
different countries (Esu and Etuk, 2007).
Destination that cannot survive the competition usually
suffer from reduced or lack of patronage with its
attendant consequences. The destination that offers
tourists greater satisfaction has a competitive edge over
the other destinations.
Tourists requirement constitute factors that determine
the level of tourists’ satisfaction. The more the manager
is able to meet these requirements, the higher the
tourists’ level of satisfaction. Happy and satisfied tourists
are more likely to return and more likely to say positive
things about the destination and service (Wight, 1997).
But unhappy and dissatisfied tourists will seek for
satisfaction somewhere else. Destinations that are able
to attract the right quality and volume of tourists will enjoy
the
attendant
socio-economic
benefit
that
is
commensurate with the level of investment in the
business and/or sector.
Tourism - Development Logic Nexus
Tourism has been distinguished and identified in
literature as a panacea for poverty alleviation or
eradication (Malik, 2005, Holden, 2008). In spite of the
contribution
of
tourism
in national
economic
development, it is surprising that the level of commitment
in leveraging the potential in tourism industry as
economic driver is still very low at all tiers of government
in Nigeria. The poor growth of tourism in Nigeria could be
attributed to low political will of policy leaders, especially
at the third tier of government (Local Councils). There is
no Local Council in Nigeria that has developed a Local
Government Tourism Plan.
The following reasons support why tourism is the
preferred development option for developing countries.
Contrast these with other economic sectors:
• It is made up of a combination of industries. This
increases the scope for wide participation, including the
informal sector. Unlike other sectors such as oil or
agriculture; the customers come to the product, providing
considerable opportunities for linkages (e.g souvenir
selling, ); tourism is highly dependent upon natural capital
(wildlife scenery) and culture (these are assets that occur
as natural endowment in communities that are described
as “end of road”).
• Tourism can be more labour intensive than industries
such as manufacturing, though less than agriculture:
when compared to other modern sectors, tourism
benefits (jobs, petty trade opportunities ) go to the
women, and unlike agriculture and manufacturing
industries, tourism can get started with minimum capital.
• In relation to the ways employment is generated
through tourism, Marafa (2011) asserts that “tourism is
arguably the major industry across the globe that creates
massive employment benefits at the destination. These
include: direct employment; support for other industries
and professions; stimulate exports of place-made
products; expose other aspects of the business that are
not known before the advent of tourism, and source of
state and local taxes and can indeed generate multiplier
effect.
• It is postulated that tourism creates employment
through it linkages with other sectors. According to
Marafa (2011), at the top herculean of the national
economy, tourism creates one job and in the lower levels
of the economy, tourism creates nine jobs. Possible jobs
brought about by tourism are either generic or specific.
The generic jobs are Jobs related to water air and land
based activities, tour guides, publishers, accountants,
managers, supervisors, restaurants and caterers,
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gardeners and laundry, etc.
Another logic why tourism is the prefer option for
national development in developing countries like Nigeria
is because of its role in poverty alleviation and
eradication. It is generally agreed that if tourism is
developed and managed in a sustainable manner from
economic, environmental and socio-cultural points of
view, it can help to improve living conditions for local
populations in different destinations (Holden, 2008).
Some of the reasons are:
• Employing the poor in tourism enterprises. Tourism
activities at the rural areas that can engage the poor and
create employment are : drumming and dance, hair
braiding, bird watching, village and agriculture tours,
school visits, sharing a meal with a family (in a village),
farming, domestication of animals, blacksmiths,
indigenous dancers, traders, village settlements, and
vernacular architecture.
• Supplying of products and services to tourism
enterprises by the poor
• Direct sales of products and services to visitors
• Establishing and running of tourism enterprises by
the poor
• Ensuring that proceeds or profits from tourism benefit
the poor
• Voluntary giving/support by tourism enterprises
• Investment in tourism infrastructure benefitting the
poor in the locality
Another reason for the support of tourism as an
economic driver is the central role tourism can play in the
achievement of the Millennium Development Goals
(MDGs). There are a total of eight MDGs. The first MDG
(eradicate extreme poverty and hunger), seventh MDG
(ensure environmental sustainability) and eight MDGs
(development a global partnership for development) can
be directly supported by the potency of the tourism
industry. The other MDGs are indirectly affected by
tourism development (Holden, 2008).
Some destinations have been associated with national
economic growth which has been credited to tourism.
According to WTTC, tourism industry in North Africa
represents 13.4% of GDP and provides 12% of
employment. In Sub Sahara Africa, it contributes up to
8% GDP and generates 10.5 million jobs, accounting for
6.6% of total employment. It also estimates that tourism
revenue in Africa is expected to grow by 4.7% per annum
in real terms between 2007 and 2016 (Holden, 2008;
Yunis, 2004).
History and evolution of tourism in Nigeria
Tourism is said to be as old as humanity. Writers on the
subject have always traced the beginning of tourism to
when life started on earth (Wearne, 2001). The history of
tourism in Nigeria is traced to the beginning of life and
ancient civilization. A quote from Ifegbo (2005: 5)
buttresses this point about the history of tourism in
Nigeria:
“History tells us that our fore-fathers offered hospitality
and tourism services to strangers willingly. They were in
the habit of being their brothers keepers…. Our forefathers practiced hospitality even before the arrival of the
‘white man’.
However, it was the colonialists that
commercialized hospitality as trade and commerce”.
Ebaji (2007) noted that tourism development in Nigeria
started in 1962. Ukpanah (1991) gave a more detail
narration of the history of tourism in Nigeria. According to
him, tourism in Nigeria started with the formation of a
body called Nigerian Tourist Association (NTA). The body
had the recognition of the International Union of Official
Travel Organization (IUOTO), now known as World
Tourism Organization (WTO). Because of the pressure
from NTA, Government in 1971 engaged the African
Development Bank (ADB) to conduct feasibility study to
ascertain the tourism potential of Nigeria. At the end of
the exercise ADB report indicated that Nigeria has huge
tourism potential that can fuel its economic development.
Acting on the recommendation of the study, the Federal
Government of Nigeria promulgated Decree No. 54 of
1976. The Decree established the Nigeria Tourism Board
(NTB) to replace the erstwhile Nigerian Tourist
Association. In 1989 a national conference on tourism
was held in Maiduguri. The objective of the conference
was to appraise the state of tourism development in
Nigeria vise a verse the performance of NTB. The
recommendation from the conference led to the
establishment of a department of tourism in the Ministry
of Trade. In 1992, Decree No. 54 of 1976 was replaced
by Decree 81 of 1992. The Decree replaced the erstwhile
NTB and in turn established the Nigeria Tourism
Development Corporation (NTDC).
The major functions of NTDC among other things
include: to encourage people living in Nigeria to take their
holiday therein and people from a broad to visit Nigeria
and to encourage the provision and improvement
of
tourism amenities and facilities in Nigeria.
Tourism potential and investment opportunities in
Nigeria
Tourism potential refer to the pool, array and collection of
natural, cultural and man-made tourism resources
possessed by a community, state and/or country that can
in future developed into visitor ready attractions or
finished products. Investment opportunities are capital
goods or services that have economic and commercial
benefits for the entrepreneur and social benefit for the
society. The abundant tourism resources in Nigeria
present with numerous opportunities for investors in the
tourism sector of the economy. The Nigeria Tourism
Master Plan (2006) grouped the tourism resources and
attractions in Nigeria into five tourism clusters: Tropical
4 J. Res. Hosp. Tourism Cult.
Rainforest Cluster, Conference Capital Cluster, Atlantic
Gateway Cluster, Scenic Nature Cluster, and Sahara
Gateway Cluster. Each cluster is made up of core
attractions (products) and other supporting and ancillary
products packaged to give tourists maximum satisfactory
experience.
The Nigeria Tourism Master Plan also elaborated and
proposed enhancement that must be carried out to
transform these tourist sites/attractions to visitor ready
status, and subsequently create value added in the
market. In this paper we conceptualized the investment
opportunities that are available to investors in the tourism
industry in Nigeria as facilities, services and infrastructure
required to make the clusters and specific products visitor
ready which an entrepreneur can take advantage of for
commercial interest. This operational definition is
necessary to ensure that investors who would eventually
adopt this proposal work in consonant with existing policy
or plan. For the purpose of clarity, we shall highlight the
opportunities for investment in tourism cluster by cluster.
Potential Investment
Rainforest Cluster
Opportunities
in
Tropical
The Tropical Rain Forest cluster is very rich in tourism,
recreational and cultural resources which have the
potential to be developed and upgraded to international
standards. The significant tourism assets in this cluster
include: Tinapa Business, Leisure and Conference
Resort at Calabar, Obudu Mountain Resort, The slave
routes in the Cross River extending to Akwa Ibom with
special mention of Oron, aquatic facilities within the
cluster, Afikpo Cave, Cross River National Park, Mary
Slessor historical relics and the Cross River Monoliths
and stone circles.
Product 1: Tinapa Business Leisure and Conference
Resort
The construction of Tinapa was originally designed to be
completed in two phases. The phase one of the projects
is about 90% completed; there are still facilities that have
to be put in place for Tinapa to operate optimally at the
planned capacity. Some of the leisure facilities that are
already in place have not been activated and in some
cases not fully utilized. A new stream of investment is
needed from the private sector to enable the Resort
operate at planned capacity. The completion of work and
subsequent activation of these facilities are investment
opportunities for the private sector to leverage: an 8
screen cinema complex (1,915 seats); studio Tinapa, a
casino of international standard; leisure land / water
world; restaurants; a fisherman’s village comprising three
themed bars; a themed nightclub and an arts and crafts
village with 20 stalls; a children’s games arcade and
st
bowling alley; 21 Century ICT infrastructure; an
integrated shopping complex of over 80, 000m2 of retail
and wholesale emporiums; 150 room two star hotel
currently managed by private operator; 200 room self
catering apartment hotel yet to be built; indoors and out
door leisure facilities including a water park, golf course
and go-kart track could be operated by the private sector
operators.
The second phase of the Tinapa project is yet to take
off. The following tourism facilities are beckoning for
private sector investment: two luxury lodges; expanded
leisure and entertainment facilities including water sports,
biking, archery etc.; expanded cultural and educational
components including an aviary, aquarium, and crocodile
farm and primate re-habitation centre; interpretative
centre where visitors can gain
comprehensive
understanding of all aspects of the rain forest experience.
Product 2: Cross River Tropical Rain forest
The development of the Cross River Tropical Rainforest
offers investors the following opportunities: building an
interpretative centre where visitors can gain a
comprehensive understanding of all aspects of the
rainforest - the centre according to the plan will provide
a place where the flora and fauna are explained in details
in a highly interactive and interesting fashion , information
on all park amenities and activities are provided , booking
of tours and accommodation, producing maps and
carrying out guided and unguided tours of the park
(trekking, game watching, tree top walking (canopy
walkway), bird watching, butterfly watching, hiking, sport
fishing and mountain climbing and campsite, etc). The
private sector could establish international class tourist
accommodation and catering facilities. The village will
showcase our traditional African lodge as its focal point
with surrounding accommodation, catering and retail
units. There is opportunity for the training of professionals
in ecotourism, production of tour guiding maps and tour
guiding services.
Product 3: Calabar Slave Trade Route
The cluster also offers investors the opportunity to
participate in the development of the slave trade route
that extends from Calabar to Ikot Abasi and Oron. The
following facilities can be undertaken by investors who
are interested in the Slave Rout Project: develop
interpretative centre to enhance comprehensive
understanding of all aspects of the slave trade and the
African slave route experience and booking of tours;
building of accommodation which plays back the slave
experience; design and produce tour guiding maps and
carryout tour guiding services; build art gallery for
artefacts and memorabilia; craft shop for art and craft;
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provide visitor amenities to include coach parking, rest
rooms and refreshment facilities.
Product 4: Amenicho (Afikpo) cave and other caves
These vast and impressive caves are undeveloped but
have the potential to provide visitors with a true, world
class cave experience. It has a very high market appeal,
particularly to the International Cave Explorer’s Society.
The Amenicho Caves Project offers the following
investment opportunities: visitor centre that will provide
interpretative materials showing the significance of the
caves using leading technology to interpret the formation,
development and historical uses of the cave; visitor
facilities within the caves to include lighting, pathways
(with particular emphasis on safety) and highlighting of
spectacular formation and cave area ; guided tours and
interpretation of historic events and memorabilia; visitor
amenities to include coach parking, rest rooms and
refreshment facilities.
A secondary development can focus on further
development of facilities within the cave, these may
include: catering and dining facilities, exhibitions and in
cave entertainment; the attraction will be required to be
correctly resourced and managed in accordance with
international best practice in all areas of operation.
investment opportunities such as: adventure company to
offer adventure experience; private airlines to create
access to major domestic markets like Lagos, Abuja, Port
Harcourt, Kano, etc. There is need for increase and high
quality ground transportation linking the Resort with other
attractions in the cluster and major markets in the
country. The establishment of Destination Marketing
Organization to promote the Area is an imperative.
Product 7: Festival and Events
The cluster is very rich in cultural events. As a strategic
focus, the managers of the clusters should draw up a
regional tourism event and festival strategy and plan.
Three hallmark events in the cluster are the Calabar
Festival, Obudu Mountain Race and Leboku New Yam
Festival. The development and positioning of the cluster
as event and festival destination will offer investors the
following investment opportunities: event sponsorship;
provision of ground transport during the events / festivals;
provision of boutique accommodations in the areas
where these events take place; provision of catering
services during event; entertainment during the days of
the event; sales of arts and crafts during event.
Potential and Investment Opportunities in Atlantic
Gateway Cluster
Product 5: River Cruising and Sea Sport Fishing at
Calabar
The development of the river cruising and sea sport
fishing offers investors the following investment
opportunities: private operators to provide quality cruises
and river tours on the Cross River; the cruising facilities
should be of international standard with emphasis on
quality, safety and comfort; guided day and evening river
cruises with on-board entertainment and dining facilities;
harbour and river boat pleasure trips.
There is also opportunity for the private sector to build
information kiosk at Calabar Marina to provide details of
all fishing trips and charter options; private boat charter
operators; fishing tackle and equipment hire; pier facilities
to include fish handling and weighing, parking, rest rooms
and light refreshment and boat trip food hamper.
Product 6: Obudu Mountain Resort
This area is already developed. What is lacking is the
absence of activities to engage leisure tourists whose
length of stay is above two days. The plan is to ensure
that the greater Obudu area is developed to its full
tourism potential in a sustainable and environmentally
sound fashion.
Further development of the Resort presents new
The tourism resources and sites that have strategic
significance for development in this cluster include: Slave
Trade Relics and Museum in Badagry , Olokola Free
Trade Zone, National Museum, Muson Centre, National
theatre, Olumo Rock, proposed mega library, Tarzan
Riverside Water Activity Centre, Osun Oshogbo World
Heritage Centre, The local Lagos Markets, Brazilian
Quarters in Lagos Mainland, Beach recreation areas of
Lekki, Epe and Akodo beach, Ile Ife -the cradle of the
Yoruba people, Oyo Centre of Traditional Arts and Crafts,
Lagos Music Clubs/Night Life, etc.
Product 1: Olokola Cultural Resort
The
strategic
development
plan
for
the
Atlantic Gateway Cluster is to establish Olokola as a
major rallying point for the Nigerian Diaspora. Olokola
Cultural Resort offers the following investment
opportunities: provide beach holiday facilities, hotels
and self service apartments, restaurants to offer different
culinary traditions; provide theatres, museum of the black
race; provide sport facilities including eighteen hole golf
course, tennis courts and mini golf, children’s area;
provide water activities i.e. boating, sailing, parachutesailing, wind surfing and
ocean surfing, sea
fishing and a theme park, etc.
6 J. Res. Hosp. Tourism Cult.
Product 2: Badagry Traditional Slave Route Museum
The development of the Slave Route at Badagry offers
investors the following investment opportunities: the
design and production of maps of the slave routes will be
a key feature of the slave route experience; upgrading of
the current museum by developing a visitor interpretative
centre with capacity to do “virtual tour”, interpretation of
events and memorabilia, provide for guided and unguided
tours. There is also room for the establishment of retail
area for literal materials about the culture and history,
arts and crafts and souvenirs. Investors can build visitor
amenities to include coach parking, rest rooms and
refreshment facilities, undertake day tours by boat from
Lagos with entertainment and dining facilities on board.
Product 3: Regeneration of the Onikan Area of Lagos
City
The international reputation of Lagos is one of an
impoverished, busy and dangerous city. This perception
contributes to the negative reputation held of Nigeria
worldwide. The Onikan district of the city is a “jewel in the
city”. The attractive features of the area include the Old
Lagos Racecourse with its impressive horse sculpture, a
wide boulevard reminiscent of Paris, Madrid or Buenos
Aires, the National Museum, the Muson Centre, all giving
the area a genuine Latin and old African atmosphere.
The strategic objective of developing this product is to
create an “Oasis of calm, culture and recreation” in the
heart of Lagos, an area where locals and visitors alike
can go to walk, dine, view art, attend a concert, dance
and be entertained in safe, secure and very pleasant
surroundings recreating a nostalgic piece of colonial era
Lagos. This project offers investors the following
opportunities: pedestrianise the area; encourage local
street side artists and craft sellers by establishing
operating units constructed in distinctly Africa market stall
design for artists and craftsmen; permit art sales and
exhibition by local artists on predetermined days and
times (similar to Green Park in London and the
Schwabing and Leopoldstrasse area of Munich);
encourage traditional African street entertainment; make
greater use of the grounds of the National Museum to
encourage participation in African arts and crafts,
including painting workshops, dance classes, etc. all
focused on enjoying African culture in a fun, lively and
distinctly Nigeria way; develop the interactive and
interpretative facilities of the National Museum;
development of a small number of bars and restaurants
all with outside dining areas; organize events and
concerts at the Muson Centre and stage temporary
music concert.
The regeneration of the area combined with the old
Colonial African ambience of Lagos will provide visitors
with a memorable experience and enable the comparison
of the elegance of colonial Lagos to the brutal hardship of
the slave routes.
Product 4: Lagos City Experience
The Lagos city experience can be developed by creating
the following activities and investment opportunities:
organize the following guided tours - Lagos by night tour;
guided tour taking tourists to restaurants, bars and
entertainment venues in downtown Lagos City; tours
taking in all major sites including the Onikan area,
Victoria and Lagos Islands and visit to a traditional
market (the Victoria Island market) for craft and souvenir
shopping; day trips to Abeokuta to visit Olumo Rock, the
fabric markets and the grave of the Queen of Sheba;
overnight tours to Abeokuta for golf, swimming,
sightseeing and general relaxation.
Product 5: Water Based Activities
The Lagos Lagoon and waterfront provides ample
opportunities for water related activities on the Lagos
shoreline. To achieve this objective it will be necessary to
develop the shore facilities and land/water facilities
together with initial de-polluting of the bay area and
enforcing strict pollution control procedures. The project
offers the following investment opportunities: initiating a
harbour clean up and strict enforcement of pollution
control measures; developing fully the Tarzan Water
Activity centre to provide boating, and related water
activities and an evening entertainment venue;
developing Lagos by water, day and evening tours of the
harbour Island and lagoon areas; provision of water
buses and water taxis; introducing coastal boat trips to
Badagry .
Product 6: East Lagos Beaches
Following from the experience with the two existing
beaches in Lagos ( Bar beach and Eleko beaches in the
Lagos area), there is need for the involvement of the
private sector in the management of the East Lagos
beaches in accordance with international standard and
best practices. Investment opportunities include:
provision of activities such as boat sailing; yachting,
Kayaking , water skiing, etc.; provide picnic activities; and
catering services at the beaches.
Product 7: Olumo Rock, Proposed Mega Library and
Golf Resort (Hill-Top) at Abeokuta
These three products complement each other and
together present a component for a tour package
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between Lagos-Oyo-Ogun axis. Olumo rock which is
currently being developed to a modern tourism product
has a very rich historical background related to the
existence of the Egbas. It was the refuge place for the
Egbas during the intertribal wars and the Egbas had
settled down on the rock as early as the 17th century.
The rock which is of granite formation is peculiar to
Nigeria and unique in the whole of Africa. The product
has the following appeals and investment opportunities:
the surrounding indigenous buildings which form the
background of old architectural museum bridges, Olumo
rock with the Adire market- a popular tourist souvenir
outlet; these old buildings should be preserved as
Architectural Monuments. With appropriate community
training programmes, provide replica items, post cards
etc, which could be merchandised and sold at the site.
The proposed mega library at Abeokuta when
completed will present a unique educational tourism
facility not only to the cluster but for the entire Nigeria
nation. It will provoke a movement of educational
domestic tourism as well as visiting point for tourists. The
golf course which runs almost adjacent to the location of
the proposed mega library is an asset to the cluster.
Further facilities can be developed with a view to upgrading this attraction to a major Golf Resort.
Product 9: Ile-Ife Cradle of the Yoruba Race
The challenges in sustaining this exclusive monumental
product presents as investment opportunities. These
include: explore the use of Public Private Partnership
approach to construct the high way leading from Ibadan
to Ile-Ife; a study of tourism potential and authentic
historical study linking this city to the Blacks in the
Diaspora should be carryout; further development of
commercial activities at the site should be driven by the
private sector.
Investment opportunities in the Sahara Gateway
Cluster
The Sahara Gateway Tourism Cluster is an area of rich
culture and a history based upon wars conquests and
romantic tales of desert crossings. The area possesses
a wealth of cultural monuments and events and its
colourful Durbars make for spectacular viewing (Nigeria
Tourism Master Plan, 2006). The Sahara Gateway
Cluster is intended to restore the historical monuments of
Kano City (including Kano City Walls and Gates, Kano
Old City Markets, Traditional Hausa architecture, Kano
Dye Pits and Kano Museum) and to rebrand the area as
the “Ancient City of Kano Sahara Gateway”.
Product 1: Ancient city of Kano
The regeneration and re-branding of the Ancient City of
Kano offers the following investment opportunities:
designating the area inside the city walls as a national
monument; renovation and redesigning of stalls and
shops in the city market area; improvement programme
for the city dye pits, developing an Ancient City Trail
covering all historic monuments and sites within the city,
and professionally presented by way of maps and
traditional signposting within the city area.
Product 2: The development of Kangimi Resort on
the banks of Kangimi Dam
This product will complement the tourism experience
offer by the cluster by providing an authentic African
village experience, the redevelopment of the Kano
Tourist Camp and the interpretation of the Trans Sahara
Trail, upgrading of monuments in Katsina and visits to the
palace of the Emirs.
Product 3: Redevelopment of the Kano Tourist Camp
and Interpretation of the Trans Sahara Trail
The redevelopment of the Kano Tourist Camp will include
the demolition of the current camp building and the
construction of a visitor complex including. These
development projects will offer the following investment
opportunities: accommodation units built to international
standard based on a traditional design and style;
restaurant and bars with outdoor dining area; swimming
pool, mini golf and children’s games area; outdoor
theatre/performance area with back stage facilities; retail
shops and supermarket.
The development of interactive and interpretative facilities
on the Sahara Trails including maps covering all trails:
comprehensive programme of entertainment to include:
camp fire stories from the desert, traditional music and
dance , incorporating Arabian music and dance in desert
night; recreating the experience of the dessert including ,
traditional desert banquet, mini Durbars and displays of
horsemanship.
Product 4: Upgrading of Historic Sites in Katsina and
Visits to the Emirs Palace
Historic sites in Katsina (such as museum and Minerette)
need to be upgraded by improving access, safety and
visitor facilities. The improvement of historic sites in
Katsina will offer the following investment opportunities in
two small products.
The Minarets Project: this will include Improving
access to the Minarete itself; cleaning and continued
maintenance of the environment in the vicinity of the
Minarets; interpretation of the significance of the
Minarets.
Katsina Museum Project: this include Improving
8 J. Res. Hosp. Tourism Cult.
lighting, better presentation of artifacts, interpretation and
guide facilities, visitor facilities to include modern rest
rooms; developing an interpretation and orientation
centre within the Ancient City to provide information on all
aspects of the city’s history and ancient conflicts along
with interpretation of historical events and the
significance of local festivals; provide guided
and
unguided the Ancient City Trail (The “bartering
experience”) guided market tours , provide retail area for
related literature, crafts and souvenirs; visitor amenities
to include coach parking, rest rooms and refreshment
facilities, guided tours and interpretation of historic events
and memorabilia provided by local guides in traditional
era dress; upgrading of the Kano museum in terms of
improved interpretation and guides and presentation of
artifacts.
Product 5: Authentic African Village Experience
To provide visitors with the authentic African village
experience the following activities/facilities must be in
place which also have huge investment opportunities for
the private sector: village tour seeing people in their
natural environment and been greeted by village elders;
joining villagers in activities such as fishing, hunting,
cooking; watching age old crafts making techniques and
producing crafts for village use; exhibition of children
games and dance; traditional evening entertainment and
food and construction of village lodges where guests can
stay overnight or have a long stay.
Investment Opportunities in
Cluster
Conference Capital
The Conference Capital Cluster possesses outstanding
conference facilities, eco-tourism sites, recreational and
cultural resources which have the potential to be
upgraded and developed to international standards with a
view to fully exploiting their tourism potential. The
attractions that have strategic significance for tourism
development include: the conference facilities at the
ECOWAS Centre; the International Conference Centre;
the Shehu Yaradua Centre, along with the conference
facilities at a number of internationally operated hotels
including the Nicon Hilton and the Sheraton Hotel.
Others are National Mosque, Ecumenical Centre
Abuja, Abuja Cultural Festival and Carnival, National
Stadium, IBB Golf and Country Club, Traditional African
Village, Historical Monuments in Lokoja, Zuma Rock
Abuja, Ladi Kwali Pottery Centre, Suleija, the eco-tourism
project at Farinruwa, cultural and evening entertainment
in Abuja.
Product 1: Events Management Capabilities
The dominant market to be targeted by this cluster is the
MICE market. The investment opportunities for MICE
tourism in the cluster include: involving the private sector
in setting up of a Convention Bureau. This bureau will
have responsibility for marketing Abuja as a conference
venue in a professional and strategic fashion. Its primary
objective will be to facilitate the winning of major
conferences for Abuja. The private sector will be involved
in establishing Destination Management Companies
(D.M.C). These organizations specialize in all aspects of
conference management, caring for conference
organizers and delegates from conference planning to
departure. Private operator can also to be involved in
tour guiding and other ancillary and complementary
activities that will give conference delegates the
opportunity to enjoy the local entertainment, sights, and
culture such as full and half day tours for sightseeing,
shopping, tours to craft centres and markets, walking city
tours, organisation of recreational activities (golf, etc),
evening and traditional entertainment.
Product 2: Farin Ruwa Eco-Tourism Village and
Rural Tourism Experience
The local residents of the area are to be totally involved
under experience management in the planning,
development and operations of the site and all its
facilities and services. The development of an ecotourism project at Farin Ruwa will offer investors the
following investment opportunities: partnerships with
private sector to developing an Eco-Village within the
area consisting of traditional accommodation which will
take an eco tourism approach in architectural design,
energy conservation, recycling and waste management
and community involvement; provision of
chalet
accommodation suitable for overnight and long stay
visitors; private operator to build village centre with crafts
and recreational area and dining area; private operators
can organize tours and other visitors activities such as
bush
trekking,
nature
walks,
cave
viewing,
mountaineering, rock scaling, fishing, bird watching,
animal viewing, craft village and craft workers, traditional
cultural evening entertainment and cuisine; visit to
traditional African village including greeting by village
elders, village tour seeing local people in their natural
environment, joining villagers in their activities, fishing,
hunting, cooking, traditional evening entertainment and
food and the development of a film village of international
standard is one plan project.
Product 3: Traditional Entertainment and Evening
Activities for Visitors
The development of a high quality traditional
entertainment and evening activity programme will also
offer the following investment opportunities: providing a
Esu 9
traditional African Village Night. This would be ideally
suited to the model African village constructed in Abuja.
The evening’s entertainment would include: traditional
food and beverage; traditional dance and storytelling by
camp fire and moonlight; visitors interacting with tribal
dance and activities. To provide the optimum visitor
experience such evening must be professionally
managed
offering
high
quality
food
facilities
entertainment and transport to and from the venue;
establishing a local Nigerian Food Circle consisting of
local quality restaurants providing visitors with high
quality local and international foods; provide guided
evening tours; visiting local restaurants, bars, and clubs
where visitors can experience the music and rhythm of
Africa in comfort and absolute safety. The provision of
these night time activities and entertainment will greatly
add to the overall experience of the visitor and provide
with an engaging taste of Nigerian food, entertainment
and local living. A comprehensive master plan of projects
is imperative before embarking on any development at
this impressive site.
Product 4: Culture and Tourism Centre
An exciting new Cultural Centre is planned for Abuja. The
Centre of Culture and Tourism will include the following
facilities and opportunities: the centre would serve as
both a day and night time attraction; the centre should
include a National Museum exhibiting and interpretation
of the diversity of Nigerian culture; the hosting of a
permanent National Art and Culture Exhibition; source of
cultural research and storing of cultural documents;
national crafts centre exhibiting regional traditional crafts
to showcase Nigerian crafts, workshops on traditional
craft making; retail unit for purchase of crafts and
souvenirs; and visitor facilities to include refreshment and
rest rooms.
The centre should be positioned as the spiritual home
of the national dance troupe and a new national dance
performance to be choreographed for regular evening
performances. The centre should be available for
receptions for major conferences.
All commercial
activities within the centre should be operated under
license or franchise agreement by private operators.
With the inclusion of these amenities and facilities for
tourists, the Centre of Culture will play a significant and
proactive role in tourism in the Abuja area.
clay storage holes, and a wood burning furnace. The
complex is also located close to a river with an attractive
view of a waterside village and small waterfall/dam. The
redevelopment of the pottery centre will offer the
following investment opportunities: repair and renovation
of all the pottery workshops and ancillary buildings;
reactivating pottery making on a commercial basis;
develop the complex as a craft training centre; retail unit
for the sale of “tourist” friendly crafts (those that are
easily stored and carried and correctly packaged for
travel); provision of coach parking area; better access
and pathways with emphasis on safety; visitor rest
rooms; refreshment and snack bars are developed
overlooking the river ; seating and picnic areas.
Product 6: Improvement of Visitor Facilities at Scenic
Sites
The area has a number of scenic attractions which
include Historical Monuments in Lokoja, Zuma Rock in
Abuja (visitor facilities and amenities at these sites are
very poor). Improving the quality of visitor amenities at
scenic attractions will offer investors the following
opportunities: provision of coach parking area; better
access and pathways with emphasis on safety; visitor
rest rooms; seating and panic areas; the historical
monuments are in urgent need of renovation and
protection.
Investment Opportunities in the Scenic Nature
Cluster
According to the Nigeria Tourism Development Master
Plan (2006), the Scenic Nature Cluster is comprise of an
area of incredible scenic beauty with its undulating
mountainous views, awe-inspiring rocky terrain and
national park all of which makes the area attractive to
tourists seeking wildlife, un-spoilt nature and volcanic
rock formations. The attractions that have strategic
significance include: Assop Falls, Jos Wildlife Park and
Game Reserve with its wildlife Museum, the Museum of
Traditional Nigerian Architecture, Yankari National Park,
the Emirs Palace in Bauchi, and the Rock Formations of
the volcanic areas and the Shere Hills.
Product 1:
Architecture
Product 5: Development of Ladi Kwali Pottery and
Craft Centre
This craft centre was established by Michael Carden in
the 1950, and once operated as both a craft and training
facility (Nigerian Tourism Master Plan, 2006). The
complex includes three buildings, workshops, dye pits,
Museum
of
Traditional
Nigerian
The Scenic Nature Cluster is to regenerate and upgrade
the facilities at the Museum of Traditional Nigerian
Architecture in Jos thereby establishing it as a major
tourist attraction. Private sector involvement will be
necessary to leverage the investment opportunities in the
cluster: the construction of a new visitor orientation
10 J. Res. Hosp. Tourism Cult.
centre; improved internal interpretation, lighting and
display of artifacts, and internal signposting, buildings
and sites within the museum will need to be
reconstructed and repaired; the development of the
museum as a living crafts centre displaying the making of
traditional crafts (pottery, terracotta, welding, and local
musical instruments). Consideration should be given to
the transfer of the Naguta Leatherworks to the newly
developed crafts centre; provision of adequate and
secure parking for cars and coaches; provision of
refreshments facilities and relaxation areas, visitor rest
rooms and a modern retail area for the purchase of
souvenirs and crafts.
The completion of the restoration programme, the
upgrading of the current museum facilities and the
provision of these new facilities will establish the Museum
of Traditional Nigerian Architecture as a significant visitor
attraction within the Jos area.
Product 2: Redevelopment of Yankari National Park
The development of the Yankari National Park
will
offer
investors
the
following
investment
opportunities: an interpretative centre where visitors are
educated by trained professional staff using leading edge
interactive
technology
with
a
comprehensive
understanding of all aspects of the National Park and its
attractions (the wildlife, flora and fauna and scenic
areas); provide information on all park amenities and
activities, booking of tours and accommodation, maps for
park guided and unguided tours and park
programme (safari trips, trekking, walking, game
watching etc).
There is also opportunity for investment in
international class tourist accommodation and catering
such as an international three star, standard park ,
external chalets build in traditional hut fashion around the
central lodge (providing visitors with a self catering
option); dormitory accommodation for independent
travelers, backpackers and students; international
standard campsite with catering, washing and laundry
facilities; a family restaurant and bar providing good
quality African and international dishes, also
accommodating evening entertainment and a game
viewing terrace; a snack bar for lighter eating; a
supermarket for food and supplies required by self
catering and camping visitors ; retail units for crafts and
souvenirs; a children’s play area; a medical clinic;
organize tour guiding services such as game watching
and safaris , camping , walking and trekking, mountain
climbing.
The
development
of
these
facilities
will
position the Yankari National Park as a leading
wildlife and nature destination renowned for its
high standards of facilities and its top class
management of visitors and the environment.
Product 3: Assop Falls
This product is situated 69 kilometres from Jos on the
main road from Abuja, this impressive and picturesque
waterfall has the potential to be developed into an ideal
scenic stop for passing tourists and a recreational area
for day-trippers and longer stay visitors wishing to enjoy
an outdoor recreation. The development of Assop Falls
offers the following investment opportunities: construction
of a picnic and barbecue area; construction of a camping
area with catering, washing and laundry facilities;
construction of chalet and the development of visitor
facilities to include secure parking and rest rooms.
These additional developments and amenities will
significantly improve the Assop Falls area as an attraction
to sightseers, day-trippers and those visitors interested in
outdoor activities.
Conceptual framework for harnessing investment
opportunities in the tourism sector in Nigeria
Economic development is a function of the economic
policies of the government which is expressed by
government fiscal policy and administrative and legal
instruments. The strategic position of the government on
each of these (Government fiscal policy and
administrative and legal instrument) vis-a-vis tourism
development is an imperative for a successful tourism
destination or country. The proposition is that Investment
opportunities can only emerged in the tourism industry
where there is a national and regional leadership
commitment towards tourism development. The major
tools of fiscal policy are government expenditure and tax
rates (Lipsey, 1983). According to the Keynesian theory
of economic, government expenditure in an economic
sector has a multiplier effect. The attendant multiplier
effect manifests in the economy as the positive
externalities which position tourism as the development
pearl of developing nations and remains the envy of the
development ones. This is illustrated in figure 1.
Government Expenditure Policy on Tourism
Government expenditure refers to government spending
on tourism sector. Increase in government spending
seeks to influence aggregate demand; increase in the
output of the sector. The expenditure is on general
infrastructure and tourism specific infrastructure.
The general infrastructure covers all the national and
regional business infrastructure: security, power supply,
portable water, transportation (road, water, rail and air),
information and telecommunication, accommodation,
medical, emergency and disaster management facilities.
The specific tourism infrastructure include: access and
parking facilities at tourist sites, spectator facilities, crowd
Esu 11
Tourism Development and investment opportunities
Tourism Demand
Tourism benefits
Figure 1. Conceptual Framework for Harnessing Tourism Investment Opportunities in Nigeria
control mechanism, security tourist sites, protection of
tourists (explosive detectors) and protection against
tourists (HIV/AIDS, contagious diseases, espionage and
illicit trafficking) and most importantly human capital
development to drive the industry.
Government Incentives Policy on Tourism
Fiscal policy is usually used for demand management in
a national, regional or local economy. It is expressed in
the form of investment incentives. Investment incentives
serve as a pull factor for investment decision by the
business community. This type of fiscal policy requires
the use of tax reduction will serve as a means of inducing
and attracting private investors to the tourism sector. It
also conceptualized that tax incentives have a positive
effect on the profitability of the industry. The investment
incentives provided by the Government to support
tourism development in Nigeria are contained in the
country’s tourism plan (Nigeria Tourism Development
Master Plan 2006) include:
a. Pioneer status whereby companies enjoy tax
exemptions for a period of three years
b. Export incentives
c. Tax relief under the companies Income Tax Act
12 J. Res. Hosp. Tourism Cult.
d. Capital allowances representing Government
support for continuity of investments in productive
facilities.
e. Investment tax relief granted to a company that
incurred expenditure on infrastructural facilities for the
purpose of trade or business located at less 20kms away
from Government owned facilities.
f.
Unhindered repatriation of profits and dividends.
g. Provision of Government commissioned feasibility
Reports
h. One hundred (100%) percent ownership of business
of foreign investor is allowed and guaranteed because
Nigeria is a member of the World Bank Multilateral
Guaranteed Agency (MIGA), and operation of the
Investment Promotion and Protection Agency (1PPA).
i.
Work permit for foreign workers with specialized
skills within the tourism industry
j.
Provision of tourism and at concessionary rates to
tourism investors by state Government.
The industry makes important contribution to the
economies of developing countries particularly to foreign
exchange earnings, employment and GDP.
Administrative and Legal Instruments
This refers to administrative policies by the executive arm
of Government, legislations by parliaments for the
purpose of guiding tourism business practices in a
destination. There must be a legal framework which
fosters development of sustainable tourism, ensures that
it fits within the country constitution and that state tourism
Tourism Organizations (STOs) are efficient and work
within the legal norms.
Administrative and legal instruments have received
significant attention at the ministerial level (Federal
Ministry of Tourism, Culture and National Orientation.
These include the following:
a.
ranking of tourism among the six priority sectors of
the economy
b.
Review of the National Tourism Policy of 1990
c.
Establishment of Presidential Council on Tourism
(PCT) with Mr. President as the Chairman
d.
Conducting the National Council on Culture and
Tourism meetings to sensitize the States and Local
Government Councils on developments in the sector
e.
Provision of attractive incentives for prospective
investors
f.
Encourage public-private partnership
g.
Launching of the Nigeria Tourism Master Plan.
Tourism Development and Investment Opportunities
This is the stage where a tourist destination can be said
to be in the first three stages of Butlers Destination Life
Cycle (Butler, 1980). These are the introduction, growth
and development stages. We prefer to collectively refer to
tourism development as the stage where stakeholders in
the destinations have a high tourism awareness and
consciousness and can perceive the personal, corporate,
and commercial value of tourism. At this point the tourism
potential of the destination have become obvious to a
large percentage of the citizens of that country. The
industry is then perceived as investment ready. This is
possible when the forces of government expenditure in
creating the enabling business infrastructures are in
place as far as the rural areas where most of the
authentic tourism resources are found; the quality and
attractiveness of tourism specific incentives and
supportive policies, and combine with the rich array of
tourism resources across the length and breadth of the
country. Nigeria could best be described as tourist haven.
Tourism Demand
There are two sources of tourism demand; the pull
demand and the push demand. The one that has
implication for this model is the pull demand. The pull
demand refers to the tourism demand which comes as a
result of the attractiveness of the tourist receiving area
(destination)
Tourism
Benefits
Development
Leading
to
Sustainable
Investment in tourism development is expected to
generate social, cultural, economic and environmental
impacts in host communities or clusters (Nigeria Tourism
Master plan 2006).
• increases in income levels for individuals and the
states,
• stimulates investment,
• enhances the areas image and international
reputation,
• facilitates the development of small and medium
sized businesses,
• acts as a means for the conservation and protection
of natural and cultural resources,
• while delivering growth and employment on the scale
required to make a real difference to the economic
landscape of the area
CONCLUSION
Investment in tourism is the responsibility of the
government, public sector and private sector. According
to Marafa (2006), each government can make the choice
to encourage investment, facilitate innovation and job
opportunities, and guarantee respect for local
environments, culture and social well being. The public
Esu 13
sector has special responsibility to ensure the
sustainability of key tourism assets. Private sector growth
can be deployed as a driver of sustainable development
and as a contributor to the dignity of the people and
cultures it touches.
Recommendations for
opportunities in Nigeria
galvanizing
investment
Notwithstanding the numerous tourism potential and
investment opportunities in the country, the actual
investment cannot take place until certain factors are put
in place to drive the process. These factors are referred
to as galvanizers or enhancers. They are the
determinants of the propensity of tourism investment in
an emerging destination (see figure1):
Provision of General and Specific Physical Tourism
Business Infrastructure
The
provision
of
these
infrastructure
will
reduce the cost of doing business in Nigeria, thereby
making the country investment environment attractive to
both
domestic
and
foreign
investors.
The
absence of these infrastructure has acted as a
disincentive in some major tourism projects in Nigeria.
These inadequacy were also captured by the Nigeria
Tourism Master Plan (2006):
•
“The road leading from Calabar to Obudu
Highland Resort, we understand is a Federal
road. To encourage automobile tourism from
Calabar to Obudu this road should be given priority
for total resurfacing as it is presently in a state of
disrepair and appears very dangerous. Other Federal
roads within the cluster require urgent attention if
effective linkages for package tours are to be established
within the cluster”.
•
“From these attractions we have identified the
Olokola Free Trade Zone proposed tourism development
to be developed as the cluster’s Flagship Project with
supporting projects to be developed at the Slave Routes
and Slave Trade Relics and Museum, the National
Museum, Muson Centre, Olumo rock, Tarzan Riverside
Water Activity Centre, Lagos Music Clubs/ Night Life”.
•
“National grid and effective communication links are
to be extended to Obudu ranch and all other tourist
destinations within the cluster”.
•
“The airport at Calabar should be upgraded
and provided with more friendly and conducive
atmosphere for tourists such as banking facilities,
restaurant and more orderly airport shops from
where tourists can purchase souvenirs. As the
international market unfolds, it may be necessary to
translate the Calabar Airport to an international
status to facilitate charter flights from abroad”.
Human Capacity Development in the Tourism Sector
At the moment there is a dearth of competent persons to
transform the tourism huge tourism potential into superior
tourism offerings and service of international standards.
This also serves as a disincentive to investment in the
Nigeria tourism industry. There should be a pool of
human capital built by Government from where investors
can draw from. The following suggestions will reduce the
human
capacity
deficiency
syndrome
currently
experienced in the industry.
• The Federal Ministry of Culture, Tourism and
National Orientation and in collaboration with the State
Governments should carry out industry needs and
capacity assessment .This will facilitate the determination
of the tourism discipline attributes or work characteristics
that will enhance the achievement of the targeted human
capital objectives.
• There should be leadership commitment in driving
the process through adequate budgetary appropriation
and release of funds as when due.
• Since education and training programmes are seen
as the most effective human capital strategies,
stakeholders generated tourism curriculum should be
developed for the certificate, diploma and degree levels.
• At the moment, there is a dearth of tourism educators
in the country. The federal government should undertake
sponsored exchange programme for our tourism
educators. In addition to this, grant post graduate
scholarships to lecturers to undertake tourism and
hospitality programmes abroard.
• Upgrade facilities and structures in the existing
departments of tourism and hospitality in our polytechnics
and universities.
• Establish an accreditation body of international
repute to regulate standards of tourism and hospitality
education and training programmes in Nigeria.
Formulate Laws That Regulate
Hospitality Practice in Nigeria.
Tourism
and
If the Nigerian Government wants to take advantage of
their enormous tourism potential and investment
opportunities to make contribution to the realization of
their national development objectives, the MGDs and
poverty alleviation, they will need to provide a modern
institutional and regulatory framework in which the private
sector can thrive. Where there is no sound legal system
for tourism, it will act as a disincentive to investment.
•
The legal frame work must be consistent with the
provision of the international economic Development
Bodies which the country is a member or aspirant (World
Trade Organization, UN World Tourism Organization,
etc.).
•
The legal framework should spelt our clearly
responsibility for management of tourism resources,
14 J. Res. Hosp. Tourism Cult.
power to establish tourist sites and tourist attractions, the
provision of inter-ministerial cooperation on tourism
related matters, the role of state and local governments in
tourism development (the case For example, of who has
the responsibility to register and license hospitality and
tourism enterprises in Nigeria is a serious conflict in
Nigeria).
•
The law should have provision for general obligation
on tourist production (consumer): make it obligatory for
trade organizations in the tourism sector to develop
codes of conduct, professional continuing education,
display of price list, craft authentication scheme, carry out
research, and ensure safety and security of tourists. The
tourism law should set out a licensing and qualification
framework for the sector and also encourage the trade
associations to develop or adopt their own ethical
standards.
Access to Credit and Funds for SMES in The Tourism
and Hospitality Industry
The development of the tourism industry has been very
slow especially as the available funds through Federal
and State Government budgetary allocations have been
grossly inadequate. There is therefore a dire need for a
steady source of accessing funds for investments in the
tourism sector. In many countries with tourism success
stories, like Israel and South Africa , the governments
bridge the gap by providing funds for the development of
tourism projects. The tourism industry operators benefit
from credit facilities. In view of the critical role of finance
in the achievement of the nation's tourism dream, the
need for government intervention cannot be overemphasized. The proposed Tourism Development Fund
should be made operational as soon as possible. The
federal intervention Banks such as Bank of Industry and
others should consider tourism as a priority area.
Institution of Effective Value Chain Framework
The Classification of the nation’s tourism potential into five
clusters is a welcome development. The specific products
in the industry should not be stand alone. For the cluster
arrangement to work, the value chain framework must
be institutionalized to drive the clusters. The businesses
in the cluster will experience innovative growth, new
product formulation, enhance visitors satisfaction,
increase attractiveness of region, increase in the number
of tourist at sites, increase employment and revenue
growth (Cravens and Piercy, 2006; Gardzinska, 2012).
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th
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