Challenges to Growth in Tourism Industry of a Developing Country: The Case of Nigeria

Abstract

Nigeria has the potentialities required for tourism development such as natural features and land formations, manmade creativities and artifacts and divergent heterogeneous culture, yet the industry has not grown significantly. The statistical figures in table 1 are an empirical evidence to justify low patronage in terms of international tourists visit to Nigeria. The trend will likely continue downward if urgent and drastic measures are not taken by the Government and other stake holders in the industry to improve the security situation, provide tourism facilities and embark on aggressive image laundry strategy. The researcher conceptualize the potentials and challenges of Nigeria tourism sector as discussed in extent literatures and relevant industry reports and arrived at the conclusion that Government of Nigeria most exert political will and commitment to drive the tourism industry for the development of the economy.

Full text

Asian Social Science; Vol. 10, No. 19; 2014
ISSN 1911-2017 E-ISSN 1911-2025
Published by Canadian Center of Science and Education
282
Challenges to Growth in Tourism Industry of a Developing Country:
The Case of Nigeria
Ndanusa, Mohammed Manzuma-Ndaaba1, Yoshifumi Harada1 & Md. Aminul islam1
1 School of Business Innovation and Technopreneurship, University Malaysia Perlis, Malaysia
Correspondence: Md. Aminul islam, School of Business Innovation and Technopreneurship, University
Malaysia Perlis, Malaysia. E-mail: amin@unimap.edu.my
Received: March 26, 2013 Accepted: June 18, 2014 Online Published: September 29, 2014
doi:10.5539/ass.v10n19p282 URL: http://dx.doi.org/10.5539/ass.v10n19p282
Abstract
Nigeria has the potentialities required for tourism development such as natural features and land formations,
manmade creativities and artifacts and divergent heterogeneous culture, yet the industry has not grown
significantly. The statistical figures in table 1 are an empirical evidence to justify low patronage in terms of
international tourists visit to Nigeria. The trend will likely continue downward if urgent and drastic measures are
not taken by the Government and other stake holders in the industry to improve the security situation, provide
tourism facilities and embark on aggressive image laundry strategy. The researcher conceptualize the potentials
and challenges of Nigeria tourism sector as discussed in extent literatures and relevant industry reports and
arrived at the conclusion that Government of Nigeria most exert political will and commitment to drive the
tourism industry for the development of the economy.
Keywords: tourism potentials, economic development, tourism facilities, international tourists and Government
of Nigeria
1. Introduction
Tourism has become a phenomenon in both developed and developing economies across the globe, owing partly
to bizarre of income generation, employment creation and poverty elimination potentials; and exploring
development variables associated with the intangible products (Andriotis et al., 2008; Meng et al.,
2008).Tourism as a displacement activity, involves being away from home on a temporary short-term visit to and
stay at places of interest outside one’s domicile and work. United Nation World Tourism Organization (UNWTO)
however put a time limit of within a year of stay outside the environment other than your home either for
business, leisure or other purposes to the definition of tourism. But strictly speaking, tourism encompasses the
industry that package, facilitate, promote and delivered such travel and care for those on the move as well as the
impact the visitors and host communities have on each other before, during and after the experience.
Tourism has no doubt wage enormous economic impact on all sphere of the society to become one of the fattest
growing industries globally (Aliyu, Abdul Kadir, & Aliyu, 2013). The strength of tourism performance is
obvious in poverty reduction, employment generation and income redistribution effect on rural communities
(Kurian, Varadharajan, & Rajasekar, 2010). With the revolution in tourism industry, both the government and
private entrepreneurs have started to optimize the opportunities of attracting tourists to their countries. In other to
explore these numerous potentials that are inherent in tourism industry, many countries have started to design
their regions, cities and states in a manner that will attract tourist and tourist investors (Gil & Ritchie, 2008). The
development of tourism as an alternative revenue sources is the new strategy in most countries because of its
multiplier effect on other sectors of the economy, creating large volume of job for both skilled and unskilled
labor (Ayeni & Eboho, 2012).
Basically, the impacts of tourism are felt in a nation socially, environmentally and economically. At the society’s
level, the benefits cut across peasants, artisans and even professionals irrespective of gender, race or age bracket.
Environmentally, tourism has the potentials to conserve the natural environment, preserve antiquities, historical
monuments and traditional behaviors such as culture, food, language, heritage, arts and crafts. And,
economically, tourism creates wealth capable of stimulating both domestic and foreign earnings of any nation
from direct activities or associated businesses (NTDMP, 2006).

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Social Science
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Hotel industry is one of the largest industries in the tourism sector which has played a vital role in the hospitality
industry especially in providing tourist with the needed comfort in any tourist destination (Eja’Oto, Yaro, &
Iyang, 2011). The history of success or otherwise of any tourism destination will be incomplete without the role
of hospitality which is regard as vital ingredient of tourism facility. However, the standard and cost of this
important tourism support services is still below international best practices in Nigeria (Eja et al., 2011).
1.2 Tourism Potentials in Nigeria
Nigeria ranks among the most privileged nations of the world in terms of endowment of natural attractions. Such
attractions include: the mountains, hills and highlands; caves and valleys (with waterfalls and water tributaries);
spectacular vegetation (dense high forest, savannah and Sahel); varieties of species of wildlife, flora and fauna.
Nigeria is located on the west coasts of Africa located between latitude 4 and 14 N and longitudes 3 and 13 E
and have an estimated landmass of 923,768sq.km including its coastal and inland water ways. Hence, Nigeria
tourist attractions are indeed very great and diverse with lots of potentials for economic transformations, poverty
reduction, income redistributions and foreign direct investments. The extent to which these benefits are explored
by any nation is subject to certain local conditions such as community involvement and sustainability measures
(Hall, 2007). Tourism creates opportunities for local communities to benefit from their culture and natural assets
through employment in tourism activities and the supply of services and goods such as food, excursions or
handicrafts, to tourism businesses or directly to visitors, without having to migrate to towns in search of a better
life (UNWTO, 2011). Smith (2007) argues that economic benefits of tourism is a function of competitive market
drive and community involvement that can guaranty high expectations of the tourists on destination image and
facilities that will promote positive words of mouth and revisit intentions by the tourists.
Nigeria has not maximized her tourism potentials simply because Government commitment in providing
conducive environment and required infrastructure is inadequate. These lacks of infrastructures is worst hit in the
rural areas where natural land formations and fascinating tourist’s sites found themselves. Moreover, efforts at
developing infrastructure to support tourism are highly insignificant, and recent efforts by the successive
government are concentrated in the urban areas (Briedenhann & Wickens, 2004). The sites and attractions
location should be the focus for infrastructural development since it is the pivotal where other economic
activities will revolve (Fayissa, Nsiah, & Tadaese, 2007), to bring about desired micro and macro-economic
growth in the area and by extension the Country (SEPO, 2006). In order to maximize these stimulated economic
benefits, all leakages and wastages should be minimized. To achieve that, local patronage of food, drinks,
souvenirs, manpower and even facilities at the site should be encouraged (Felix & Usman, 2008).
Nigeria tourism potentials can only be utilized sustainably, if there is political will by the government in terms of
providing adequate security, building roads, airports, electricity, telecommunication and even internet facilities
linking the sites. And then put in place a comprehensive data base for both inbound and outbound tourists’
movement and encourage active private participation in areas such as hotel accommodation, transportation and
tour guide activities (Eja et al., 2011).
Tourism is a composite phenomenon and the inventory of its component factors, therefore, must go hand in hand
with acknowledgement of the general development objectives and characteristics of the area or region under
consideration especially now that tourism is market driven, customer satisfaction most be the concern of tourism
providers (Sitikantha & Tapan, 2001). No place is too remote to be visited. If the attractions are properly
package and presented. These remote and scattered locations harbor different types of tourism system ranging
from aquatic tourism to wildlife and discovery waiting exploring to the benefit of humanity (Felix, & Usman,
2008).
All the aforementioned types of tourism are in abundance in virtually each of the thirty six (36) States in Nigeria
(Eja et al., 2012). Some of the attractions are natural while others are man-made ranging from hills, fall springs,
caves, lakes and mountains as well as cultural festivals, historical sites and monuments unevenly spread in
Nigeria. These beautiful natural gifts and exciting festivals provide interesting places of leisure, recreation,
adventure, entertainment, relaxation and curiosity (Bola, 2010). Tourism activities have been criticized as posing
danger to the environment through degradation, deforestation and destruction of natural habitats in its operation
and social environment. Mbaiwa, (2003) argues that there exist a complex relationship between tourism and the
environment and for this reason caution should be applied in all tourism related activities especially manmade
features and construction of tourism support facilities. Conscious efforts are required to guaranty replenishment
and regeneration capacity of the environment in tourism development drives (Ayeni & Ebohon, 2012). Some of
the most prominent tourist attractions are classified into natural and manmade features (Eja, Iwara, Ukwayi, &
Ojona, 2012). They are:

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1.3 Natural Features
1.3.1 Ocean Beaches
Nigeria has approximately 400km of Atlantic beachfront. While some sizeable portions are polluted by oil in the
oil producing areas others are clean with high potentials for resort development.
1.3.2 Nigeria Vegetation
Ranging from the mangrove forest in the south to savannah and mountainous valleys and Sahel in the north. The
thick forest in south provide natural habitat to different species of wildlife.
1.3.3 Geographical and Geological
Formations that attracts mountaineering, rock formations adventurers, scientific expedition, caves and waterfalls.
Waterfalls are special geographical features which have provided successful holiday resort in many parts of the
world. Close to Nigeria is Victoria Falls which has been developed at both Zimbabwe and Zambia sides for
tourism purposes.
1.3.4 The Nigerian Slave Routes
Identify the main chartered routes used for the shipment of slaves from West Africa to the new worlds between
the 16thand 18th century. This trans-Atlantic slave trade is perhaps the most significant element of Nigerian and
African history.
Europeans discovered the southern areas of Nigeria along its coast in the15th Century. Portuguese explorers
settled in southern Nigeria and started the slave trade. The Dutch, British and other European traders later joined
them in the slave business. The Slave trade flourished for about 300 years in Nigeria. Authentic proofs have been
established that Nigerian slaves were crucial and dominant in the development of the Americas as the blacks of
this route dominate the black population from North America to Cuba and other Caribbean Countries down to
Brazil.
The route will be of interest to adventurers and also exposes how vast Nigeria family is all over the world and
the importance of Nigerian culture to the entire world. It therefore will build up a good case for the relevant
people to find their route in Nigeria (NTDMP, 2006).
1.3.5 Wild life, Games Reserves and Wetlands
Nigeria has a number of National Parks, Game Reserves and Wetlands. The Nigerian National Parks generally
lack the spectacular concentration of a large wild animal population associated with National Parks elsewhere in
Africa. However in terms of biodiversity, the Nigerian National Parks compare very favorably. Nigeria as a
whole supports more than 274 different species of animal, 831 species of birds and about 4,600 species of plants.
1.4 Man Made Features
1.4.1 Arts and Crafts
Crafts are synonymous with Nigeria’s material and superficial believes. Crafts and craft making are well
integrated into the living and working patterns of people and has become part of spiritual thinking of Nigerian. It
is the combination of these two elements that make a visit to a Nigerian crafts village a potentially enjoyable
visitor experience. Essentially, Nigerian crafts are grouped into dye & cotton, pottery & ceramics, fiber crafts,
bronze, brass and iron works, leatherworks, jewelry, wood carving.
1.4.2 Festivals and Traditional Dancing
Festivals, celebrations and dances are integral part of Nigerian culture depicting the country’s native customs
and traditions in a meaningful and colorful way. The range and number of local festivals and dances reflect the
rich diversity that exists within Nigeria and can provide tourists with a unique opportunity to sample and flavor
Nigerian culture in some of its purest forms. A typical example of such festivals is the annual Argungu fishing
festival and a host of traditional and cultural events.
1.4.3 Unique Historical Events
Unique historical events as to the impact the Europeans made in Nigeria offer potentially very strong tourism
products. Mungo Park a Scot and Richard Lemon Lander contributed immensely to exposing Nigeria to the
world through the exploration of the Niger River. Both died in their exploration missions in Nigeria and their
remains remain in Nigeria. Mary Slessor was a prominent Scots woman who dominated the historical scene in
the primitive Nigeria (in the second half of 17th Century) particularly in Akwa Ibom and Cross River state. She
elevated the status of women who were treated as “lower than cattle” in society. By this, she was about the first

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Pioneer of Women’s Rights in Africa. She stopped the killing of twins who were thought to be possessed with
evil spirits and banishment of their mothers in Nigeria. This is one of the greatest achievements of Mary Slesso
as contained in the Nigeria Tourism Development Master Plan 2006.
1.4.4 National Monuments, Sites and Museums
Nigeria’s cultural diversity is captured in its monuments and historic sites, which draw from its history of ancient
walled cities, palaces of its traditional rulers, it’s colonial past and its multi-denominational religious tradition.
Each state and city has its own very distinctive monuments and historic sites all associated with the rich folklore
and history of the areas. While all are of importance to the natives of the locations, many will not be of interest
to international and regional tourists.
1.5 Tourist Arrivals
Nigeria is not a destination for most international tourists despite unique opportunities for exploration, adventure
and fun seeking individuals. The reasons are not far-fetched; insecurity, low level of tourism infrastructure,
political instability and host of other numerous challenges identified below. The foreigners that dominated
Nigeria’s tourists arrivals are mostly people that come for businesses, conference, officials on mission, and
family or friend’s visits. Yet there is no accurate statically recorded data of actual number of these groups of
tourists and their purpose of visit to Nigeria. UNWTO have advocated the creation of tourism satellite account
(TSA) to measure the economic impact and contributions to GDP arising from inbound and outbound visits in
tourism sector of any country. Moreover, domestic tourism that will compliment international tourism is
insignificant, partly due to low level of awareness and low income level of an average Nigerian (Awaritefe,
2007). Nigerians hardly visit any tourist destinations in the country while on vacation except for seminars,
conference, meetings or political party’s convention scheduled for any of the tourist locations. The average
Nigerian preferred to visits friends and relations in their camphor during festivals, ceremony or holidays while
the privileged government officials travelled overseas for vacation and medical checkups. (Awaritefe, 2003)
which affect domestic contribution to tourism earnings
The rate of international tourist arrivals in Nigeria presented in table 1 is coined from the work of Eja, et al
(2012). It shows an inconsistence percentage figure of tourist arrivals between 2008 and 2011 with values of
23.26% and 5.86%. This fluctuated number in tourist arrivals may be due to the recent terrorist attack and
political instability in Nigeria especially in most states with high political crises and travel advice issued by
Western Countries to their citizens about visit to Nigeria. Table1 shows that tourists from Cuba and Cameroon
were the major international tourists that visit Nigeria more as a tourist destination with values 23.30% and 24.21%
followed by Ghana and South Africa with values of 12.19 and 10.42% while international tourists from Irish,
Germany and Thailand were on the least side with values of 1.68%, 1.78% and 3.36% respectively.
Table 1. International tourist arrivals in Nigeria
Countries 2007 2008 2009 2010 2011 Total Average % total arrival
Cuba 2105 3456 3145 994 499 10199 23.30
South Africa 1231 975 1045 995 365 4561 10.42
Brazil 954 457 394 445 234 2484 5.67
Ghana 2111 1044 1124 904 153 5336 12.19
India 1011 578 2341 475 105 4510 10.30
USA 734 754 1411 95 99 3093 7.06
Cameroon 3456 2456 3345 356 984 10597 24.21
Thailand 945 245 154 75 54 1473 3.36
Irish 445 105 95 65 27 737 1.68
Germany 345 111 204 74 45 779 1.78
Average % 30.49 23.26 30.29 10.11 5.86 43769 100
Source: Field Survey, 2012. Research conducted by Eja, et at 2012.

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2. Challenges of Tourism Sector in Nigeria
Having analyzed the vast and rich tourism potentials in Nigeria and its high chances of fighting poverty,
diversify the mono economy (oil), job creation, income redistribution and environmental preservation, yet the
milk and honey is allowed to flourish untapped (Eja & Ajake, 2005). Both the Government and private investors
(domestic and foreign) are constraint in their investment drive due to some or all of the following predicaments
(Aniah, 2006):
2.1 Current Markets
Industry representatives indicated that almost 99% of international tourism in Nigeria is business or conference
related. The main generating markets are Great Britain, Europe, Africa/India, and neighboring West Africa
States (Eja, et al., 2012). Business tourism is also a mainstay of domestic tourism and “holiday taking culture”
has yet to be developed in Nigeria (Bola, 2010). In view of the above visitors, the supporting infrastructural
development is far below average for their comfort and taste both at the attraction sites and the intangible
services such as; accommodation, transportation, food & beverages etc (Zeithaml et al.). Therefore, they will
rather prefer to stay put on their business concerns and or conference venue. Thus, drastically reduced the
economy of scale that comes with these visits.
2.2 Product Development Opportunities – New Markets
Cultural tourism was identified as an aspect of tourism with potential for development. Particularly important in
this regard is the opportunity to capitalize on Nigeria’s rich and diverse culture in general terms, and more
specifically, target the Nigeria Diaspora with a tourism offer based on the slave routes (Eja, 2010). People also
identified rural/village tourism, particularly in Northern Nigeria, where support is more likely to be achieved for
a ‘quieter’ form of tourism. Other types of tourism considered to have potential included culture, rural, adventure,
coast/beach and family holiday for the domestic market (Larry, 2005). Historians and adventure tourists will be
delighted to dig into the significant of these discoveries but the security situation and Nigeria image abroad are
some of the impediments.
2.3 Tourism Development Component
The need for a strategic approach to tourism is identified as the most important factor in facilitating the
development of sustainable tourism in Nigeria. Investment in tourism and particularly the supporting
infrastructure is considered to be a priority. The need for professional ground handling arrangements is also
acknowledged (Gbadel, 2007). Tourism development is as old as Nigeria history, but is a sector fondly
remembers in theory rather than practice. There is no clear cut evolution of the sector and these greatly scarred
away potential investors.
3. Investment and Incentives: The Enabling Environment
A major driver of growth in any economy is the annual capital base growth or capital formation. Over the past 40
years, Nigeria’s capital base has been growing at only 0.1 percent per annum, which made the economy one of
the slowest growing in the world. Nigeria has been trapped in a low savings, low investment, low growth logjam.
Growth in the past five years has been insufficient to make any dent on poverty. The public sector, despite
efforts to diversify the economy, is still the dominant employer and the private sector is still sluggish in terms of
capital investment (Kester, 2007).
Low productivity mitigates against economic growth and investment and hence an increasing value added to the
economy with inevitable consequences on workforce employment, remuneration and purchasing power. Tourism
and recreation is an area of discretionary spending. With low growth in the economy, the rise in discretionary
spending levels (those not required for basic living) will remain miniscule. This situation does not provide a
solid base for the growth in domestic tourism in the immediate future (NTDMP, 2006). As evidence in the article
by Eja 2007, despite the huge potentials in tourism, Cross River state contributed about 8% to GDP in 2005.
The development of tourism is often view to have direct relationship to economic growth (Lee & Kwon, 1995).
But Nigeria as an export driven economy is expected to benefit on a large scale from tourism related components
of international trade, however, the following gaps most be reduced or closed before this can be realized;
Security, Infrastructural amenities, Promotion and awareness, Funding and financing, Attitude and image
Each of the above listed components constituted the major challenges to tourism development in Nigeria desired
for this study.
3.1 The infrastructures for instance, such as road network and various means of transportations, the international
and domestic airports, telecommunication and internet access, tour guide and efficient road signs & symbols,

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hotel accommodation and other axillaries services and perceived destination image all have positive relationship
with the overall tourism performance. Nigeria today is either these essential requirements are lacking or in bad
condition.
3.2 Similarly security of lives and properties is fast deteriorating, obvious cases of armed robbery, kidnapping,
assassination ,suicide bombing and other related crimes have negative relationship with tourism performance
most especially on tourist satisfaction and repeat visit (Johnson, 2001). Virtually all parts of Nigeria is facing one
form of security challenge or the other ranging from kidnapping in East, hostage taking in the South- South,
armed robbery in the West and Boko Haram terrorism in the North.
3.3 Government funding as priority project will enhanced effective and accelerated development in the tourism
sector thereby opening the windows of opportunities resulting in positive performance. Closely related to these
are the lending policies of the financial institutions which can trigger aggressive transformation in the sector
leading to satisfactory performance. And covertly, reverse will be the case if the Government neglects the
industry and the Banks and other related institutions are ash in their policies, this will slow down investment and
development of the sector resulting in low performance. The government of Nigeria is only paying lip services to
the issue of tourism development without any commensurable commitment in terms of enabling environment
and direct investment in the sector.
3.4 Packaging and showcasing of Nigeria tourism products is at its lowest. No information about attractions and
other places of leisure at international events, average visitors to Nigeria usually get astonished when he or she
stumbles into places of interest and sites of wonders. This lack of adequate information is a minus on tourism
performance. This is to say, the marketing image of destination is at its lowest (Chang, 1997) and unless some
drastic measures are adapted, little or no transformation will be achieved.
3.5 Attitudinal change is required by the personnel connected with this very important internationally driven
industry. Of course, Nigerians are humble and diligent yet with high potentials of fraud and corrupt related
tendencies. The ground staffs at the points of entry, transportation, accommodations and tourist sites are
expected to be courteous, polite and appealing both in physical appearance and manners (Zeithaml et al). All
these virtues will transform to tourist satisfaction and by extension tourism performance.
4. Conclusion
Nigeria is evidently blessed with a lot of tourist sites with the potentials of raising revenue for the nation but
unfortunately this is not maximally tasked as tourism in Nigeria is relegated to the background.
The author attempted to x-ray some of the potentials and challenges of tourism development in Nigeria with a
view to explore the poverty alleviation strength in tourism development for the overall benefits to the people.
World over tourism is rated as the second largest growing business area after information technology
contributing 5% of the world GDP and 6% of the world’s exports in services (WTO, 2011). Investment in
tourism sector if properly managed with a strong focus on poverty alleviation, it can directly benefit the poorer
groups through employment of local people in tourism enterprises, goods and services provided to tourists, or the
running of small and community-based enterprises, etc at the local level while stimulating foreign earnings
through reduction on taxes and return on investment. Tourism investment is also used as conservation and
preservation strategy of the environment, historical, archaeological and religious monuments, poverty
eradication and elimination of social vices, stimulation of cultural practices, folklore, traditions, art and craft
cuisines, (Osy Kings, 2013). Research has shown that tourism in many developing and least developed countries
is the most viable and sustainable economic development option rated as the first or second source of export
earnings in 20 of the world’s 48 least developed countries and in some small countries notable islands accounted
for over 25% GDP. Part of this income trickles down to different groups of the society thereby redistributing
income. In the global economy, even countries with poor level of infrastructure and facilities are said to be able
to attract investors to their country for tourism development which implies that with enabling environment,
Nigeria is set to take her rightful position in Africa (NTDC, 2007). Tourism acts as an engine for development
through foreign exchange earnings and the creation of direct and indirect employment.
If country like Greece can depend on tourism solely to develop the economy, create employment, and reduce
poverty (Andriotis et al., 2008) then, the chance of Nigeria is bright in this regard as one of the strategies to
facilitate the attainment of Millennium Development Goals.
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