The Socio-Economic Contribution of Tourism to Nigeria and North Cyprus

A Comparative Approach


Project Report, 2014
88 Pages, Grade: Satisfactory

Excerpt

TABLE OF CONTENTS

ACKNOWLEDGEMENT

ABSTRACT

TABLE OF CONTENTS

ABBREVIATIONS

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1: INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF THE RESEARCH PROBLEM
1.3 RESEARCH QUESTIONS
1.4 RESEARCH OBJECTIVES
1.5 SIGNIFICANCE OF THE STUDY
1.6 SCOPE OF STUDY

CHAPTER 2: LITERATURE REVIEW
2.1 INTRODUCTION
2.2 TOURISM CONTRIBUTION TO GDP IN NIGERIA AND NORTH CYPRUS
2.3 TOURISM CONTRIBUTION TO EMPLOYMENT
2.4 TOURISM CONTRIBUTION TO FOREIGN EXCHANGE EARNINGS
2.5 INVESTMENT AND REGIONAL IMPACT OF TOURISM
2.6 TOURISM CONTRIBUTION TO TAXATION
2.7 TOURISM’s IMPACT ON OTHER INDUSTRIES
2.8 ECONOMIC IMPORTANCE OF DOMESTIC AND INTERNATIONAL TOURISM..
2.9 AREAS OF STRENGTH AND OPPORTUNITIES OF THE TOURISM SECTOR
2.10 AREAS OF WEAKNESSES AND THREATS OF THE TOURISM SECTOR
2.11 THEORETICAL FRAMEWORK

CHAPTER 3: RESEARCH METHODOLOGY
3.1 INTRODUCTION
3.2 POPULATION AND SAMPLING
3.3 RESEARCH DESIGN
3.4 METHODS OF DATA COLLECTION
3.5 METHOD OF DATA ANALYSIS

CHAPTER 4: DATA PRESENTATION, INTERPRETATION AND ANALYSIS
4.1 INTRODUCTION
4.2 SOCIO - DEMOGRAPHIC CHARACTERISTICS OF NIGERIAN RESPONDENTS..
4.2.1. Redeeming Nigeria’s image in order to attract an increased tourist arrival rate.
4.2.2 The patronage of Nigeria’s local tourism industry by Nigerians and the increase of her GDP as contribution from the tourism sector ..
4.3 SOCIO-DEMOGRAPHIC CHARACTERISTICS OF NORTH CYPRUS’ RESPONDENTS
4.3.1 Overcoming political obstacles, economic isolation, institutional governance and personalized political structures
4.4 DISCUSSION OF FINDINGS

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
5.1 CONCLUSION
5.2 RECOMMENDATIONS

REFERENCES

APPENDIX A

APPENDIX B (Turkish version)

APPENDIX B (English version)

ACKNOWLEDGEMENT

With a thankful heart, I must say that I am really short of words. If I should mention names of those who had contributed in one way or the other towards the enhancing of my successfully stay in the faculty as a Master student, then I might not be able to mention them all.

However, I am foremost thankful to Prof. Dr. Hasret Balcioglu; whose support I enjoyed being my H.O.D, lecturer, course advisor and Project Supervisor. She is easily accessed and readily available. She even offered to help translate a questionnaire which I originally drafted in English language to Turkish language so as to better access and collate information from my Turkish Cypriot respondents, and I must say that I found the offer to be a great relief for me.

I must also acknowledge persons that I came across during my stay on the island especially for extra - curricular activities; people like Gulten Sala Lay and the entire library staff, library club, and members and co-coordinator of the CIU English speaking club.

I am thankful to my father (Mr. Christopher Okonkwo) for his financial support towards the enhancement of my education. To the friends that I made, and to the companies that I kept, I am most thankful. God bless you all.

ABSTRACT

This research project is however more in tune with the essence of tourism to developed and developing economies of the world. It seeks to particularly examine the subject matter of tourism and its socio-economic contributions to Nigeria and the small Island of North Cyprus.

Topical issues on the effect of tourism on the GDP, employment, foreign exchange earnings, investment, regional impacts, tourism contribution to taxation, tourism impact on other industries/ sectors are also delved into.

Furthermore, this paper also considers discuss on the relative importance of domestic tourism and international tourism to Nigeria and North Cyprus, and the areas of strength and opportunities, weaknesses and threats as affecting tourism potentials and development in both countries.

The theoretical framework for this paper is premised on the theoretical ideology of functionalism. Its research methodology is founded on the social survey method for a research design; data were collected from respondents both online and offline with the aid of semi - structured questionnaires.

Data collected from respondents are presented, interpreted and analyzed, with further discussions carried out on the finding, sequel to a conclusion and recommendations following. For the sake of emphasis, we find that corruption is largely blamed to be responsible for infrastructural decay in Nigeria. The Northern Cyprus and the Nigerian respondents’ in this study both assets to tourism benefits such as employment creation. The citizens of both countries share a similar propensity to travel outside the shores of their own countries and that tourism to both countries can be immense.

Keywords: Tourism, GDP, Employment, Foreign Exchange, Investment, Nigeria, North Cyprus/ TRNC.

ACRONYMS AND ABBREVIATIONS

Abbildung in dieser Leseprobe nicht enthalten

TABLE LIST

Table 1: Passive success, and factors and arrivals influencing Nigeria as a tourist destination

Table 2: International tourist arrivals in Nigeria

Table 3: Tourist Arrivals and Net Tourism Revenues in North Cyprus of the 1988-2010 periods

Table 4: Percentage distribution of respondents by Gender (sex)

Table 5: Percentage distribution of respondents by Age

Table 6: Percentage distribution of respondents by occupation

Table 7: Percentage distribution of respondents by marital status

Table 8: Percentage distribution of respondents by Educational level

Table 9: Percentage distribution of top three choice places respondents would like to visit

FIGURE LIST

Figure 1: Percentage distribution of respondents on the engaging in leisure or relaxation activities as a waste of time

Figure 2: Percentage distribution of respondents on who they think benefits most from tourism in Nigeria

Figure 3: Percentage distribution of respondents on corruption being responsible for infrastructural decay in Nigeria

Figure 4: Percentage distribution of respondents on the transform of recreational facilities into dumping sites and toilets in their local communities

Figure 5: Percentage distribution of respondents who take a break from their normal job or business to visit a recreational spot, a bar or a snack café

Figure 6: First, second and third choice tourism destinations by respondents

Figure 7: Percentage distribution of respondents on why they prefer their first choice destinations

Figure 8: Percentage distribution of respondents on what activities they would like to do at a tourist destination

Figure 9: Percentage distribution of respondents who have had their holiday spent in any hotel in Nigeria

Figure 10: Percentage distribution of respondents who are aware of tourism destination or events in Nigeria such as Yankari Game Reserve, the Jos wild life Park, Zuma Rock, Ogbunike Cave and so on

Figure 11: Percentage distribution of respondents who have visited other tourism destinations or have attended other cultural festivals in Nigeria

Figure 12: Percentage distribution of respondents on the kind of meal they prefer to be served them in a hotel, bar or restaurant in Nigeria

Figure 13: Percentage distribution of respondents on what they think local residents of Nigeria benefit as impact from tourism

Figure 14: Percentage distribution of respondent on Gender

Figure 15: Percentage distribution of respondents by Age

Figure 16: Percentage distribution of respondents by Occupation

Figure 17: Percentage distribution of respondents by marital status

Figure 18: Percentage distribution of respondents by level of education

Figure 19: Percentage distribution of respondents on why they would like to visit tourism destinations which they consider as first choice

Figure 20: Percentage distribution of respondents on holiday spent in any hotel North Cyprus.. 51 Figure 21: Percentage distribution of respondents in North Cyprus on what meal they prefer to be served them when they visit a restaurant in the TRNC

Figure 22: Percentage distribution of respondents on who benefits most from tourism in North Cyprus

Figure 23: Percentage distribution of respondents on North Cyprus’ sufficiency in technology, capital and administrative know-how in attracting foreign investors

Figure 24: Percentage distribution of respondents on whether the legal system of North Cyprus is okay enough to attract investors into her country

Figure 25: Percentage distribution of respondents on whether the government is doing enough to check against environmental pollution and inspection of littering on the island 54 Figure 26: Percentage distribution of respondents on whether the TRNC would be able to meet its financial obligations without tourism revenue

Figure 27: Percentage distribution of respondents on employment generation by tourism development

Figure 28: Percentage distribution of respondents on whether the economic contributions of tourism far outweigh the negative social impact of tourism

Figure 29: Percentage distribution of respondents on whether tourism attracts more investment than spending in the economy of North Cyprus than any other industry

Figure 30: Percentage distribution of respondents on the personalization of government administration

CHAPTER ONE INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Tourism overtime have become a strand part of many economies of many countries of the world, serving as a backbone upon which service sectors thrive with a backward and forward interconnectivity; wherewith different counties of the world interrelate along same tide (Ayeni and Ebohon, 2012:126).

Wherewith the benefits of tourism are a matter of controversy, it cannot be undermine that tourism provides higher returns on invested capitals; effects to increase agriculture production, and employment; generates foreign exchange, government revenue; finance for infrastructure development, and generally increases citizens welfare, helps capitals flights esp. when associated with overseas trips for holiday and proper overall economic growth (Bankole, 2002:77).

The term tourism has been defined differently and some authors choose to define the term with somewhat similarities. It is serious and yet difficult for analysts in the tourism industry to come to a compromise with regards to a universal definition of tourism. Again, the vague nature of the industry makes it a herculean task in evaluating the impact of tourism on the economy when compared to other sectors of the economy (Lickorish and Jenkins, 1999: 1-2).

However, we shall make use of the definition provided by the World Tourism Organization (WTO), which states that tourism “comprise the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes, different from the exercise of an activity remunerated from within the place visited ” (OECD, 1998:1).

According to the Organization for Economic Co-operation and Development (OECD), there are different forms of tourism, namely:

1. Domestic tourism,
2. Outbound tourism and,
3. Inbound tourism.

Domestic tourism involves visitors travelling within their country of residence, whereas outbound tourism involves residents travelling from one economic territory to another different economic territory, while inbound tourism entails situations where nonresidents of an economy travels within the economy of “compilation” (OECD, 1998: 1).

Up until the 1950s, the tourism industry had been a very fragmented one, wherein tourism enterprises like the hotels, transport operators, travel agents, and tour operators all worked independently of each other. Much of the international travels were counted as undertaking of the privileged, the elitist and the very wealthy people of the society (Lickorish and Jenkins, 1999:2-4).

WTTC (2009:6) points out that the “Travel &Tourism Economy employment is estimated at 1,375,000 jobs in 2009, 6.4% of total employment, or 1 in every 15.6 jobs. By 2019, this should total 1,811,000 jobs, 7.3% of total employment or 1 in every 13.8 jobs. The 443,000 T&T Direct Industry jobs account for 2.1% of total employment in 2007 and are forecast to total 581,000 jobs or 2.3% of the total by 2019. Travel & Tourism Capital Investment is estimated at TRY19.6 bn, US$13.1 bn or 10.7% of total investment in year 2009. By 2019, this should reach TRY42.6 bn, US$23.4 bn or 7.5% of total. ”

Again, the WTTC (2011: 7) posit a forecast that the total contribution of travel and tourism to the Caribbean GDP including its wider economic impacts is expected to rise by 3.8% pa from (14.2% of GDP) in 2011 to USD 70.7 bn (14.6) by 2021, with an expectation of increase in employment rate of 2.5 % pa from 2,167,000 jobs to 2,764, 000 jobs by 2021. It is expected that travel and tourism export would generate revenue, and travel and tourism investment increasing in a somewhat similar margin.

In much part, this research project seeks to examine the subject matter of Tourism and its contributions to countries such as Nigeria, and also a Small Island state of North Cyprus.

We shall take a comprehensive view of this issue with including consideration to the following: tourism’s contribution to; GDP, employment, foreign exchange earnings, investment, regional impacts, contribution to taxation, impact on other industries/ sectors, etc.

Again, we shall consider the relative economic importance of domestic and international tourism to Nigeria and North Cyprus. Also, this research project shall cover the strategies for increasing the economic contribution of tourism to the country in the future, with regards to the current strengths of the tourism industry of Nigeria and North Cyprus; the weaknesses and barriers to tourism industry development of both countries; opportunities to enhance tourism’s economic contribution, and threats that may need to be overcome.

We shall also consider Implications and Recommendations for specific strategies of industry, government and community to enhance the economic impacts of tourism in both countries. The connection between the studies on both countries in this research is that it shall be given a comparative approach.

We have taken into account from preceding points that tourism is a global phenomenon and that its benefits is massive. However, it behooves that a little more study on this vital variable (Tourism) will help contribute towards policy planning and implementation in tourism industries of Nigeria and North Cyprus so as to position and to reposition them in making maximum use of its tourism potentials and to compete favorably with other countries of the world, especially countries with developed economies.

1.2 STATEMENT OF THE RESEARCH PROBLEM

The extent, to which tourism contributes to the socio-economic development to economies like that of Nigeria, comes with inconsistency of reports and findings as some authors are rather extreme, limited, or myopic in their research, limitations and findings.

However, one thing is clear, i.e. that the vast tourism potentials of countries like Nigeria and North Cyprus is not maximally tapped (Ayeni, 2013:15) and (Yasarata et al, 2010:354).

The US consular every year issue travel advisory to its citizens on the need to avoid certain cities in Nigeria when visiting; associating such places as prone to violent crimes, kidnapping for ransoms, having of risks in the usage of public transport service and so on (Bankole, 2002:81).

In another part, the bane of Nigerians access to tourism facilities has been blamed on their country’s poor economic condition, as over 60% of them are poor and live below $1.00 per day; a situation that is unfit if tourism development must thrive. This is because; the patronage of recreational facilities would require that the income of the individual (consumer) should be above subsistent level (Igbojekwe, Okoli, Ugo-Okoro, 2013:62).

According to Igbojekwe, Okoli, and Ugo-Okoro (2013:63) Nigerians are largely unaware of the essence of tourism. Ones engagement in tourism and leisure activities is dependent on his exposure as a result of the age factor, sex, educational attainment, occupation and social class. It is very unfortunate that urban planning programs found to be befitting in the providing of recreational space have been converted into industrial, commercial and residential plots by unpatriotic government officials.

Nigerians are said to the most widely traveled nation on planet earth. And so, it is not surprising to note that the rate at which of the Nigerian tourism industry is patronized is worrisome. At least, Bankole (2002:83) posits that Nigeria’s size and tourism potentials correlate with tourism ratio in a downward trend when compared with other countries of the world; thus, affecting her GDP negatively.

In the case of North Cyprus, Yasarata et al (2010:351) indicates peculiarities associated with North Cyprus, adding that its tourism industry is characterized with effects arising from political and economic isolation, institutional governance; politicization of the public sector, personalized political structures with specific use of public resources for the retention of political power, thus, weakening the progress of a sustainable tourism development.

North Cyprus is faced with insufficient and limited capital accumulation. The Small Island Developing state of North Cyprus is faced with some environmental problems as well. The country is such a place where protection and development of the environment is facilitated for without having to depend on an environmental plan (Safakli, 2005:7).

Safakli (2005:6) maintains that North Cyprus is lacking in technology, capital and administrative knowhow with attendant bureaucratic, legal and administrative obstacles, thus discouraging foreign investors.

It is also known fact that the Ministry of Health and Environment was established and empowered with limited authority over the control of environmental pollution and inspection of littering only, without Environment Impact Assessment (EIA) functions. The Ministry is faced with shortage of personnel like architects and engineers as well (Yasarata et al 2010:350-351). The preceding facts, however negates the country’s potentials of becoming a topmost tourist demand destination in the first instance.

1.3 RESEARCH QUESTIONS

In view of the above stated researched problems comes some poser:

a. What are the main problems of tourism development in Nigerian communities? (Ijasan and Oladunni, n.d :15)
b. How are the obstacles in tourism planning overcome?
c. What are the barriers in front of the implementation of sustainable tourism
d. Policies / plans once they are developed?
e. What are the implications of politics and power struggle among different stakeholder, groups for tourism planning and development? (Yasarata et al 2010:355).

1.4 RESEARCH OBJECTIVES

The aim of this study is to examine the discus on Tourism and its contributions to countries such as Nigeria, and the Small Island Developing state of North Cyprus. Specifically, this study seeks:

i. To determine in what ways, Nigeria could redeem her image in order to attract an increased tourist arrival rate.
ii. To ascertain how Nigerians could be encouraged to patronize their local tourism industry and also increase her GDP as contribution from the tourism sector.
iii. To investigate in what ways North Cyprus could overcome the obstacles of political and economic isolation, institutional governance and personalized political structures in relation to its tourism industry.

1.5 SIGNIFICANCE OF THE STUDY

It is imperative to consider this topic as stringent for research purposes in that the gains from tourism is enormous and cut across the entire globe. Jobs are generated, revenues are earned, governments are engaged, residents and visitors affected or benefiting; the tentacles are all encompassing.

1.6 SCOPE OF STUDY

The scope of this study is basically centered on the tourism industry of Nigeria and that of the Small Island Developing state of North Cyprus.

CHAPTER TWO LITERATURE REVIEW

2.1 INTRODUCTION

The importance of tourism cannot be underemphasized as tourism stands out to be among the first three major and rapid growing industries in the world. Among the three are technology, and telecommunication. Apart from oil, tourism is the next world leading export commodity (Ajayi, 2012:127).

A little description of the countries that this study is focused on shall be highlighted here mainly. This is imperative so as to keep learners abreast with a better imagined picture of our scope of study. Nigeria is a lower middle income country with a GDP of $262.6 billion USD as at 2012 (World Bank, 2014). She has an emerging market and a mixed economy. She has an expanding financial service, communication and entertainment sectors (Mmaduabuchukwu, 2013:85). Oil dominates the economy of Nigeria (Okezie and Amir, 2006: 369).

The country had undergone major political and economic changes since her independence in 1960. Evolving from a poor agricultural economy to a relatively rich, oil - dominated one with a GDP of US $370 million in export and a per capita income of US $130 as at 1969 to a per capita income of US $1, 100 in 1980 (Okezie and Amir, 2006:368-369). Usman Shamsudeen in Ayeni (2013:16) declared that Nigeria’s total revenue in June 2008 was N3, 915.56 billion. From the total amount the sum of N3, 133.00 billion was derived from oil.

Nigeria had a population of 168.8 million in 2012 (World Bank, 2014) and is comprised of three major ethnic languages i.e. Hausa, Igbo and Yoruba. The country has over 250 ethnic groups. Other major ethnic nationalities that sum up to the total population includes tribes such as the Ijaw, Ibibio, Kanuri, Nupe, Tiv, Gwari, Igala, Idoma, Edo, and Fulani among others.

The image identifiable to the country called Nigeria is one of multicultural and multiethnicity and so represents or betrays different things to different people that are culminated in a multiple image. This multiple image transcends to a lack of uniformity both differences among the personality and character that make up the country (Obeta and Onah, 2013:30).

North Cyprus on the other hand, is an Island state; the third largest island in the Eastern extreme of the Mediterranean Sea; consisting of two ethnic nationalities namely the Cypriot Turk and the Cypriot Greek (Alipour, Vaziri and Ligay 2011:36). It is typically small and has a population of over 215,000 inhabitants and a per capital income of $5,856 USD and I.26 billion for a GDP. They are faced with limited natural resources and a limited workforce (Katircioglu, 2007:5).

2.2 TOURISM CONTRIBUTION TO GDP IN NIGERIA AND NORTH CYPRUS

Where countries like one will find in the Caribbean are seen to be directly, indirectly and inducedly benefiting from tourism contribution to their GDP up to the tune as high as 14.6% (WTTC, 2011:9), it is shameful to the Nigerian economy as we can find Obeta and Onah (2013:32) stressing that the case of the Nigeria’s tourism sector to be contributing a meager of 2% to Nigeria’s GDP, even though they did not indicate the statistics of what year they were referring to. Again, Mmaduabuchukwu (2013:87) showcases tourism and hospitality (Hotel and Restaurant in particular) contribution in the country at a bad quality of 0.5% of Nigeria’s GDP in 2010.

On the other hand, the increase in tourist arrivals in Nigeria according to Eja, Ukwuayi and Ojong (2012:426) is commendable as the tourism industry of Nigeria is said to upgrading and has however contributed about 8.1% to the Nigeria’s GDP.

The contribution of tourism to Nigeria’s GDP from government revenues generated via levies on the hospitality sector (which includes registration and other charges) is put at N1.149m in 2004, while in 2009 N100 million was generated. The tourism industry contributed the sum of N1, 232.2 billion in 2011. The WTTC also predicted that the figures will increase by 6.5% in the 10 years (Tunde, 2012:122-123).

In the case of North Cyprus, Safkali (2005:5) opines that tourism happens to be among the four most important sectors to its GNP and has a contribution of 16.4% to the country’s national economy. Unlike the south part of the Cyprus island which is the important competitor to North Cyprus, tourism contribution to GDP , employment, bed capacity and tourist arrivals (thousand) are 19%, 9.7%, 86151 and 2222,7 respectively. While the same figures for North Cyprus stands at 3%, 3.8%, 8972 and 393 in the year 1998.

North Cyprus otherwise called the Turkish Republic of North Cyprus (TRNC) is faced with an economic embargo imposed on she, thus, making the part of the small Island state a tourist destination that is less attractive due to cost of flight. Yet, she has two airports at Ercan and Gecitkale (Gozel, 2011:20).

Mainland Turkey is the major trade partner of the TRNC and the year 2005, tourism contribution to her GDP stood at $145.6 million (3.3%) (Katircioglu, Arasli and Ekiz 2007:41). We can observe that the difference between GDP figure for the TRNC of 1998 and that of 2005 is 0.3% and that could be described as insignificant and rather static.

2.3 TOURISM CONTRIBUTION TO EMPLOYMENT

Tourism is the number one employer of labor in the world and jobs created by tourism spreads across the economy in areas of construction, telecommunications, retail and manufacturing, thus, creating jobs in large number for young people, women, and minorities whether in small or medium size companies (Akpan and Obang, 2012:127).

It has been estimated that tourism is the sector with the biggest employer of labor in Nigeria as it is generating employment for millions of people and its effect rubs on every aspect of people from taxi drivers to Bank mangers (Ezenagu, 2013:298).

In 2002 the tourism industry generated an estimated 199 million jobs - one in every 13 jobs worldwide. And as at 2009, tourism in Australia made a direct contribution to the economy of 4.7% of total employment, while in Nigeria as at 2011, the Travel and Tourism industry was forecast to directly generate a total of 897, 500 jobs in 2012, and that happens to comprises of 1.4 % of total employment in Nigeria (Tunde, 2012:122). However, the number of jobs generated via tourism going by the prediction for 2012 is rather too low.

On the other hand, there isn’t an acute unemployment in the TRNC as the official unemployment rate stands at 1.6% for the year 2000 (Safakli, 2005:6). The share of tourism industry’s employment in total for the year 2003 was 4.4% (Katircioglu, 2007:5). In 2005 alone, the sum of 8,004 jobs was created courtesy of the tourism industry on the island (Katircioglu, Arasli and Ekiz 2007:41).

2.4 TOURISM CONTRIBUTION TO FOREIGN EXCHANGE EARNINGS

Tourism is a potential source for income generation especially through foreign exchange as it further transcends with a multiplier effect to the rest of the whole economy (Adora, 2010:19) (Ezenagu, 2013:298). The country of Ghana recognizes tourism as one of the key sector in her economy recovery program and is currently its third foreign exchange earner after mineral and cocoa. Tanzania, a Southern African country account for about 5% of foreign exchange from her tourism, even Kenya earns about US $128 million from tourism (Ezenagu, 2013:298). And so, we can see that tourism has the potential to serve as a foreign exchange.

Obeta and Onah (2013:32) stressed that tourism is the main source of foreign exchange for at least 38% of countries in the world. And that it is among the top five main source of foreign exchange for as many as 83% of countries.

The government of Nigeria in view of tourism’s contribution via her erstwhile president, Olusegun Obansanjo put in place machineries to revamp the tourism sector and to enhance it as a major revenue earner. This came particularly at a time of economic depression and to diversify her economic base from petroleum (Ezenagu, 2013:299).

Income is earned via tourists expenditures which is further injected into the destination’s economy having rendered services like accommodation, food, drink, local transport, entertainment, shopping etc (Ezenagu, 2013:298).

Bankole (2002:74) observes that Nigeria’s tourism is not only capable of contributing towards foreign exchange but can aid in reducing the concentration of foreign exchange sources. Unfortunately, the mono cultural economy state of Nigeria which depicts the country to wholly depend on oil for 85% of her revenue leaves industries such as tourism with little or no chance to infancy (Ayeni, 2013:15-16).

Anyanwu (2005:208) made an assumption that tourism’s contribution to Nigeria’s foreign exchange is huge. But such an assumption was not systematically measured. She however, cautions against leakages from imports of materials used in the tourism industry.

On the other hand, where there is an economic instability of a crisis that hits Turkey’s economy, whether in areas of inflation rates, recession, interest rates, and the exchange rates, it presupposes to mean that the TRNC is affected directly or indirectly (Safakli, 2005:7).

An increase in the exchange rate has negative influence on export quantity of demand of tourism products and it also decreases the demand on tourism expenditure by government. Again, an increase in world’s economy also contributes to tourism exports of North Cyprus. The economy of North Cyprus is currently experiencing an increase in its real exchange rate as a result of the political stability of Turkey (Gozel, 2011).

Katircioglu, Arasli and Ekiz (2007:44) adds that due to the political isolation associated with North Cyprus, everything is worse off, thus enhancing insufficient export and tourism revenues generated by the economy and further enthroning higher education as the number one sector earning foreign exchange for the country.

So far, our study has not yet acknowledge whether or not Turkish Cypriot prefer to patronize foreign tourist destinations compared to their own local tourism environment and in to what extent is such a number in her population.

2.5 INVESTMENT AND REGIONAL IMPACT OF TOURISM

The abuse of tourist sites and recreational facilities in Nigeria, by Nigerians, is enough to discourage the entry of foreign investment. Tourism investment is capital intensive and is said to generate a low return on investment in Nigeria since only 20% of her population would rather patronize it (Igbojekwe, Okoli, Ugo-Okoro, 2013:61:63). However, the assertion by the Igbojekwe, Okoli and Ugo-Okoro (2013) on the later part the position might not entirely be true as applicable to the whole country since Nigeria is characterized to have a very vast size, and its attendant complexities.

Euromonitor International (2012) holds that Nigeria in recent years is experiencing an expansion in her travel and tourism industry with its hospitality industry attracting huge and potential Direct Foreign Investment. The country is having an influx of international holiday chains such as Sheraton, Hilton, Best Western and Marriot. Again, the invasion of these hotels is as a result of a search for a high - growth market owing to the country’s booming economy.

The DG, Nigeria Tourism Development Corporation (NTDC) further confirms that the hotel industry of Nigeria in the past few years has recorded an unprecedented increase, partly as result of firm supervision and regulation benchmarks for the hotels to conform with. Lagos state alone, recorded an addition of more than 30 hotels of international standards (Ezenagu, 2013:301).

Akpan and Obang (2012:126) points out that certain state government in Nigeria are making cogent efforts towards developing the tourism industry of their states in order to enhance foreign investment on the long run. Tourism establishment created by some of the state governments includes the Nike Lake resort in Enugu, Tinapa Resorts of Cross River, Ibom Meridan and Golf in Akwa Ibom and Obudu Range Resort also in Cross River state.

The problem of inadequate infrastructure could be described as “most” pronounced in Nigeria. The absence of infrastructure is further compounded by the inability in maintaining of the few existing ones including a non-replication of such amenities outside of the capitals and major cities and the lack of infrastructures is most pronounced in rural areas where in actual fact, most of the tourist sites are located there. Be that as it may, efforts to develop tourism infrastructure in Nigeria are rather insignificant as they only happen in urban areas (Ayeni and Eboho, 2012:129-130).

In the area of regional impact, it is also not encouraging that Nigeria, according to the WTO ranking, does not feature at all in the top 10 tourism destinations of choice in Africa where Morocco and South Africa lead and Zimbabwe and Kenya following in that progression. Yet, Nigeria’s economy as at 1998 is five times bigger than that of Kenya, six times bigger than that of Jamaica, and ten times bigger than that of Barbados and Fuji countries with respective tourism ratios of about 4.5%, 20%, 30.8% and 15% on the average, while Nigeria rocks the lowest possible level among them having 0.2% despite its huge and massive potentials (Bankole, 2002:83-84).

Despite her tourism potentials, Nigeria is not listed among the major tourism destinations in Africa due to several inadequacies in standard development efforts, improper implementation of tourism policies and lack of skilled personnel in the sectors among other ills (Ayeni, 2013:15).

The country has a high outbound tourism flow and this has led the South African government to target Nigeria’s super rich as a potential market for her tourism produce. The number of Nigerians that visit South Africa as tourists, travelers, for holiday and visitation increased by 37.5% between 2010 and 2011 with an estimated number of 64,402 people as against 46,853 of 2010; having an average length of stay of 16.1 days which even exceeds the global trends of 10 days (Ezeuduji, 2013:2).

However, it is shocking that South Africans do not reciprocate such gestures from Nigeria, which adds to Nigeria on the negative economic-wise as leakages are created from Nigeria’s economy and her foreign exchange undervalue if one should compare on that lane only. It is gathered from Eja, Ukwayi and Ojong (2012:429) that only 365 persons from South Africa visited Nigeria in 2011. Again, in 2010, only 995 people visited Nigeria from South Africa. In fact, the number of visitors from South Africa to Nigeria from 2007 to 2011 is numbered 4561 Eja, Ukwayi and Ojong (2012:429).

The above statistical revealing is a pointer to the fact that while the many Nigerians are rushing to South Africa, the little size patronage from South Africa is rather on the decline and this is high unhealthy for Nigeria’s status and her economy.

With regards to North Cyprus in the area of investment, the ‘country’ is faced with insufficient and limited capital accumulation and so finds it demanding to transform domestic capital in investment. She rather prefers to attract foreign capital. But, the foreign investment climate in North Cyprus is extremely challenging. Its tourism sector could only boast of foreign investments that are quite rare, and where obtainable are rather channeled in favor of bigger and more established operations (Safkali, 2005:1).

Foreign direct investment could not attract foreign tourist due to the political risk of the country (Katircioglu, Arasli, Ekiz 2007:43), thus proffering a low a possible low returns on investment as attributed to the instability, even economic. Yet still, there is a positive government attitude particularly to foreign investors of export oriented industries and to provide readily grant approval of foreign investment of such kind considering its small domestic market (Safkali 2005:11).

It had never being part of the government’s policy to nationalize a foreign investment firm and has never being planned for the future. But, the fear of an optimist is that anything can happen in the near future. It is common knowledge that Turkey is basic origin of foreign direct investment for the TRNC. However, there are only two establishments originated by the British (Safkali, 2005:11:13). Investments are mainly done by the citizens, but the magnitudes of their investments are insufficient in marketing and promoting tourism activities in foreign markets in order to attract foreign tourist (Katircioglu, Arasli, Ekiz 2007:43).

On the area of regional impact, consumers of the small island state tourism export usually comes from countries such Turkey, Britain and Germany (Yasarata et al 2010:347). The ‘country’ shares same Island with the Republic of Cyprus of whose origin is traced to the Greek. The island is the third largest island in the extreme of the Mediterranean sea, having neighboring countries such as Syria, Lebanon, Egypt, Israel, and Greece and has its boarder official opened to the South part of Cyprus in the spring of 2003 to allow travel between both sides (Alipour, Vaziri, Ligay 2011:36).

Since the mid 1990s, casino tourism has attained significant growth especially as a result of the closure of casino business in Turkey (Gozel, 2011:22); (Katircioglu, Arasli, Ekiz 2007:44). Many of Turkey’s businesses men as a result came to the TRNC and acquired five star establishments in favor of the gambling business (Safkali, 2005:13). Occupancy rate at weekends and official holidays increased as citizens of North Cyprus invested into such ventures as well. The Greek Cypriots are not left out in the impact as they also expressed important demand of the casinos in North Cyprus after the boarders were opened in April 2003 (Gozel, 2011:22).

2.6 TOURISM CONTRIBUTION TO TAXATION

It is typical to find in most tourism literature that tourism also contributes to a nation’s wealth through tax levies on foreign purchases, hotels, travel agents, tour operators, and other commercial activities from tourism via the National Tourism Corporation and States Tourism Boards (Bankole, 2002:77). There are direct and indirect contributions to a nation’s economy via tourism arising from tax. Direct contributions could come through taxes levied upon incomes from tourism employment and tourism businesses, and also direct levies on tourists such as departure taxes and duties levied on goods and services supplied to tourists (Henkens et al, 2005:25). WTO estimates that revenue generated from travel and tourism worldwide as a result of direct, indirect, and personal tax alone in 1998 was over $800 billion (Obeta and Onah, 2013:32).

2.7 TOURISM’s IMPACT ON OTHER INDUSTRIES.

Tourism generates finance for infrastructure development and generally increases citizen’s welfare. It has also influenced they Nigerian aviation industry with the coming in of capital flights associated with oversea trip and an expansion of the same industry which had Nigerian Airways for a monopoly between the periods of 1985 to 1992 (Bankole, 2002:80). The increase is to the effect that as from 1992 there had been an influx of over 25 different carriers in the country. Tourist upon visitation, patronize local folk art such as straw baskets, hats, wooden carvings, ornaments, trinket and help improve the living standards of host areas (Bankole, 2002:77).

Tourism comes with a multiplier effect that rubs on other sectors of Nigeria’s economy, namely: financial institutions, hospitals, transport, agriculture, environment and aviation (Ezenagu, 2013:301).

Speaking about the TRNC, tourism is the main foreign exchange earner and the main source of job creation in the country. And so, income and prices are generally linked to the variables of demand for tourism (Gozel, 2011:19). But such a claim seems to contradict the assertion by Katircioglu, Arasli and Ekiz (2007:44) having stated that higher education is the main foreign exchange earner for the island country.

It is not yet clear why the contrast of facts seemed to have occurred, except that the interpretation could translate to mean that Gozel (2011) relied on very old records to proof a case or that Katircioglu, Arasli and Ekiz (2007), having consider the year their publication, one could ascribe facts put forward by them to archaic.

2.8 ECONOMIC IMPORTANCE OF DOMESTIC AND INTERNATIONAL TOURISM.

Many Nigerians still live in poverty despite its massive revenue from oil (Ayeni, 2013:16). Obeta and Onah (2013:30) holds that the poverty rate in Nigeria is at 80%. Yet still,

(Okorafor, 2005) in Igbojekwe, Okoli and Ugo-Okoro (2013:61) asserts that the poverty rate in Nigeria is over 60%. Now there is no clear cut of the rate of poverty in the country considering these facts and figures, except that the facts and figures implies to mean that the poverty rate in Nigeria increased by 20% in two years, which of course and inferably speaking, this might not be the case.

However, domestic tourism cannot boom in a nation were majority of its citizens are poor. Nigeria is also faced with issues of poor attitude / turn out to leisure (Igbojekwe, Okoli, Ugo-Okoro, 2013:62). Omorogbe - Osagie (1995) in Igbojekwe, Okoli, Ugo-Okoro (2013:60) maintains that “ Nigerians have not come to realize as yet the significance of taking a break from their normal jobs or business via recreation and leisure pathways. ” Many of Nigeria’s foremost recreational sports are underutilized and are seen afar off by Nigerians and this situation is enough to discourage the influx of foreign investment they stressed. Igbojekwe, Okoli, Ugo-Okoro (2013:61) posits that tourist sites in Nigeria are abused; recreational facilities particularly parks and playground are transformed into dumping sites and toilets especially by residents of urban cities. Tourists are rather perceived as intruders, reckless spenders who have come to share infrastructures with them.

They further bring to bear that Nigerians even see the engaging of recreation as wastage of time and resource whereas leisure, a component essence of tourism is a good way of life and these are blamed on the height of economic development of the country, lack of awareness on the benefits of recreation, conflict in values with regards to work ethics and leisure; some Nigerians over work themselves and claim not to have time for leisure. Leisure in Nigeria seems to be patronized mostly by 20% of her population who are regarded as the upper class. This could translate to mean that leisure is personality or class related. Even, some occupation and government policies do not create or encourage leisure / tourism activities in the country (Igbojekwe, Okoli and Ugo-Okoro 2013:63). From the assertion of Igbojekwe, Okoli and Ugo-Okoro (2013) that attaches low commitment of Nigerians to the sector, one could presuppose that the demand for it is low. But this standing seems to contradict the opinion of Adejoh (2013:16) who rather affirms that tourism demand is on the rise in the Muslim dominated northern part of the country and also further claims by other authors is a pointer to the fact that tourism demand down the south part of the country in places like Lagos and Calabar is on the increase (Ezenagu, 2013:302) (Eja, Ukwayi and Ojong, 2012:426) including Awka (Ezenagu, 2013:301).

It is lamentable that there is the lack of adequate empirical database / model that defines Nigeria’s visibility and success factors with regards to the tourism industry. However, base on available data, Eja, Ukwayi and Ojong (2012:429) provides in tabular form passive success, factors and arrivals influencing Nigeria as a tourist destination. Also is another table that showcases a glimpse of International tourist’s arrivals in Nigeria.

Table 1: Passive success, and factors and arrivals influencing Nigeria as a tourist destination

Abbildung in dieser Leseprobe nicht enthalten

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Details

Title
The Socio-Economic Contribution of Tourism to Nigeria and North Cyprus
Subtitle
A Comparative Approach
Course
Masters of Business Administration
Grade
Satisfactory
Author
Year
2014
Pages
88
Catalog Number
V276394
ISBN (eBook)
9783656698357
ISBN (Book)
9783656699989
File size
1115 KB
Language
English
Tags
Tourism, Tourism Economics, Sustainable Tourism, Tourism Marketing
Quote paper
Masters of Business Administration Henry Chike Okonkwo (Author), 2014, The Socio-Economic Contribution of Tourism to Nigeria and North Cyprus, Munich, GRIN Verlag, https://www.grin.com/document/276394

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