The Potential of Hospitality and Tourism Business in Nigeria

Nigeria is an economy well known for its rich cultural diversities heralded by colourful festivals as well as beautiful tourist sites that attract individuals from all parts of the world.

The Erin Ijesha waterfall in Osun State Nigeria, the Olumo rock in Abeokuta Ogun state, and several others are beautiful sites to visit which hold some of the history of the western part of Nigeria.

Festivals like the Argungun Fish and Dance Festival in Kebbi state, Northwest Nigeria, is a spectacular event to witness. Several other festivals in Nigeria are exceptionally unique.

But before delving deeper, let’s have a clear understanding of what tourism and hospitality business means. Are both interconnected? What are their potentials in the Nigerian economy? Let’s figure these out.

Table of Contents

What is Tourism Business?

In simple terms, the tourism business deals with services that showcase qualitative events and edifices that are mostly historic and culturally based. It provides an attraction site to draw tourists and boost the economy of such a country. Also, it encapsulates the rendering of travel and hospitality services to tourists.

Read also: How to Start a Photography Studio Business in Nigeria

What is Hospitality Business?

Hospitality business refers to the service that focuses on making facilities available for visiting individuals. Facilities like conducive accommodation (hotel, motel, etc), relaxation inns (spa, bar, lounge, etc), transportation, centres for conventions, restaurants, etc.

Affiliation of Hospitality and Tourism Business

There is a link between the business of hospitality and tourism. While the former cannot be separated from the latter, the latter has a broader perspective which comprises different services. Examples include rendering the services of attraction sites and events, accommodation, transportation, relation spots, convention spots, etc.

For instance, a tourist who travelled to Nigeria to research and document the yearly Igue festival in Edo state, southern Nigeria. It is necessary to ensure the tourist can secure a stress-free journey into the country, has a good place to live when he/she arrives, mobility to move around, a conducive environment to relax and a guide to show him/her around.

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A Sneak Peek into Hospitality and Tourism Business in Nigeria

In most economy(s), tourism and hospitality business is their major or one of the main sources of income. In Nigeria, this sector of the economy has recently added over 30 billion dollars to the Gross Domestic Product (GDP).

The rich culture, epic sites and increase in technological advancement have helped boost the delivery of tourism business in the country. Easy access to booking and/or reservation from anywhere around the world and an online guide that gives vivid information to tourists to make informed decisions have contributed to the rise in the business and ultimately the Country’s GDP.

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Hospitality and Tourism in Nigeria: Challenges Faced as an Industry

The tourism sector in Nigeria is sometimes faced with cumbersome challenges that affect their output. These are:

Insecurity

This is one of the major issues confronting the progress of the economy. The fear of abduction, maiming, killing, stealing, etc, keeps the foreign tourists away from Nigeria.

Erratic power supply

The unstable electrical supply is another setback. Owners of hotels and recreational centres rely heavily on the use of generating sets, which is quite expensive to maintain and also the high cost of diesel or gasoline (petrol) contributes to the low turnover of the companies and hence their service quality.

Keeping up with technological advancement

In a constantly evolving world of technological changes, it becomes difficult, especially in third-world countries, to level up with the more advanced nations. For instance, a tourist in the USA, would readily research and make reservations from the very comfort of his home via a steady internet network.

Transactions could be hampered due to the poor network in Nigeria and potential customers lose interest when they experience delays in response to their request.

Incessant increase in the cost of living

This has a high effect on the hospitality business because ultimately, employers have to ensure their employees are sustained. Also, raw materials used for the running of business daily will be on the high side.

All these affect the end service delivery like the quality of food, drink, furniture, individual attendants (for the quality of their training), etc.

Read also: Exploring Career Opportunities in Agriculture and Agribusiness in Nigeria

The Potential of Hospitality and Tourism Business in Nigeria

The immense benefits of tourism and hospitality as a business to the Nigerian economy cannot be overemphasized. Below are some of the potentials/benefits:

Creation of jobs

A viable tourism business could provide thousands of job opportunities. For example, a tourist from the point of entry into the country needs transportation to his/her hotel, a baggage portal at the entrance of the hotel, the receptionist who checks the tourist in, the tourist guide, the cook, etc. The list is endless.

To ensure the success of the business, many hands are needed, which implies more employment opportunities.

Contributes to the national development

The revenue generated from the tourism-hospitality business provides the resources needed to develop the infrastructure of a country or community. Like building pliable and smooth roads, recreation centres, hospitals, schools, clean water, electricity, etc.

Increase in the economy’s revenue

Nigeria has experienced a high surge in revenue generation from the tourism sector in the past two years. It accounted for over 20 billion dollars in 2023 alone. It is a lucrative business that generates income daily.

Exposure to cultural heritage

In this regard, the world gets to know about the rich cultural diversity and interesting epic sites in Nigeria. This creates a sense of pride in the community and allows these notable events and sites to attract people from around the world.

It boosts the local market

The influx of visitors from around the world helps increase the purchase of local items.

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Conclusion

Nigeria has its mark on the sands of history as one of the few countries with high tourist attractions. Although there are challenges like insecurity, unstable power supply, high cost of living, etc, in the country. Nevertheless, the potential of this sector has experienced a significant rise in recent years and the economy has benefited greatly from it.