INVESTIGATION INTO THE RATE OF HOSPITALITY GROWTH IN NIGERIA

0
53

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Hospitality growth in Nigeria 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). Wherewith the benefits of hospitality growth are a matter of controversy, it cannot be undermine that hospitality growth 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 hospitality growth 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 hospitality growth to come to a compromise with regards to a universal definition of hospitality growth. Again, the vague nature of the growth makes it a herculean task in evaluating the investigation into the rate of hospitality growth on the economy when compared to other sectors of the economy (Lickorish and Jenkins, 1999: 1-2). The hospitality sub-sector ensured the provision of services for individuals, family, group of people, organizations etc., that were away from their homes for a particular period. However, it must be noted that the patterns of rendering services either by restaurants or hospitalities often vary in the context of specific needs and desires of the guests regardless of the operators’ rendering activities and services. Hospitality was among the oldest of the human professions, which entailed ensuring a guest, client etc., to feel welcome and comfortable. It was further affirmed that it had been in practice before many professions. Well, such statement is debatable. Hospitality goes beyond hospitalities and restaurants, but could also mean other legalized institutions that specialize in either providing shelter or food, or better still, both services to people as long as it is away from their respective homes. Nigeria have benefited immensely as a result of mutual understanding between the hospitality growth and the financial sector (i.e. banks) to increase revenue to central purse of the governments via their collaborations for economic development. It was apparent that food and shelter remained significant to the livelihood of people and sustenance to the larger society to reduce poverty. For instance, Banks during seminars and conferences make use of hospitalities, restaurants, resorts etc., during break time, food and drinks were often served by food department of the hospitalities that is, either directly or indirectly there were more to an existing association between the sectors of interest ( hospitality), which is, funds availability. Despite the increasing trends of globalization, the investigation into the rate of hospitality growth in Nigeria particularly in Ebonyi state, has been worrisome even before global financial crunch in the first quarter of 2008 the recent continuous decline in the global crude oil prices; thereby affecting the liquidity performance of the economy, and becoming difficult to channel funds to the hospitality growth, The present recession period being experienced by Nigerian economy has affected all sectors leading to the reduction of the expected profitability trends of hospitality sectors and drastically reducing number of guests visiting the hospitalities and customers. To have considered some of the functions of hospitality which include; to accumulate surplus funds and make it available to deficit sectors of the economy, thereby making profits via strong lending and borrowing patterns. Therefore, the smaller the size of the financial institutions, the smaller is the returns and expenditure vice versa. Severally, were always directed to ensure a stable capital in order to absorb operational exposures or unexpected shocks, to achieve profit and consequently minimize risks and losses so as to achieve national economic growth. However, with the help of provision of finance/funds in Nigeria (financial intermediation roles) in ebonyi state, a simple hospitality business could become a conglomerate where it could specialize in the provision of food service operations in different areas such as recreation centers, sports stadiums, primary and secondary schools (e.g. free meal for primary school pupils by federal government), university campuses, either individual or group home services, convention centers etc., with liberality and good will.

1.2   Statement of Problems

Hospitality account for a large proportion of individual (quest in this country and are faced with numerous problem. These problems under the growth and development of hospitality in Nigeria. Thereby limiting their potential contributions to the growth of nigeria economy.  However, the hospitality industries have many roles the play in the economic growth of less development country like Nigeria  of course they remain important in the  economy’s the problems of hospitality growth are lack of fund  by the proprietors and the difficulty the encounter in raising funds. Due to limited capital at their disposal and high interest rate f banks, they find it less attractive going to the banks for loan the level of education of most hospitality proprietors implses difficulty in managerial in capacity many even go hospitality business without easy training in the area lack of technology and operation problems confronting hospitality growth makes it difficult for them to grow:

  1. The researcher should take the problems facing investigation into the rate of hospitality growth in Nigeria, in the area of maintaining good management.
  2. How can hospitality are encouraged to improve their activities in Nigeria
  3. To investigate in what ways Nigeria could overcome the obstacles of political and economic isolation, institutional governance and personalized political structures in relation to its investigation into the rate of ospitality growth.

A good management of Nigerian hospitalities can enormously result in the improved rate of hospitality growth in nigeria.

Objective of the study

The main objective is to examine the investigation into the rate of hospitality growth in Nigeria: issues and challenges. The specific objectives include;

  • To determine the contribution of banking sector to the growth of hospitality in Nigeria.
  • To identify the challenges facing the investigation into the rate of hospitality growth in Nigeria.
  • To examine the challenges facing the hospitality growth Nigeria.
  • To determine the contemporary issues in hospitality growth in Nigeria.

Research Question

The under listed questions required answers in the course of the study;

  • Can the banking sector contribute to the development of hospitality growth in Nigeria?
  • What are the challenges faced by hospitality growth in Nigeria?
  • What are the challenges faced by hospitality growth in Nigeria
  • What are the contemporary issues in the hospitality growth?
INVESTIGATION INTO THE RATE OF HOSPITALITY GROWTH IN NIGERIA