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Hospitality and Tourism industry is a leading industry in the service sector at the global level as well as major provider of jobs and a significant generator of foreign exchange at the national level. Tourism has become one of the largest and fastest growing industries in the global economy. This research work will look into the important of hospitality and tourism industry in the development of the nation.













TITLE PAGE ……………………………………………I

APPROVAL PAGE…………………………………….II






1.0 Introduction     =     =     =     =     =     =     =     =1

1.1 Background of the study   =     =     =     =     =     =1

1.2 Statement of the study     =     =     =     =     =     =5

1.3 Objective of the study      =     =     =     =     =     =7

1.4 Significance of the study   =     =     =     =     =     =7

1.5 Limitation of the study     =     =     =     =     =     =7

1.6 Definition of terms    =     =     =     =     =     =     =8

Chapter 2 =     =     =     =     =     =     =     =     =     =10

2.0 Literature Review     =     =     =     =     =     =     =10

2.1 Importance of catering and hotels to the economy of Nigeria   =     =       =     =     =     =     =     =     =     =10

2.2 The composition of the hospitality industry      =     =16

2.3 Advantages of hospitality and Tourism industry in Nigeria economy =       =     =     =     =     =     =     =18

2.4 Disadvantages of hospitality and Tourism industry in Nigeria economy       =     =     =     =     =     =     =     =21

2.5 The summary of Literature Review   =     =     =     =22

Chapter 3       =     =     =     =     =     =     =     =     =24

3.0 Research design and methodology   =     =     =     =24

3.1 Source of data  =     =     =     =     =     =     =     =24

3.2 Primary data     =     =     =     =     =     =     =     =24

3.3 Secondary data =     =     =     =     =     =     =     =25

Chapter 4       =     =     =     =     =     =     =     =     =26

4.0 Findings, Conclusion, Recommendation   =     =     =26

4.1 Finding     =     =     =     =     =     =     =     =     =26

4.2 Conclusion       =     =     =     =     =     =     =     =27

4.3 Recommendation     =     =     =     =     =     =     =28










The hospitality industry provides services for people who are away from home regardless of whether. It is for long or short periods of time. These services can vary according to the specific needs of both the person away from home and the organization operating those services (Baker et al, 2000). The hospitality industry is important to the development of many parts of the world.

The hospitality Industry is a broad category of fields within the service Industry that include lodging, restaurants, event planning, theme parks, transportation, cruise line and additional fields within the tourism industry. The hospitality industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income.

A hospitality unit such as a restaurant, hotel or even an amusement park consists of multiple groups such as facility maintenance, direct operations (servers, housekeepers, porters, kitchen workers, bartenders etc). Management, marketing and human resources.

In some regions, income from it is one of the main sources of foreign exchange e.g. the Caribbean and Hong Kong (Bakar et al, 2000). The industry is very important because it contributes to the growth of an economy by providing a lot of employment opportunities for the people, funding a large percentage of a country’s Gross Domestic Product, thereby helping to raise the national income and by earning foreign currencies through the goods improving the balance of payments (Baker, et al, 2005). There is no doubt that hospitality industry is the livewire of tourism at all level.

The United Nation World Tourism Organization (UNWTO) confirms that between 70% and 75% of International Tourists expenditure goes to hospitality services on annual basis (Akpabio, 2007). This confirms the strategic importance of the sector in tourism. It is estimated that there are over a million hotels in the United States of America. But in Nigeria, there are only about 12 internationally branded hotels. Nigeria has so few International branded hotels due to the former perception of the country as a high risk of destination for investments, especially in hotel businesses which are capital intensive and require long term for the investor to recoup his money.

Investors, in hotels hardly look towards Nigeria due to exorbitant cost of Landed property and high lending rates in Nigerian banks. It is a lot easier and cheaper to acquire land and build a hotel in U.S.A, than about 6 percent with mortgage of about 25 years in which investor has to pay back the money. But in Nigeria, the lending rate could go as high as 25 percent, depending on who is borrowing and for what purpose.

Additionally, Nigeria banks will only give the investor about three years to pay back.






Tourism is travel for recreational, leisure or business purposes. The world tourism organization defines Tourists as people traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes.

Tourism has become a popular global leisure activity. In 2011 there were over 983 million international tourist arrivals worldwide, representing a growth of 4.6% when compared to 940 million in 2010.

International tourism receipts (the travel item of balance of payments) grew to U.S 1.03 trillion ($740 billion) in 2011, responding to an increase in real terms of 3.8% from 2010. in 2011, international travel demand continued to recover from the losses resulting from the late 200s recession, where tourism suffered a strong slowdown from the second half of 2008 through the end of 2009.

After a 5% increase in the first half of 2008, growth in international tourist arrival moved into negative territory in the second half of 2008 and ended up only 2% of the year, compared to 7% increase in 2007.

The negative tread intensified during 2009, exacerbated in some countries due to the outbreak of the HINI influenza virus, resulting in worldwide decline of 4.2% in 2009 to 880 million international tourists arrivals, and a 5.7% decline in international tourism receipts.


The Nigeria hospitality industry is faced with a lot of problems. Among them are:

  1. high hotel charges and slow pace of development tourist sites that dot the various parts of the country (Akpabio, 2007).
  2. Other are erratic power supply (Amadi 2008).
  • Poor services (Nwosu, 2008)
  1. The Unethical behaviours by professionals in the industry (Awoseyin, 2007).

Inspite of these shortcomings, the hospitality industry in Nigeria contributed in N689.1 million to the Nigerian economy in 1980, N92.4 Million in 1984 (using 1980) constant basic prices for both periods), N477.9 million in 1990, N 591.9 million in 2000 (CBN, 2003) N1950.0 million in 2004 and N2, 390.0 million in 2006 (using 1990 constant basic prices) CBN, 2006. An analysis of any industry must at some stage take into account the control in which that industry exists.

In more specific terms, it is important to examine the relationship of that industry to the government of the nation in which it functions. Government policies will determine many of the directions the industry will take and will also have an effect on the relationship of the industry to other industries in that nation (Gale and odgers, 1990) as well as the economy of the nation as a whole. It is in the light of the above that the Nigeria economy over the years will be considered.







The objectives of this study are listed as follows:

  1. To determine the extent of the importance of hospitality and tourism industry in the development of the nation.
  2. To determine the importance of hospitality and tourism in the development of nation.
  3. To ascertain how unethical aim the contribution of the hospitality and tourism industry has led development of the nation.


This study is out to make the importance of hospitality and tourism industry in the development of the nation.

Furthermore, it will also help student that would like to go in to this study as a reference material for further research.


The following constraints faced the researcher and limited his efforts in elaborating the research work.

  1. FINANCE: The researcher is a full time student and has been discouraged from traveling to or visiting hotels to collect data for her study due to lack of fund. She has therefore chosen very few hotels in Enugu because of proximity and ease of contact to the management.
  2. TIME: This project work has just few weeks time.
  • LIMIT: It would have been desired for a longer time to exhaust the topic and extend the coverage but it was not possible. A minimum of six months could have been appreciated


Hospitality: this is relationship between guest and host or the act of practice of being hospitable. Specifically this includes the reception and entertainment of guest, visitors or stranger.

Hospitality industry: hospitality industry is a broad category of fields within the service Industry that includes lodging restaurants event planning term park, transportation, cruise line and additional fields within the tourism industry.

Development: the process of developing or being developed. She traces the development of the novel the painting provide evidence of his artistic development.

Nation: A nation may be the community of people who share a common language, culture, ethnicity, descent, or history.

Tourism: tourism is a process by which people travel for recreational, leisure or business purposes.


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