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    Monday, March 19, 2018

    Diversification: Tourism As A Tool For Economic Growth In Nigeria


    Blessed with enormous natural resources, tourists' attractions, national reserves and monuments, Nigeria still lies short of tourists among ranked nations worldwide. Taiwo Akintunde writes.
    Arguably, Tourism is one of Nigeria's undermined sectors which can generate a Large amount of revenue for governance, which can be channeled to developing other sectors.
    The riches and diversity of Nigeria's culture has always been considered a strong reason why tourism is bankable and should be a primary foreign exchange earner for the country.
    The Nigerian Tourism Development Corporation, which started out as Nigerian Tourist Association in 1962, before it was changed to NTDC in 1992 as a Federal Government corporation under the Ministry of Culture, Tourism, and National Orientation, is responsible for the planning, supervision, development and marketing of tourism in Nigeria.

    According to NTDC, “Tourism is a central pillar of economic growth and diversification in any country and the major functions of NTDC among other things include: to encourage people living in Nigeria to take their holiday, therein and people from abroad to visit Nigeria and also to encourage the provision and improvement of tourism amenities and facilities in Nigeria.”
    The National Travel Bureau (NTB), established by decree 81 of 1992, is a tour operating company responsible for tour services and operations within and outside Nigeria.
    The Bureau acts as the commercial arm of NTDC, conducting guided tours/excursions, bus rental services, travel consultancy and tour guide services.
    Reports said, as at 2016, direct contribution of travel and tourism to Gross Domestic Product (GDP) was N1.86 trillion (1.7 per cent of GDP), but forecast to rise by 1.1 per cent to N1.88 trillion in 2017.
    But the figures presented in the World Travel and Tourism Council (WTTC) 2017 report are proof that not so much contribution from the sector has reflected on the economy.
    Reports also said that no significant direct contribution from Travel and tourism to the country's GDP has been recorded in 10 months, leaving the sector's contribution to the whole economy's GDP at 1.7 per cent, same as it was in 2016.

    A review of tourism's impact on the country's GDP in the last 10 years (2007 – 2017) showed that its impact was at all-time high in 2008, having contributed 2.4 per cent to the GDP. Since 2008, its impact has been fluctuating between 1.8 per cent and 1.5 per cent.
    The sector, expected to be one of the growing and high earning sectors in the country, was accorded priority status in 1990, when the National Tourism Policy was launched.
    The main thrust of Government policy on tourism was to; “generate foreign exchange earnings, create employment opportunities, promote rural enterprises and national integration, among other things.”

    Lessons for Nigeria on the African scene;
    Tanzania boost tourism Industry with 4.8 Trillion TZS
    The Tanzanian tourism sector has received a boost of 4.8trillion Tanzanian Shillings (TZS) extra budgetary allocations for tourist sector promotion initiatives and consolidation of diplomatic relations in the country.

    According to the latest Bank of Tanzania (BoT)'s Monthly Economic Review, factors that have contributed to the increased flow of tourists to Tanzania, leading to the rise of foreign exchange earnings to US Dollars 2,156.9million (approximately 4.8tri/-) in the year ending November, 2017. In the corresponding year, November 2016, foreign exchange earnings were USD 2101.2m (approximately 4.7trillion).
    The report also read that foreign exchange earnings from travel, mainly comprising receipts from tourism, have increased by more than approximately 128.8bn TZS.
    "Foreign exchange earnings from travel, which mainly comprises receipts from tourism, rose to USD 2,156.9 million in the year ending November 2017, from USD 2,101.2 million in the year to November 2016, owing to increase in the number of tourist arrivals.
    The Tanzania Tourism Board (TTB) Managing Director, Ms Devota Mdachi, said an extra budgetary allocation from the government, whose figure she didn't disclose, enabled the board to mount a vigorous media advertising drive for the country's tourism attractions, whose outcome was a bigger flow of visitors to the country.

    Hope for Nigeria: The African Hotel Report 2017, has disclosed that Nigerian hotels are the most valuable hotels on the African mainland.
    According to the report which was released at the Africa Hotel Investment Forum in Kigali, Rwanda, 2018, despite the economic problems experienced by the market in recent years that have seen values fall by 16.4 percent in two years, average values are the third highest in all of Africa, behind only the Seychelles and Mauritius.
    The report's Author, David Harper of Hotels Partners Africa, said that Nigeria is the most significant hotel market in West Africa, with almost 6,100 branded bedrooms across 41 hotels, with 21 brands (and 14 hotel companies) represented in 9 cities.

    Way Forward: Government at all levels should consider increasing budgetary allocations to grow patronage and fund activities that will enhance the tourism sector.
    Massive publicity on social and traditional media: The government can also develop the sector by partnering local media organisations to boost sector. Build International partnerships/collaborations: The government should also create investment modules that will attract financial and resource partnerships with international bodies/agencies to enhance patronage across the world. Laws should be legislated to mandate steady growth and development in the sector.

    NTDC Road Map: In seeking to achieve a sustainable national tourism agenda, the NTDC has designed a roadmap that lays the foundation that will open up Nigeria as a major tourism destination in Africa through the development of international tourism and promoting of domestic tourism. The roadmap is a 5 point action plan which includes; Corporate Governance and Regulations, Human Capital Development, Infrastructural Development, Events & Marketing, Finance and Investment.

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