Tourism: Why Invest In It?

When you hear the word “tourism”, what’s the first thing that runs through your mind? Travels and tours I guess? But in the real sense tourism goes beyond that, so let me try and shift your perspective a little. What if you see tourism as a tool of change, a means of education, a weapon for transformation and poverty eradication? I guess this will be food for thought; we all have to do the dishing. 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 is also described as travel for recreation or instruction, often in organized groups or as an individual. Tourism is important and vital in myriad ways for many countries. Tourism businesses depend extensively on each other as well as on other businesses, government and residents of the local community. The tourism sector is one of the priority sectors of investment and a path way to economic growth. The Nigerian economy has different sectors, but tourism is still untapped. Nigeria is a country that is also blessed with many tourist destinations and a suitable climatic condition for tourists, with a wide coastal line that stretches from Badagry in Lagos up to the borders of Cameroon in Cross River State. If I were to paint this country on a canvas, it would be exquisite scenery, radiating the colours of Mother Nature. There are various sectors that are highly beneficial to the country, but tourism as well can be same, if not more. You hear names like the Eiffel Tower, Paris (France), The Coliseum, Rome (Italy), The Opera House, Sydney (Australia), The Empire State Building, New York (United States of America), Big Ben, London (England) and the Burj Al Arab in Dubai (United Arab Emirates). What are all these cities known for? In one word; tourism. Below are facts and figures from the World Tourism Organization. The World Tourism Organization reports the following countries as the top ten tourism earners for the year 2011: 1. United States (North America) $116.3 billion 2. Spain (Europe) $59.9 billion 3. France (Europe) $53.8 billion 4. China (Asia) $48.5 billion 5. Italy (Europe) $43.0 billion 6. Germany (Europe) $38.8 billion 7. United Kingdom (Europe) $35.9 billion 8. Australia (Oceania) $31.4 billion 9. Macao (China, Asia) $27.8 billion 10. Hong Kong (China, Asia) $27.2 billion   So beyond reasonable doubt, tourism is a very lucrative form of business.   Why Invest in Tourism? Tourism is very essential to the life of a nation because of its direct effects on the social, cultural, educational and economic sectors.Tourism sector is linked directly to economic growth. The rationale behind any nation’s economy is growth; it’s a concern, because it’s the major form of stability. Tourism is one of the only industries in the world where the goods and services are consumed at the area of production. Tourism brings in large amounts of income in payment for goods and services available. It also creates opportunities for employment in the service sector of the economy associated with tourism. These service industries include transportation services, such as airlines, ferries, ships, speed boats and taxicabs; hospitality services, such as accommodation, including hotels and resorts; and entertainment venues, such as amusement parks, art galleries, shopping malls, music venues and movie theatres. With such direct effects it has on the economy, wealth is spread across the general population, leading to a general economic gain. Tourism provides foreign exchange without exporting anything out of the country and it provides more stable earnings for the country than any other industry. It increases export earnings and growth rate of the economy. Apart from revenue increase, tourism also has an impact on employment generation. It accelerates the development of an area, the amount of visitor’s expenditure that remains in an area and provides a source of income to residents and businesses. Tourism is affiliated to tax earnings. Depending upon tax and fiscal policies, government derives substantial income from tourism industries, and direct and indirect taxes are levied on different forms of income and economic activities. Nigeria is well known for its biodiversity, and has a lot of rivers and lakes. Rivers of northeastern Nigeria, including the Komadugu Gana and its tributaries, flow into Lake Chad. The lake rests in the centre of a major drainage basin at the point where Nigeria, Niger, Chad, and Cameroon meet. Nigeria’s diverse habitat of mangrove swamps, tropical forests, savanna, and mountain plateaus supports a diversity of plants and animals. Examples of such are elephants, buffalo, lions, leopards, and other large game generally found inside major reserves. Smaller animals such as antelope, monkeys, jackals, and hyenas are more widespread. Hippopotamuses and crocodiles, however, are still common in the largest rivers, as are birds, including species that migrate seasonally between Africa and Europe. Nigeria is a gift of nature to man. Why not invest more in tourism?  

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This article was first published on 24th December 2012 and updated on December 27th, 2012 at 11:11 am

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