1.1 Introduction
Seasonal tourism refers to predictable variations in tourist flow that occur at specific periods of the year due to climatic conditions, public holidays, festivals, school calendars, and socio cultural factors (Butler, 2001). Tourism according to WTO (2019) is defined as the temporary movement of people from their usual place of residence to destinations outside their normal environment for leisure, business, or other purposes, and the activities undertaken during their stay (World Tourism Organization, 2019). It is one of the fastest growing sectors globally and plays a significant role in economic development through income generation, employment creation, and foreign exchange earnings. In Nigeria, tourism is increasingly recognized as a viable means of diversifying the economy beyond oil dependency, with hospitality establishments such as hotels serving as a central component of the tourism value chain.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are significance of the study, scope of work, research hypothesis and questions, limitation of the study and definition of terms.
1.2 Background of Study
Tourism has emerged as a vital sector for economic growth and development in many countries, particularly those seeking to diversify their sources of income. According to the World Tourism Organization, tourism contributes significantly to national economies through employment generation, infrastructure development, and revenue creation for both public and private sectors (World Tourism Organization, 2019).
In developing economies such as Nigeria, tourism is increasingly viewed as a strategic sector capable of stimulating regional development and supporting the growth of the hospitality industry, especially hotels that serve as the primary accommodation providers for tourists. Seasonality remains one of the most distinctive characteristics of tourism demand. Butler (2001) stated that seasonal tourism is characterized by temporal variations in visitor numbers that recur annually due to factors such as climate, holidays, festivals, and social patterns. These variations often result in uneven distribution of tourism activities throughout the year, thereby affecting the performance of tourism related businesses. Hotels, whose revenue largely depends on room occupancy and guest spending, are particularly vulnerable to the effects of seasonality.
According to Baum and Lundtorp (2001), seasonal fluctuations in tourism demand significantly influence hotel revenue by creating periods of high income during peak seasons and low income during off peak seasons. They reported that hotels in highly seasonal destinations often struggle to maintain stable revenue streams due to reduced patronage outside peak periods. This situation leads to challenges such as underutilization of facilities, difficulty in retaining skilled staff, and increased pressure on operational sustainability.
In the Nigerian context, tourism development has continued to gain attention due to its potential contribution to economic diversification. Esu (2015) asserted that Nigeria possesses diverse tourism attractions ranging from natural landscapes to cultural festivals, yet the tourism industry remains largely seasonal in nature. He affirmed that many tourism destinations in Nigeria experience sharp contrasts between peak and off peak periods, which directly affect hotel occupancy rates and revenue generation.
Cross River State is widely recognized as one of Nigeria's leading tourism destinations. According to the Cross River State Tourism Bureau (2020), the state has invested heavily in tourism development, with Obudu Mountain Resort serving as a flagship attraction. The resort is known for its temperate climate, scenic mountain views, and recreational facilities that attract tourists from within and outside Nigeria. However, tourism activities at Obudu Mountain Resort are highly seasonal, largely dependent on favorable weather conditions, festive seasons, and accessibility to the resort location.
Several scholars contend that the seasonality of tourism at Obudu Mountain Resort has a direct impact on the revenue performance of hotels operating within the area. Ayeni and Ebohon (2012) reported that hotels in destination based resorts often face significant revenue instability due to fluctuating tourist arrivals across seasons. They stated that during off peak periods, hotels experience low occupancy rates and declining revenue, while fixed operational costs remain relatively high. Most existing studies have examined tourism development from a general perspective without providing detailed insights into revenue dynamics at the hotel level. This study is set against the backdrop of providing empirical evidence that supports informed decision making and sustainable tourism development.
1.3 Statement of Problems
Investigation revealed that seasonal tourism remains a defining feature of the hospitality industry in Nigeria, particularly in destination based resorts such as Obudu Mountain Resort in Cross River State. Tourism demand in such locations is strongly influenced by seasonal variations related to weather conditions, festive periods, school holidays, and socio economic factors.
Furthermore, many hotel operators rely heavily on peak season income without adequate planning for off season periods, resulting in inconsistent cash flow and financial vulnerability. In addition, limited empirical studies focusing specifically on the relationship between seasonal tourism patterns and hotel revenue in Nigeria have created a gap in practical knowledge needed for informed decision making. It is against this backdrop that this study seeks to examine the impact of seasonal tourism on hotel revenue in Nigeria.
1.4 Aim and Objectives of Study
The aim of this study is to examine the impact of seasonal tourism on hotel revenue in Nigeria, using Obudu Mountain Resort in Cross River State as a case study. To achieve this aim, the study has the following objectives:
- To examine the seasonal patterns of tourism at Obudu Mountain Resort.
- To assess the effect of seasonal tourism on hotel revenue generation.
- To identify the challenges hotels face during off peak tourism seasons.
- To evaluate existing strategies used by hotels to manage seasonal revenue fluctuations.
- To propose measures for improving hotel revenue stability despite seasonal tourism variations.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What are the major seasonal tourism patterns at Obudu Mountain Resort?
- How does seasonal tourism affect hotel revenue generation at the resort?
- What challenges do hotels experience during off peak tourism periods?
- What strategies are currently used by hotels to manage seasonal revenue fluctuations?
- What measures can improve hotel revenue performance in the face of seasonal tourism?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
- H0: There is no significant relationship between seasonal tourism and hotel revenue at Obudu Mountain Resort.
- H1: There is a significant relationship between seasonal tourism and hotel revenue at Obudu Mountain Resort.
1.7 Significance of Study
The outcome of this research will assist hotel managers in developing effective strategies for managing seasonal fluctuations in revenue and improving operational efficiency. Also, the study will support policy makers and tourism planners in designing policies that promote year round tourism activities and revenue stability.
Furthermore, the research will benefit investors by providing insights into the financial risks and opportunities associated with seasonal tourism in resort destinations. In addition, the study will contribute to sustainable tourism development by encouraging informed decision making that supports long term hotel viability.
Lastly, the study will serve as a valuable reference for researchers and students in tourism and hospitality management by contributing to existing academic literature.
1.8 Scope of Study
This study focuses on the impact of seasonal tourism on hotel revenue in Nigeria, with specific reference to Obudu Mountain Resort in Cross River State. The study covers selected hotels operating within and around the resort area and examines their revenue patterns across peak and off peak tourism seasons.
1.9 Limitations of the Study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Initial Cooperation Delay from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.10 Definition of Terms
Seasonal Tourism: refers to predictable fluctuations in tourist activities that occur at specific periods of the year due to climatic conditions, holidays, festivals, and social patterns. According to Butler (2001), seasonality is a recurring phenomenon that significantly influences tourism demand and business performance.
Hotel Revenue: refers to income generated by hotels from accommodation, food and beverage services, and other hospitality related activities. Baum and Lundtorp (2001) stated that hotel revenue is highly sensitive to changes in tourist flow, especially in seasonal destinations.
Hospitality Industry: refers to businesses that provide accommodation, food, beverages, and related services to travelers and tourists. According to Esu (2015), the hospitality industry plays a central role in supporting tourism development and economic growth.
Peak Season: refers to periods when tourist arrivals are at their highest due to favorable weather, holidays, or special events. World Tourism Organization (2019) affirmed that peak seasons are associated with high hotel occupancy and increased revenue.
Off Peak Season: refers to periods of reduced tourist activity characterized by low demand for accommodation and hospitality services. Butler (2001) stated that off peak seasons often result in revenue decline and operational challenges for hotels.
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