The Effect of Hospitality and Tourism Industry on Employment Rate

1.1 Introduction

Hotel industry is one of the largest industries in the tourism sector which has played a vital role in the hospitality industry especially in providing tourist with the needed comfort in any tourist destination (Laws, 1995). It is an agent of economic and social change, a service-based industry of creating employment and income (World Tourism Organization, 1997).

This industry is made up of production units which engaged in providing different service such as entertainment, lodging, production and distribution of goods and services to meet individual satisfaction (Isang, 2001). According to Ugal (2007) hotel industry is an engine of poverty alleviation, it generate a number of additional guest facilities such as restaurant, a swimming pool or childcare and social function services which provide revenue use to service other sectors and also for other auxiliary services. Today, must of the hospitality industry such as hotels in Turkey have 5,005 rooms and with a hotel manpower straight of about 2,000 men and women employed to ensure guest comforts (Yu, 1994).

Richter (1981) affirm that hotel is an attractive way to generate scarce foreign exchange, create jobs for semi-skilled and unskilled labour. In Cross River State over one thousand five hundred hotels established and duely registered by Cross River State tourism bureau are located in the three senatorial districts (Larry, 2005). According to him, the industry has a total manpower of over 5000 skilled and unskilled workers who provided the needed services to ensure tourist comfort. This industry has created multiplier effect especially in the establishment of business outfits such as recharge operators, restaurants, laundry services and catteries which become a source of their livelihood (Aniah, 2009).

However, the rise and fall of the industry pose a serious problem as most of the hotels have folded up and workers laid off. Beside, despite the number of hotels in Calabar much has not been felt by the people. Could one say that the industry has not contributed to the wellbeing of the people? What role is the industry playing in poverty alleviation in Cross River State.

Therefore, this paper wish to assess the impact of the hotel industry in poverty alleviation with respect to yearly tourist arrivals, reasons for tourist visit to Cross River State as a tourist destination, length of stay, employment level in the various hotels, revenue generation in the hotels and the monthly remuneration paid to staff in the industry. However, in Cross River State, hotel industries are point of attraction due to the modern facilities and services delivery which are of great interest to fun seekers and tourist (Lalopa, 2005).

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, Limitation of the study and Definition of technical terms.

1.2 Background of Study

Hospitality means providing service to others, as well as demonstrating consistent excellence and quality. It should also mean profitably providing value at any price level, while demonstrating your own unique points of distinction. Most of all, hospitality should be a “place”, where people can still be exceptional individuals and they can extend their own personality and style (Hogan, 2008).The hospitality industry is part of a huge group of companies known as travel and tourism industry, which provides the necessary or desirable goods and services to travelers. The hospitality and tourism industries are the largest and fastest-growing industries in the world (Walker, 2010).

The hospitality businesses make continuous efforts for maintaining a positive image along with great guest service. It appears that quality service is the basis to industry success. Thus, those organizations that focus on quality become the leaders for on-going guest satisfaction, creating loyalty and influencing

The growth of the global tourism industry is immense, with international arrivals growing by 51 percent over the last ten years, from 594 million in 1997 to an estimated 898 million in 2007 (UNWTO, 2008). In terms of tourism expenditure, a total of US$733 billion was spent in 2006, marking an increase of US$372 billion since 1996 (UNWTO, 2008). Based on this performance, it is forecasted that the world tourism arrivals will continue to increase in the coming years and reach 1.6 billion tourists by the year 2020.

In line with the overwhelming pace of tourism growth, tourism and hospitality have become an important source of employment for many countries, making it one of the key employers in the global economy.

According to the estimates from the World Travel and Tourism Council (WTTC) in 2004, tourism generates around 214.7 million jobs worldwide (or 8.1% of world employment) and accounts for over 10% of global gross domestic product (GDP). Employment in the world's tourism and hospitality industry in 2007 is also estimated at 8.3% of total world employment, with 231 million jobs, or one in every 12 jobs worldwide. These figures clearly indicate that the role of tourism and hospitality as a job provider is significant. With more countries, especially those at the developing stage, giving priority towards making tourism an important income generator.

Since the late 1980s tourism has received considerable attention in the economic development strategy of Nigeria. The number of tourist arrivals and amount of tourists' expenditure has steadily increased, while both public and private investment activity in various tourism sub-sectors have expanded. The government established a Ministry of Tourism in 1993 to underscore its commitment to tourism development, and with assistance from the United Nations Development Programme (UNDP) and the World Tourism Organization (WTO). Tourism is a major social phenomenon of the modern society with enormous economic consequences. Its importance as an instrument for economic development and employment generation particularly in remote areas and a positive step for poverty elimination has been accepted the world over.

In Nigeria, tourism is one of the important subsectors in the services sector. It is young and a developing industry in Nigeria. Traditionally, the major foreign exchange earners of Nigeria are gold, timber and cocoa.

However, Nigeria has shifted focus from over-dependence on these traditional commodities and sees tourism as a potential to become the number one foreign exchange earner. Tourism is placed third in terms of foreign exchange earnings for Nigeria. The tourism sector has the potential to contribute to economic growth. This can be seen in the areas of employment creation as well as income generation potential. Thus, the tourism subsector has shown that it can contribute significantly to Gross Domestic Product, private sector investment, employment and export diversification, and contribution to foreign exchange earnings (The State of the Nigeria economy (SGE), 1991).

Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know The Effect of Hospitality and Tourism Industry on Employment Rate.

1.3 Statement of the Problem

Unemployment rates are particularly high among graduate and especially among school leaves, giving rise increasingly to the problems of “educated unemployment”. Paradoxically, graduate unemployment seems to be correlated with levels of education attained in some cases. This is particularly true for school leavers in, for example, Nigeria where the proportion of the unemployed with secondary education increased from 24 to 51 percent between 1974 and 1985. graduate employment rates are probably 3 - 4 times higher than those of older workers, and in many countries in the region open unemployment among graduate as a group in the labour could be as 40 — 50 percent.(John Obi Steve 2001, ‘Nigerian Irrigation Analysis')

Due to the issue mention above has resulted to the need of this research work, the research sees the problem and seek to highlight possible ways to solve this ugly manner facing our country.

1.4 Aim and Objectives of the Study

The aim of the study is to Effect of Hospitality and Tourism Industry on Employment Rate in Nigeria. In achieving this aim, the following specific objectives were laid out as follows:

1. To identify the programmes of Tourism and Hospitality industry in creating employment.
2. To find out problems encountered by the Tourism and Hospitality industry in creating employment in Oyun local government, kwara state
3. To determine the contributions of Tourism and Hospitality industry towards the growth of Nigeria economy.
4. To create job opportunity in the industry to the community
5. To highlight the causes of unemployment

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 causes of unemployment?
• What is the impact of tourism and hospitality education in reducing unemployment rate?
• What is the nature of work in tourism and hospitality professions institutions in reducing the unemployment rate?
• What is the impact of language proficiency and its importance to work in the tourism and hospitality sector and its role in reducing the unemployment rate?
• What is the impact of the private sector in providing employment opportunities in tourism and hospitality professions and their role in reducing the unemployment rate?

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.

H_o1; There is a statistically significant impact of tourism and hospitality education in reducing unemployment rate.

H_o2; There is a statistically significant impact of the nature of work in tourism and hospitality professions institutions in reducing the unemployment rate.

H_o3; There is a statistically significant impact of language proficiency and its importance to work in the tourism and hospitality sector and its role in reducing the unemployment rate.

H_O4; There is a significant statistical impact of the private sector in providing employment opportunities in tourism and hospitality professions and their role in reducing the unemployment rate.

1.7 Significance of Study

This study will explore the contributions of the tourism and hospitality industries reducing job unemployment rate, thereby enhancing economic development of Nigeria. It is intended to be of interest to policy makers, hospitality industry operators and companies who would find the study very essential as a guide in structuring the hospitality sector make it a contributor to national economic developement, putting all the necessary facilities in place to enhance efficiency and also increase the level of their contributions.

Experts in the tourism sector have agreed that tourism is an industry in itself as they stressed that many countries in the world rely on this sector in building their economies and increasing their financial revenues.

In addition to its role in giving a civilized image of the country and its contribution to development, it is able to move the wheel of economic growth, to operate many economic sectors and to reduce the rates of poverty and unemployment.

Tourism is a vital and important resource for the economy and development, which should be preserved to achieve what is known as sustainable resources as a philosophy of development. It is necessary to mobilize energies and efforts to develop all economic sections and resources in the tourism sector as the backbone of economic life and to find practical plans and programs developed by the Government with the involvement of the private sector.

1.8 Scope of the Study

This study is carried out on The Effect of Hospitality and Tourism Industry on Employment Rate in Nigeria. The study was delimited to Oyun Local Government Area, Kwara state.

1.9 Limitation of Study

The following limitations were anticipated in this study:

1. Since the study was only carried out in only one province, the results may not be generalisable to the whole country. The researcher collected data on his own without research assistants.
2. Financial constraints were also anticipated in the current study. Although the researcher received assistance from the bursary, it was not possible to carry out the study at national level.
3. The researcher is a full time employee so time to carry out the study was limited.

1.10 Organization of Study

The study is organized into five chapters.

• Chapter one deals with the study's introduction and gives a background to the study.
• Chapter two reviews related and relevant literature.
• Chapter three gives the research methodology
• Chapter four gives the study's analysis and interpretation of data.

The study concludes with chapter five which deals on the summary, conclusion and recommendation.