CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF STUDY

Roundel et al (2007) define Hospitality as friendly and generous behavior towards visitors and guests, intended to make them feel welcome: food, drink, room and entertainment given to customers by a company or organization. Another scholar Copper.et al(ed) (1996) in educating the educators in tourism, gave the definition of hospitality by Nailon (1981) which stated that hospitality is the combination of physiological and psychological elements with security and level of service. Hospitality is concerned with the provision of physiological and psychological comfort within define levels of service. Burgess (1982) emphasizes the important of developing social relationships and the role of this in promoting guest perception of comfort and security. The primary interesting elements is that of the social relationship fostered by the warm, friendly, welcoming, courteous, open, generous behavior, of host creating the security and comfort created by physical structure, design, décor and location of facility. Finally the provisions of accommodation facilities to sleep, eat, relax and wash, together with the supply of beverage, service and entertainment. Rounded et al (2007) define Hotel as a building where you have to stay in a room and have meals’ similarly the world Tourism organization defined Hotel as ‘enterprise which provides accommodation with or without ancillary services’ (Ibru 2004). This may include food and entertainment in exchange for payment by client.

 Accommodation which is an essential facility in the hospitality industry can be classified into various categories, illustrating the diversity of the industry. The availability of different room types and amenities is a reflection of an industry that must respond to various consumer needs, including the social and business needs of travelers. The customer or guest served by the accommodation sector may or are divided into two, those people traveling on business or recreation and those people not engaged in travel but who are staying away from home on a temporary basis, such as students in hostel and patients in hospital. Accommodation services in the hospitality industry are classified as stated by Chuck. (1997) and Jones (2002) Airport hotels: Located within ten miles of an airport with amenities for the air travelers including facilities for business meetings.

The term hospitality emerges as the way hotelier and caterers would like their industry to be perceived. It conveys an image that reflects the traditions of service that goes back over many centuries. In 1987, the Hotel, Catering and Institutional Management Association the industry’s professional association changed the name of its Journal to Hospitality likewise in 1991, the British Hoteliers, Restaurateurs and Caterers Association the United Kingdom industry‘s main trade association changed its name to the British Hospitality Association. The term hospitality has also been adopted by educators so that most, if not all university and colleges now offer courses in hospitality management (Jones 2002:1). Hospitality is the term generally associated with hotels and restaurants. The accommodation industry (also referred to as the lodging or hotel industry) and the food and beverage industry (also referred to as the catering industry) encompass a variety of facilities and are a variety of facilities and are a dynamic part of the global travel and tourism industry. Everywhere the traveler goes, places to stay and place to eat are necessities (Chuck et al 1997).

Visitors have sought rest and refreshment at public and hostels from history. During the Roman Empire, inns grow along major highway and other accommodations were maintained along major highway, primarily for government officials and person of importance (Chuck 1997). In some areas small shelters were placed at stops along caravan routes. Those that travel for religions purpose looked to religions houses to give sanctuary, rest, and refreshment along the way. The word hospitality is derived from hospice, a medieval word for house of rest for travelers’ even to this day some Alpine in Europe continue the tradition of offering food and rest to weary travelers (Lattin 1985). Food and wine services can be trace back in history to as far back as 400BC.When establishment began selling food and wine. Such establishment continued and flourishes during the Greek, Roman and Byzantine periods (Gee et al 1997).

Hospitality in Nigeria evolved in phases. Documentary evidence of the growth of the hospitality industry is scanty because of the poor management records as in many other early industries in Nigeria. The establishment of catering guest houses by government in the 1920s (Nigeria Railway caterers Ltd) and other catering guest houses across the country in the 1950s marked the beginning of what turned out in the later years to form the nucleus of formal hospitality business in Nigeria (National Association of Nigeria Travel Agencies AGM/Conference 2001). The earliest hospitality establishment in Nigeria were initially built and run by government and located at very important seaport, railways terminus or important towns where there were state capital. In 1923 and 1931 European rest house at Port Harcourt and Lagos rest house were established. (Federal Government of Nigeria report on national Hotels classification and grading exercise 1989:67) The next most important development phase of hospitality industry in Nigeria is the introduction of different institution such as guest house, hotel, staff canteen and staff club. Hospitality in Nigeria has largely government driven except the pre-colonial time. This has made Hospitality development in Nigeria different from the way it come to be in United State of America, United Kingdom and other country who having successful hospitality industry.

The movement and discovery of new places and people known in a simple form as tourism has become a major factor in the world economic development. Its global impact is enormous in multiplier terms. Despite the security challenges, the World Travel and Tourism Council (WTTC) (2008) noted the gigantic progress in world’s tourism as it contributes about 10.3% of world gross domestic product; with an annual turnover of about $87 billion (US); and that the world travel and tourism industry supports about 234 million jobs which is about 8.7% of total world employment.

Despite this information, the potentials from the tourism sector are greater than can be imagined; especially in developing nations dependent on very lean sources for national income. Nigeria has sought to key into this industry in recent years through government and non-governmental participations. These stakeholders range from the National Tourism Development Cooperation (NTDC), Federal and States Ministries of Culture, National Parks Commission, Nigeria Conservative Fund, United Nations Educational, Scientific and Cultural Organization (UNESCO) and local and foreign investors in the sector.

The extent of having vast return on investment in the tourism industry at any given period is anchored on facilities, infrastructural facilities and policies connected with the industry and adequately trained manpower to manage the sector effectively. It is clear that tourism is a business of human relations. Therefore, availability of competent personnel in the tourism industry amongst other factors translates to sustained socio-economic growth and development. In Nigeria, this is obvious given that her diverse people and culture with its vast natural resources and sites form a basis to achieve multi-sectorial growth and development. To this end the human resource problems facing the tourism sector are examined.

The attraction of people to any tourism destination anywhere in the world lies on multiple factors. These are infrastructures - roads, healthcare system, transport, hotel, restaurants, recreation facilities, communication, and financial intermediation, as the exchange of currencies, credit cards among other things; and competent managers who can stand proudly up to say “we are here; we have what will make you happy! please come over”. The prevailing public policies and the human resources available in the tourism industry are at the apex of the requirements. This is besides peace and security that crowns it all.

 In specific terms, Nigerian tourism development has gone through many phases. Before the arrival of the colonialist, we indeed had our diverse cultures, cultural sites, natural habitats from the mangrove swamps and forest in the Niger Delta region in the south to the flat savannah grassland in the north. Nigeria though geopolitically detached and not infrastructural developed, had tourism in practice in the pre-colonial and colonial era. This is displayed in the continuous attempt to preserve our objects of art, cultural heritage, forest as games reserve and develop new tourist destination as the Obudu Cattle Ranch and TINAPA holiday resort all in the Cross River State, amongst other sites and tourist destination locations across Nigeria. The scope of Nigeria’s tourism is as great as her land mass and size, as all 36 states and the federal capital territory, Abuja have tourist sites. The socio-economic benefits in the short and long run are determined by the extent of proper synergy of human and material resources already endowed upon Nigeria.

Okpoko and Okpoko (2002) and Okpoko (2006) identified some key elements that affect or influences tourism development and human resources as the level of economic and infrastructure development in the country (transportation – railways, roads, water navigation, and air services; communication and accommodation); the amount of capital investment by public and private investors in the sector; aggressiveness of marketing and sales programmes; socio-political stability; and the herd of qualified management and skilled personnel. To this end the problems of tourism development in Nigeria under study are summarized as the lack of investments in tourism projects; inadequate promotion and information; Lack of tourist destination managers (poor human resources management); negligence by the governments (federal, state and local); and other stakeholders; terrorism and insurgency; and militancy and kidnapping; and human resource management needs which forms the focus of this study.

1. STATEMENT OF THE PROBLEM

Human resource is essential for the success of any given business venture and such very vital in the hospitality industry. When the right caliber of personnel are not available in any business venture, that business falters, fails and dies, and that particular sector of the economy remains underdeveloped. This study looks at the factors affecting the hospitality industry investment in Nigeria and how this has affected the development of the sector.

1. AIMS AND OBJECTIVES

the main aim of the study is to examine the factors affecting Hospitality Industry investments in Nigeria. Other specific objectives include:

1. To examine the Nigeria hospitality industry.
2. To determine the effect of government policy on hospitality industry investment in Nigeria.
3. To determine the effect of location on hospitality industry investment.
4. To determine the extent to which availability of infrastructural facilities affect the hospitality industry.
   1. RESEARCH QUESTION

1. What does Nigeria hospitality industry mean?
2. What is the effect of government policy on hospitality industry investment in Nigeria?
3. What is the effect of location on hospitality industry investment?
4. What is the extent to which availability of infrastructural facilities affect the hospitality industry?
   1. STATEMENT OF RESEARCH HYPOTHESIS

1. HO: there are no significant factors affecting the hospitality industry investments in Nigeria.
2. H1: there are significant factors affecting the hospitality industry investments in Nigeria.
   1. SIGNIFICANCE OF STUDY

The study will help give an overview of the hospitality industry in Nigeria and the factors that militate against the hospitality industry’s investments. It will serve as a guiding manual to hospitality industries in understanding the better ways to get investors especially the government.

Finally, Government will a clearer picture of the hospitality industry and its impact in the economy of the country and as such make better policies to develop and grow the hospitality industry.

1. SCOPE OF STUDY

The study will cover the factors affecting the hospitality industry investments in Nigeria.

1. LIMITATIONS OF STUDY

1. 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).
2. Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
   1. DEFINITION OF TERMS

 Hospitality Industry

Hospitality industry is a broad category of fields within the service industry that includes lodging, food and drink service, event planning, theme parks, transportation, cruise line, traveling and additional fields within the tourism industry.

Hospitality Defined

This is an environment whose aims are to provide comfortable, suitable accommodation and safe catering services that is safe foods and drinks in a friendly hospitable and pleasing manner to whosoever needs such provisions. Hospitality industry also provide ancillary services such as entertainment, car hire services, telephone and telex services or other e-mail services that is (electronic mail services) recreational services, laundry services and security services. However it is to be noted that all the aforementioned services have to be paid for. Examples of hospitality industries are Hotels, Motels, Guesthouses, Catering Establishment, Restaurant and Bars, Hospitals and Health Centers.

Investments

Investment or investing means that an asset is bought, or that money is put into a bank to get a future interest from it. Investment is total amount of money spent by a shareholder in buying shares of a company. In economic management sciences, investments mean longer-term savings.