ABSTRACT
This study focused on the influence of exchange rate deregulation in sustainable tourism development in Nigeria. Descriptive survey design was adopted the study. Questionnaire was used for data collection. 116 staff of the selected tourism centre was used in the study. Statistical Packages for Social Sciences (SPSS) was used for data analysis. Major conclusions from this study revealed that Nigeria can only maximize her tourism economy potentials if the government put in place the required tourism regulatory framework (TRF). The study further revels that the extent to which the government of Nigeria priorities the tourism sector has an important impact on the competitiveness of tourism economy in the country. It is also resolved that good health and sanitary practices are fundamental for Nigeria to unlocking her tourism economy competitiveness. In the light of the foregoing, the government of Nigeria should vigorously purse favorable policy environment that supports tourism business investment. Based on the findings of this research, the researcher recommended that since Nigeria has potential tourism destination that can attract every class of tourist as postulated in Plog’s Classification of tourist. The natural climate and environmental features in the country can stimulate the number of international tourist arrival to Nigeria. The United Nations World Tourism Organizations (UNWTO) has projected the increase in tourist arrival to Africa to have an average long term growth rate of 4.4% a year, which has been predicted to reach 1.8 billion by 2030 (UNWTO 2015). Competition among destination countries in attracting tourists from all over the world is very keen; and is determine by political factors and social stability, safety and security at the destination country.
TABLE OF CONTENTS
Approval page v
Certification vi
Dedication vii
Acknowledgment viii
Table of content ix
Abstract xiv
Chapter 1
Introduction
1.1 Background
of the Study 1
1.2 Statement 8of
the Problem 4
1.3 Objectives
of the Study 5
1.4 Research
Questions 5
1.3 Significance
of the Study 5
1.7 Scope of
the Study 6
Chapter 2
Review Of Related Literature
2.1 Conceptual Framework 7
2.1.1 Exchange Rate Deregulation 7
2.1.2 Sustainable
Tourism 8
2.1.3 Economic Sustainability 10
2.1.4 Socio-Cultural Sustainability 10
2.1.5 Environmental Sustainability 11
2.1.6 Tourism Sustainability 11
2.1.7 Impacts of Sustainable Tourism Development 13
2.1.8 Barriers Behind Successful Implementation of
Sustainable Tourism Policies 13
2.1.9 Trends Of Tourism Development And Sustainability
In Nigeria 13
2.1.10 Tourism And Policy In Nigeria 23
2.2 Theoretical
Framework 28
2.2.1 Modernization
Theory By Rostow, 1960 28
2.2.3 Satisficing
Model 29
2.2.3 Monetary
Theory Of The Exchange Rate By Frankel (1978) 30
2.3 Empirical
Framework 31
2.4 Summary Of
Literature Review 34
Chapter 3
Methodology
3.1 Research Design 35
3.2 The Study Area 35
3.3 Population For The Study 36
3.4 Sample Size Determination 36
3.5 Sampling Technique 37
3.6 Instruments
For Data Collection 37
3.7 Validity Of The Instruments 37
3.8 Reliability Of The Instruments 37
3.9 Method Of Data Collection 38
3.10 Statistical Analyses 38
Chapter Four
Data Presentation And Discussion
4.2 Data
Presentation 43
4.3 Discussion
Of Results 47
Chapter 5
Summary Of Findings, Conclusion And Recommendations
5.1 Summary Of
Findings 48
5.2 Conclusion
48
5.3 Recommendations
48
References 49
Appendix A 54
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF
THE STUDY
Tourism
is the movement from home to unusual place for business, recreate, sightsee,
visit or points of interest whether near or far. The place of interest can vary
from person to person. A hotel, a night club, a restaurant, a park can be a
place of interest to a person and to another it may be historic sites,
conservation sites and other outdoor places within a city or urban center
(Dantata (2015). According to UNWTO (2010) tourism is the activities of persons
traveling to and staying in places aside their usual environment for not more
than one consecutive year for leisure, business and any other purpose. Goeldner
and Ritchie (2012) saw tourism as when people visit a particular place for
sightseeing, visiting friends and relatives, taking vacation, and having funs.
Although, they might also enjoy their leisure time participating in various
activities like sport, talking, sunbathing, taking rides, touring, reading,
singing or relaxing and enjoying the environment.
Tourism has become one of
the most important sector in most developing countries having already overtaken
cash crop agriculture and other primary industries as major source of national
income, export earnings and generation of employment (Orgu 2016). The tourism
sector serves as a major driver of socio-economic development in most developed
countries around the world; this sector has been a major source of revenue
across countries and is an alternative strategy for sustainability and
diversification of an economy (Ndanusa, Yoshifumi and Aminul, 2014). The
development of sustainable tourism attractions becomes very crucial in Nigeria
if we must diversify into tourism sector.
Sustainable
tourism development involves the active contribution of all required
shareholders and trusted political body which will determine a broad sense of
participation and building of a greater consensus (Sharpley, 2016). While
tourism sustainability is known to be a great factor in the enhancement of
socio-economic development in many countries because it bodes well with other
sectors of the economy. Raymond (2012) states that for the tourism benefits to
accrue a particular nation, it is dependents on the local conditions of that
nation and Manwa, (2012) argue that direct tourism benefit from the community
makes tourism sustainable, as they will feel a need to protect the resources.
Hall, (2013) shares the sentiment that though, they are different types of
tourism, but the extent of economic benefit in a nation rest on the tourist
expectations and ability of the host. Sustainable tourism development as an
activity is highly dependent on foreign exchange markets of her country.
Factors
affecting sustainable tourism development be generally sorted into the
following categories: number of available tourist facilities, global economic
development, prices of tourist oriented products and services, and exchange
rates. Currency exchange rates in particular have significance due to their
ability to represent tourist-oriented product and service prices for foreign
tourists visiting the country (Uğuz and Topbaş, 2011). The ability of any
improvement in the exchange rates to be effective in stimulating tourism
depends on the capacity of that country to compete in the global tourism
market.
Exchange
rate is regarded as the value of one country's currency in relation to another
currency. The evolution of the foreign
exchange markets in Nigeria up to its present state was influenced by a number
of factors which include the changing pattern of international trade,
institutional changes and structural shift in production (Ekong, 2016). Before
the establishment of the Central Bank of Nigeria (CBN) and the enactment of the
Exchange Control Act of 1962, foreign exchange was earned by the private sector
and held in balance abroad by commercial banks which acted as the agents for
local exporters (Stevenson, Airey and Miller, 2014). The efficient and
effective regulation of a system always leads to the outstanding success of
that system, and as it is popularly said that only those that comply with regulations
become regulators (Ndanusa, Yoshifumi and Aminul, 2014).
Tourist
embark on different kinds of tourism trips like domestic tourism, inbound
tourism, outbound tourism for different reasons like; for leisure, business
travel, Visiting Friends and Relatives (VFR). Theoretically, the exchange rate
could affect the international tourism in two different ways. First, exchange
rate fluctuations may affect international tourist destination choice, since
tourists tend to choose countries in which the exchange rate is more
favourable. Second, the variations of exchange rates are likely to alter
visitors’ intended length of stay and expenditure. When the destination’s
currency depreciates, international tourists have more money to spend and,
thus, may prolong the length of stay and increase spending (Ogbeba, Oji-Okoro
and Abba, 2016).
Esenyel,
Ostapchuk and Dikmen (2013) opined that there are the major determinants of
international tourist flows is predicated upon the following factors: exchange
rate, the relative prices between destination and origin, the income,
approximated by the GDP of the origin country and the transportation cost
(Cheng Ka Ming 2012; Ogbeba, Oji-Okoro and Abba, 2016). Despite the differences
among studies, this study will focus on one variable often overlooked in the
literature, which is exchange rate fluctuation, and how it affects the tourism
sector. The main argument of empirical researchers is that excessive
fluctuation of the exchange rate has the tendency to affect tour operations causing
tourists to shift from a country with high exchange fluctuation to a country
with low exchange rate fluctuation. This in turn affects the number of tourist
arrival and the total contribution of tourism sector to the gross domestic
product (GDP) of that country (George, Dimitrios, Nicholas, 2015) in view of
this, there is need to examine the influence of exchange rate deregulation in
sustainable tourism development in Nigeria.
1.2
STATEMENT OF THE PROBLEM
Deteriorating nature experienced in
the level of economic activities in Nigeria is evident in most sectors of the
economy, including the tourism sector. Although, the tourism industry in
Nigeria cannot be said to be fully developed, it is still in its developing
stage. However, in spite of tourism’s increasing position, the sector has
attracted limited attention drawing from the limited studies that have been
done in this area (Osuma, Ikpefan, Osabohien, Ndigwe, and Nkwodimmah, 2018).
Bankole
(2002) posits that Nigeria’s size and tourism potentials correlate with tourism
ratio in a downward trend when compared with other countries of the world;
thus, affecting her GDP negatively. More so, the problem of high regulation in
the foreign exchange market which in advertently have a determining factor on
the performance of business organizations is an issue of concern most
especially in tourism industries in Nigeria (Eneji et al., 2016).
Tourism
policy-makers need to understand how tourists react to price changes as a
result of exchange rate fluctuations before and during their stays in their
destination. However, it is difficult to obtain accurate tourist prices.
Nonetheless, the study on the effects of exchange rate volatility on tourism
demand is largely ignored in the literature. Yap (2012) emphasized that exchange
rate volatility could affect tourism since expenditure at the holiday
destination is a substantial expense. Subsequently, the tourism industry in
Nigeria has been challenged by the rising value of the United States of America
dollar and because of that, the industry is facing a wide deficit in tourism
trade. One of the potential causes is a decline in tourism export (inbound
tourism).
Most
private, state and federal government tourism assets suffer from the problem of
mismanagement, lack of accountability and transparency in tax, revenue and
employment (Aniah, Eja and Otu, 2013). It has to be conceded that presently
Nigeria is far from being Africa’s preferred tourist destination because of
corruption, insecurity and poor infrastructural development among others.
Generally, the contribution of tourism to Nigeria’s GPD is 5% lower than
Africa’s average (Eneji et al.,
2016). Finally, Economic instability as perceived by tourists through the
fluctuation in Exchange Rate of Nigeria, which is attributed to the formulated
economic policies has negatively affected the sustainability of the tourism
sector (Osuma et al., 2018).
Therefore, this study is predicated on the influence of exchange rate
deregulation in sustainable tourism development in Nigeria.
1.3 OBJECTIVES OF THE STUDY
The main objective of this
study is to determine the influence of exchange rate deregulation in
sustainable tourism development in Nigeria. The specific objectives are:
i.
To identify the exchange rate regulations that affects
tourism in Nigeria
ii.
To ascertain the influence of the identified regulation on
tourist flow in the study area
iii.
To determine the role of the regulation on the sustainability
of tourism in the study area.
1.4
RESEARCH QUESTIONS
i.
What are the exchange
rate regulatiosn that affects
tourism in Nigeria?
ii. What are the influence of
the identified regulation on tourist flow in the study area?
iii. What are the role of the
regulation on the sustainability of tourism in the study area?
1.5
SIGNIFICANCE OF THE STUDY
The study will be of significant
as it will be of benefit to the following individuals and organizations:
The
study will benefit government and policy makers as its findings will through
conferences show the influence of exchange rate deregulation in sustainable
tourism development in Nigeria. This will enable a collaboration with the
tourism sector in the country to produce policies that will tackle these
constraints which will boost the nation’s tourism industry.
This
study will be of immense help to the government of Cross River State in the
area of polices and implementation. It will bring to lime light the present
situation or position of many tourist centers in Cross River State to the
government in order to rehabilitate, revitalize and revamp the industry. The
study will reveal and evaluate the influence of exchange rate deregulation in
sustainable tourism development in Nigeria and will encourage management of Federal ministry of culture and
tourism, National council for arts and culture, Nigeria Tourism Development
Corporation (NTDC), State Ministries of Tourism, State Tourism Boards, and
Local Government Tourism Committee on the influx of tourist to the state and
also to grow the economy.
The findings of the study
will enable tourism operators to appreciate the relevance of exchange rate
deregulation on sustainable tourism development. It will also be of benefit to
students and scholars that will engage in a research on the subject matter as
the result from this study will form a baseline for them. The study will benefit
the general public as the findings from the study which could be through
internet publication, seminar, radio and television show will increase the
knowledge on the influence of exchange rate deregulation in sustainable tourism
development in Nigeria.
1.7 SCOPE OF
THE STUDY
The scope of this research work is to
evaluate the influence of exchange rate deregulation in sustainable tourism
development in Nigeria. The study will be focusing on international tourism
centres in Nigeria.
Login To Comment