The study aimed at assessing the performance of hospitality industry in Nigeria. The population for the study was one hundred and thirty four (134). From this, a sample size of one hundred individuals were drawn using the Tara Yamane formula for random sampling. The instrument used for data collection was structured questionnaire.  Secondary data was obtained from reviewed relevant literatures and the internet. The questionnaire was administered on the staff and customers of Royal Palace Hotel Enugu. The total number of copies of questionnaire distributed for this study were one hundred (100) while eighty (80) copies of the questionnaire were completed and returned. This was 80% of the total questionnaire administered. The research design adopted was the survey research using percentages, chi-square with a level of significance  = 0.05 (5%). The findings revealed that foreign exchange, even development and employment generation are some of the economic importance of the Nigerian hospitality industry to the nation. Some factors like provision of adequate infrastructure, government’s favourable policies, etc. could help facilitate the growth of the industry. Customers are not yet satisfied with the services of the industry and as such, the industry needs to sit up.  There are some factors that militate against quality performance of the industry. They are; African believe, presence of kidnappers, inadequate infrastructure, etc.  Some measures could be adopted to alleviate some problems facing the industry. Measures like continuity in government policies, provision of adequate infrastructure etc. In conclusion, the researcher submitted that something has to be done to curb the presence of kidnappers because it is giving the country a bad image. Finally, it was recommended that for the industry to grow, it should be supported by both the public and private sectors. The industry should also be well regulated to avoid excesses. Government should make sure that the industry is provided with adequate infrastructure and the practitioners should treat their guests with courtesy.  


Table 4.1.1: Distribution of Questionnaires - 54

Table 4.2.1: Sex Distribution of Respondents - 55

Table 4.2.2: Age Distribution of Respondents 56

Table 4.2.3: Marital Status of Respondents - 57

Table 4.2.4: Level of Education - - - 57

Table 4.2.5: Position in the Organization- - 58

Table 4.2.6: Performance Rating of the Industry 59

Table 4.2.7: Question 8 - - - - 60

Table 4.2.8: Question 9 - - - - 61

Table 4.2.9: Question 10 - - - - 61

Table 4.2.10: Question 11 - - - - 62

Table 4.2.11: Question 12 - - - - 63

Table 4.2.12: Question 13 - - - - 63

Table 4.2.13: Question 14 - - - - 64

Table 4.2.14: Question 15 - - - - 65

Table 4.2.16: Question 16 - - - - 65

Table 4.2.16: Question 17 - - - - 66

Table 4.2.17: Question 18 - - - - 67

Table 4.2.18: Question 19 - - - - 67

Table 4.2.19: Question 20 - - - - 68

Table 4.2.20: Question 21 - - - - 69

Table 4.2.21: Question 22 - - - - 70

Table 4.2.22: Question 23 - - - - 71

Table 4.2.23: Question 24 - - - - 71

Table 4.2.24: Question 25 - - - - 72

Table 4.2.25: Question 26 - - - - 73

Table 4.3.1: Contingency Table for Hypothesis 1 - 76

Table 4.3.2: Computation of Calculated Chi-square 

Value -------76

Table 4.3.3: Contingency Table for Hypothesis 2 - 79

Table 4.3.4: Computation of Calculated Chi-square 

Value -------79

Table 4.3.5: Contingency Table for Hypothesis 3 - 82

Table 4.3.6: Computation of Calculated Chi-square 

Value -------82

Table 4.3.7: Contingency Table for Hypothesis 4 - 85

Table 4.3.8: Computation of Calculated Chi-square 

Value -------85

Table 4.3.9: Contingency Table for Hypothesis 5 - 88

Table 4.3.10: Computation of Calculated Chi-square 

Value -------88


Title Page - - - - - - - - - i

Certification - - - - - - - -      ii

Dedication - - - - - - - - iii

Acknowledgement - - - - - - - iv

Abstract - - - - - - - - - vi

List of Tables - - - - - - - vii

Table of Contents - - - - - - - ix


1.1 Background of the Study - - - - - 1

1.2 Statement of the Problem - - - - - 4

1.3 Objectives of the Study - - - - - 7

1.4 Research Questions - - - - - - 7

1.5 Research Hypotheses - - - - - 8

1.6Scope of the Study------9

1.7 Limitations of the Study - - - - - 9

1.8 Definition of Concepts/Terms - - - - 10

References - - - - - - - 11


2.1 Overview of Hospitality Industry - - - - 12

2.2 Hospitality Defined - - - - - - 13

2.3 History of Hospitality Industry - - - - 13

2.4 History of Hospitality Industry in Nigeria - - 14

2.5 Legal Alert – Tourism and Hospitality 

Regulations in Nigeria -----18

2.6   Publics of Hospitality Industry - - - - 22

2.7   Classification of Hospitality Industry - - 22

2.8    Types of Hospitality Industry - - - - 24

2.9    Importance of the Hotel Industry - - - 26

2.10 Benefits of working  in the Hospitality and 

Tourism Industry------27

2.11 Cleaning and the Importance in Hospitality Industry 30

2.12 Challenges for Hospitality Industry - - - 31

2.13 The Layout of Hospitality Industry - - - 32

2.14 Security and Safety in Hospitality Industry - 36

2.15 Staff Welfare in Hospitality Industry - - - 40

2.16 Staff Welfare Packages - - - - - 42

2.17 Staff Motivation in Hospitality Industry - - 44

References - - - - - - - 46


3.1 Research Design and Data Collection - - 47

3.2 Population of the Study - - - - - 48

3.3 Method of Sampling - - - - - - 48

3.4 Data Collection Instrument - - - - 50

3.5 Validation of Instrument for Data  Collection - 50

3.6 Method of Data Analysis - - - - - 51

References - - - - - - - 53


4.1 Data Presentation - - - - - - 54

4.2 Data Analysis - - - - - - 55

4.3 Test of Hypotheses - - - - - - 74


5.1 Summary of Findings - - - - - 90

5.2 Conclusion - - - - - - - 91

5.3 Recommendations - - - - - - 94



1.9 Background of the Study 

It is a general believe that there is no place like home. This may be as a result of the fact that hospitality is believed to be best enjoyed at home. This is not the whole truth, because ‘home away from home’ is one of the most exciting things in a man’s life. And this is what hospitality industry brings to our door steps.

The hospitality industry in Nigeria is evolving; evolving in the sense that if you look back to the last five, ten years, you could hardly find up to ten hotels in Abuja. That has since changed because investors are coming in and it is the most lucrative business in Nigeria.

 Emelike, (2010) said the tourism industry, which is an arm of the hospitality business is a powerful driver of the economic engine of nations. The industry generates over US$1 Trillion per annum in direct earnings. Everyday, over 7 million people travel internationally, crossing borders and flight paths, journeying between countries and cultures. Over 70 million people travel each day within their own borders. Collectively, in 2009 alone, it was estimated that almost 900 million people travelled on holiday.

No doubt tourism is presently the world’s largest and fastest growth industry accounting for about 10 percent of global employment, and 7 percent of global capital investment with receipts predicted to reach $1.550 billion by the end of year 2010.

The hospitality industry, which is becoming increasingly global with the search for new markets and increased international travel, has an important requirement for players to develop a strong identity and promote a recognizable brand in order to succeed.

There are many things in place in Nigeria now, which should encourage the growth of the hospitality business. Some are listed below:

⦁ The emergence of opportunities by the democratic dispensation in the country would influence the size and growth of both foreign and local business travellers. 

⦁ Government’s favourable policy towards foreign investment as well as encouragement being given to local entrepreneurs to source for heap funds would spur growth in the hospitality industry.

⦁ Worldwide expansion of international trade and manufacturing would imply an increase foreign travel.

⦁ Hotels in Nigeria have been very profitable, partly due to the high tariffs they charge and partly to very high demands for hotel rooms in urban centres particularly the Federal and States capitals.

There exist about 650 hotels, motels, inns, and commercial guesthouses in Nigeria today. About 10% of these are of international standard, mostly concentrated in the Federal and State capitals. 

An important feature of the hotel industry in Nigeria is that until the late seventies, there was a virtual absence of any of the well-known names in international hotel industry.  From the late seventies, however, some of these names have begun to make an appearance.  Names like Hilton, Sheraton, Le Meridian, etc.

The Tourism Policy of the Federal Government of Nigeria as initiated by the Nigerian Tourism Development Corporation Acts of 1992 is for the industry to contribute meaningfully to the wealth creation efforts of the nation and its citizens, largely through foreign exchange generation and employment creation, while providing interesting, hospitable and worthwhile experience for visitors.

Tourism administration in Nigeria received a boost with the creation of the Federal Ministry of Culture and Tourism in 1999. This is in addition to the Nigerian Tourism Development Corporation, the State Tourism Boards and Federation of Tourism Associations of Nigeria. Nigeria currently ranks the 8th tourist destination in Africa. Government’s tourism employment generation capacity is projected at 420,000 direct jobs and 1.5 million indirect jobs. 

Hospitality industries are meant to provide a home for the tourists, who travel from within and outside the country.  Nigeria is a vast country with a very large landmass, located within the tropics. Known as the ‘Giant of Africa’, Nigeria is endowed with ecological and cultural resources. Besides the natural features like hills, waterfalls, springs, rivers, etc., the cultural assets of the nation are universally recognized. The richness and diversity of the Nigerian culture depict the socio-cultural differences of over 250 ethnic groups that inhabit the land. This makes Nigeria one of the richly endowed potential tourists destinations in the globe (Omotayo 2001:4).

1.2 Statement of the Problem

‘Assessment of the Performance of  Hospitality Industry in Nigeria’, stems from the fact that Nigeria’s tourism sector, which is part of the hospitality industry is still operating below capacity even as tourism becomes the fastest growing industry globally.

A tourism policy was produced in 1990 with the basic objectives to make Nigeria the ultimate tourism destination in Africa. The main thrust of government policy on tourism is to generate foreign exchange, encourage even development, promote tourism based rural enterprises, generate employment and accelerate rural-urban integration and cultural exchange.

What is really wrong with Nigeria Hospitality Industry? Going by the different attractions in Africa, the only thing the country lacks is the pyramids. There are wonderful beaches stretching over 7000 kilometers, unique wildlife and the biggest cultural attractions in the world. Besides, about 60 percent of all tourism income in Africa comes from beaches especially for Egypt, Kenya, Tunisia and Morocco.

Uko, (2008) notes that part of the reasons why Nigerian tourism seems to be less competitive at the global level is the lack of well spelt out, improved and accessible tourism products.  At the global tourism market, you need to present products that will more than enough convince buyers on reasons to come to a country with scanty infrastructure. 

In similar fashion, Macaulay, (2006) argues that with a vast landmass of about 924,000 square kilometers  in the tropics, a population of over 150 million, and over 250 ethnic groups, the country has the potentials to please any class of tourists, but will grow her Gross National 

Product (GDP) better when citizens undertake to discover their own country through domestic tourism. If 30 percent of the population takes interest in domestic tourism, more airlines will be flown, more hotels built, business will soar for tour companies and tour guides, government will improve on revenue through tax and most importantly, the locals will see people to buy their crafts as souvenirs. 

 Ward, (2010) says Nigeria is not ready to be ranked on tour operators brochure and that country’s image, visa issue, poor road networks are among the reasons tour operators are not packaging Nigeria for the globetrotters.

 Ojobo, (2010) thinks the country’s tourism sector is leap frogging because government has not done enough in areas such as provision of infrastructure like power, road, pipe borne water and security. He also argues that the regulatory framework and legislation to back growth in the industry has never been there. Hospitality outfits provide their own power, water, security, and still battle with double taxation.

He says that the inconsistency in government policy, short term planning, executors, undue political interference in programmes are part of the reasons why 

Nigeria is yet to attract the world to her soil like Egypt and South Africa. Argungu International Fishing Festival was called off this year in disappointment of foreign tourists because one governor thinks his father in-law deserves public fund than the people it is meant to solve their problems.

1.3 Objectives of the Study

The study has the overall objective of assessing the performance of the hospitality industry in Nigeria. It will therefore, specifically try to assess the follow areas:

i. Various economic importance of the Nigerian hospitality industry to the nation.

ii. Factors that facilitate the growth of the Nigerian hospitality industry.

iii. Extent of customers’ satisfaction with the products and services of the industry.

iv. Factors militating against quality performance of the Nigerian hospitality industry. 

v. Measures to adopt in order to alleviate the problems encountered by Nigerian hospitality industry.

1.4 Research Questions 

A number of research questions arose from the objectives.  The following research questions will be postulated to give direction to the study:

i. What are the various economic importance of the Nigerian hospitality industry to the nation?

ii. What are the factors that facilitate the growth of the Nigerian hospitality industry?

iii. To what extent are customers satisfied with the products and services of the industry? 

iv. What are the factors that militate against quality performance of the Nigerian hospitality industry?

v. What are the measures to adopt in order to alleviate the problems encountered by the Nigeria hospitality industry?

1.5 Research Hypotheses 

To achieve the objectives of this study, the following null hypotheses will be tested:

i. Foreign exchange, even development, employment generation etc. are not various economic importance of the Nigerian hospitality industry to the nation.

ii. Government’s favourable policy, provision of adequate infrastructure, etc are not factors that facilitate the growth of the Nigerian hospitality industry.

iii. Customers’ satisfaction with the products and services of the industry is low.

iv. Inadequate infrastructure, high tariff, etc are not factors that militate against quality performance of the Nigerian hospitality industry.

v. Continuity in government policies, provision of power, water, security, etc, are not measures to adopt in order to alleviate the problems encountered by the Nigerian hospitality industry

1.6 Scope of the Study

The focus of this study is on assessment of the performance of the hospitality industry in Nigeria. Hospitality industries are scattered all over the country. It will therefore, be an uphill task to attempt to cover all of them in a study,  given the constraint of time and other resources. The study will therefore, concentrate on selected staff and customers of Royal Palace Hotel, Enugu.

1.7 Limitations of the Study

The researcher had and faced so many challenges in the course of this study.  Some of them are as follows:

i. Financial Constraint: The poor economic condition of our country affected the expansion of the work beyond this stage, as purchasing of books and browsing the internet for information require money, which is not at the disposal of the researcher.

ii. Time Constraint: Time and tide, they say, wait for no man.  The research work was carried out amidst other assignments and examinations that students usually have. This made it take a little time between writing the project work, reading and attending lectures, writing assignments, and studying for final exams.

iii. Dearth/Paucity of Information Constraint: To obtain information is on itself a difficult task. One could browse the internet for hours without a meaningful/relevant information.  Some textbooks were of no help too.

iv. Fatigue/Hunger Constraint: In the search for relevant information, the researcher moved from place to place sometimes with empty stomach just to achieve success.

v. Other Economic problems: High cost of transportation, power failure, etc. also contributed to the non expansion of the project work.

1.8 Definition of Terms

Tourism: The business activity connected with providing accommodation, services and entertainment for people, who are visiting a place for pleasure.

Ecological: Connected with the relation of plants and living creatures to each other and to their environment.

Souvenirs: A thing that you buy and/or keep to remind yourself of a place, an occasion, or a holiday/vacation.

Tour: A journey made for pleasure during which several different towns, countries, etc. are visited.

Globetrotting: Traveling in many countries all over the world.


Omotayo, (2001:4), Nigeria, Beauty in University Timsad                                            Printing Press.

Emelike,Obinna, Business Day; March 23rd, 2010.

Uko, Ikechi, Nigeria Business Stories; October 24th , 2008.

Macaulay, Ayoola,  Nigeria Matters; October 8th, 2006.

Ward,Trevor,  Nigerian Compass; April 9th, 2010.

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