The Effect of Tourism Development on the Hospitality Business in Nigeria: Evidence from Obudu Cattle Ranch
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Background of the Study
Tourism development plays a crucial role in the expansion of the hospitality industry, particularly in regions with significant tourist attractions. Obudu Cattle Ranch, located in Cross River State, is one of Nigeria’s premier tourist destinations, known for its natural beauty, resort facilities, and unique cultural experiences. The development of tourism in this region has directly impacted the hospitality sector, driving growth in both accommodation and related services (Ogunleye & Nwaogwugwu, 2024).
The development of tourism infrastructure, including transport, accommodation, and recreational facilities, has spurred local economic growth, job creation, and improved services. However, it has also presented challenges such as over-reliance on seasonal tourist demand and competition from emerging tourist locations. This study evaluates how the development of tourism in Obudu Cattle Ranch has impacted the hospitality business, focusing on economic benefits, operational changes, and challenges.
Statement of the Problem
While tourism development has brought economic benefits to the hospitality sector in Obudu, there are concerns about its long-term sustainability. The seasonal nature of tourism, fluctuating demand, and the strain on local infrastructure during peak tourist periods pose significant challenges for hospitality businesses in the region.
This study aims to examine the effects of tourism development on hospitality businesses in Obudu Cattle Ranch, analyzing both the positive and negative implications for the sector.
Objectives of the Study
1. To assess the impact of tourism development on hospitality businesses in Obudu Cattle Ranch.
2. To evaluate the economic benefits and challenges of tourism development in the hospitality sector.
3. To propose recommendations for sustaining the growth of the hospitality industry in Obudu Cattle Ranch.
Research Questions
1. How has tourism development impacted the hospitality businesses in Obudu Cattle Ranch?
2. What are the economic benefits and challenges of tourism development for the hospitality sector?
3. What strategies can be implemented to sustain the growth of the hospitality industry in Obudu Cattle Ranch?
Research Hypotheses
1. H₀: Tourism development has no significant impact on the hospitality businesses in Obudu Cattle Ranch.
2. H₀: Tourism development has no economic benefits for hospitality businesses in Obudu.
3. H₀: There are no strategies that can sustain the growth of the hospitality industry in Obudu Cattle Ranch.
Scope and Limitations of the Study
The study focuses on the hospitality businesses in Obudu Cattle Ranch over the past five years. Limitations include reliance on data from local operators, which may vary in accuracy and comprehensiveness.
Definitions of Terms
• Tourism Development: The process of enhancing and expanding the infrastructure and services to support and attract tourists.
• Hospitality Business: Businesses involved in providing accommodations, food, beverages, and entertainment to guests.
• Economic Benefits: The positive financial impact of an activity on local economies, such as job creation and revenue generation.
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