An Evaluation of the Growth of Luxury Hotels in Abuja and Their Impact on the Tourism Sector
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The expansion of luxury hotels in Abuja is a testament to the city's growing status as a key business and tourism hub in Nigeria. With its status as the nation’s capital, Abuja attracts diplomats, business executives, and high-net-worth individuals, creating a demand for high-end hospitality services. In response, luxury hotels such as Transcorp Hilton, Fraser Suites, and The Envoy have proliferated, offering premium accommodations and services (NBS, 2024). This growth aligns with global trends where luxury hotels contribute significantly to urban tourism development by enhancing visitor experiences and attracting international tourists. However, while luxury hotels in Abuja continue to expand, questions remain about their broader impact on the tourism sector, particularly regarding employment generation, foreign direct investment, and local economic integration.
Statement of the Problem
Despite the increasing number of luxury hotels in Abuja, there is limited research on their contribution to the city's overall tourism sector. While these hotels cater primarily to affluent travelers, their economic and social impact on the broader tourism industry remains unclear. Critics argue that luxury hotels may limit local business participation by prioritizing international brands and expatriate management (WTTC, 2023). Additionally, concerns exist regarding whether the growth of luxury hotels translates into increased tourist arrivals or merely redistributes existing business travelers among high-end establishments. Understanding the role of luxury hotels in shaping Abuja’s tourism landscape is essential for informed policy-making and strategic industry development.
Objectives of the Study
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To examine the factors driving the growth of luxury hotels in Abuja.
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To assess the impact of luxury hotels on Abuja’s tourism sector, particularly in terms of employment and revenue generation.
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To analyze the relationship between luxury hotel expansion and international tourist arrivals in Abuja.
Research Questions
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What factors are driving the growth of luxury hotels in Abuja?
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How do luxury hotels impact Abuja’s tourism sector in terms of employment and revenue generation?
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What is the relationship between luxury hotel expansion and international tourist arrivals in Abuja?
Research Hypotheses
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The growth of luxury hotels in Abuja is not influenced by specific economic or social factors.
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Luxury hotels do not significantly impact employment and revenue generation in Abuja’s tourism sector.
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The expansion of luxury hotels does not significantly influence international tourist arrivals in Abuja.
Scope and Limitations of the Study
This study focuses on luxury hotels in Abuja and their impact on the local tourism sector. It does not include budget hotels or informal lodging services. Limitations may include restricted access to financial data from private hotel chains and varying perspectives on the role of luxury hotels in tourism development.
Definitions of Terms
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Luxury Hotels: High-end hospitality establishments offering premium services and accommodations.
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Tourism Sector: The industry encompassing businesses and services that cater to travelers.
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International Tourist Arrivals: The number of foreign visitors traveling to a specific location.
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