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TRAVEL LIFESTYLE AND OUTBOUND TOURISM INTENTION IN NIGERIA

CHAPTER ONE

Introduction

1.1   Background of Study

Nigeria, one of the leading oil producers in Africa, recorded stable economic growth during the review period, driven by growth in both the oil and agricultural and service sectors. Its gross domestic product (GDP) grew by 6.4% in 2013, according to International Monetary Fund (IMF) estimates. In April 2014, the Nigerian government overhauled the GDP-calculation process by updating the base year from 1990 to 2010. Rebasing made Nigeria the largest economy in Africa, surpassing South Africa. Tourism in Nigeria is mainly built around its natural attractions and the numerous festivals celebrated in the country throughout the year. The Durbar festival is celebrated annually in many cities in Nigeria and is a major attraction for domestic tourists. Other festivals include the Argungu Fishing Festival, the Festival of Light, the Calabar Carnival, the Eyo Festival, the Osun Festival and the Yam Festival. The country's natural attractions and geographical sites also attract a large number of domestic and international tourists.

In the World Economic Forum's (WEF's) Travel and Tourism Competitiveness Index 2013, Nigeria ranked 136 out of 140 countries in terms of safety and security in 2013. Poverty and unemployment are major factors contributing to the country's high crime rates. In addition to local, regional and national terrorism, armed robberies and attacks – particularly on tourists as they are perceived to be rich, kidnappings, carjacking, extortion and assaults are widespread. Safety and security concerns in the country are a deterrent for international tourists, with international tourist arrivals to Nigeria declining at a review-period CAGR of -10.47%. The number of visitors on leisure trips declined at a CAGR of -14.87%, while a slower decline was recorded in the number of business travelers, at a CAGR of -3.28%. However, the share of business travelers in terms of total international arrivals increased from 33.7% in 2009 to 45.9% in 2013. Warnings issued by several countries in the Americas and Europe advising people to avoid travel to Nigeria also contributed to the low volume and slow growth of international visitors.

Nigeria has seen an increase in residents' preference for international holidays, with outbound tourist volumes increasing at a review-period CAGR of 6.65%. Outbound tourist expenditure also rose at a review-period CAGR of 17.70%. Improving economic conditions in the country have led to rises in income levels, enabling more Nigerians to holiday abroad. However, the volume of business travelers recorded the highest growth at a review-period CAGR of 8.97%, indicating a rise in business-related tourism activity in the country. The airline market in Nigeria has faced numerous challenges recently. Several domestic airlines have ceased operations, and fatal air crashes have contributed to a negative image for the country's airline services. Consumer confidence in Nigerian aviation services reached a low in 2012, with five fatal air crashes between March and October claiming more than 160 lives. Declines were recorded in both passenger traffic and revenue at respective rates of -4.2% and -3.6% in 2012. Overall, during the review period the total airline revenue increased at a CAGR of 5.02%, with strong domestic demand keeping the aviation industry active.

The hotel market in Nigeria performed significantly well during the review period, with total revenue increasing at a robust CAGR of 21.32% from NGN682.8 billion (US$4.6 billion) in 2009 to NGN1.5 trillion (US$30.9 billion) in 2013. The total number of guests also increased at a CAGR of 5.46%. Rapid growth in the economy has attracted investors from around the world, and many leading hotel chains have expanded their footprints in the country. Increasing demand for luxury and upscale hotels by business travelers also contributed the increasing interest of international hotel chains in the country. Nigeria in this era are raised in an environment that offers a wide and increasing range of travel opportunities. As on 2013, approximately half of the holiday makers’ population in Malaysia consisted of young people (Euromonitor International, 2014). Due to low-cost carriers become the common travelling mode of transportation, the ease of information searching and tourism products purchasing via World Wide Web, travelling is at its most accessible ever and thus, the increasing freedom to travel. So, it is a fact that today’s Nigerians’ attitudes towards holiday making are very positive. Although young travellers have a strong desire to travel, the cost, affordability and accessibility will need to be assessed to turn potential into actual demand (Glover, 2010). Therefore, further study needs to be carried out to investigate their travel behaviour as suggested by Tsiotsu and Ratten (2010). Moreover, Aziz and Ariffin (2009) suggested that behaviouristic study is required to understand the Nigerian travellers market as pleasure travel is expanding in Nigeria. They also remark that it is crucial to investigate how people make their travel decisions and what they enjoy during travelling. In brief, travelling has become easier and more affordable than it was before. These changes are contributing to the age of travellers getting younger. Hence, it is not deniable that young travellers are an increasingly important segment in both tourism businesses and studies. Despite an increasing interest in the market size of young travellers, economic potential and their desire to travel, relatively little is known about their travel lifestyles and intentions to overseas travel. Therefore, this study aims to provide insights of Nigerian’ travel lifestyles and travel intentions.

1.2   Statement of the Problem

There are so many outbound tourism in Nigeria and factors hindering the successful implement of Nigerian intention to tourism, the rate of inbound tourism seems to be significant low to the outbound tourism in Nigeria which signify that the Nigerian travel lifestyle with the hospitality industry is far lacking from the standard ought to be. The following reasons are the core issue seen by the researcher.

1.  Nigerians tends to visit other country for tourism then other nations visits ours.

2.  The government seems to do nothing concerning the inbound and outbound of our tourist sector.

3.  To explicitly, review the tourism intention of Nigerian, because from the trends of Nigerian outbound relatively to the inbounds tell me that there is no intention for tourism in Nigeria.

1.3   Objectives of the Study

The project work aims at determining and highlighting the trends on Nigerian outbound tourism and travel lifestyle. The study will also provide exploration and reason for Nigerian tourism intention. The objectives are stated as follows:

1.  To develop the Nigerian’ profile covering personal characteristics, travel lifestyles and their intentions to overseas travel.

2.  To examine the relationship between Nigerians travel lifestyles and travel intentions for outbound tourism.

3.  To serve as a guideline for the travelers and a traveling view guide.

1.4   Research Questions

The research work is guided with same research question, which will be administered and distributed among the researchers area of study which are the respondents to this research work and these comprise the travelers and the management. Sample research question are:

1.  What are the intention for you traveling out to overseas travel?

2.  From the view of things what is the relationship between Nigerians travel lifestyles and travel intentions for outbound tourism?

3.  Do you think is the level of outbound tourism in Nigeria is ok or to standard?

4.  What are the measures to be taken to moderate the travel lifestyle and outbound tourism in Nigeria?

5.  What are the areas you think that tourism and hospitality industries needs to improve to serve the nation better?

1.5   Statement of Hypothesis

The researcher formed some of the hypothesis which will be tested to support this study. The hypothesis will be tested at 0.05 level of significance using the t-test method and correlation analysis. The research hypothesis are as follows.

Hi: There is no significance relationship between travel life style and the out bound tourism in Nigeria.

Ho: There is no significance relationship between travel life style and the out bound tourism in Nigeria.

Hi: Nigerian outbound tourism intention has potential positive effect to travel lifestyle to tourism.

Ho: Nigerian outbound tourism intention has potential positive effect to travel lifestyle to tourism.

1.6   Signification of the Study

This report provides an extensive analysis related to the tourism demands and flows in Nigeria:

• It details historical values for the Nigerian tourism sector for 2009–2013, along with forecast figures for 2014–2018.

• It provides comprehensive analysis of travel and tourism demand factors, with values for both the 2009–2013 review period and the 2014–2018 forecast period.

• The report provides a detailed analysis and forecast of domestic, inbound and outbound tourist flows in Nigeria.

• It provides comprehensive analysis of the trends in the airline and hotel industries, with values for both the 2009–2013 review period and the 2014–2018 forecast period.

1.7   Justification of the Study

I want to justify this research work based on the objectives and the significance of this research work, what is within its coverage, this research work is with no doubt necessary to be carried out. Because if done will greatly highlight the importance creating a sustainable tourism, intension that will contribute to the development of the nation and maintain an average inbound and outbound travel lifestyle.

1.8   Scope of the Study

This research work will be covering Nigerian traveling lifestyle and outbound tourism in Nigerian, also, the tourism intention in Nigeria. Well due to the large number of travelers, the researcher will use the result and analysis gotten from the Nnamdi international airport Abuja for this research work.

1.9   Limitation of the Study

One of the limitation to this research work is the cost of performing/researching this project work, the researcher encountered a lot of challenges as well as opposition which ranges from financial constraints, time factor. This factors in their own ways, slowed down the speedy progress of this work that resulted to the researcher not being able to finish the research work on time as is required. Also,  within the area of study the researcher was faced with some other forms of constrains that contributed to the limitation of this researcher work, like accessibility to data, information and facts concerning the present study due to some reasons or the other, some not willing to give out information that it is to be within the workers.

1.10  Definition of Terms

Some of the term that will be used frequently would be defined in order to have a broad and clear understanding of the topic. There terms includes the following:

Travel: is the movement of people between relatively distant geographical locations.

Tourism: is travel for pleasure; also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists.

Outbound Tourism: is the tourism of resident visitors outside the economic territory of the country of reference.(Nigerians going for tourism in Dubia, Paris, Monbia etc).