Assessing the challenges of small and medium sized hospitality and tourism industries in Kaduna South Local Government.

 

CHAPTER I

INTRODUCTION

1.1            Background of the Study

Small and medium scale business has been a major source of revenue to most urban dwellers in Nigerian cities. World Tourism Organization (2022) has pointed out that tourism industries are now regarded as one of the best business enterprises in developed and developing countries of the world Fred, (2021).

This is evidence that hotels and recreational centers serve as tourism destinations through the provision of tourism facilities in most Nigerian cities Fred, (2021).

The Small scale enterprises have long been recognized as an instrument of economic growth and development and can explore the business and economic opportunists around them to become self –employed and create job for other people. Small scale business will provide job for the timid unemployed youths in the state Evans, (2024). Through small scale business, specific skills that are needed for successful entrepreneurship is taught such as the knowledge of the business environment, managerial skills, marketing strategies e.t.c. Taiwo, Yewande, Edwin, & Benson, (2022).

This growing recognition has led to the commitment of World Bank group on Small scale sector, as core element in its strategy to foster economic growth, employment and poverty alleviation. They have been given due recognitions especially in the developed nations for playing very important roles towards fostering accelerated economic growth, development and stability within several economies. Several researches have been conducted on the prospect and challenges of Small- and medium sized enterprises as they have long been believed to be important in supporting economics development within a country Chukwuemeka, (2021).

Agwu & Emeti, (2024); Arinaitwe, (2022); Oboh, (2021); Ihyembe, (2022) and a host of others have observed various factors or challenges that impedes the performance of small scale tourism industries ranging from inadequate finance, poor infrastructural facilities, inadequate managerial skill as challenges causing its closure.

The small and medium sized hospitality industries consist of hotel business, restaurants and bars, fast food, event and entertainment services including night clubs and other related businesses. Teoh and Chong, (2021).

According to UNCTAD (2008) report, small and medium sized enterprises are faced with numerous challenges which include lack of access to credit, managerial skills with many of them operating at the margin of survival. This study aimed at assessing the challenges of small and medium sized hospitality and tourism industries in Kaduna South Local Government.

 

1.2     Statement of the problem

Small and medium-sized enterprises (SMEs) in the hospitality and tourism sector, such as Zeecool Hotels, Bridge Park often struggle with limited access to capital, hindering their ability to invest in property, technology, and amenities. They also face challenges related to inadequate infrastructure, like inconsistent energy supply, and a lack of access to necessary raw materials. 

There is a general lack of skilled personnel and a shortage of training opportunities, which results in a gap in service quality and operational efficiency. This limits the ability of businesses to provide consistent, high-quality customer service. 

The study needs to address the difficulty these businesses have in effectively marketing their services, both locally and to a wider tourism audience. They often lack the resources and expertise for strategic marketing campaigns, leading to a limited customer base. 

The hospitality industry is vulnerable to external pressures like inflation, trade barriers, and inconsistent regulatory environments, which disproportionately affect smaller businesses. These factors create an unstable operating environment and increase the cost of doing business. 

These combined challenges create a cycle of limited growth and a struggle for survival, particularly for smaller players like Zeecool Hotels. Without addressing these issues, these businesses will continue to be vulnerable to market fluctuations and unable to reach their full potential within the broader hospitality and tourism industry. 

 

1.3         Objectives of the study

The general aim of this study are:

1.     To assess how small scale hospitality and tourism industries perceive the current business environment in Kaduna South LGA.

2.     To examine the inadequate infrastructure (e.g., power, water, transportation) and how it affects operations of small and medium-sized hospitality and tourism businesses.

3.     To identify the major challenges hindering the growth of small and medium-sized hospitality and tourism businesses in Kaduna South LGA.

 

 

 

 

 

1.4     Significance of the study

Assessing the challenges of small scale hospitality and tourism industry will help sensitize tourism professionals as well as policy makers in the field to highlight the challenges confronting small and medium scale hospitality industries in Kaduna South Local Government with a view to tackling such challenges and recommendations may be made towards more effective sustainable tourism development.

Private sectors, individuals, government will also benefit as it will serve as relevant document which will give them more insight so that investors can be confident enough to invest in the state economic.

This research work contributes to knowledge which will be of benefit to students and researchers in the field of tourism as well as a guide in order to carryout research related to the topic.

 

1.5            Scope of the study

The scope of this project includes a detailed assessment of the specific challenges faced by small and medium-sized hotels and tourism businesses in Kaduna South LGA with a focus on Zeecool Hotels and Bridge Park. The project will examine the internal and external factors affecting their growth, such as operational, financial, and marketing challenges, and will also analyze the effectiveness of their strategies in overcoming these issues. Ultimately, the project will provide recommendations for both the specific hotels and the broader industry, based on the findings from the case studies. 

 

1.6     Research questions

1.     How do small scale hospitality and tourism industries perceive the current business environment in Kaduna South LGA?

2.     How does inadequate infrastructure (e.g., power, water, transportation) affect the operations of small and medium-sized hospitality and tourism businesses?

3.     What are the major challenges hindering the growth of small and medium-sized hospitality and tourism businesses in Kaduna South LGA?

 

Location: Kaduna 800283, Kaduna, Nigeria

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