Tourism for socio-economic development: The Ekiti State example

It is a matter of tremendous thrill and delight for me to be asked to give this short Guest Speech at this maiden historical and cultural event of the Festival of the Arts, Culture and Tourism in Ekiti State. At a time like this when the nation has declared its intention to transform its economy […]

It is a matter of tremendous thrill and delight for me to be asked to give this short Guest Speech at this maiden historical and cultural event of the Festival of the Arts, Culture and Tourism in Ekiti State. At a time like this when the nation has declared its intention to transform its economy through diversification of its abundant blessing with human and natural resources, and to centralize cultural industries in the enterprise, no time can be more rife and apt for Ekiti State, any Nigerian State for that matter to join the clarion to bring culture and tourism into the centre stage of economic transformation.

I therefore heartily congratulate the Government and people of Ekiti State for embarking on this all-important cultural rebirth. It is my hope that this will be  a sustained engagement.

Ekiti state is one of the states created by the Military Government in October 1, 1996 and it is blessed with abundant human and material resources; skilled man-power and mineral resources. Probably the first thing that comes to mind whenever the state is mentioned is its investment in education. Many are of the opinion that Ekiti has the largest number of Professors in the country, with many of them being first in their areas of specialization. For instance, among the pride products from Ekiti are; Professors Adegoke Olubummo, first Professor of Mathematics in Nigeria; and Adeyinka Adeyemi, first Professor of Architecture in West Africa, among others too numerous to recount here.

Since its creation, the State, with a population of about 3 million, has been striving to improve the lot of her people, many of whom are in the rural areas.

The state has the potentials of developing at a fast pace if the available resources can be properly harnessed. With a GDP total of $2.85 billion and Per Capita of $1.69, one can say the state is not doing badly among her peers.

One area with a great potential for development in the state is Tourism. Next to the great academic achievements the state is known for and the vast agricultural potentials, is Tourism. Once Ekiti state is mentioned, there are some tourist areas that readily come to mind and this include the very famous Ikogosi Warm Spring. There are also the Ipole-Iloro and Arinta Water Falls, Olosunta Hills, and  Fajuyi Memorial Park in Ado Ekiti. In addition, there are other rocks that are of attraction to tourists, including the ones at Aramoko, Efon Alaaye, Ikere Ekiti, Igbara-Odo-Ekiti, and Okemesi Ekiti. Each of these has great potentials as tourist destinations.

All over the world, development experts have realised the importance of tourism in their efforts to better the living conditions of the people. Records have shown that many countries now make tourism development an integral part of their strategy for development rather than place it at the periphery as it was done in the past. Figures on the contributions of tourism to development are impressive and have been on the increase in many parts of the world.

According to the United Nations economic and Social Commission for Asia and the Pacific (UNESCAP), “Worldwide, receipts from international tourism amounted to US$ 733.0 billion in 2006, a net increase since 1996 of US$ 296.5 billion, which was an average annual increase of 5.5 per cent during the ten-year period.”

The bulk of this is in the developed economies of the world. UNESCAP went ahead to indicate that “while the world’s average annual growth rate for international tourist arrivals was 5.4 per cent from 2005 to 2006, Asia and the Pacific grew at 7.7 per cent, which was the third highest rate of growth for 2006, behind Africa’s growth rate of 9.2 per cent and the Middle East at 8.9 per cent.” Thus, we can say that Africa is doing well in terms of the international tourist arrivals. However, what we could not say boldly is that Nigeria is at the commanding height of Africa’ satisfactory performance in tourism growth.  Nevertheless, one thing that is sure is that the potentials to do great are there, waiting to be harnessed.

According to UNWTO, “Japan, China and the Russian Federation were among the top ten in terms of international tourism expenditure. The Republic of Korea; Hong Kong, China; Australia; and Singapore were among the top twenty. Tourists from these seven countries spent about US$ 116 billion on international travel and tourism in 2004.” With the economies of these countries doing well, it means that any country planning to attract International tourists must key into the needs of their tourists, since they are the big spenders.

Let us briefly examine Domestic Tourism. While international tourists are the main attractions of development planners, one area that is equally important, but often neglected, is that of domestic tourism. This type of tourism is often overlooked, although it brings wealthier urban dwellers to rural areas. Sometimes, one wonders from the comments by some Nigerians whether they actually know their country. For instance, how many people can boast of having travelled round the country, not to talk of visiting historic sites in the country? There are instances when even the elite, or worse still newspaper columnists, talk or write about people and places they have never visited. It may also account for why some people extend general prejudices to people or race they know very little or nothing about.

There are so many reasons why Tourism Planners must pay special attention to domestic tourism. This is already the case in other countries. For instance, in India, it is estimated that there were more than 100 domestic tourists for every international tourist in 2003. In China, the ratio was 26:1, while in Thailand it was 7:1, in Indonesia it was 7:1 and in Viet Nam it was 5:1. If the rate is, 10:1 in Nigeria, with our vast population, it can better be imagined the amount that will come in through tourism and help the Per Capita income.

Also, domestic tourism provides opportunities for wealth redistribution and economic development, as well as contributing to greater awareness about the culture and environment in one’s own country. It is even needed more in Nigeria, where mutual suspicion is the order of the day, giving room to hatred and crises. Domestic tourism, apart from carrying the potential for wealth creation, helps in redistributing the wealth and moving it from the urban to rural areas. As stated by the World Travels and Tourism Council (WTTC),

It is possible for domestic tourism to support a spatial redistribution of income and employment as in the cases of the Michi-no-Eki in Japan and the Dhaba in India, which are roadside service centre concepts. An important cultural phenomenon observed in many Asian countries is that when a domestic tourist travels, he or she is expected to bring back gifts for friends and relatives that reflect the specialized food products and handicrafts of the area visited. In Thailand, for example, this leads to large numbers of roadside stalls, shops and agglomerations in the main regions–selling fruit in the north-eastern part of the country, dried fish in the eastern part and confectionery in the western part.

To be Continued

The economic impact of the tourism industry is usually assessed at the

Macro-economic level and can be measured in several, different ways. The commonest measurement focuses on tourism receipts and the contribution of tourism to a country’s GDP. From available records, “the tourism economy provided a contribution of 13.7 per cent to China’s GDP in 2006 while the World Travel and Tourism Council estimates revenue related to tourism and travel in Nigeria will exceed 10 billion $USD in 2007, and will account for approximately 6% of the GDP. More recently, the World Travel and Tourism Council’s Economic Impact Research for 2012 reveals that Tourism’s direct contribution to GDP in 2011 was US$2 trillion and the industry generated 98 million jobs. Travel & Tourism’s total contribution in 2011 was US$6.3 trillion in GDP, 255 million jobs, US$743 billion in investment and US$1.2 trillion in exports. This contribution represented 9% of GDP, 1 in 12 jobs, 5% of investment and 5% of exports.

The Growth forecasts for 2012, although lower than anticipated a year ago, are still positive at 2.8% in terms of the industry’s contribution to GDP. Longer-term prospects are even more positive with annual growth forecast to be 4.2% over the ten years to 2022.

The above are worldwide figures and we need to zero in on the Nigerian situation. According to Obinna Emelike of Business Day Newspaper, “the WTTC further forecasts in the report that in 2012 alone, some 897,500 jobs, representing 1.4 percent of Nigeria’s total engaged work-force will be generated from the travel and tourism industry. With about N1,232.2 billion (3.3 percent) contribution to the GDP in 2011; possible rise by 10.8 percent in 2012 and further increase by 7.0 percent annually to hit N2,690.8 billion in 2022, the Nigerian travel and tourism industry is fast opening up to huge investments.”

There is a social dimension to tourism growth. Employment is one of the most readily available indicators to begin measuring the social impact of tourism, since job creation generally helps create the opportunities for better standards of living and related conditions of socio-economic progress. In 2006, the tourism economy (direct and indirect contribution) provided jobs for about 140 million people in the selected sub-regions and countries of the Asian and Pacific region, representing an average of 8.9 per cent of total employment. This result can be attributed mainly to China, where 77.6 million people, approximately 1 in every 10 employed persons, worked in the tourism economy.

This is an important way of addressing the problems of the poor in the society. As we all know, poverty has its multiplier negative social effects on the society. When people are gainfully employed, they can feed themselves and as the Yoruba adage says, “tie bi ba kuro ninu ise, ise bu se.” Literally translated to mean, “with diminished hunger, poverty is alleviated.” Among the many different types of poor people that tourism can provide jobs  for are: staff, neighbouring communities, land-holders, producers of food, fuel and other suppliers, operators of micro-enterprises, informal businesses, craft-makers, other users of tourism infrastructure and resources, and so forth. This explains why some countries have been tagging tourism along with solving the problems of poverty; under the umbrage of what they term as Pro-Poor Tourism, which is an approach to tourism development and management that results in increased net benefits for poor people by enhancing linkages between tourism businesses and poor people. Its strategies focus on the local or community level and aim at increasing tourism’s contribution to poverty reduction and enabling poor people to participate more effectively in tourism development.

Our discussion so far has revealed that the potentials of tourism, earnestly nudging all planners and policy makers to harness those potentials. On the basis of this, let us look at the mechanism in place to do this in Ekiti state.

It gladdens my heart that the government of Ekiti State is giving tourism its rightful place in the development efforts of the state.  Tourism development is listed as the number seven (7) (I believe not in order of priority) in the Governors’ 8-Point Agenda. This is with the aim of making Ekiti State “one of the leading tourism destinations in Nigeria.”

Aside listing Tourism as one of the cardinal points for development, the Governor seems set to create a conducive and direly- needed institutional and policy environment for tourism to thrive. There is now in place a Ministry of Culture, Arts and Tourism, which seems to me to be in tandem with the National Structure. There is also direct provision of Budgetary Allocation to Tourism development with a capital vote of N146 million in 2011. Also of significance is the creation of the Bureau of Tourism Development, whose objectives and goals are, to make Ekiti State a most attractive destination for relaxation and holidays by building a heliport, world class hotel and accommodation facilities, developing Efon, Okemesi, Ikogosi, Ipole-Iloro tourism corridor.” When this is juxtaposed with the proposal to include 18-Hole Golf Course, Canopy Walk, Family Arcades and Sporting facilities in the designated corridor, the road seems clear for a proper take-off. This is not a mean vision which, if properly and carefully implemented, can turn around the economy of the state and satisfy some other socio-economic needs and development.

It appears persuasive that that the state is on its way to utilising the dormant potentials of tourism for her socio-economic development.

Having looked at the potentials and realities of tourism in the world, Nigeria and Ekiti state, I am convinced that all that remains is for us to move on from where we are now. On the basis of this, I recommend that government should consider the following recommendations:

1.    Put in place a robust and clear Tourism Development Strategy. By this I mean a Strategy that will include the details of what is to be done and the approaches to be used within a given time-frame. This will help in the implementation, monitoring and evaluation of the Strategy.

2.    Increase the budgetary allocation to tourism so that it can achieve its full potentials. This is with the knowledge that whatever is invested into tourism will surely yield good socio-economic results that will lead to rapid development of the state.

3.    Put in place adequate legislation to curtail the many “negative externalities,” in particular, negative social and environmental impacts that may emanate during implementation

4.    Intensify efforts at involving and partnering with the private sector for the injection of sufficient capital into the industry

5.    Commence, without delay, an aggressive infrastructural development in the state, with particular emphasis on the tourism corridor.

I am convinced that if Government combines the recommendations given above with what is already in place, the State will reap the following benefits; generate revenue, grow jobs, promote  unity and understanding among the citizens (within the state, nationally and internationally), attract investors, promote good image for the state, alleviate grass-root poverty and establish sustainable peace in the state.

It is also pertinent for the government to give adequate attention to domestic tourism because of its many advantages.

It is heart-warming, even commendable that the Governor of Ekiti State, Dr Kayode Fayemi has placed emphasis on cultural tourism in his socio-economic vision and project for rapidly developing the state. Other States should euate this apt vision in their economic development plans.

It remains for me to wish you all a very rewarding and purposeful cultural festival and bright future for the state.