CHAPTER ONE

INTRODUCTION

1.1              Background to the Study

The hospitality industry is a functional service sector where standard human resource management is needed to enhance professionalism and efficiency in the delivery of good and service. According to Joint Hospitality Industry Congress in Lashley (2000) hospitality is defined as the provision of food, drink, and accommodation away from home. It is an interactive process that exists among customer and host which can eventually be companies or organization. The hospitality industry is among the sustainable income generating sources for economic development. Hence, this has generated interest in educational sector because of its impact on the country gross domestic product. The hospitality industry is seen as a major sector for many countries in the development of their socio-economic growth and some countries impact their economic fate within a desirable period by engaging in hospitality oriented businesses (Uddin, Das; and Rahman, 2008). The hospitality industry is central and essential to the general welfare of many countries in the world, revenue from hospitality industry is one of the main sources of foreign exchange in some regions like Fiji, the Caribbean, and Hong Kong.  It contributes to the growth of an economy by creating jobs opportunities and funding a large percentage of a country’s Gross Domestic Product. It enhances the level of national income by earning foreign currencies through the goods and services supplied to foreign visitors thus improving the balance of payment (Baker, 2006).

Hospitality management includes management of hotels, travel agencies, restaurants and some institutions which are anchored on the hospitality industry. Services of the hospitality industry are usually patronized by tourists; when people eat in restaurants, lounge in hotels, go out to watch movies or engaged in similar activities. Tourism is one of the vehicles that drives Hospitality Industry while hospitality industry provides services for tourists such as transportation, accommodation needs in resorts, hotels restaurants, pubs and bars, food and beverage, recreation and leisure. The strategic importance of hospitality industry to tourism was confirmed by the United Nations World Tourism Organization (UNWTO) that 70% and 75% of international tourists’ spending goes to hospitality services on an annual basis (Akpabio, 2007). The World Travel and Tourism Council (WTTC) attests that hospitality employment in both developed and developing countries worldwide accounted for over 230 million or 8.7 per cent jobs (WTTC, 2006).

In the midst of an economy meltdown in Nigeria, the hospitality industry contributed 2.75 billion in 2007. 3.10 billion in 2008, 3.44 billion in 2009, 245.7 billion in 2010. 268.41 billion in 2011, 310.96 billion in 2012. 540.63 billion in 2013, 639.71 billion in 2014, and 654.22 billion into the economy according to the National Bureau of Statistics. Worland and Wilson (1988) described the hospitality industry as an establishment that includes but not limited to services in hotels, restaurants, licensed clubs and motels. Therefore this dissertation will consider hotel industry as one of the hospitality industry since it has been identified as one of the fundamental drivers of the growth and development of tourist sector in Nigeria.