When the subject of tourism is mentioned, cultural exchange and preservation, and international connectivity are raised as obvious benefits. Yet, one in ten jobs worldwide is directly related to tourism, proving that tourism is a largely unpraised job-creation machinery. Globally, tourism supports a dense concentration of small and medium-sized enterprises (SMEs), especially in the travel and hospitality sector.
Tourism is a major driver of economic growth, accounting for approximately 10% of global GDP in 2019, and contributing around $10 trillion to the economy. Even in the wake of the COVID-19 pandemic, tourism has shown resilience, recovering to about 7.6% of global GDP by 2022.
The top economies of the world have leveraged tourism for wealth and job creation. In the United States, the tourism sector supports millions of jobs across various industries, including hospitality, transportation, and entertainment, accounting for about 9% of total employment in 2023. Tourism contributes approximately $2.36 trillion to the United States’ GDP in 2023, representing about 10% of the total GDP.
Ranking as the second-largest travel market globally, China has leveraged its rapid growth of domestic tourism with a contribution of around $1.3 trillion to its GDP in 2023. Tourism in China has seen an annual growth rate exceeding 10% over the past decade.
France remains the most popular tourist destination globally, with a contribution of approximately $264.7 billion to its GDP in 2023. The tourism industry is a significant source of employment, supporting around 2 million jobs directly and many more indirectly in France.
Tourism is also the backbone of the Maldivian economy, accounting for about 37.95% of its GDP, and a vital source of funds for national development projects. The revenue generated from tourism is crucial for funding national development projects and improving infrastructure in the Maldives. Tourism accounts for 15.5% of Mexico’s GDP, 14.3% of Spain’s GDP, 13% of Italy’s GDP, and 11.3% of Turkey’s GDP.
The State of Tourism in Africa
The African story is no different. Africa is actively addressing its unemployment crisis through the tourism sector. In South Africa, where unemployment rates are notably high (around 29%), tourism employs approximately 720,000 people directly and an additional 1.5 million indirectly, contributing significantly to job creation in rural areas and small towns. Tourism is a cornerstone of Egypt’s economy, contributing approximately 15% to its GDP. In 2022, Egypt recorded $12.2 billion in tourism revenue. Morocco has also emerged as a leading tourist destination, welcoming nearly 16 million tourists in late 2024 alone, generating around $9 billion in revenue in 2022.
Rwanda has positioned itself as a premium eco-tourism destination, focusing on sustainable practices that attract high-value tourists. The country’s tourism revenue reaches approximately $500 million annually, with plans to increase this significantly through promoting gorilla trekking experiences and cultural tourism and improving infrastructure and hospitality services.
Nigeria’s commitment to tourism has been characterized by significant challenges and underperformance compared to other African nations and global leaders in the sector. While the government has recognized tourism as a priority area for economic diversification, actual investments and strategic implementation have often fallen short.
For one, the Nigeria Tourism Development Master Plan aims to enhance the socio-economic conditions through tourism, emphasizing community participation and capacity building at various governmental levels. Tourism in Nigeria has also shown significant potential for growth, with revenues reaching approximately $2.95 billion in 2023 and projected to increase to $3.74 billion by 2027. This growth is attributed to factors such as urbanization, digital innovation, and changing consumer lifestyles, with cultural tourism being a major draw for about 40% of foreign visitors.
Where is Nigeria on the Tourism Chart?
However, despite its impressive growth trajectory, Nigeria ranks poorly on global tourism indices, placing 110th out of 117 countries according to the World Economic Forum, reflecting a low prioritization of tourism by the Nigerian government which is further compounded by infrastructural deficiencies and security concerns that deter both domestic and international tourists.Â
Nigeria’s tourism battles infrastructure deficiencies, especially in the areas of electricity and transportation, and cultural and recreational facilities, security concerns, chronic funding lag and lack of government prioritization, coordination and marketing deficiencies, economic and structural barriers, and inadequate engagement of the private sector. In contrast, countries like South Africa have made substantial strides in tourism development. South Africa ranks 68th globally, benefiting from a diversified tourism strategy that includes cultural, adventure, and eco-tourism offerings.
Globally, tourism creates jobs through direct employment. Jobs directly related to tourism activities include roles in hospitality (hotels, restaurants), transportation (airlines, car rentals), and attractions (museums, parks). Indirect employment is also a major offshoot of tourism.
The tourism sector also stimulates job creation in supporting industries such as agriculture (food supply for hotels), retail (souvenirs), and construction (building new facilities) as it drives demand for goods and services. Also, increased tourist activity often attracts foreign direct investment (FDI), which can lead to technological advancements and further job creation within the local economy.
Nigeria, with the problem of unemployment especially amongst its teeming youthful population, needs to leverage tourism to create more jobs. Tourism can be a significant driver for job creation and unemployment eradication in Nigeria, leveraging the country’s rich cultural heritage, diverse landscapes, and potential for economic diversification.
Per direct employment opportunities, the Nigerian tourism sector is projected to create approximately 2.6 million new jobs over the next decade, doubling current employment levels in the industry. This includes roles in hospitality, travel agencies, tour guides, and event management.
Tourism also stimulates job creation in related sectors such as transportation, agriculture, and retail. As tourists visit, they require services like transport and food, thereby creating additional jobs in these areas. Plus, with a high unemployment rate among Nigerian youths, tourism offers a pathway for skill acquisition and employment. The sector’s labour-intensive nature guarantees the absorption of many unskilled workers with relatively short training periods.
Tourism also poses as the answer to Nigeria’s economy’s heavy reliance on oil exports. By developing tourism, the country can diversify its economic base, reducing vulnerability to oil price fluctuations. The tourism sector’s contribution to GDP is expected to grow significantly, reaching nearly ₦12.3 trillion by 2032.
Tourism also poses as the answer to Nigeria’s economy’s heavy reliance on oil exports. By developing tourism, the country can diversify its economic base, reducing vulnerability to oil price fluctuations. The tourism sector’s contribution to GDP is expected to grow significantly, reaching nearly ₦12.3 trillion by 2032.
Further, a robust tourism industry can attract foreign direct investment (FDI) into Nigeria’s infrastructure development, enhancing both hard (hotels, roads) and soft (marketing, training) aspects of tourism – an investment that can lead to further job creation and economic growth.
Also, as tourism encourages local entrepreneurship by providing opportunities for small and medium-sized enterprises (SMEs) to thrive, local businesses such as crafts shops, restaurants, and tour companies benefit directly from tourist spending. More importantly, the growth of the tourism sector necessitates improvements in infrastructure such as roads, airports, and hospitality facilities. These enhancements benefit not only tourists but also residents by improving access to services and amenities.
Nigeria needs to marshall efforts to rejuvenate its lagging tourism sector. For one, Nigeria needs to protect its natural environments which can create jobs in conservation, guiding eco-tours, and developing eco-friendly accommodations. In addition, encouraging community participation in tourism should be encouraged to foster development in rural areas, creating jobs locally and reducing urban migration pressures.
Governmental policies and investments are also needed to foster change. The government needs to offer tax incentives and grants for businesses investing in tourism infrastructure and ensure the safety and accessibility of tourist sites that can make destinations more attractive, drawing both foreign and local tourists and creating jobs.
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Frequently Asked Questions
- How do you develop a tourism industry?
Stages in Tourism Development Planning
- Understanding the market profile.
- Proper analysis of the market.
iii. Identify the types of tourist facilities.
- Tasks a developer should perform.
- Planning strategy for a tourism development project.
- Identifying the ideal location.
vii. Designing tourist development projects.
- What is the highest-paying job in tourism?
Leadership positions in hospitality, such as CEOs of hotel chains and Tourism Directors of luxury travel companies, are among the highest-paying jobs in Tourism. These roles demand extensive experience, strategic insight, and a robust industry network.
- What countries have the most jobs in the tourism industry?
China was the country worldwide with the highest travel and tourism employment in 2023. That year, the travel and tourism market generated, directly and indirectly, nearly 77.5 million jobs in the Asian country.
- Which country makes the most money from tourism?
From the selected regions, the ranking by revenue in the travel & tourism market is led by the United States with 204.45 billion U.S. dollars and is followed by China (149.18 billion U.S. dollars).
