ANALYSIS OF THE CONTRIBUTION OF TOURISM TO ECONOMIC GROWTH OF NIGERIA: 1995 - 2017

This study analysed tourism and economic growth in Nigeria. The main objective of the study is to examine the contribution of tourism sector to the economic growth of Nigeria. The study utilizes the econometric methods of unit root, cointegration and granger causality analysis to rid the time series data of unit root, establish the causal link and the long run relationship between tourism and economic growth in Nigeria. The result of the study showed that total visitor exports and capital formation were significant determinants of economic growth in Nigeria in terms of the magnitude of their contribution to the economic growth process of Nigeria. The empirical result of the study further shows that tourism revenue and tourism employment are inversely related to GDP as evidenced in their negative coefficients. This negative relationship is largely explained by poor policy environment, insecurity and leakages of tourism revenue via remittances and interest payments on foreign capital in the Nigerian tourism sector. The study therefore recommends increased government’s investment and private sector participation in the tourism sector