AN EVALUATION OF THE IMPACT OF DOMESTIC TOURISM ON LOCAL ECONOMIC DEVELOPMENT: A CASE STUDY OF IKOGOSI WARM SPRINGS, EKITI STATE

AN EVALUATION OF THE IMPACT OF DOMESTIC TOURISM ON LOCAL ECONOMIC DEVELOPMENT: A CASE STUDY OF IKOGOSI WARM SPRINGS, EKITI STATE

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study

Tourism has become one of the most dynamic and fastest-growing sectors in the global economy, contributing significantly to national income, employment generation, and cultural exchange. In developing countries, domestic tourism—defined as travel within a country by its residents—plays a pivotal role in stimulating economic growth, particularly in rural and less developed areas (World Tourism Organization [UNWTO], 2020). In Nigeria, although international tourism remains underdeveloped, domestic tourism has gradually gained prominence as a potential tool for grassroots development, cultural preservation, and economic diversification beyond oil dependence (Aremu & Lawal, 2021).

Ekiti State, located in southwestern Nigeria, is known for its unique geographical and ecological features. Among its key tourist attractions is the Ikogosi Warm Springs, a natural wonder where warm and cold springs meet and flow side by side without mixing. This site, long celebrated for its aesthetic, therapeutic, and spiritual values, has attracted visitors from across Nigeria for recreational, religious, and research purposes. The Ekiti State Government has made efforts to upgrade the site’s infrastructure and promote it as a major tourist destination. These initiatives aim to boost local employment, stimulate micro-entrepreneurship, and enhance internally generated revenue (Ekiti State Tourism Board, 2023).

Despite these efforts, questions remain regarding the actual economic impact of domestic tourism on local development around the Ikogosi area. While anecdotal evidence suggests benefits such as increased sales for local vendors, job opportunities for tour guides, and hospitality service expansion, there is limited empirical research that evaluates these outcomes. The lack of structured data and analysis makes it difficult to determine whether tourism is a sustainable engine for local economic growth or merely a seasonal activity with marginal benefits.

This study seeks to fill that gap by evaluating the impact of domestic tourism on local economic development, using Ikogosi Warm Springs as a case study. Through an assessment of employment generation, income levels, infrastructure development, and small business growth, the study aims to provide a comprehensive picture of tourism’s developmental role at the community level. Understanding this dynamic is essential for policymakers, tourism authorities, and local stakeholders who are committed to transforming Nigeria's tourism landscape into a vehicle for inclusive economic development.

1.2 Statement of the Problem

Despite its potential, the tourism industry in Nigeria remains largely untapped and underdeveloped, with most attention given to oil and other extractive industries. Even where tourist attractions exist and are promoted, such as the Ikogosi Warm Springs, there is insufficient data on the actual socioeconomic benefits that accrue to local communities. Many tourism development initiatives lack continuity, stakeholder engagement, and impact measurement frameworks (Okonkwo & Uche, 2020). As a result, investments in tourism infrastructure may not always translate into meaningful improvements in local living standards or sustainable economic gains.

In the case of Ikogosi, public and private sector investments have aimed at upgrading the site and encouraging domestic travel. However, the long-term effects on income generation, small business development, employment opportunities, and infrastructural improvements within the host community have not been systematically evaluated. Additionally, there is limited documentation on whether the local population perceives tourism as beneficial, inclusive, and participatory.

This lack of empirical evaluation presents a significant problem. Without concrete evidence, policymakers and development agencies may be unable to allocate resources effectively, and local stakeholders may become disenchanted with tourism initiatives. There is a pressing need to move beyond rhetoric and tourism promotion to a more evidence-based analysis that quantifies the contribution of tourism to the local economy and identifies areas for improvement.

This study, therefore, addresses this gap by using Ikogosi Warm Springs as a case study to evaluate how domestic tourism impacts local economic development. It aims to provide data-driven insights that will inform both policy and practice, ensuring that tourism fulfills its potential as a driver of inclusive and sustainable growth.

1.3 Objectives of the Study

To examine the level of economic activity generated by domestic tourism in the Ikogosi area.

To assess the impact of domestic tourism on employment, small businesses, and infrastructure development.

To evaluate the perceptions of local residents regarding the economic benefits of tourism in Ikogosi.

1.4 Research Questions

What types of economic activities are most influenced by domestic tourism in the Ikogosi area?

How has domestic tourism impacted employment rates, small-scale enterprises, and infrastructural development in the community?

What are the perceptions of local residents concerning the economic value of tourism?

1.5 Research Hypotheses

H₀₁: Domestic tourism does not have a significant impact on employment and small business development in the Ikogosi area.

H₀₂: There is no significant relationship between domestic tourism and infrastructural development in the host community.

1.6 Significance of the Study

This study is significant for several reasons. First, it contributes to the growing body of knowledge on tourism economics in Nigeria, particularly the under-researched area of domestic tourism. Second, it provides empirical evidence that can guide policy decisions regarding tourism investments and community development. For local governments and tourism boards, the study offers insights into what works and what requires rethinking in tourism planning. Third, the research is valuable to NGOs and international development partners interested in inclusive economic growth and sustainable livelihoods. Finally, the findings will benefit the host community by bringing their perspectives into policy dialogues and tourism strategies.

1.7 Scope and Limitation of the Study

The study is confined to Ikogosi Warm Springs in Ekiti State and its immediate surrounding communities. It focuses on the economic impacts of domestic tourism activities from 2015 to 2024. The study does not cover international tourism or environmental impacts, which are outside the scope. Limitations may include access to reliable data, seasonal variations in tourist numbers, and response biases among local respondents.

1.8 Operational Definition of Terms

Domestic Tourism: Travel by residents of a country within their own national borders for leisure, business, or other purposes.

Local Economic Development: Economic progress and livelihood improvements experienced by communities, often measured in terms of employment, income, and infrastructure.

Tourist Site: A geographical location recognized for its attractiveness to visitors due to its cultural, historical, ecological, or recreational features.

Ikogosi Warm Springs: A natural spring in Ekiti State where warm and cold water flow side by side, known for its therapeutic and aesthetic qualities.

Tourism Infrastructure: Physical and organizational facilities and services such as roads, hotels, and tour guide services that support tourism activities.

1.9 Structure of the Study

This dissertation is organized into five chapters. Chapter One provides the introduction, including background, objectives, and significance. Chapter Two presents a review of relevant literature and theoretical frameworks. Chapter Three details the research methodology, including data collection and analysis techniques. Chapter Four presents the data and analyzes the findings. Chapter Five concludes the study and offers policy recommendations.

References

Aremu, T. S., & Lawal, A. B. (2021). Domestic tourism development in Nigeria: Opportunities and challenges. African Journal of Tourism Research, 8(1), 44–60.

Ekiti State Tourism Board. (2023). Annual tourism report on Ikogosi Warm Springs. Ado-Ekiti: Ekiti State Government.

Okonkwo, C. C., & Uche, I. A. (2020). Community-based tourism in Nigeria: Issues and prospects. Journal of Hospitality and Tourism Management, 12(2), 98–113.

UNWTO. (2020). Domestic tourism: A key to sustainable recovery. Madrid: United Nations World Tourism Organization.