The Relationship Between Destination Safety, Foreign Direct Investment and Tourism Development in Nigeria: Lesson from China Tourism Policy


Written by;

Abba Abubakar Shehu PhD
National Institute for Hospitality and Tourism, Kano


The aim of this study is to examine the factors that because Tourism related FDI inflows into Nigeria with special focus to destination safety. Dichotomous type of questionnaire was administered by 188 respondents who are managers/owners of various hospitality and tourism firms in Kano, Kaduna and Katsina states. 145 questionnaires were successfully filled and returned. We applied binomial logistic regression statistic to ascertain the contribution of ten variables in determining Tourism related FDI inflows into Nigeria. Our finding shows that destination safety (p=.003), low tax (p=.018), availability of resources (p=.024), cheap labor (p=.045), free transfer of capital and profit (p=.010), infrastructural facilities (p=.032) and Naira depreciation (p=.006) are the most significant factors stimulating Tourism related FDI inflows into Nigeria with market availability (p=.142), regulatory framework (p=.781) and high demand of tourism products and services (p=.734) found to be insignificant factors. We recommend that government should invest heavily in developing infrastructural facilities and ensure maximum safety and security to enable attract more FDI into Nigeria.