Paper Title: Small and medium enterprises engagement in tourism and hospitality sector of Lagos State Nigeria, benefits and constraints
Authors: Oyewo Adetola,
Abstract: Unemployment , increase in tourists arrival and rise of purchasing power of middle class entrepreneurs has made small and medium enterprises engagement in tourism and hospitality Sector of Lagos State, Nigeria flourish. The paper discusses requirements for Small and Medium Enterprises (SMEs) tourism and hospitality, Hotel Market in Lagos, Hotel classification, benefits and challenges of the sector. The study adopted a qualitative research approach, observations and structured interviews. Interviews were conducted with 10 randomly selected participants such as hotel guests, hotel operators, officials of SMEs and Hotel licensing Authority in Lagos.
The paper argues that the sector is beneficial to both entrepreneurs and countries in terms of employment, taxes, GDP and foreign exchange. The study found out that challenges as dilapidated infrastructure, multiple taxes, inadequate funding, Ebola virus, poor educational background of operators and SMEs regulatory requirement affected the day to day operations, patronage and profitability of the sector. However, in spite of these, SMEs entrepreneurs have devised strategies to overcome these challenges. The paper suggested that for SMEs to fully flourish, the government need to do more in terms of infrastructural facilities, tax holiday, tax rebate and soft loans, with flexible repayment plans for potential investors in the sector.