ABSTRACT

The study examined the economic recession and hospitality performance in Umuahia, Abia state. The objectives of the study are; to examine the influence of income rate on customer patronage of hotels in Umuahia, Abia state. to determine the influence of unemployment rate on customer patronage of hotels in Umuahia, Abia state, to examine the influence of cost of production on customer patronage of in Umuahia, Abia state, to examine the influence of income rate on sales volume of hotels in Umuahia, Abia state. To achieve the objective of the study, survey research design was adopted. The researcher adopted primary data in getting the required information through the use of structured questionnaire. The population of the study is up of staff of all the registered hotels in Umuahia, Abia State. However, there are thirty eight (38) registered hotels in Umuahia with five hundred and twenty employees (520) (Ministry of Culture and Tourism, Abia State). The sample size of the study is 226 after adopting Taro Yamane formula. In analyzing the data, simple descriptive statistics was used. The findings revealed that economic recession (income rate, cost of production, and unemployment rate) has significant influence on customer patronage of hotels in the study area. The findings also revealed that economic recession (income rate, cost of production, and unemployment rate) has significant influence on sales volume of hotels in the study area The study recommends that government of Nigeria should work towards reducing the rising rate of inflation and other economic crisis to encourage businesses including hospitality business in Nigeria. Also, Hospitality industry in the midst of recession should cut down their cost of operation such as reducing unnecessary expenses that are not very important to the business. That would help in improving their performance.

TABLE OF CONTENTS

Title Page                                                                                                                                i

Approval page                                                                                                                         ii

Certification                                                                                                                            iii

Dedication                                                                                                                              iv

Acknowledgements                                                                                                                v

Table of content                                                                                                                      vi

Abstract                                                                                                                                  x

CHAPTER 1: INTRODUCTION                                                                                     

1.1 Background to the study                                                                                                  1

1.2 Statement of the problem                                                                                                 4

1.3  Objectives of the study                                                                                                     6

1.4 Research questions                                                                                                            7

1.5 Research hypotheses                                                                                                         7

1.6 Significance of the study                                                                                                  8

1.7 Scope of the study                                                                                                            9

1.8 Operational framework                                                                                                     9

CHAPTER 2: REVIEW OF RELATED LITERATURE                                             

2.1 Conceptual framework                                                                                                     10

 2.1.1Concept of Hospitality                                                                                                  13

2.1.2 Concept of Hotels                                                                                                          14

2.1.3 Types of Hotels                                                                                                              16

2.1.4 Hotel Products                                                                                                               17

2.1.5 Classification systems of hotels                                                                                     19

2.1.6The Nigerian Hospitality Industry                                                                                  21

2.1.7The Causes of Recession                                                                                                23

2.1.8 The impact of Recession on Politics, Business, Employment and Social life.               24

2.1.9 Measures to reduce the Economic Crisis Impact on  Hotels in  South East Nigeria     26

2.1.10 Definition of Nigerian Hospitality Economy                                                              27

2.1.11 The Channels of Economic Impact                                                                              28

2.1.12 Economic importance of Hospitality Industry                                                            30

2.1.13 Factors affecting the hospitality industry                                                                    32

2.1.13.1 Economic influences                                                                                                 33

2.1.14 Economic Impacts of Hospitality                                                                                34

2.1.14.1 The positive economic impacts of the industry                                                        34

2.1.14.2 The negative economic impacts of the industry                                                       37

2.1.15 The Impact of Economic Crisis on Hospitality Worldwide                                         38

2.2 Theoretical framework                                                                                                      42

2.2.1 Theory of Constraints Credited                                                                                                 42

2.2.2 Valid theory                                                                                                                   43

2.2.3 Keynesian Approach to Economic Recession                                                               44

2.2.4 Recessions and Economic Theories                                                                               44

2.3 Empirical Review                                                                                                              46

CHAPTER 3: RESEARCH METHODOLOGY                                                             

3.1 Research design                                                                                                                52

3.2 Area of the study                                                                                                              52

3.3 Population for the study                                                                                                   52

3.4 Sampling and sampling technique                                                                                    53

3.4.1 Sample size determination                                                                                             53

3.4.2. Sampling technique                                                                                                       53

3.5 Instrument for data collection                                                                                          54

3.6 Validation of the instrument                                                                                             54

3.7 Reliability of the instrument                                                                                             55

3.8 Method of data collection                                                                                                55

3.9 Method of data analysis                                                                                                   55

CHAPTER FOUR:  DATA PRESENTATION AND ANALYSIS                               

4.1 Data presentation                                                                                                              57

4.2 Data analysis                                                                                                                     63

4.2.1 Effect of income rate, unemployment rate and cost of production

on customer patronage in hotels                                                                                             63

4.2.2 Effect of income rate, unemployment rate and cost of production on

sales volume of hotels                                                                                                             65

4.3 Test of hypotheses                                                                                                                        66

4.3.1 Hypothesis one                                                                                                              66

4.3.2 Hypothesis two                                                                                                              67

4.3.3 Hypothesis three                                                                                                            67

4.3.4 Hypothesis four                                                                                                             67

4.3.5: Hypothesis five                                                                                                             68

4.3.6: Hypothesis six                                                                                                               68

4.4 Discussion on findings                                                                                                      68

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION       

5.1 Summary                                                                                                                           70

5.1.1 Restatement of the Problem                                                                                          70

5.1.2 Major Findings                                                                                                               72

5.1.3 Description of Methods Used                                                                                       72

5.2   Conclusion                                                                                                                      73

5.3 Recommendations                                                                                                            74

5.4 Contribution to knowledge                                                                                               74

5.5 Suggestion for Further Studies                                                                                         74

REFERENCES