Abstract

This study evaluated the effects of foreign direct investment in the hotel sector in Owerri Metropolis. The objectives of the study were, to determine the effect of foreign direct investment on hotel industry in Imo State, assess the hotel industries that attract foreign direct investment in Imo State, identify the hotel operation and environment that attract foreign direct investment and determine the economic importance of foreign direct investment in the study area. The population for the study used was all the registered hotel in Owerri Metropolis. Data were collected through the use of structured questionnaire which was organized in section to reflect specific objectives. A self-administered survey were used in data collections. The study found that, the effect of foreign direct investment on hotel industry in Imo State, Contributes to the improvement of infra-structures in the hotel industry, generates employment opportunities, development of domestic competitiveness among hotel operation, Key for faster economic growth and development in the hotel industry and given its potential to increase productivity. The hotel industry facilities that attract foreign direct investment in Imo State were, location advantages and internalization advantages, political, economic and social stability of the hotel, entertainment and culture, Self-service technology and Its rich cultural and historical heritage, the wide variety in ecology, terrains and places of natural beauty. The hotel aspects that attract foreign direct investment in Imo State were conventions, Trade fairs, Sports and recreation, Food and beverage services and Political and economic summit. In conclusion, FDI play a significant role in developing the hotel industry in Nigeria and other developing countries, by providing the required capital and infrastructures such as international airports, highways and modern technologies which are the keystones to tourism development. Hence, most governments in developing countries often place the highest priority on attracting FDI for further development of the hotel industry and economic growth.