EFFECT OF ECONOMIC PRESSURES ON THE SURVIVAL OF THE HOSPITALITY AND TOURISM INDUSTRY IN PORT HARCOURT
DOI:
https://doi.org/10.64415/jams.v1i2.68Keywords:
Economic pressure, High inflation, Taxation, Regulatory challenges, Security challenges, Hospitality and TourismAbstract
A cross-sectional survey on economic pressures was conducted in selected hospitality and tourism firms to examine the extent to which high inflation, taxation, regulatory challenges, and security challenges affect the survival of the hospitality and tourism industry in Port Harcourt. A Resource-Based View (RBV) was adopted to guide the study. An EPSHTI-structured questionnaire was used to facilitate data collection. The data were analyzed with the use of descriptive statistics and multicollinearity with the variance inflation factor (VIF) to ascertain the accuracy of the dataset. A Multiple Regression Analysis was used to test the hypotheses, and the findings revealed that high inflation (Beta = 0.652, P<0.05), taxation, regulatory challenges (Beta = 0.633, P<0.05), and security concerns affect the survival of the hospitality and tourism industry in Port Harcourt (Beta = 0.626, P<0.05). The study concluded that economic diversification and job creation are driven by hospitality and tourism, where investment in tourism fosters the development of hotels, transportation networks, and amenities. It is recommended that the government commit to raising the interest rate to curb inflation and offer financial grants to help hospitality businesses manage rising operational expenses. That government should continuously addresses the hospitality and tourism challenges by streamlining tax structures to reduce multiple taxation, offering targeted tax incentives, and simplifying regulations for SMEs. The government also should commit to addressing insecurity in the country by strengthening law enforcement, engaging communities, and enforcing strict regulatory standards for security infrastructure
Keywords: Economic pressure, High inflation, Taxation, Regulatory challenges, Security challenges, Hospitality and Tourism
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