A PROPOSAL ON THE IMPACT OF DISASTER RISK MANAGEMENT ON THE HOSPITALITY BUSINESSES IN LAGOS STATE
Abstract
This study is on the impact of disaster risk management on the hospitality businesses in Lagos state. Using the thrive Place Limited and Avoire Voltic Nig, Lagos state as a case study. The following objectives will be used for the analysis: To ascertain find out the disaster risk management skill employed in the thrive Place Limited and Avoire Voltic Nig, Lagos state, to ascertain the impact of disaster risk management on the profitability of the thrive Place Limited and Avoire Voltic Nig, Lagos state, to find out the challenges of disaster risk management in the thrive Place Limited and Avoire Voltic Nig, Lagos state and to ascertain the impact of disaster risk management in the thrive Place Limited and Avoire Voltic Nig, Lagos state. More so, percentage and degrees of the responses will also be used in the analysis. Here, the ratio of those whose responses will not in the affirmative will be found and conclusions will be drawn there upon. Representations of the level of responses will be made in tabular form.The Statistical Package for Social Sciences (SPSS) software will be used to test the hypotheses
Chapter one
Introduction
1.1Background of the study
There is evidence to suggest that in many countries there has been an increase in the rise of natural disasters occurring natural hazard rise due to environmental or one thing of the other (World Bank 2016). Natural disasters are complex and multifaceted events resulting from mismanaged and unmanaged risks that reflect current condition and historical factors (Candice, L. (2010). Disaster risk is collective in its origin and remain a ‘public,’ shared risk that makes finding individual, and often community solutions, difficult (Abdullahi A. (2018). A disaster is said to take place precisely because the losses originated by a given event overwhelm the capacity of a population (local, regional or national) to respond and recover from it. Disaster rise emerges from the interaction between a natural hazard the external risk factor and vulnerability the internal risk factor Ernst & Young. (2017).
Disaster Risk Management in Nigeria has been established as a public sector function within each sphere of government. But disaster risk management goes beyond pure line function responsibility. Disaster Management Act (Act 57 of 2012) as an integrated, multi-sectoral, multi-disciplinary approach aimed at reducing the risks associated with hazards and vulnerability. It therefore needs to become an integral part of the development planning.
The hospitality (hotel) industry has been identified as one of the most important sectors that have a positive correlation to the country’s economic development. The hospitality industry has been identified as one of the most important sectors that have a positive correlation to the country’s economic development. One of the major benefits of the hospitality industry in any economy is the provision of employment and a top foreign exchange earner (Kusluvan, 2003). The industry consists of a number of diverse sectors including hotel and restaurant, travel agencies, tour operators, transportation, restaurant, food and beverage, and attractions which require a variety of occupational skills. However, hazards of all kinds exists, accidents do happen even on holidays and there exists a strong ethical imperative on the part of tourism service providers to ensure that plans are in place to cope with at least the most common uncertainties. Risk is the uncertainty associated with a future outcome or event (Banks, 2004). Risk is a concept that denotes a potential negative impact to an asset or some characteristics of value that may arise from some present process or future event (Douglas & Wildavsky, 1982). Rejda (2008) defines risk management as the process through which an organization identifies loss exposures facing it and selects the most appropriate techniques for treating such exposures. Some of the risks a firm faces include; market risks, credit risks, liquidity risks and operational risks (Nocco & Stulz, 2006). Market risk refer to the impacts of on and off-balance sheet positions of a financial institution. The movements in market rates or prices such as interest rates, foreign exchange rates, equity prices, credit spreads and commodity prices result in a loss to earnings and capital ratio (Nocco & Stulz,2006). Interest rate risk is the potential negative impact on the Net Interest Income and it refers to the vulnerability of an institutions financial condition to the movement in interest rate. There appears to be a mixed consensus on where the economy is headed. The hospitality industry has had to read to reductions in corporate travel, canceled conventions, employee layoffs, declining consumer confidence, corporate reorganizations, and insurance coverage volatility. Hospitality companies are challenged with optimizing business risks and strategically managing costs in order to stay competitive in the industry. Meeting these challenges results in increased pressure on business decision makers. In addition, many new types of risks are facing hospitality companies and other related businesses. During the winter and spring months of 2000 and 2001, both commercial and residential energy consumers throughout the nation were exposed to soaring energy costs. For businesses and communities in Lagos and Abuja, this cost increase was further complicated by mandatory power blackouts ordered by government officials. For hotel companies, these energy issues affected every point of guest service from check in at the front desk to ascent in an elevator, and room the utilization of meeting space to food and beverage operations and safety. Hotel owners and managers had to continuously reevaluate their energy risk management strategies, including alternative sources, disaster recovery plans, financing, and hedging strategies.
With the growing importance of tourism worldwide, any disruption to arrivals can seriously undermine business competitiveness and sustainable development. Even a single disaster event has the potential to cause widespread damage and economic disruption, affecting private and public investments in tourism destinations and the country’s image and reputation, while posing a threat to the lives of tourists, workers and surrounding communities. Many hotels do not have the systems and processes in place to assess and reduce their risk to disasters, or to become prepared if and when they occur. These are important to increase resilience and enable business continuity and viability. To improve disaster risk management capacities and to strengthen resilience in hotels and at tourist destinations (https://www.preventionweb.net)
Based on the background the study wants to investigate the impact of disaster risk management on the hospitality businesses in Lagos state. The study will use the thrive Place Limited and Avoire Voltic Nig as a case study
Statement of the problem
There are critical issues and challenges affecting Nigeria’s hospitality industry competitiveness and sustainability as tourist destination. Hospitality industry in Nigeria has had difficult times over the years, particularly prolonged period of lackluster performance in the 1990s (Akama, 1990; Ikiara, 2001). Ikiara, for example, describes performance in the 1990s as erratic. The global economic crisis in 2008 only made inbound international tourism business more challenging. Then in the recent past is the threat of terrorism in which Nigeria has lost both its citizens and the tourists to the Boko-Haram pandemic. This has resulted to frequent travel advisories from the source countries like Britain, USA, Australia and Europe in general (Mayaka &Prasad, 2012). This has brought down the tourism sector in Nigeria as divers Militia group have sprang-up in the south-west and other part of the country to its lowest point ever. The prolonged poor operations have characterized the last two decades, raising the concern of key stakeholders. It is important to investigate and find out the risk management practices that are being employed and how this has impacted on the performance of the sector
Objective of the study
The objective of the study will be sub-divided into general and specific objective, the general objective of the study will examine the impact of disaster risk management on hospitality businesses in Lagos state. Using the thrive Place Limited and Avoire Voltic Nig as a case study. The specific objectives are;
1. To ascertain find out the disaster risk management skill employed in the thrive Place Limited and Avoire Voltic Nig, Lagos state
2. To ascertain the impact of disaster risk management on the profitability of the thrive Place Limited and Avoire Voltic Nig, Lagos state
3. To find out the challenges of disaster risk management in the thrive Place Limited and Avoire Voltic Nig, Lagos state
4. To ascertain the impact of disaster risk management in the thrive Place Limited and Avoire Voltic Nig, Lagos state
Research question
1. What is the disaster risk management skill employed in thrive Place Limited and Avoire Voltic Nig, Lagos state?
2. What is the impact of disaster risk management on the profitability of the thrive Place Limited and Avoire Voltic Nig, Lagos state?
3. What are the challenges of disaster risk management in the thrive Place Limited and Avoire Voltic Nig, Lagos state?
4. What is the impact of disaster risk management in the thrive Place Limited and Avoire Voltic Nig, Lagos state?
Research hypotheses
The research is guided by the following hypotheses
HO1: there is no significant disaster risk management skill employed in thrive Place Limited and Avoire Voltic Nig, Lagos state.
H1: there is significant disaster risk management skill employed in thrive Place Limited and Avoire Voltic Nig, Lagos state
HO2: there is no significant impact of disaster risk management on the profitability of the thrive Place Limited and Avoire Voltic Nig, Lagos state
H1: there is significant impact of disaster risk management on the profitability of the thrive Place Limited and Avoire Voltic Nig, Lagos state
HO3: there are no challenges of disaster risk management in the thrive Place Limited and Avoire Voltic Nig, Lagos state
H1: there are challenges of disaster risk management in the thrive Place Limited and Avoire Voltic Nig, Lagos state
HO4: there is no significant impact of disaster risk management in the thrive Place Limited and Avoire Voltic Nig, Lagos state
H1: there is significant impact of disaster risk management in the thrive Place Limited and Avoire Voltic Nig, Lagos state
Scope of the study
The scope of the study covers the impact of disaster risk management on the hospitality businesses in Lagos state. The study will be limited to the thrive Place Limited and Avoire Voltic Nig, Lagos state
.