Operating A Lawful Tourism And Recreation Business In Nigeria

By: O.C Ali

1.0 INTRODUCTION

Tourism as a sector contributes significantly to the growth of Nigeria economy, especially at a time when most Nigerian elites are proponents of diversification of the economy, resource control, restructuring and true federalism. It is common knowledge that our over dependence on an oil driven economy is no longer sustainable given its price volatility in the international market combined with various domestic challenges ranging from oil theft, illegal refinery operations, and the militancy of certain youths of oil producing communities.

It is against this background, that alternative business sectors are being encouraged in Nigeria to assist in strengthening the economy. This has been demonstrated in the Nations commitment in rolling out legal policies that encourages the ease of doing business in Nigeria. Hence, this article considers basic legal and regulatory requirements for the operation of a smooth tourism and recreational business in Nigeria and to clearly identify categories of registrable and non-registrable enterprises under this business space.

2.0 LEGAL FRAMEWORK FOR LEISURE AND RECREATION IN NIGERIA

Leisure and recreational activities is personal and voluntary for citizens, hence there is out rightly no law that makes recreational activities an obligation or duty for an adult citizen of the country.

However, certain laws in Nigeria makes provision for recreation, to wit:

1. The Child Right Act 2003 in section 12 guarantees the right of the Nigerian child to leisure, recreation and cultural activities.
2. Section 11 of the Lagos State Child Rights Law also guarantees the right of the Child to leisure and recreation.

3.0 CATEGORIES OF REGISTRABLE ENTERPRISES

     3.1. The Federal Government of Nigeria has approved the registration of various categories and classes of Establishments by the 1997 regulation, to carry out Recreation and Tourism business, as follows:

1. Accommodation Establishments: Hotels, Motels, Guest House, Inns, guest Apartments, Boarding Houses and Holiday camps.
2. Food Service Establishments: Restaurants, Fast-Foods, Food Canteen, Cafes, Cafeteria, Coffee Shops, Snack Bars.

• Tourism related enterprises: Travel Agencies, Tour operators, Amusement, Tourism promoters and Consultants, Vehicle and Vessel Hire services (Boats, Cars) Cinema and Commercial clubs.

3.2 Exempted Establishments from Registration

The following types of Establishments and enterprises are exempted from registration:

1. Private Houses: Furnished apartments let for residential purposes for periods exceeding One (1) month.
2. Any rest House or Lodge used exclusively by visiting Government and public officials, run on non-commercial basis.
3. Premises used exclusively for accommodating or boarding of persons in Religious, Educational or Charitable Institutions except those that run on commercial basis.

4.0 GOVERNMENT AGENCIES AND MINISTRIES RELEVANT TO THE LEISURE, TOURISM AND RECREATION BUSINESS

1. Ministry of Culture and Tourism
2. National Council on Trade and Tourism
3. State Tourism Board
4. Local Government Tourism Committee
5. National Tourism Development Corporation (NTDC)

5.0 REGISTRATION OF HOSPITALITY AND TOURISM ENTERPRISES

The National registration exercise is an accepted international control mechanism developed by the World Tourism Organization (WTO) to ensure that facilities and services of Hospitality and Tourism enterprises for use by Tourist are of international best practice.

Against this background, it is therefore mandatory in Nigeria that all Hospitality and Tourism Enterprises be registered. (See Regulations of hospitality and Tourism Establishment (Regulation Grading and Classification) Reg. 1995

In Nigeria, the authority to make regulations for the National Registration of Hospitality and Tourism Enterprises was conferred on the Honourable Minister of Commerce and Tourism (Now Minister for Culture and Tourism) as contained in section 20 of NTDC enabling Decree No. 81 of 1992.

The law on registration of hospitality and tourism Enterprises provides that:

1. The Proprietor or Operator of every Hospitality, Tourism enterprise shall within Sixty (60) days of commencement of the exercise or from opening-commissioning thereof apply to the Corporation for registration. (Regulation 2 of the 1995 Regulation).
2. The corporation may upon such application grant to the applicant certificate of Registration to operate any premises or may refuse to grant a certificate subject to such terms or conditions as it may deem fit to impose in the circumstances.
3. Every such certificate shall be in the prescribed form and shall expire on the 1^st day of December, immediately following the date of issue. It shall thereafter be renewable from year to year on payment of such fees as may be prescribed by the Corporation.

6. 0 CONCLUDING REMARKS

 Research has revealed that human resources capabilities of tourism and hospitality sectors are lagging behind in terms of quality, non-compliance with regulatory standards, and skills delivery. There is a lack of balance between management and supervisory training and craft skills training. Hence, to optimize this sector in boosting the Nigerian non-oil economy, it is important that operators in this sector are regulated to comply with the basic regulatory laws established to ensure international best practice in service delivery.

It is therefore recommended that accommodation, catering facilities need be developed at the National parks and the management of accommodation catering at National parks should be privatized for effectiveness.

The National institute for Hospitality and Tourism (NIHOTOUR) should increase its capacity building directorate to help train more skilled personnel for the work force, this will ensure consistent delivery of quality outcomes in this business space.

Proprietor/Operators of various categories of Tourism and Recreation businesses as identified in this article should ensure compliance with the relevant regulatory bodies as required by law for the lawful operation of their businesses. This level of commitment also keeps the owners of these businesses from unsolicited liabilities in respect of dealings with their clients and third parties as the case maybe.

O.C ALI, is a Lawyer, with interest in Dispute Resolution & Corporate Legal Advisory. (Partner, MCALI LEGAL CONSULT, LP).

mcalilegal@gmail.com

He tweets: @CharlesMcali

CAVEAT: The Information provided in this article should not be taken as providing legal advice on the subject. Kindly send an email, to mcalilegal@gmail.com If you need further legal advice on the issues raised therein.