Assessment of Tourism Revenue and Economic Development in Osun State

Cultural tourism is a growing contributor to economic development in South West Nigeria, and assessing tourism revenue trends and their development linkages in Osun State provides evidence for tourism investment policy. This study assessed tourism revenue generation and its linkages to economic development in Osun State, particularly through the Osun-Osogbo Sacred Grove and Ile-Ife heritage sites. Secondary data on tourist arrivals, revenue collected, and state budget allocations to tourism were obtained from the Osun State Ministry of Culture and Tourism and the National Bureau of Statistics. Primary survey data were collected from 40 tourism-dependent businesses and 80 visitors. Descriptive analysis and economic impact estimation were applied. Results showed that estimated annual tourism receipts grew from N2.8 billion in 2018 to N6.1 billion in 2022. International visitors constituted 18 percent of arrivals but generated 47 percent of revenue. Tourism-related businesses employed an estimated 12,400 persons across the two primary heritage sites. However, infrastructure limitations including poor road access and inadequate hospitality facilities constrained potential revenue by an estimated 35 percent. Seasonality of tourism created employment volatility. State budget allocations to tourism averaged only 0.8 percent of total expenditure. The study concludes that tourism is a growing but under-invested economic sector in Osun State. Recommendations include dedicated tourism infrastructure investment, public-private partnership for hotel and hospitality development, and digital tourism marketing to expand international visitor volumes.

Keywords: tourism revenue, economic development, Osun State, cultural tourism, heritage sites