SMALL AND MEDIUM ENTERPRISES (SMES) IN THE DEVELOPMENT OF TOURISM AND THEIR CHALLENGES IN NIGERIA: A CASE STUDY OF ART AND CRAFT VILLAGE, ABUJA

Small and Medium Enterprises (SMEs) are vital for tourism development at cultural sites like Art and Craft Village in Abuja, Nigeria, but face challenges including limited access to finance, inadequate infrastructure, regulatory hurdles, market competition, and skill gaps, which hinder growth, innovation, and sustainable tourism contributions, exacerbating economic vulnerabilities. This study examined hindrances in SME operations within the tourism industry, identify livelihood strategies adopted by SME owners, assess SME contributions to sustainable tourism development, and explored support measures to address these challenges. A descriptive research design targeted 80 SME owners and operators at Art and Culture, Abuja, selected via purposive and stratified sampling. Data were collected through structured questionnaires and semi-structured interviews and analyzed using descriptive statistics including frequencies, percentages and means. The study findings revealed SMEs in Art and Culture, Abuja face high costs, poor infrastructure, and limited support, adopting strategies like market shifts, diversification, and digitalization, while promoting sustainable tourism and requiring funding, security, and training. The study concluded that SMEs are essential for vibrant tourism in Abuja but require targeted interventions to overcome challenges and ensure sustainability. Recommendations include providing accessible microfinance and grants, enhancing infrastructure and skills training programs, streamlining regulations to reduce bureaucracy, fostering public-private partnerships for market access, and promoting digital marketing to boost visibility and resilience. Keywords: SMEs, Tourism development, Challenges, Livelihood strategies, Sustainable tourism, Support measures.