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In-depth: From spotlight to the shadows: Ethiopia’s tourism odyssey hangs in the balance

By Biruk Alemu @Birukalemu21

Addis Abeba –  In the heart of East Africa, Ethiopia unfurls a mosaic of marvels recently thrust into the limelight by UNESCO’s accolades, signaling a tourism renaissance. From the towering majesty of the Bale Mountains to the serene retreats of Lepis Eco Tourism Village, the nation’s canvas is rich with the strokes of history and the vibrant hues of cultural festivities like Shawwal Eid.

Ethiopia is gradually placing its bets on the allure of its rich cultural tapestry and breathtaking landscapes, especially after Prime Minister Abiy Ahmed assumed power in 2018. The current administration is trying to champion the hospitality and tourism sector, steering it into the limelight as a key driver for growth and prosperity.

With a series of government-led initiatives designed to elevate the tourism experience, Ethiopia is not only trying to beckon travelers from around the globe but also paving the way for a surge in local economic opportunities.

The inauguration of the Halala Kela Resort last year represents a critical element of Prime Minister Abiy’s administration endeavor designed to optimize the utilization of the area’s natural resources, thereby facilitating the growth of greenery attraction sites nationwide.

The recent initiatives, prominently featuring mega projects such as the Chebera Churchura Elephant Paw Lodge, also occupy a central role in the enterprises spearheaded by the government.

Last week , Prime Minister Abiy inaugurated the awe-inspiring Chebera Churchura Elephant Paw Lodge, a cornerstone of his administration’s ambitious ‘Dine for Ethiopia’ mega project.

Nestled in the verdant heart of the Dawuro Zone in South West Ethiopia Regional State, this luxurious retreat emerges as a dazzling showcase of Ethiopia’s rich natural endowments, inviting the world to witness the country’s unfolding renaissance in eco-tourism.

Yet, beneath the allure, a specter of unrest casts a long shadow, threatening to dim the burgeoning promise of tourism. As whispers of uncertainty deter would-be explorers, the urgency for peace grows, lest the world remain deprived of Ethiopia’s full splendor.

Despite significant investment in tourism initiatives, Ethiopia confronts considerable challenges, according to industry players. As international tourism experiences a resurgence in the aftermath of the pandemic, ongoing regional conflicts pose a risk to Ethiopia’s emergence as a leading travel destination. An authority in the field revealed to Addis Standard, “The potential is undeniable, but instability acts as a handbrake on progress.”

Research indicates that the hospitality industry was formerly a pivotal element in Ethiopia’s economic advancement, contributing significantly to the nation’s economic growth. It was instrumental in creating jobs, generating income, accruing foreign exchange, and providing social advantages.

Subsequent to 2019, the sector has encountered a multitude of challenges, including the COVID-19 pandemic, domestic conflict, drought conditions, and fiscal vulnerabilities. The World Travel & Tourism Council ‘s most recent analysis highlights that Ethiopia’s travel and tourism sector has undergone marked volatility from 2019 to 2022, largely as a result of the worldwide COVID-19 health crisis and ongoing internal strife.

Conflicts, not merely local disturbances, ravage the tourism sector.” Nahom Admasu, managing director of Pleasure Ethiopia Tour and Travel Agency

In the year 2019, the travel and tourism sector was a substantial contributor to Ethiopia’s economy, representing 6.3% of the gross domestic product (GDP). By the year 2022, the sector’s direct contribution to GDP had reached ETB 329.7 billion (equivalent to USD 6.3 billion), which constituted 5.6% of the total economy. This figure indicated a recuperation from the decline witnessed in 2020, yet it remained a diminution from the levels seen in 2019.

The employment scenario within Ethiopia’s travel and tourism sector also experienced a decline in 2022 when contrasted with 2019 figures. As per the World Travel & Tourism Council’s report, the sector directly sustained 645,113 jobs in 2022. While this number is substantial, it falls short of the employment levels recorded during the pre-pandemic era.

From prominence to uncertainty

Industry experts and stakeholders interviewed by Addis Standard have also depicted the grim state of affairs for the tourism sector, attributing its downturn to persistent conflicts and instability across several regions. They have highlighted a marked decrease in the number of tourists, observing that current visitors are predominantly those attending conferences in Addis Abeba.

This decline is further exacerbated as numerous nations have enacted travel restrictions on Ethiopia, citing concerns over the lack of security in different parts of the country.

The resurgence of conflict involving the non-state militia, Fano, instigated by alterations in regional security arrangements, has drained optimism from the once-bustling locales of Gondar and the tranquil trails of Lalibela.

A local tour guide, speaking under the weight of the current tensions, stated, “Peace, not visitors,” reflecting the stagnation that has gripped the tourism sector.

While the tour guide acknowledged the region’s wealth of attractions, including Gondar’s historic sites, the Northern Mountains, the churches of Lalibela, and Lake Tana in Bahir Dar, he voiced deep-seated apprehensions regarding the tourism industry’s trajectory.

He warned that should the unrest and instability persist, the livelihoods of numerous individuals employed within the industry could be imperiled, potentially leaving them without the means to support their families.

“Peace is the lifeline of the tourism industry,” Nahom Admasu, managing director of Pleasure Ethiopia Tour and Travel Agency, stressed with a sense of immediacy.

As an active participant in the preeminent Ethiopian Tour Organizations Association, Nahom has directly observed the severe repercussions that even minimal unrest can have on the sector. According to him, the cascade of flight cancellations, unoccupied accommodations, and quiet dining establishments are indicative of foregone reservations, the impact of which resonates down the entire tourism value chain, affecting entities from thriving airlines to service providers.

“Peace is the missing polish for Ethiopia’s tourism crown,” lamented Nahom, who observed that tourists stay away, leaving not just empty streets but empty coffers.

“Foreign currency, the lifeblood of development, slips through our grasp, deepening our economic woes,” emphasized Nahom. “Conflicts, not merely local disturbances, ravage the tourism sector.”

Nahom indicates the travel restrictions imposed due to the Tigray War severely impeded tourist arrivals, and the widespread effects of instability led to the closure of tour operations and the exodus of essential professionals. With Ethiopia’s reputation compromised, he says the endeavor to attract tourists has become an exceedingly difficult challenge.

Fitsum Gezahegn, director of the Ethiopian Tour Organizations Association, an entity dedicated to promoting the nation and drawing tourists, has acknowledged the sharp decline in tourist arrivals as a consequence of Ethiopia’s persistent conflicts. “Ethiopia’s vibrant tapestry of ancient wonders and bustling markets lies tragically muted, its colors bleeding away under the weight of ongoing conflicts.”

Despite the presence of a few daring visitors who manage to overcome the hurdles of travel to Ethiopia, Fitaum maintains that their numbers are merely a fraction of what the country could potentially attract. “High travel costs, limited availability, and gnawing safety concerns keep the majority of adventurers at bay.”

Additionally, industry observers note that travel bans, arising from stringent restrictions, are further suffocating the vitality of the tourism sector. “Unprecedented challenges are currently facing the Ethiopian tourism industry despite its existence for the past 50 years,” the director stated to Addis Standard.

Fitsum underscored the profound impact of the absence of peace in regions renowned for Ethiopia’s cultural, historical, and natural treasures on the tourism sector as a whole. He detailed that the ripple effects of the industry’s decline are pervasive, affecting individuals at every level of society, with a notable surge in unemployment rates among those who were once gainfully employed in tourism.

By drawing a compelling analogy, the director likened the current turmoil within the tourism industry to the potential consequences that would ensue from impeding the exports of coffee and oilseeds, vital commodities in Ethiopia’s export portfolio.

He highlighted that the repercussions of ongoing conflicts extend beyond mere economic dimensions, impairing domestic tourism as well. With a strong call to action, Fitaum ardently championed the cause of enduring peace and implored all factions involved in the conflict to initiate constructive dialogue, with the aim of devising a solution that promotes stability and rejuvenates the tourism industry.

Experts in the domain caution that the persistent conflicts will gravely affect the hotel industry, which is closely intertwined with the fortunes of the tourism sector. Establishments in Addis Abeba and other tourist hotspots have noted a marked decrease in revenue, corresponding with the reduction in tourist visits.

Getahun Alemu, President of the Ethiopian Tourism and Hotels Market Association, has articulated the catastrophic effects of both armed conflict and the so-called “diplomatic war” on the tourism industry. He referenced instances during the Tigray War where embassies disseminated alarmist propaganda, alleging that Addis Abeba was encircled and that commercial aircraft might be at risk of being targeted.

“Such negativity has a devastating effect on tourism,” he stated.

Despite recognizing the destruction caused by the conflict, Getahun posits that the “diplomatic war” has exacted a more substantial toll.

The diplomatic war has exacted a more substantial toll.” Getahun Alemu, President of the Ethiopian Tourism and Hotels Market Association

In light of the unrest present in various regions, the association is deliberately channeling its resources to enhance the visibility of southern Ethiopia’s multitude of tourist attractions. The president highlighted the necessity of shifting the promotional focus, asserting, “We cannot solely rely on northern Ethiopia, which is currently facing conflict. Even if one area experiences unrest, we must actively promote peaceful regions to maintain tourist flow.”

Subsequent to the cessation of hostilities in the Tigray war, the association has undertaken initiatives to provide training and structural support to hospitality establishments in Bahir Dar, Lalibela, and Wollo. Furthermore, the association’s members have pledged to undertake the reorganization of hotels within the Amhara region following the resolution of the conflict.

Resilience in the face of unrest

Despite the devastation wrought by the protracted war in Tigray and its adverse effects on neighboring regions of Amhara and Afar, there is a faint yet discernible spark of recovery in the tourism sector.

A report from the United Nations World Tourism Organization (UNWTO) provides a modest degree of encouragement, indicating a 28% increase in national tourism following the Cessation of Hostilities Agreement (CoHA) between the federal government and forces in Tigray.

The most recent analysis from the World Travel & Tourism Council suggests that Ethiopia’s travel and tourism sector has demonstrated notable resilience amidst global adversities, with an encouraging pattern of recovery becoming apparent by the year 2022. Although the sector has not entirely rebounded to the zenith of its performance in 2019, the report indicates that the sector is well-positioned for sustained growth and an ongoing contribution to the nation’s economic fabric.

According to the report, a pivotal element of Ethiopia’s travel and tourism revenue, visitors’ spending, reached ETB193.1 billion (equivalent to $3.7 billion) in 2022. This represents a significant increase from the figures recorded in 2019, underscoring the enduring allure of Ethiopia as a tourism destination.

Projections for the year 2023 anticipate further augmentation, with the number of international tourists expected to swell, thereby generating increased expenditures.

Authorities have also observed indications of revitalization within the tourism industry. Officials also say there is a spark of recovery in the tourism sector. Recently, the Addis Abeba Bureau of Culture, Arts, and Tourism announced that, during the first three months of the current fiscal year, the tourism sector in the capital has generated a substantial economic inflow exceeding 17.25 billion birr.

Haftay Gebreegziabher, deputy head of the Bureau, reported to the state media that the capital welcomed approximately 268,000 international tourists during the first three months of the current budget year. AS

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Lessons From Ethiopia’s Post-War Tourism Recovery

Dawit Habtemariam , Skift

January 27th, 2023 at 11:10 AM EST

The civil war is over, but Western government travel warnings are still there. If there's going to be a recovery, tourism authorities need to focus their energy on getting those lifted. That's going to require repeated messaging that the war is over.

Dawit Habtemariam

Ethiopia’s tourism sector has been hit hard in the last two years by Covid and a brutal civil war, with spending down by more than $2 billion. The tourist sites and infrastructure have been spared, but the sector doesn’t have the confidence of governments, travelers and tour group operators that the conflict is over and the country is a safe destination.

For two years, Ethiopia has had an ethnic civil war largely fought between the Tigray People’s Liberation Front (TPLF) and the governments of Ethiopia and Eritrea. It started in November 2020 when the Ethiopian government sent troops into the northern Tigray region after prime minister Abiy Ahmed accused the TPLF of attacking a military base. The war was mostly concentrated in Tigray but did spill into parts of other regions like Amhara. 

The conflict may have led to over 600,000 lives lost, according to the Financial Times . Millions of people have been displaced . The U.N. High Commissioner for Human Rights have accused Tigrayan forces of committing war crimes and “human rights abuses” and the Ethiopian government of committing “crimes against humanity.“

In November, the Tigrayan rebels and the Ethiopian government signed a peace deal to end hostilities.

Before the horrific war and the pandemic, the country drew over 800,000 tourists and spending amounted to $3.5 billion in 2019, according to the World Bank . A growing segment of tourists have been from the U.S., UK and Europe, according to Intrepid Travel East African General Manager Samuel Karani.

Popularity was rising so much that some of the country’s beautiful natural parks, churches, mountains and historic sites experienced overtourism. Visitation to the Gheralta mountains, for example, was becoming popular to the point that some of the historic churches experienced overcrowding, according to Mark Chapman, founder of Tesfa Tours , which has operated in Ethiopia since 2010.

In 2020, visitation dropped to 500,000 and spending fell by 35 percent to $2.28 billion, according to the World Bank. In the last two years, the country lost $2 billion thanks to the war and Covid, Ethiopia Tourism State Minister Sileshi Girma told Voice of America .

“A lot of tour operators stopped operating because nobody was earning any money,” said Chapman. “It was hard to survive these few years and keep paying overhead.”

The war prolonged any hopes of the return of tour groups since Covid. In March 2022, Intrepid Travel decided to hold off on offering tours even though traveler interest had resumed. Their tourist destinations and routes they used were “unready” and the war hadn’t settled down, said Karani.

Tourist sites and attractions are typically not spared in conflicts. The historic architecture of Aleppo suffered massive destruction during the Syrian Civil War. 

Fortunately for Ethiopia, popular tourist sites like Lalibela that were caught in the conflict have been spared. Lalibela, a holy site in Ethiopian Orthodox Christianity, is home to 900 year old rock-hewn churches. The churches attract over 80,000 visitors per year and are a UNESCO World Heritage site .

Lalibela was occupied by Tigrayan rebels from early August to mid-December 2021. The government lost control again for a few days in December then regained it . The physical damage to the town’s large tourist infrastructure left behind hasn’t been long lasting. “The churches haven’t been damaged, thank God, and 90 percent of hotels were pretty much okay, “ said Chapman. On January 7, the town hosted thousands of visitors for the festival of Genna, which is also known as Ethiopian Christmas. Ethiopia Tourism State Minister Sileshi Girma brought ambassadors from several countries to the festival.

@rrymmee Lalibela is next level and u should go there ! #lalibela #eastaftica #ethiopia #travelethiopia ♬ Lalibela – Gossaye Tesfaye

Individual travelers are returning, but there are still virtually no tour groups, said Chapman. “It’s tour groups that are the big business for most tour operators and hotels,” he said. He expects some to start returning before the end of the year.

Intrepid will have its first post-Covid trip to Ethiopia in September this year and the itinerary will include the Tigray region, according to Karani. It will offer the same activities it had in 2019, one of which will be visiting the historic city of Axum, located in Tigray.

At the moment, Western governments continue to discourage travel to the country. The U.S. State Travel Advisory warns American citizens to reconsider travel to Ethiopia and to not travel to the Tigray and Amhara regions. The UK warns its citizens to stay away from Tigray.

The warnings introduce traveler insurance coverage issues, which deters traveler and group trips, according to Karani and Chapman. Major tourist attractions become unavailable for visits. “The British government travel advice says don’t go within 30 kilometers of the border of Tigray and that rules out parts of the [Simien] national park,” said Chapman.

Intrepid Travel and their partners are hopeful the second half of the year will see normalcy, but they are watching how the peace deal plays out.  “Five months before September we will be reviewing the situation again,” Karani said.

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Tags: africa , coronavirus recovery , Covid , ethiopia , travel warning

Photo credit: Lalibela is one of Ethiopia's most popular destinations. The town was briefly occupied by Tigrayan rebels. Mulugeta Wolde / Unsplash

Ethio-China St, KT 12 Building, 6th Floor, Suite 601, P.O.Box 2255, Addis Ababa, Ethiopia

DISCOVERING ETHIOPIA | An in depth look at the tourism landscape

“ The only man I envy is the man who has not yet been to Africa – for he has so much to look forward to Richard Mullin“ The only man I envy is the man who has not yet been to Africa – for he has so much to look forward to Richard Mullin

“­The prospect of visiting Ethiopia attracted me more strongly than a trip to France, England, and America combined.” Nelson Mandela

Following the pandemic-induced slowdown, Ethiopia has experienced a significant rebound in tourist arrivals and receipts, highlighting a revival and growing interest in the country’s tourism sector.

Ethiopia, in general, and the city of Addis Ababa, in particular, have been operation centres for more than 13 international hotel chains such as Hilton Addis, Marriot Executive Apartments, Sheraton Addis, Ramada Addis, Radisson Blu and Hyatt Regency to name a few.

According to the latest study by W Hospitality Group, Ethiopia is ranked 4th in terms of new hotel development, with 29 chain hotels and 5,206 rooms in the pipeline. Radisson Blu Hotel, Marriott International, Accor and Hilton are among the major brands expected to increase their presence in the country. Ethiopia has been in the top five countries on the list for the past six years.

As a result of the various upcoming star-designated hotels and speciality restaurants, the country’s capital, Addis Ababa, maintained the top three ranking for cities with large numbers of hotels and rooms planned in Africa for three consecutive years, following renowned tourist cities like Cairo.

Besides Addis Ababa, cities such as Dire Dawa, Bishoftu, Hawassa, Bahir Dar, Arba Minch, Gondar, and Adama have also seen remarkable hotel investment projects. These investments encompass luxurious hotels and resorts extending their services and footprint throughout the country. Notable mentions include Haile Resorts and Kuriftu Hotel and Spa.

Investors should consider targeting the Ethiopian tourism market due to the growth in various segments

• Tour Operations

Tourist guides, travel agents, and tour operators offer promising opportunities. For instance, the booking market is expected to grow significantly. Targeting stopover tourists and business (MICE) tourists can lead to business growth. Providing integrated travel packages and creating a well-rounded experience can enhance revenue per passenger and attract more visitors.

• Vacation Rentals

Accommodation-sharing platforms such as Airbnb and Vrbo have disrupted the traditional hotel industry. The global vacation rental market is projected to reach USD 107.70 billion by 2027.

In Ethiopia, the vacation rental segment is expected to generate USD 334.70 million revenue in 2023, growing at an annual rate of 5.47%. There is a demand for localized and coordinated experiences, creating opportunities for specialized shared accommodation platforms.

Ethiopia’s campsites segment, especially in the southern region, offers investment opportunities in camping, lodges, and resorts. The camping sector is expected to generate USD 5.24 million revenue in 2023, growing at an annual rate of 46.85%.

The Simien Mountains National Park, Bale Mountains National Park, and Mount Yossef are already positioned as world-class destinations for high-altitude trekking, but there is a need to enhance tourism facilities and services, including expanded and upgraded camping sites.

• Tourism Tech Startups

Investing in Tourism tech startups can bring positive outcomes, as technology plays a vital role in ensuring a secure and smooth travel experience. Initiatives like 1888EC are actively developing digital solutions and fostering job creation within Ethiopia’s tourism industry.

Promising markets for Tourism tech startups encompass alternative housing, hotel and hospitality management, artificial intelligence, tours and activities, as well as diverse mobility sectors.

The MICE market (Meetings, Incentives, Conferences/Congresses, Events/Exhibitions) has become an increasingly important segment of the Tourism industry. Third, only to Brussels and Washington DC, Addis Ababa is home to 118 diplomatic missions accredited by the government of Ethiopia, the AU and the UNECA. As a result, the country hosts multiple international meetings and conferences every year.

The 2022 Annual Research Key Highlights from the World Travel and Tourism Council (WTTC) indicate that there has been an increase in business spending in Ethiopia during 2021 compared to 2019. This rise suggests a growing demand for services from business travellers and highlights the sector’s expanding contribution to the country and the country’s potential not only as a leisure but also as a business destination.

Forecasts for the Ethiopian Tourism sector are optimistic about its future development. All tourism segments are displaying encouraging growth rates, with camping leading the way at a remarkable 46.85% increase, reflecting the anticipated interest of tourists in Ecotourism and adventure experiences through camping.

With its abundance of national parks, wildlife reserves, and mountainous terrain, Ethiopia possesses immense potential in the Tourism industry that remains untapped.

• Strategic geographic location in East Africa

A gateway to the region with easy access to neighbouring countries and a key transportation and logistics hub connecting Africa, Asia, and Europe

• Multiple UNESCO registered heritage sites

The country is home to 9 UNESCO World Heritage Sites, ranked 2nd in Africa.

• Addis Ababa, a significant diplomatic and political hub

Home to AU, ECA, and 115 foreign missions, making it the third-highest globally in terms of diplomatic presence.

• Ethiopian Airlines: Africa’s top carrier

Serving 131 international passenger and cargo destinations, including 63 African cities, flying to more destinations in the continent more than any other airline.

• Market ready product offers including meeting venues and hotels

More than 600 hotels with more than 13 chain hotels and more in the pipeline. World-class large conference venues at the AU, UNECA, and AAICEC

• Secure country with World Trade and Tourism Council (WTTC) Safety and Security stamp (2021)

In 2021 the country has received WTTC’s Safety and Security stamp, indicating that the country follows global standards to ensure the well-being of tourists and visitors.

• Tourism is one of the priority sectors that the Ethiopian government granted tax exemption & incentives

Specific details of the tax exemptions and incentives can be seen in the next section

• One stop shop service delivery for investors by the Ethiopian Investmen Commission

EIC facilitates investment procedures, offers guidance, and assists investors in navigating the business landscape in Ethiopia.

• Simple E-visa application and nearly 40 visa on arrival eligible countries
• Continuing efforts to digitalize the travel & hospitality industries to increase convenience & competitiveness

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Welcome to Ethiopia, Land of Origins

Ethiopia invites you to discover why it is the origin of so much!  As you explore Ethiopia, you will be put in touch with your own origins…for this is a Land of Origins

Things to do in Ethiopia

Cultural Experiences – Culturally ebullient but not well discovered, every unforgettable undertaking you do in Ethiopia could be labeled as a cultural experience.

Nature Experiences – with its diverse ecological systems laden with a plethora of wildlife Ethiopia is a haven for nature travelers

Outdoor and adventure  – Outdoor and adventure are the eliciting factors that whet the appetite of all travelers to Ethiopia.

Educational Tour –  Immerse yourself in the rich paleontological sites, vibrant way of life, and opulent geological resources of Ethiopia.

Trekking on the peaks of Ethiopia

The majestic highlands of Ethiopia offer some exceptional trekking experiences. The Simien Mountains and Bale Mountains are common favorites, and the Community Trekking trails set up in the Northern part of Ethiopia offer world-class treks while supporting local communities.

The most popular attractions to visit in your lifetime

Aksum – Land of Queen Sheba

The rock hewen churches of Lalibela

Gondar – Camelot of Africa

Harar – The old walled city

Renowned the world over for its decorated tribes, the Omo Valley is a stop on many a tourist route in Ethiopia.

Gheralta Mountains –  The luminous light bathes scattered sharp peaks that rise into the sky out of a sandy, rolling semi-desert.

Salt caravans of the Danakil depression

Embarque em uma jornada emocionante e descubra prêmios incríveis no Cassino Jogo Fortune Tiger. A sorte está ao seu alcance em jogofortunetiger.com.br !

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UN Tourism | Bringing the world closer

• 23 Jul 2014

Ethiopia - tourism key to promote development

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PR No. : PR 14051

During an official visit to Ethiopia, UNWTO Secretary-General, Taleb Rifai, met with President Mulatu Teshome, Prime Minister Hailemariam Desalegn, Deputy Prime Minister Demeke Mekonnen , and Minister of Culture & Tourism, Amin Abdulkadir, to address the advancement of tourism in Ethiopia and the key role of the sector in the country’s socio-economic development. (Addis Abeba, Ethiopia, 13-18 July 2014).

These measures reflect how tourism is firmly established among the development drivers of the country, said President Mulatu in a meeting with Mr. Rifai, where he expressed his full support to the tourism sector, and the commitment of the Ethiopian government to make sustainability a priority in future tourism development.

“Ethiopia is endowed with rich historical relics which, combined with the hospitality of our people, make it viable for tourism. The government has lined up abled professionals to work within the industry and there is the right political will in place to contribute towards tourism”, said President Mulatu.

Mr. Rifai commended Ethiopia for the political support awarded to the tourism sector and in particular for integrating tourism as part of its development policy. “Tourism is a key tool to lift people out of poverty and create new opportunities”, he said. “The steps being taken by Ethiopia, namely enhancing the protection and conservation of tourist attractions, expanding the tourism infrastructure, establishing a tourism marketing organization and a national tourism council as well as increasing education and training institutions in the field of tourism, will surely make tourism a pillar of the development of Ethiopia”, he added.

During his official visit, Mr. Rifai also met with Prime Minister Desalegn, who, on the occasion of The High Level Seminar on Tourism Industry, was presented the UNWTO/WTTC Open Letter on Travel and Tourism, calling on Heads of States and Government to “promote the value of the tourism sector in advancing sustainable tourism development”.

“The Tourism Transformation Council aims to build on Ethiopia’s natural, historical and cultural resources to strengthen the tourism sector, identify pressing value-chain gaps and intervening to allay these gaps based on tangible and scientific studies jointly with the private sector and the international tourism community. Together, we will work hand in hand to make tourism one of the leading economic sectors of our country and Ethiopia a top destination in Africa”, said Mr. Desalegn.

UNWTO and Ethiopia have agreed to reinforce their collaboration in the areas of tourism statistics, sustainable tourism development, public-private partnerships and marketing strategies, as defined in an agreement signed by Mr. Rifai and the Minister of Tourism and Culture of Ethiopia, Mr. Amin Abdulkadir.

Note to editors:

Africa has been one of the fastest growing tourism regions of the last decade, totaling 56 million international tourist arrivals last year up from 26 million in 2000. UNWTO forecasts this number to reach 134 million by 2030.

In 2013, tourism generated US$ 34 billion in exports in Africa (7% of all exports in the region) up from US$ 10 billion in 2000.

Useful links:

Photo album: Official visit by UNWTO Secretary-General Taleb Rifai to Ethiopia 

UNWTO Regional Programme for Africa

Download and share:  Tourism – Driving Trade, Fostering Development and Connecting People 

UNWTO Senior Media Officer: Marcelo Risi

Tel: (+34) 91 567 81 60 

UNWTO Communications & Publications Programme

Tel: (+34) 91 567 8100 / Fax: +34 91 567 8218 

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Ethiopia’s hotel industry needs help to encourage tourism

Lecturer, University of KwaZulu-Natal

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Orthodox Tefera does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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The global tourism industry has huge economic importance. It contributes 10% of the world’s gross domestic product and 6% of exports. One billion people a year travel somewhere in the world.

Africa’s natural and cultural points of interest give the continent tremendous tourism potential. This shows in the numbers . In 2015, the sector generated USD$ 36 billion in Africa (7% of all exports in the region), up from USD$ 10 billion in 2000. Travel and tourism also directly supports 466,000 jobs. It’s expected that by 2030 the number of tourists will reach 134 million annually.

But African countries’ tourism industries are often constrained by a lack of infrastructure development, air connectivity and financing.

Ethiopia, in East Africa, is an example. The country has immense natural, cultural and historical attractions, but is a largely untapped tourism market. It suffers from a lack of infrastructure and the negative publicity the country received after the famine in the 1980s and various conflicts. It needs to make a big effort to market its potential and develop the measures to support the industry.

Ethiopia’s tourism sector showed a steady increase in the last decade. International tourist arrivals rose from 64,000 in 1990 to 680,000 in 2013 and are expected to reach 815,000 by 2024. This 2024 figure would mean a contribution of USD$2 billion to the country’s GDP. Over the next five years the sector is expected to create over a million jobs, or 3.6% of total employment.

Comfortable hotels play a vital role in attracting tourists. After the fall of the communist government 27 years ago, Ethiopia started privatising most of the state owned hotels and tourism establishments. To support this, the government adopted a policy that allows duty-free imports of hotel furniture, fixtures and equipment. It also provides for favourable loans to investors for the construction of new rated hotels.

But, while the hotel industry is growing, the number of available hotel rooms is still the lowest. In terms of room availability, Ethiopia is globally ranked 134 out of 140, compared to Kenya, Uganda and Tanzania at positions 122, 121 and 118 respectively. Furthermore, there are few hotels of an international standard, and many are old and unattractive. Infrastructure to support the hotels is lacking. There are no zoning policies to establish the areas where hotels should be constructed, or tourist activities to complement them when they are built.

Hotel performance

Until recently , Ethiopia did not have enough hotels recognised under international rankings or ratings – they generously awarded themselves their own stars. This made it hard for visitors to judge the quality of a hotel. This changed in 2015 when the Ethiopian government, with the help of World Tourism Organisation, started rating hotels in the country. Though participation in the grading process is mandatory, the graded hotels still haven’t undergone annual audits to ensure they’re keeping up with the standard they were awarded.

Ethiopia also only has six internationally branded and managed hotels. This is a very low figure bearing in mind that the average number of tourists per year is nearly 700,000 and these six hotels have a combined total of less than 1,500 rooms. By comparison, Nairobi in neighbouring Kenya already hosts most of the international hotel brands – and expects 13 more to open their doors over the next five years.

There are also only three five star hotels in Ethiopia and the majority of the “rated” hotels which guarantee a certain standard of service are situated in the capital, Addis Ababa. Other hotels, rated only by online travel agents based on the guests’ comments and with fewer than 100 rooms, are scattered throughout major towns. This is a problem because most of the tourist attractions are located in the countryside. There is also a scarcity of budget facilities, like youth hostels, to cater for budget travellers and backpackers.

Another major issue is the hotel structures. After the fall of the communist regime, from 1995, Ethiopia started privatising. Over 287 enterprises were transferred from the public to the private sector – out of which 34, or 11.8%, were hotels. The aim was to improve economic efficiency, stimulate the private sector and mobilise more foreign and domestic investment. However, the process has been weighed down with problems which include ; corruption, loss of jobs and a lack of ownership and transparency. The state retains control of many of the most valuable assets in the sector. These are not well maintained, as they are about to be privatised. For example, Addis Ababa’s Hilton hotel, completed in 1987, now needs urgent refurbishment.

Finally, the hotel industry needs to be supported by tourism infrastructure. It needs physical facilities like car parks, sewerage and water works, transport projects and roads. These have to be based on zoning policies, to establish where the hotels should be built. With the exception of Addis Ababa, there are also hardly any offerings of recreational or entertainment activities like parks, concerts or cinemas. And there are logistical gaps like the lack of adequate ATM machines and foreign exchange bureaus outside Addis Ababa. This means visitors need to carry large amounts of cash in local currency, which is inconvenient and unsafe.

To spur tourism growth and development, Ethiopia must improve the hotel industry and the infrastructure that supports it. It will take the cooperation of all stakeholders – government, hotel professionals, hotel owners and hotel trade associations – to achieve a competitive and sustainable sector.

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Publication: Ethiopia's Tourism Sector : Strategic Paths to Competitiveness and Job Creation

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Travel & Tourism - Ethiopia

• In Ethiopia, the Travel & Tourism market is expected to generate a revenue of US$2,297.00m by 2024, with a projected annual growth rate of 5.89% from 2024 to 2028, leading to a market volume of US$2,888.00m by 2028.
• The Hotels market is anticipated to be the largest market, with a projected market volume of US$1,139.00m in 2024.
• The number of users in this market is expected to reach 14,410.00k users by 2028, with a user penetration of 15.7% in 2024, which is expected to increase to 17.1% by 2028.
• The average revenue per user (ARPU) is projected to be US$112.70.
• It is expected that 73% of the total revenue in the Travel & Tourism market will be generated through online sales by 2028.
• When compared globally, United States is projected to generate the highest revenue of US$199bn in 2024.
• Ethiopia's travel and tourism industry is on the rise, with a focus on ecotourism and cultural experiences.

Key regions: Malaysia , Europe , Singapore , Vietnam , United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

The market consists of five further markets.

• The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
• The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
• The Hotels market includes stays in hotels and professionally run guest houses.
• The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
• The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

• Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

out-of-scope

• Business trips
• Other forms of trips (e.g. excursions, etc.)

Travel & Tourism

• Vacation Rentals
• Package Holidays
• Analyst Opinion

Ethiopia's Travel & Tourism market is experiencing significant growth and development, driven by various factors shaping the industry within the country. Customer preferences: Travelers in Ethiopia are increasingly seeking authentic cultural experiences, eco-friendly tourism options, and off-the-beaten-path destinations. This shift in preferences is influenced by a global trend towards sustainable and responsible tourism practices. Trends in the market: One notable trend in Ethiopia's Travel & Tourism market is the rising popularity of adventure tourism, with activities such as hiking in the Simien Mountains and visiting the ancient rock-hewn churches of Lalibela attracting more visitors. Additionally, the country's diverse wildlife and national parks are becoming key attractions for nature enthusiasts and wildlife lovers. Local special circumstances: Ethiopia's rich cultural heritage, including its UNESCO World Heritage sites and vibrant traditional festivals, sets it apart as a unique travel destination. The country's unique cuisine, coffee culture, and traditional music also contribute to its appeal among tourists looking for authentic experiences. Underlying macroeconomic factors: The Ethiopian government's focus on infrastructure development, including improvements in transportation networks and accommodation facilities, has played a significant role in driving the growth of the Travel & Tourism sector. Additionally, initiatives to promote the country's tourism offerings internationally and simplify visa procedures have helped attract more visitors to Ethiopia.

• Methodology

Data coverage:

Modeling approach:

Additional notes:

• Sales Channels
• Travel Behavior
• Global Comparison
• Key Market Indicators

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Ethiopia outlines new tourism strategy

Ethiopia’s Minister of Culture and Tourism, Aisha Mohammed Mussa, explains the details behind the extra impetus Ethiopia’s government is adding to its tourism sector development and promotion to reach and indeed surpass the ambitious growth targets it has set for 2020.

Having such a vast past and culture, what would you say makes Ethiopia different from other tourism destinations?

My country is blessed with immense natural, cultural, and historical attractions. To mention some: Ethiopia is the origin of humanity, the origin of coffee, the origin of the Blue Nile. It is also the home of Erta Ale, the second most active volcano, and the beautiful Danakil Depression. Ethiopia is called “the water tower of East Africa.” It has beautiful scenery with a spectacular chain of mountains that are sometimes called “the roof of Africa.” We have four biosphere reserves that are registered by UNESCO. Ethiopia is home to numerous rift valley lakes, hot springs and highland lakes, even around Addis Ababa. We have various national and regional parks, such as the Awash National Park and the Simien Mountains National Park, among nine other national parks and two beautiful sanctuaries. On top of all these, Ethiopia has a dependable peace and stability as an advantage to attract tourists.

It’s also the home of ancient religions, like Judaism, Christianity, and Islam. And it is the home of ancient cities with beautiful ancient mosques and churches with carved stones and monuments, in Axum and Lalibela, among others. We have national archives and a national library with different rare manuscripts. And we have our own unique calendar and alphabet. The country has never been colonized; it’s considered as a symbol of independence in Africa and we are very proud of that. We boast more than 80 nations and nationalities and peoples, with their own distinct culture and amazing traditions.

The country’s aim is to triple the number of foreign visitors and increase it by more than 2.02 million by 2020. If we develop our sites fast enough and promote them accordingly, it might even get quadrupled. We are very ambitious in our vision.

Could you please discuss the prominence Africa is gaining on the international arena?

Africa’s role in terms of investment opportunities is growing for both advanced and emerging economies. This is mainly because of the fact that the continent has huge potential, having immense and untapped natural resources, availability of an adequate young and competitive labor force, relatively sustainable economic growth, and a comparative advantage of peace and security – even though we have some spot areas of conflict that may sometimes hamper the continent’s image. These, among others, are some of the main factors that make Africa attractive and prominent on the international arena.

Among other key priorities for the continent are power and critical infrastructure. Could you please discuss Ethiopia’s work in this regard and the impact of power and infrastructure development in tourism?

True, infrastructure development is one of our top priorities. Our tourist destinations used to be inaccessible as there was no adequate road and air infrastructure, and not enough power infrastructure and other facilities around those sites. However, at this time, the government is investing a lot into these areas. There is construction of domestic and international airports, extensive road and rail infrastructure, and huge electricity infrastructure from hydropower, wind, geothermal and other power sources, etc.

Consequently, at present our tourists are accessing those destinations more easily and investors are keen to invest in building lodges, hotels and restaurants around those destinations.

Also, power infrastructure is our top priority so as to support this growing economy and we are doing well in this regard.

The next priority is education. It is very important to develop our destinations and infrastructure, but what we also need are educated human resources who can work efficiently in the hospitality sector. We should develop our talent and training alongside the development of infrastructure.

Africa is the youngest continent in the world: by 2040, the continent is projected to boast the largest labor force in the world – 1 billion workers strong: more than China and India combined. What are the challenges and how can Africa address them?

First of all, as a continent with a big young workforce, I think there might be some challenges because of a lack of democratization, good governance and political stability in some cases. Thus, we have to ensure good governance and democracy in our countries in order to effectively use this young workforce.

On top of this, we have to ensure tolerance among the diverse communities in our countries, like we are perfectly practicing in Ethiopia, as well as reduce the scale of poverty. By achieving this, our workforce will definitely be one of our main competitive advantages.

We also have to minimize the rate of corruption. We can do that by ensuring rule of law, accountability and integrity among stakeholders. All these factors contribute to our growing economy.

Regarding the tourism sector, we have to provide market-oriented training for young people who want to work in hospitality, invest in the expansion of our employment and proper professional training, encourage the entrepreneurship spirit in these young people, including women, and target those who are vulnerable to poverty and drought. This sector should work seriously in order to use that potential workforce to benefit our economy and foster its development and growth.

Ethiopia is one of the fastest growing economies in the world. What is the role of the tourism sector in Ethiopia’s economic growth, job creation and as a forex earner?

First of all, let me give you some facts behind this achievement. Of course, the tourism sector provided us with relatively large revenues. It was $2.9 billion just last year. It created more than 700,000 jobs in the same year. One of the reasons behind these achievements is that the government has a strong commitment to end poverty. The government is committed to eradicating the poverty we are facing because of drought, famine and climate change, among other factors. Ethiopia used to be known for famine but over the past 15 years the country has been fighting really hard against drought. Of course drought will remain a challenge but it should not necessarily turn into famine.

The other factor behind the achievements are the government’s policies. There are clear and appropriate government policies and strategies for each and every sector that is leading us to the eradication of poverty. There is also a win-win collaboration with our development partners. The government strives for mutual cooperation and win-win collaboration with partners in every sector. This is why they are completely engaged in what we are doing side by side with our government.

Another factor is the stable political arena we have had over the past 24 years. This also gave us another competitive advantage among the East African regions. We are working to maintain peace and security with our neighbors. Thus, the sector has immensely benefitted from this conducive environment.

The government is showing a firm commitment towards tourism by the creation of the ETO and the ETTC to boost the sector.

His Excellency the Prime Minister is the chairman of the newly established Ethiopian Tourism Transformation Council (ETTC). There is also the Ethiopian Tourism Organization (ETO) that has not existed before. The ETO is mainly focusing on destination marketing and promotion, as well as the destination development in terms of service, quality and access.

We are now working on different websites to promote our country as a favorite tourist destination. We are working on changing our tourism brand and trying to build a completely new communication campaign. It will be launched before March and it is very exciting, as it will support our former promotion strategy.

The Growth and Transformation Plan (GTP) is transforming Ethiopia’s economy. Could you please discuss its main focus and expectations regarding tourism?

Yes indeed, our vision for the next GTP is to make Ethiopia one of the top five tourist destinations in Africa by 2020 through developing our attractions and promoting our culture and tourism products. To attain this aspiration we have identified five main focus areas on our GTP 2 agenda. These are: natural and cultural heritage conservation and development; culture and tourism products marketing; service excellence; improve culture and tourism research and information systems; and enhance cooperation and collaboration with our development partners. Based on these focus areas, we tried to put clearly defined goals which could enable us attain the intended outcomes in the coming five years.

I would also like to talk about the outcomes of GTP 1. As I indicated earlier we have established the tourism board, the ETO and the ETTC. Before GTP we had already eight registered World Heritage Sites by UNESCO, but during the last GTP we also registered two more – one tangible and one intangible. The first was the Konso Cultural Landscape and the other one was Meskel Demera festivities (the finding of the true cross). Recently we have also registered one additional intangible cultural heritage by UNESCO, called Fiche-Chambalala, which is the celebration of the New Year for the Sidama people situated in the southern part of the country. That means our number of heritage sites has been raised to 11.

We started working with partners such as the World Bank. There is a destination development project with the World Bank that was very successful in our World Heritage Sites like Lalibela and Axum. We can use it as a benchmark for our future partners as we hope there will be many more projects like that. We also have assessed nearly 400 hotels in the last GTP in collaboration with UNWTO. Based on this, therefore, 68 hotels were awarded with stars from 1 to 5 in Addis Ababa alone.

How are you diversifying the tourist base?

We are indeed focusing on the diversification of our tourism product offering. Thus, in addition to the already existing traditional cultural and historical destinations, we definitely will focus on MICE tourism since we have a big opportunity we can harness as the political capital of Africa and diplomatic hub of the region.

We will also focus on nature-based tourism such as mountain climbing, river tracking, bird watching, etc., since we have ample resources in this aspect. Therefore, I can assure you that we will do whatever we can to diversify our tourism products as per our tourism marketing strategy in such a way that enables us attract more tourists to our country.

As UNDP Resident Representative Eugene Owusu mentioned during ETO’s launch, Ethiopia needs to be bolder in marketing itself as a tourism destination of note. What are your efforts to promote Ethiopia internationally?

This is why we are planning to have the new brand and slogan to communicate our country’s attractiveness and uniqueness to the rest of the world as it deserves. Additionally, we are developing new websites, software and mobile apps to promote Ethiopia. We are also participating in different worldwide trade fairs in order to expand our promotion scope and get better market access to our tourism products. But, at this juncture, our priority mainly focuses on destination development and service excellence in order to sustain current and future customer relationships.

The UK is one of the world’s top tourist issuers and its nationals are the fourth biggest spenders globally. What opportunities would you like to highlight to the UK audience?

We have very good, longstanding relations with the UK, especially in terms of socio-economic cooperation, as the UK is one of our primary development partners.

Regarding tourism, we have been participating in the World Travel Market (WTM) since 20 years ago. That means we are promoting and marketing ourselves to the UK visitors. But we also have to invite UK investors to invest in our tourism sector, such as infrastructure development, like roads and electricity, hotels, restaurants, etc.

We have to adjust our way of communicating with the UK audience and focus on discussing working together in the tourism sector, as we are doing it well in other economic endeavors. 

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Ethiopia: Exploiting the Tourism Potential to Boost the Nation's Revenue

Tourism has numerous characteristics that make it valuable as an agent for development. It is a driver for socio-economic progress and has considerable impact on local development trends. The sector generates multiple effects across many other economic activities in the tourism supply chain.

Culturally, Ethiopians show good attitude towards local and foreign gusts. When they come across gusts, they receive with embracive hand and let their home to the visitors to stay even leave their bed to the gusts and sleep on floor and such cultural practice has continued for centuries.

Country's long tradition proved that Ethiopians show compassion to gusts without expecting any return be it materially or emotionally. Even if they don't have financial capacity to host the guest, they resort to get loan from the neighbors to accommodate them. Sometimes, they spend what they save for time of hardship and assume entertaining visitors as a good chance in their life time.

During the last five years, the government has exerted remarkable effort to build and develop new tourist destinations in various parts of the country.

One can observe some of the tourism destinations in several parts of the capital. For instance, a new park is constructed on mount Entoto in the northern part of the city and numerous local and foreign gusts visit the place particularly on the weekends. There are hotel accommodations, horse and bicycle riding places. There are also playing fields for children.

Besides, a visitor can see the entire city and impressed with its beauty by looking down wards from Entoto Park. The surrounding forest also captures vision of the visitor and adds happiness.

On top of serving as a tourist attraction, construction of the park there helps forest conservation works, and creates job opportunity to citizens. According to sources, the government allocated millions of Birr for the construction of the park and asphalt roads that heads to the park.

Unity Park constructed inside the compound of Menelik II palace is also boosting tourism. In the compound the historical site which served as residential place for Emperor Menelik II can be seen. The palace also served as a residential house for the consecutive leaders of the country: Emperor Hailesilassie I, President Mengistu Hailemariam, Prime Ministers Meles Zenawi, Hailemariam Desalegn and Abiy Ahmed (PhD).

The hall where the Kings were served meals is renewed and the place where they sat also renovated. In the park, a new habitat of plants and animals is also established and visitors can see different wild animals including lions inside the zoo. Thus, The Park is generating income.

The other park located nearby the Unity Park known as "Friendship Park" also plays pivotal role in accommodating visitors, providing various outdoor services like wedding ceremonies and conferences so that it generates its own income. Particularly in the weekends, thousands of visitors enjoy the park. The park's captivating features such as its topography, artificial lake and the fountains add beauty to the park and pleasure to the visitors.

The government's initiation to construct such tourist attractions by allocating millions of Birr indicates how it is committed to boost the tourism sector.

More tourist attractions have also been constructed in different parts of the country during the last five years. The breathtaking landscapes of Koysha, Gorgora and Wonchi can be cited as good examples in this regard. Halala Kella, being a part of Koysha, has its own resort located in the superb of Gibe River artificial lake.

It has its own tangible heritage, the wall constructed by king Halala which covers 1225 square kilo meter and has 7 gets and residential palaces inside. The construction process of the wall took 200 years and constructed by seven generations' rally.

The Chebera Churchura Natural Park located in the east of Halala Kella in Konta zone is also one of the best tourist attractions. There are three lakes inside the park and wild animals such as African Elephant, hippopotamus, the endemic white fish found only in Ethiopia, crocodile and endemic birds. The Koysha Hydroelectric power generation dam is also under construction near the park. The number of tourists visiting the places is increasing from time to time.

In Konta and Dawro zones, there are various ethnic groups with their own cultures, languages, traditional dishes, and ways of dressing, haircut, singing and dancing, grief and funeral ceremonies. And these all are parts of the heritages which can be taken as asset for the tourism industry.

Wonchi Park located in the western Oromia zone which is under construction is expected to create job opportunity for many and boost the sector after its completion. The Gorgora Park located near Gondar town being constructed on the shore of Lake Tana eying its completion soon is also expected to boost the tourism industry.

Tourist attraction heritages should be protected and to this end, various measures should be taken and among others, educating the public to raise awareness is the primary task. Public awareness should be created sustainably and might be vary depending on the nature of the sites. Awareness creating training toward preserving the heritages should be provided to the elders and local community leaders because they have their own understanding regarding the heritages including knowledge inherited through oral literature. In addition, the training should be given to the kebele officials, principals of the nearby schools and other influential figures.

In such a way, it is easy to approach the whole community members and enables raise their awareness. Organizing heritage clubs in the surrounding villages may also contribute to the conservation.

Creating enabling environment to the community members to participate in the tourism development through informing the plan and making them beneficial from the sector is vital because it creates belongingness and helps to build positive attitude towards tourism and the tourists. Recently, Ambassador Nasise Chali, Minister of Tourism announced that tourist destinations built by the government and the private sector is improving the flow of tourists to Ethiopia.

The Minister stated that the nation has now been able to return the tourism sector to the position it had before the outbreak of COVID-19. The mid-term implementation of the first phase of the 10-year perspective development plan and the second phase of the mid-term plan to be implemented from 2016-2018 were reviewed and their weakness and strength were discussed with stake holders.

During the occasion, Nasise pointed out that activities carried out over the past 10 years in the tourism sector have not been as desired mainly due to COVID-19 and security issues. However, better achievements have also been registered in the development of the sector in the concluded Ethiopian budget year as the nation was able to return the flow of tourists to what it was before the outbreak of COVID-19.

In this regard, the contribution of tourist destinations built by the government and the private sector in various parts of the country is huge. The Minister also disclosed the plan of constructing 10 new tourist destinations over the coming ten years, in addition to renovating the existing ones by engaging the private sector. She further stated that promoting tourist destinations under construction will be intensified.

The Minister pointed out that over the coming years, a great deal of attention will be given to intensify tourism conference by using Ethiopia's comparative advantage as a seat of African Union and many international offices and diplomatic residences.

However, expanding tourism sites should go in line with the stretching of infrastructure such as roads, hotels, electric power, piped water, travel agents, vehicles, internet services, telephone services and the exchange centers of local currency with foreign currency.

As it is known in Ethiopia, in addition to natural tourist destination, there are cultural and religious sites which have been visited for many years. These include the Axum obelisk, the Lalibela rock hewn churches, the Gondar Palace, the Sof oumar cave, the Jugol wall in Harar and ancient mosques to mention but a few.

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But there is a gap in infrastructure provision. Power interruption is also a common problem in various parts of the country which again negatively affects internet connection. The absence of standardized lodges, sufficient water and sanitation services have their own draw backs on tourism business. It is true that currently the government is working energetically to enhance the nation's electric power generation capacity.

In the last two decades' for example, the government has been constructing hydropower dams in various parts of the country and some of them are completed and others are under construction and when the construction is completed, the power supply to the main grid will be increased by many fold. Some of the problems related to the power interruption are expected to be resolved soon. It was learned that five turbines of the Abbay Dam will be operational this year and expected to ease the chronic problem related to energy supply.

The old roads which lack maintenance largely contribute for the damages of vehicles and this again discourages travel agents and refrains to continue their business in the sector.

Side by side with these, the deteriorating security situation in various parts of the country is harming the sector. Travel agents refrained to drive car towards the tourist sites threatened by unexpected violence eruption. The reduction of the number of tourists who would be hosted in four star hotels in the capital due to the security reasons left the hotel owners to uncertainty.

Be it is, the sector's performance is encouraging. According to the recent World Tourism Organization report, domestic and international visitors spend remarkable amount of money which is injected in the Ethiopian economy has reached USD 2.4 billion. It greatly supports to accelerate the Ethiopian GDP. The Ethiopian travel and tourism industry represented 7% of total GDP in 2019. This economic activity supported the nation by creating 2 million jobs, it was learned.

Read the original article on Ethiopian Herald .

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Ethiopian Tour Operators association

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Connecting Lives, Creating Opportunities: Learn More About Ethiopian Tour Operators Association.

ETOA Members

Ethiopian Tour Operators Association (ETOA) is a professional association representing the legally registered tour operators in Ethiopia. Currently, ETOA is composed of more than 285 individual tour and travel agency companies that are actively engaged in providing tour and tour operation related services.

To be the foremost authority driving tourism growth in Ethiopia through strategic partnerships, relentless promotion, and steadfast dedication to the advancement of the industry.

• Fostering collaboration between tour operators, government, and other tourism stakeholders
• Promoting Ethiopia as a unique and compelling tourist destination
• Advocating for policies and initiatives that ensure the sustainable development of tourism
• Providing tour operators with resources, training, and networking opportunities to grow their businesses

Core Values

• Leadership: We strive to be visionary leaders and authoritative voices on Ethiopian tourism.
• Collaboration: We believe fruitful partnerships across sectors are key to advancing tourism.
• Sustainability: We are dedicated to promoting sustainable policies and practices that balance tourism growth with cultural and environmental preservation.
• Service Excellence: We aim to deliver outstanding service and to be highly responsive to the needs of our members and partners.
• Integrity: We conduct all our affairs with honesty, transparency and accountability.

Board of directors

The Ethiopian Tour Operators Association is governed by a Board of Directors elected by its members. The Board is composed of 7 industry leaders who each serve a 2-year term. This group of diverse professionals represents the breadth of the travel industry across Ethiopia. As the elected governing body, the ETOA Board of Directors is responsible for overseeing the strategy, activities, and direction of the association. They provide guidance and leadership to advance ETOA's mission of promoting professional tour operations and unforgettable travel experiences.

Each Board member contributes their expertise and perspective from different sectors of tour operations, from inbound to outbound agencies. Together, they work collaboratively to support ETOA members and uphold world-class standards across the industry. The ETOA Board of Directors exemplifies the association's spirit of cooperation and excellence. Their leadership will be crucial as ETOA continues to drive positive change in tour operations and make Ethiopia a premium travel destination.

Fitsum Gezahegne

Fikreselassie Admassu

Vice President

Bogale Abey

Board Secretary

Molla Miheretu

Board Member

Samerawit Fekadu

Yared Mulugeta

Wubeshet Alemayehu

Ethiopian Tour Operators Association (ETOA) is a professional association representing the legally registered tour operators in Ethiopia. Currently, ETOA is composed of more than 220 individual tour and travel agency companies that are actively engaged in providing tour and tour operation related services.

The ETOA was established in 2003 to make sure its members provide services with high level professionalism and ethics encouraging the highest standard in all aspect of tour operating.

Ato Tegene Hailegiorgis

General Manager

Beza Tilahun

Member's affairs officer

Haregewoyien Gedion

Case Executive and Finance

Adane Aregaw

Airport agent

Selamawit Engidawork

When established in 2003, the Ethiopian Tour Operators Association (ETOA) was founded by ambitious industry leaders seeking to transform travel in their country. They envisioned an organization that would champion professionalism, ethical conduct, and exceptional service among tour operators in Ethiopia. Through ETOA, these pioneering founders aimed to set the highest standards in all facets of tour operations. By bringing tour operators together under a shared code of excellence, they sought to showcase the tremendous potential of travel in Ethiopia. Today, ETOA upholds this spirit of quality, collaboration and advancement. The association remains committed to the vision of its founders - to make Ethiopia a world-class destination by empowering tour operators to deliver unforgettable travel experiences. Thanks to its dedicated founders, ETOA continues to be the leading voice and resource for tour operators across Ethiopia. Their leadership and initiative laid the foundations for the association's ongoing impact.

Fitsum Gezahegne Lakew

CEO,Paradise Ethiopia Travel

Yohannes Assefa Woldegiorgis

Managing Director Red Jackal Tour Operator PLC

Yenealem Getachew

Managing Director Horizon Tour

Yoseph Getenet

Managing Director Ghion Tour & Travel PLC

Atenafu Bezuneh

Managing Director Hadar Tours

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Challenges and Prospectus of Ethiopian Tourism Industry

Table of contents, 1. introduction, 3. challenges of ethiopian tourism industry, 5. recommendation.

ourism is the process where people from one place to another go for enjoyment and spend the time. It play great role for the development of a country. Through tourism demand of different commodities increasing and different cultures of the world are homogenized in one culture. On one side development occurred but on the other side different diseases are transferred from one country to another in the world. In real sense the tourism industry is link with every sector of the economy in the world. This positively and negatively affects the GDP of the country. Through tourism industry many employments were generated which play great role in poverty reduction and socioeconomic improvement of the world.

According to Chris (1990) tourism is one of the best ever rising industries that provide services and facilities for visitors who came from outside to the destination area for a period of more than 24 hours and less than one year and also it is strategically important industry that is directly and indirectly linked to the long term prosperity of a country.

Tourism is a social phenomenon that promotes the movement of visitors to a destination with certain natural or artificial features aimed at leisure, business, education, and vacation objectives (Gonzalez Fonseca, 2012). Currently, tourism is the world's largest industry and is valued at somewhere between USD$3 to $3.5 trillion, and it accounts for more than 10% of total employment, and 11% of global GDP (WWF International, 2001) . Similarly, the direct contribution of travel and tourism to Ethiopian GDP was 4.1% of the total GDP and accounts for 8.4% of the total employment (creating 2,326,500 jobs), and 2.9% in the total investment of the country in 2015 (WWTC, 2017). However, the rapid growth of tourism and how to manage it sustainably is a Challenge for many destinations (Weber, et al. 2017) .

According to Tekabe (2016) the tourism industry in Ethiopia has a number of challenges and opportunities. He distinguished that lack of promotion, lack of physical infrastructure, misperceptions the images of Ethiopia and shortage of trained human power as major challenges of tourism industry in Ethiopia. Vellas (2011) stated that it is newly emerging industries and became an increasingly important source of income, employment and wealth in many countries. On the other hand, various factors have been affecting sustainable development of the tourism industry worldwide. According to Philip (2017) factors affecting tourism industry development may be either internal or external. External factors like weather, safety, access to amenities, peace, and security may affect the development of the tourism industry (Becken, 2010) . Likewise, internal factors like inadequate infrastructures, weak human resources, low marketing and promotion strategies (Mekonen, 2016; Selemon and Chiranjib, 2018) , and weak linkage with international organizations can hinder the development of tourism industry in a given place (Tadesse, 2015; Yimer, 2016) .

UNWTO forecasts international arrivals to increase by 4% to 4.5% in 2014, again above its longterm forecast of +3.8% per year between 2010 and 2020. The UNWTO Confidence Index, based on the feedback from over 300 experts worldwide, confirms this outlook with prospects for 2014 higher than in previous years. "The positive results of 2013, and the expected global economic improvement in 2014, set the scene for another positive year for international tourism. Against this backdrop, UNWTO calls upon national governments to increasingly set up national strategies that support the sector and to deliver on their commitment to fair and sustainable growth", added Mr. Rifai. 2014 regional prospects are strongest for Asia and the Pacific (+5% to +6%) and Africa (+4% to +6%), followed by Europe and the Americas (both +3% to +4%). In the Middle East (0% to +5%) prospects are positive yet volatile.

Though noted for its tourism potential, Africa's underdeveloped tourism sector is attracting only little number as a service sector, tourism services are playing special importance's in boosting up the image of a nation and also in facilitating the economic growth and development of a nation (Mckercher, R ,1995) .

Ethiopia is one of the gifted countries in the world with tremendous tourism potentials as it stands at the top position in Africa with nine world heritages sites and three intangible heritages registered in UNESCO as world heritage. Regarding tourism potentials the country is able to compete with other countries of the world, while from the point of using this potential for the benefit of the community as well as the country is not well development (MoCT, 2016).

Ethiopia's tourism sector is booming in tandem with its fast economic growth. It is also basking under stable peace and security as compared with other African countries. And that is why Ethiopia enjoyed the limelight as this year's ' Top Destination In The World For Tourists' by the European Council on Tourism and Trade (ECTT) because Observably in most developed countries, the smokeless industry has the lion's share in the overall economic growth and development of a country.

Addis Ababa, December 12/2018 -"13 Months of Sunshine." This was the inspiring slogan that defined Ethiopia for the past 50 years. In 2016, a new tagline -"Land of Origins" -was introduced by the Ethiopian Tourism Organization (ETO), recently re-flagged as Tourism Ethiopia, to revitalize the nation's struggling tourism industry.

Ethiopia welcomed over 933,000 travelers in 2017, a slight increase on the 870,000 recorded in 2016. Data from the Ministry of Culture and Tourism shows that in 2017. on a positive note, there has been a visible increase in the number of tourists in Addis Ababa after PM Abiy Ahmed's rapid reforms following years of unrest throughout the country. But these increments are not sufficient to fuel Ethiopia's ambition to become a powerhouse tourist destination in Africa.

Ethiopia deserves to be higher on the list of key African markets due to its nine UNESCO World Heritage sites. Addis Ababa is the diplomatic capital of Africa and Bole International Airport recently overtook Dubai as the major transit hub to Africa, thanks to Ethiopian Airlinesthe continent's leading airliner. Unfortunately, Ethiopia is still a relatively unknown tourist destination to the traveling public and it needs to create a sense of place on travelers' minds.

For Ethiopia, there are many challenges that need to be addressed. Some of them include the lack of effective marketing, limited access to financing, and the inadequate development and implementation of strategies. Some stakeholders have gone as far as criticizing the failures and limitations of Tourism Ethiopia (formerly ETO) for its inability to create any significant change.

Plagued by operational inefficiencies, lackluster bureaucracy, internal conflicts, and non-existent leadership, the organization has struggled to make progress on its goal of making Ethiopia a premier destination in Africa, despite having many of the tools within its arsenal. Now a day, Tourism sector is getting attention by developing countries since it is becoming a backup for their economy stability with the fact that their economic background mainly depends on exporting Agricultural products which has little contribution for earning hard currency (Usman A. Raheem, 2008) .

Teshale Biazen 2010, also support that the above problems and based on his research political uncertainty or disruption of infrastructure has a major influence of the tourism sector of Ethiopia. Essential wages in the tourism sector tend to be low in comparison to others sectors (although agriculture in many cases is an exceptional). This mostly happen as this sector income is seasonal and lost confidence of many professional experts with high salary. In return such kind of insecurity may discourage people to join this institution or to stay in for long period of time. (Bull, 1995) or employment problem is one of the bottleneck of Ethiopian tourism. According to (Gezachew Andarege, 2013), on his finding of the study mentioned that lack infrastructure, problems of securities, lack of museum, lack of service and facilities, lack of preservation and protections of heritage, financial constraints are the major challenges of tourism development in Ethiopia.

In 2016, ETO released a marketing strategy that was meant to act as a blueprint for the development of the national tourism industry. One section prioritized the development of the meetings industry (MICE) and observes the potential of transit tourism. To date little has come to fruition, besides the easing of visa restrictions for travelers and introduction of several ET-Holiday packages.

In regards to MICE, the sector continues to be led by stakeholders in the private industry. To exacerbate this, the idea of creating a much-needed convention bureau for Ethiopia was completely overlooked by ETO during a meeting organized by the stakeholders, such as, Ethiopian Airlines and the Ethiopian Events & Exhibition Organizers Association.

Another noteworthy concern is the limited access to finance. Ethiopia has the potential to support a growing tourism sector, but if the capital is not available to invest in improving both tangible and intangible assets, little progress will be made. For example, a tangible asset would be the development of tourist centers and facilities at popular sites. Intangible assets would be the effective marketing mediums and promotions to connect with travelers.

Ethiopia's government has long supported the development of hospitality assets going as far as providing tax incentives and duty-free privileges for new hotels. However, given the unappealing financing market, it has been difficult for most of these properties to open their doors. Some of the challenges facing developers are expensive borrowing rates and access to hard currency.

Furthermore, there isn't a concrete budget developing and preserving tourist sites throughout the country. The federal government and regional states seem to rely on international financing instead of using their own budgets for these projects. For example, the government does not have the adequate funds for the restoration of the Lalibela churches. This unfortunately applies to the national parks, museums, and heritage sites.

A short-term solution to improving tourism would be to target domestic tourists and the diaspora. With targeted marketing efforts and promotions, unique destinations in Bale, Simien, Omo, and Danakil can be experienced by locals. Without properly incentivizing people on what is available, it will be impossible to show them what they are missing. Domestic tourism can be developed as a complement to the international one and offer a well-rounded tourism economy.

As it is known, the slogan of directives to be set by the government is to supervise, consult and regulate the tourism market, thereby boosting up trends in the growth of tourism services and ensuring the realization of the national economic growth and development policy set by the existing government. As cited by World , ups and downs in licensing of tourism service operators, inconsistent and weak supervision of such organizations by the government, little awareness as to the benefits of tourism services by the local communities, shortages of reservation software indicating tourism sites to visitors and number of registered local and foreign visitors, who got the services and image of the nation by itself are among some of the key factors that not only determine the growth and trends of the tourism sector in Ethiopia but also make the tourism sector to be at its early stage, there by further limiting the demand of local and foreign tourists towards the Ethiopian tourism sector. One reason why the study about tourism services is important is that the government cannot ensure consistent economic growth and development only from the manufacturing sector. Another reason is that currently, the government is pursuing free economic system there by allowing local privately owned organizations to take part in the delivery of tourism services in the Ethiopian tourism industry. The third reason is that provision of tourism services be it directly or indirectly are expected to contribute a lot towards the increment in the gross national product, economic growth, economic development and other policies, or objectives set by the government. The last reason is that, delivery of tourism services has its own contribution in building and sustaining the good image of a nation.

On the top of this issue, in fastest growing countries like Ethiopia, where the tourism sector is at its early stage and tourism tour operators are not plenty to meet the demand of their customers, it has become mandatory for government of a nation is to pay special attention for such sector-including thorough and periodic analysis over the trends in the growth of this sector, supplying this sector with the required skilled man power, furnishing this sector with the required infrastructure, and allocating financial resources, and also setting and practicing policies on how to deliver services in the tourism sector. ( Nabil dabour, 2003) . As indicated in the stock of literatures, though the tourism sector is one of the sectors contributing a lot towards the growth of the per capital income and cash inflow of a nation, provision of tourism services in Ethiopia is facing many constraints, and hence its trends become unattractive for those who want to run and offer tourism services to the local community and foreigners as well. For instance the official website of the Ethiopian culture and tourism minister provided the statics on the tourism service tour operators to various group of tourists' ratio in Ethiopia to be low, there by indicating the fact that much has to be done in the Ethiopian tourism sector. The official website of the Ethiopian culture and tourism minister exist one state owned organization, and currently there are privately owned organizations which are delivering services in the Ethiopian tourism sector.

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Diagnostic Study- How to incentivize for private sector involvement in NDC implementation

final_report_conducting_diagnostic_study_on_private_sector_engagement_in_the_implementation_of_ndc.pdf

April 16, 2024

Private sectors had been engaged in investments in Ethiopia since late 1880s when the royal family members and foreign investors invested in the manufacturing and production areas in key economic sectors, namely in transport, hotel & tourism, industry, agriculture, forests. Examples of such earlier investment initiatives include: Ethio-Djibouti Railway (1894 – 1917), Tayitu Hotel (1898), Wood processing Sawmill at the Mengaesha –Suba forest (1905), Dire-Dawa Cement  (1936).  Since then, the government’s development policies developed by the various government systems generally do anchor at the overall approach to economic growth focusing on capital accumulation in the industry, construction, infrastructure sectors and creation of large scale commercial farms in the agriculture sector to feed the growing urban population, generate export earnings and provide agricultural inputs to the industry. 

However, the landscape of private investment in various economic sectors was hampered by economic and political police reforms, popular upheavals, climate related risks. This attributed to stagnated contribution of the private sector to GDP, as demonstrated by the private sector contribution below 5% of the GDP over a century; and it is very recently that the private sectors’ contributions to the national economy approaches to reach close to 20% of the GDP. 

The participants of the diagnostic study (FGDs and KIIs) from private and public sectors and funding agencies identified key investment barriers.

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