Internal tourism expenditure in Ethiopia generated approximately US$ 132 million in revenue from a base of about 150,000 foreign visitors. These visitors came to Ethiopia for a variety of purposes such as leisure (63,000), business and conferences (62,000) and to visit friends and relatives (25,000).

The study further identified that within the leisure segment Ethiopia’s principal driver of demand is its rich culture and history. This paper looks at some key problems with Ethiopia’s tourism development. The lack of private investment results in a lack of high quality accommodation and services. Demand is another problem, because Ethiopia’s image prevents international operators from selling Ethiopian products while Ethiopian Operators have to promote and deliver services.

The overall supply chains that serve the tourism sector in Ethiopia have limited value added beyond the profitability of the individual service providers, such as tour operators and hotels. The government strategy is guided by the enhancement that tourism should be developed and this paper discusses solutions towards solving the key issues listed above. – The World Bank

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