MEKELLE UNIVERSITY
INSTITUTE OF PALEO-ENVIRONMENT AND
HERITAGE CONSERVATION
( IPHC)
DEPARTMENT OF TOURISM DEVELOPMENT
COURSE TITLE: TOURISM DEVELOPMENT PLANING &
POLICY
ASSIGMENT ON REVIEWING OF ETHIOPIAN TOURISM
STRATEGIC PLAN
NAME: KIROS TESFAY
YOSEF NEGASI
ATAKLTI ABADI
DAWIT SOLOMON
NIGATU AYELE
SUBMITTED TO: DR. ATSBHA
APRIL 2018
In Ethiopia nature, culture and history merge to form a timeless appeal. The countries
impressive tourism potential is truly a land of contrast and extremes, a land of remote and wild
place, and of spectacular alpine terrain-including the semen mountain national park with its
high
4620 meters peak at RasDashen one of UNESCO registered heritage site; and at the other end of
spectrum, the Denakil depression 121 meters below sea level is among the lowest places on
earth. However from these abundant resources the country has not benefited yet. Therefore
questions about how tourism policies contribute to national development? What is wrong with
the existing system? Why should the present policy be discarded? How did it become successful?
These and similar other questions will have to be addressed first before proposing what
measures should be taken to ameliorate the situation. For this reason, a brief account of the
country’s tourism needs to be provided.
The need for tourism policy
Since Ethiopia endowed with enormous manmade and natural tourist attraction area, having
uniform tourism policy is unquestionable. Seventeenyears of neglect “After the overthrow of
theimperial government in the 1960s and the coming topower of the socialist government in
1970, our countryhad a military government whose relations with touristgenerating countries in
Europe and America were bad”,. “For seventeen years, tourism was sorelyneglected in our
country by considering its sociopolitical, economic and cultural advantage, the current
government launched tourism development policy
The arrival of a new government in 1991brought the first change, with greater emphasis on a
free-market economy, improving infrastructure and the construction of new roads, highways and
airports. “Our present government considers tourism to be an industry with great potential for
our country”, says Dalacho,ministry of culture and tourism., “That’s why the ministryof culture
and tourism was formed to replace the tourism commission.”
The head of this ministry recently finished drafting a new tourism policy for the government.
Its main focal points include the following:
Diversify the sector ;
Improve infrastructure and tourism facilities;
Create an enabling environment for private investors;
Develop new and broader educational programmers for the sector so as to create a larger
and more qualified labor force.
The government also aims to establish ‘Tourism development Fund’ with the key aim of
mobilizingresources and capabilities of actors in theimplementation of the policy. The
establishment andapplication of the fund will be determined by a studyand supported by law,
according to the Policy launchedat the Sheraton Addis in August 30, 2019. The newtourism
policy of Ethiopia among other, aims tointegrate/connect the development of the
country’stourism with agricultural, industrial, foreign policies and strategies of the country.
In Ethiopia tourism continues to become more competitive, governments having to adopt a
more entrepreneurial role in attracting not only tourists but also investors to their region. For
instance in Ethiopia with growing tourism the government expanded infrastructures like road,
new airport destinations, vehicles and hotels (private and governmental) etc. The questions raised
surrounding tourism as a regional development tool deal with whether or not there can be real
regional economic dispersion of the benefits of tourism. Tourism development projects, which
do not build strong linkages to the surrounding community, will have little impact on the citizens
who live nearby.
Questions need to be asked about the most appropriate forms of tourism development growth
poles so that the trickle-down effect can be maximized. While tourism may help to modernize a
region, it may also cause the region to become dependent on external organizations.
Review of Ethiopian tourism strategic plan
In line with the tourism development policy,
MCT introduce a strategic plan for the sector every five-year. However, the strategic plan
designed more ambitiously so as to fit the objectives of GTP in the tourism arena.
Some of the following figures make the plan more ambitious;
i. To increase a tourism receipt from the current 250million USD to 3 billion USD.
ii. To create tourism jobs for 3.5 million citizens.
iii. To achieve a tourism promotion activities by 100%
iv. To increase tourist’s service satisfaction from 51%to 90%
v. To improve the capacity of implementing international agreements and conventions from
25%to 90%
c) The undone roles of stakeholders in implementation
Most of the stakeholders such as the federal government, regional government, private sectors
and local communities are not fully playing their roles in implementing the policy.
Among these undone tasks, the followings are the major one under different stakeholders;
The undone roles of stakeholders in implementation
Most of the stakeholders such as the federal government, regional government, private sectors
and local communities are not fully playing their roles in implementing the policy.
Among these undone tasks, the followings are the major one under different stakeholders;
Federal and regional governments
• To expand and improve the development of infrastructural facilities.
• To capably coordinate and lead vigorous marketing and promotion activities.
• To ensure the psychological and physical well-being of visitors.
• Protection of heritages in collaboration with local communities.
Private sectors
• To participate in the provision of quality tourism services in types and capacities required.
• To involve in the expansion of infrastructure needed in the localities of major destinations.
• To participate in the protection of attractions.
• To participate in associations for mutual support.
Local communities at tourist destinations
• To provide appropriate care to guests visiting the local attractions.
• To protect cultural and social values from negative influence of tourism.
• Conserving cultural resources with a sense of ownership.
The ambitious Growth and transformation plan II (GTPII) which has been implemented now
expected to fill the gaps. To this end Ministry of Culture and Tourism of Ethiopia has targeted to
earn six billion USD revenue from the tourism sector has its second Growth and Transformation
Plan II. The contribution of the tourism sector to the country’s GTP so far is about 1.2 percent
and that it is now planned to raise its contribution to 5 percent. Indeed the influx of foreign
visitors to Ethiopia has shown an average growth of 10 percent in the past seven years, the
average tourist staying period rose up to 16 days. The tourism sector has created 783,638 jobs for
citizens in the last four years of the first GTP. Standardization of 400 star ranked Hotels has
begun in the nation to increase the service quality delivered for the foreign visitors adding that
International accredited standardization activities so far conducted on 50 hotels in Addis Ababa
city.
The Ethiopian Ministry of Culture and Tourism
The EMCIs responsible for developing and promoting the country’s tourist products both locally
and internationally by putting on ground the policy and strategy. It works closely together with
different international and national stakeholders, the latter including Ethiopian Airlines, the
Ethiopian Tour Operators Association (ETOA), and the
Tourist Standard Hoteliers
According to ministry of culture and tourism,
Ethiopia has a big size of population with diversified cultures that makes it an ideal tourist
destination. So the country should also focus on inward looking Programmers in terms of
developing, promoting and expanding local tourism. The Ministry in its duties and powers is
playing a decisive role for a concerted and multipurpose effort to be undertaken by the people
and stakeholders in the development of tourism and culture.
Since the tourism industry is now globally lucrative, and one of the largest baseness in the world
economy, preparation of various regulations, directives in order to study, preserve, control,
register and conduct inventory of tangible and intangible cultural heritages apart from quality
control and classification of standards in tourism Area are some of the major areas that the
Ministry focused in the 5-year strategic plans so that Ethiopia could be able to benefit the most
out of the sector.
The government also aims to establish ‘Tourism development Fund’ with the key aim of
mobilizing resources and capabilities of actors in the implementation of the policy. The
establishment and application of the fund will be determined by a study and supported by law,
according to the Policy launched at the Sheraton Addis in August 30, 2019. The new tourism
policy of Ethiopia among other, aims to integrate/connect the development of the country’s
tourism with agricultural, industrial, foreign policies and strategies of the country.
Ethiopian tourism policy and strategy
Vision
To develop tourism in a responsible and sustainable way, enabling it to play a leading role in the
economic development process of the country by executing its activities on a community based
principle.
Principles
Respecting diversity: Diversity of historical, cultural and natural wealth are the beauty and
distinctive Features of Ethiopia; therefore, each of these has to be known, respected, and
developed equally as tourism attractions.
Ensuring participation and community benefits: Communities have to play a major in
developing of the tourism industry, with each member participating and benefitting in the
development process.
Create a transparent and accountable work process: The process of tourism development
requires the participation of many actors or stakeholders. Therefore, a good governance
procedure shall be prepared in order that all stakeholders abide by professional tourism ethics.
Create a sense of cooperation and coordination: Initiating continuous and good networking by
creating strong cooperation communication and close relation between Regional, National and
international bodies working in the tourism sector.
Enhancing implementation capacity of the sector: To ensure the comparative advantage of the
country in tourism development, by strengthening the implementation capacity of all parties in
the sector to provide high quality tourism services.
Objectives
• To consolidate the country’s comparative advantage and enable the industry to compete in
international tourist markets.
• To develop a tourism industry that can play a major role in generating and retaining
international exchange.
• To create increased employment opportunities for communities around the sites of attractions
and distribute tourism income to improve living standards of the people.
• To build a tourism industry that can improve the image of the country and advance the growth
of the sector in a sustainable manner.
• Promoting the country’s tourist attractions and encourage expansion of local tourism.
• Making the sector competitive in the world and Africa in its best destination for tourists and
source of income for host country in direct and indirect economic benefit will be ensured.
• Bringing both culture and tourism to development so that the industry would contribute to the
poverty reduction strategic plan and the Millennium Development Goals.
Main ISSUES of the Ethiopian tourism policy and strategies
To lead the country’s tourism industry in a broad-based developmental direction
Though the strategy will give emphasis for:
Creating strong relationships with other development strategies and policies to integrate
directions .Here especially interlinking and connecting the tourism policy with agricultural and
rural policy and strategy which helps to expand tourism attractions like eco-tourism in rural and
agricultural areas. This coordination or chain of the rural to urban tourism used the sector direct
beneficiary from on growing rural tourism development and give/provide input and artistic
product for the urban tourism development as value chain. Indeed the policy strategies focus on:
• Development of the tourism environment.
• Ensuring participation.
• Increasing visitor volume.
• Strengthening linkages in a cross-sectorial approach to poverty reduction.
• Sequential development to avoid conflicts associated with mass tourism elsewhere.
To develop new attractions and improving existing ones considering type, quality and quantity;
possible strategy is:
• Developing high quality destinations and productions such as handicrafts.
• Increasing flows of tourists in areas of the counties that are not in the current circuits.
• Linking tour circuits to create a strong tourism package.
To develop crucial infrastructure and service delivery institutions
• Capacity building of federal and regional implementing structures.
• Development of land and sea transport infrastructure, telephone and internet facilities and
energy supply networks.
To make Ethiopia a competitive destination in the world tourism market
• Creation of an effective tourism promotion strategy.
• Market analysis.
• Building partnerships with domestic and international tour operators.
To coordinate the efforts of stakeholders
• Formation and consolidation of trade organizations.
• Establishment of new for a Tourism Management Council formed by officials from federal and
regional tourism offices
• Government Tourism Common Forums formed from the relevant federal and regional
executive bodies with NGOs, institutions and private sector stakeholders with interests in
tourism.
To increase the current low capacity of the tourism industry
• Increase the capacity of major industry players with the introduction of professional standards
for service providers.
• Establishment of tourism training and education centers to address shortcomings in human
resources development.
• Improve the capacity state tourism institutions and systems in research, information
dissemination and data collection and the creation and periodic publication of tourism satellite
accounts.
The main thrust of this policy looks encouraging. Particularly important is the recognition that, in
addition to providing a source of international exchange, the tourist sector can have a significant
development impact through linkages with local communities. Also Government has clearly
recognized the need to improve the competitiveness of the tourist sector and that improving the
quality of tourism services is key to enabling Ethiopian tourism to compete in international
markets and attract more tourists. Welcome also is the fact that Government clearly recognizes
their role in providing an enabling environment: through training of the workforce; provision of
more accurate information; coordinating stakeholders including working with tour operators. In
short, my view suggests that the thrust of this draft policy and implemented policy correctly
addresses the key issues facing the tourist sector. As such, the tourism policy should be
completed, ratified and implemented again correctly to strength more.
The advantages of tourism in delivering pro-poor growth according to ministry of culture
and tourism of Ethiopia on its strategic plan
The negative impacts associated with tourism, such as reduced access to resources and negative
social and cultural impacts sometimes threaten to overshadow the benefits that a vibrant tourism
industry can generate. However if the policy implemented properly it will have the following
benefits:
Tourism is generally labor-intensive – although less than agriculture – and therefore can
impact on large number of lives through the labor market;
Tourism has considerable potential linkage, especially with agriculture and fisheries,
which can minimize the ‘leakage’ effect. Due to the high-income elasticity of demand
for international tourism, it can offer a relatively rapidly growing market;
Tourism provides opportunities for off-farm diversification, particularly in areas that do
not attract other types of development options;
Tourism can provide poor countries with significant export opportunities where few
other options are viable;
The roles of state level institutions and policy measures
Currently there are eleven regional cultural and tourism bureaus in Ethiopia, which are
accountable for the Ministry of Culture and Tourism (MCT). Apart from the Ministry, these
regional bureaus have also their own five year strategic plan. However, their independent
initiatives lack coordination with other stakeholders including the Ministry.
Regarding policy issues since 2005, the government’s initiation to promote tourism has been
increasing. Starting from public statements issued by the Prime Minister supporting tourism
there are indications that the government is opening a committed dialogue on tourism.
“My government believes that an increased focus on tourism can play more significant role in
the war on poverty, both in Ethiopia and across Africa as a whole” PM Meles (2005) Adapted
from World Bank (2006).
The first tourism development policy of the country was enacted in August, 2010. Lessening the
aforementioned challenges was the origin for this policy initiative.
In line with the tourism development policy, MCT introduce a strategic plan for the sector every
five year. However, the strategic plan (2010-2015) designed more ambitiously so as to fit the
objectives of GTP in the tourism arena.
• Some of the following figures make the plan more ambitious;
• To increase a tourism receipt from the current 250 million USD to 3 billion USD.
• To create tourism jobs for 3.5 million citizens.
• To achieve a tourism promotion activities by 100%
• To increase tourist’s service satisfaction from 51% to 90%
• To improve the capacity of implementing international agreements and conventions from 25%
to 90%
The advantages of tourism in delivering pro-poor growth
The negative impacts associated with tourism, such as reduced access to resources and negative
social and cultural impacts sometimes threaten to overshadow the benefits that a vibrant tourism
industry can generate. However if the policy implemented properly it will have the following
benefits:
• Tourism is generally labour-intensive – although less than agriculture – and therefore can
impact on a large number of lives through the labour market;
• Tourism has considerable potential linkage, especially with agriculture and fisheries, which can
minimize the ‘leakage’ effect. Due to the high income elasticity of demand for international
tourism, it can offer a relatively rapidly growing market;
• Tourism provides opportunities for off-farm diversification, particularly in areas that do not
attract other types of development options;
• Tourism can provide poor countries with significant export opportunities where few other
options are viable;
• It may create initial demand for a good or service that can itself develop into a growth sector;
• Tourism products can generate demand for assets such as natural resources and culture, to
which the poor often have access;
• Tourism delivers consumers to the product rather than the other way around and
• Infrastructure associated with tourism development can provide essential services for local
communities.
Challenges of Ethiopian tourism development strategy
Observably in most developed countries, the smokeless industry has the lion's share in the
overall economic growth and development of a country. The tourism sector has now become a
major source of income for various stakeholders engaged in the sector. In this regard, despite
Ethiopia's endowment with various natural and manmade heritages, it had not benefited much
from the sector for years due to various factors. Currently, Ethiopia's tourism sector is booming
in bike 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 of excellent preservation of humanity landmarks. However, in the eyes of
actors in the service sector and lessons got during the course of the last five years, this sector has
its own prospects and challenges.
Under the coverage of community benefits, the sector suffers from unreasonable interference in
most tourist destination areas by the local hotels, tour guides and the like. As compared to other
African countries, travelling to tourist destinations proves a very costly adventure discouraging
tourists from coming to Ethiopia. In some places, local residents want to sponge on tourists.
Hence, the government, especially the Ministry of Culture and Tourism, should seriously take
the responsibility of creating awareness among the community. Moreover, the number of
graduates is increasing both from public and private institutions; there is still a shortage of
skilled and capable human power. Thus, the Ministry needs to offer ultra-modern training to
professionals and practical policy.
Some tourism development strategic plan that must be used by ministry of
culture and tourism of Ethiopia as a bench mark from other countries particular
from Gambia and Canada
Consultations on air services priorities
We recognize the positive economic impact of new and expanded international air services on
the tourism industry
Improved border experiences
To ensure a positive experience for our international guests
Enhanced visa services
To make it easier to come to Ethiopia will expand its network of visa application centers.
Foreign Convention and Tour Incentive Program
To support our tourism sector and further secure Canada’s place as a destination of choice for
group travel, the Department of Finance Canada and the Canada Revenue Agency will meet with
representatives of the tourism industry to examine the operational design and administration of
the Foreign Convention and Tour Incentive Program and to explore the feasibility of changes
that would improve the program’s effectiveness while maintaining the current scope of the
program and a high standard of accountability.
Analysis of the potential role of signature attractions
As tourism enterprises and attractions invest to better align their products with Ethiopia’s
tourism brand, they will need to exploit the opportunities presented at and among destinations.
National recognition initiative
Fostering an adequate supply of skills and labour to enhance visitor experiences through
quality service and hospitality
Parks and employee certification
The Capacity development
Build Tourism Shopping outlets
Develop Rural Tourism
Develop the sport tourism like BICYCLE TRAIL
TOURISM AWARDS WEEKEND
According to our group discussion we believe that if our country Ethiopia implements the above
points as a benchmark, we hope so Ethiopia can be one of the top 20 destination site on the
world.
Summary
A Tourism Development Policy has been implemented years ago with a view to helpful in
harnessing the untapped tourism potentials in the country. The tourism policy, harmonized in to
other policies and strategies of Ethiopia’s economy, has helped to improve the performance of
travel and tourism sector. National air carrier for major network expansion, Conference tourism
due to the presence of many international organizations such as AU and UNECA, a Rise in
domestic and foreign private investment in hotels and a rise in development of travel and tourism
due to growing international demand and the country’s effort aimed at providing better
ecotourism has also contributed positively to the expansion of ecotourism in the country.
Partners’ support also had its immense contribution.
Currently the Government is redesigning rigorously the tourism industry with a view to make it
environmentally conscious, and go beyond the unfortunate goal of conventional tourism which
was focusing on mere financial benefits but little or no regard for environmental degradation of
tourist sites.
A new tourism and culture development policy is under discussion by all stakeholders and will
shortly implement. The newly amended policy understands that global tourism grows at the
average annual rate of 4.3%, the tourist industry in Ethiopia still accounts for less than 2 percent
of Gross Domestic Product when compared to 6%, 14% and 5% of GDP for Egypt, Kenya and of
South Africa respectively. Cognizant of this, the government is looking for wider ways to double
tourism earnings during 2010-2015 and see about one million foreign arrivals by 2020. In order
to realize this goal, it intends to intensify its campaigns abroad of introducing the country as a
top business and leisure destination. It also plans to introduce the country’s ecotourism
opportunities to new tourism markets such as India, China, Russia and Brazil. Its objective is to
create social and economic benefits through ecotourism and to foster the conservation of natural
resources of the areas. Participatory local initiatives, in collaboration with partners, will also be
encouraged in a more organized way with a view to develop and introduce a consolidated
approach for Eco-tourism that can be replicated in other areas and that enhances the sustainable
utilization of the natural resources. The government is aware of current trends that, to attract
tourists, the ecotourism industry must be designed to incorporate and implement responsible,
ethical, forward-looking, and far-reaching environmental oversight. It is working to balance the
economic, social and environmental management pillars of sustainable development.
Tourism has increasingly become a favored development tool in many developing countries for
poverty alleviation. For instance in eastern Africa tourism has scored tremendous improvement
with the presence of stability in the area like in Kenya, Ethiopia Uganda etc. But still problems
exist in Somalia. With the relative ease of entry into the tourism market and its purported ability
to generate foreign exchange and create employment, it is no wonder that it is being pursued.
However, like any development option or avenue of economic endeavor, it comes with a cost.
This, then, is at the heart of the tourism development dilemma. Tourism represents an attractive,
and perhaps the only, means of stimulating economic and social development for some
developing nations.
However, frequently that development fails to materialize, benefits only the local élite or
multinational corporations, or is achieved with a very high social, environmental or economic
cost. In the developing world, tourism is usually implemented through a top-down planning
approach, and decision making is predominately based on the interventions of government
agencies and large tourism firms, resulting in the dominance of external, often foreign capital
and the marginalization of local people’. Developing countries opting into the tourism industry
will encounter both the positive and negative consequences of this globally competitive industry,
and the challenge lies in accepting or managing the negative consequences in the hopes of
obtaining the potential long-term benefits of tourism. The complexities of using tourism as a
development tool and the dilemma that many countries face in coping with the uncertainty that
tourism brings have been.
Generally the tourism development process intersects with the economic, political,
environmental and social conditions in the destination and is also framed by the global political
economy. Despite the fact that tourist arrivals in Ethiopia is at an increasing mode because of
policy measures , the sector in general is underperforming compares to neighboring destinations.
Various domestic and international challenges are attributed to the low performance of the
sector. Though the tourism development policy was designed well, the proper implementation of
it is easier said than done. Lack of resources, weak coordination of institutions and failure of
various stakeholders in playing their role are among the major causes for poor implementation.
