Travel
Travel and Tourism

Travel And Tourism in Ethiopia

Ethiopia

Euromonitor International's Travel And Tourism in Ethiopia report offers a comprehensive guide to the market at a national level. It looks at travel accommodation, transportation, car rental, tourist attractions and retail travel. It identifies the leading companies and offers strategic analysis of key factors influencing the market, including background information on disposable income, annual leave and holiday taking habits.

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Chapters: 8  |  Tables: 53  |  Publication date: May 2007
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  • Get insight into trends in market performance
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Product coverage

Airline capacity and utilisation; Arrivals by country of origin; Arrivals by mode of transport; Arrivals by purpose of visit; Car rental services by sector; Demand factors; Departures by destination; Departures by mode of transport; Departures by purpose of visit; Domestic tourism by destination; Domestic tourism by mode of transport; Tourism receipts and expenditure; Tourist attractions; Transportation; Travel accommodation; Travel retail services

Executive summary

Growth Depends on Overcoming Negative Images

In 2006, travel and tourism in Ethiopia accounted for 5.5% of the country's GDP. The government is proving its commitment and willingness to develop tourism through a number of initiatives. Tourism is a featured component of Ethiopia's Poverty Reduction Strategy Paper (PRSP) that aims to combat poverty and encourage development in the country. However, tourism is only briefly mentioned in the paper and it fails to delineate a strategic vision for its further development. Another more relevant initiative is the creation of the Ethiopian Tourism Paradigm (ETP), which acts as a ministry of tourism to promote its further development. Despite these efforts, Ethiopia has several challenges to overcome in expanding travel and tourism, the most important of which is the country's negative public image and international perception. As such, the prospects for growth in travel and tourism remain very limited, as suggested by the barely 2% increase in tourist arrivals in 2006.

One encouraging aspect is the growing popularity of ecotourism, which holds significant potential for growth in Ethiopia. Currently, the Ethiopian Ecotourism Association, which consists of a number of private companies, is working to develop this niche. This initiative helped to increase the number of ecotourists in Ethiopia to about 45,000 in 2005.

Travel Accommodation

The expansion of chain hotels and luxury hotels will likely remain limited as compared to the development of ecolodges, which are less expensive, adventure-geared travel accommodations specifically designed to meet the needs of ecotourism. By the end of the review period, 14 new ecolodges opened in strategic areas of Ethiopia that have many ecotourism opportunities.

Transportation

Ethiopia's transportation infrastructure is weak, especially its roads. Because of poor networks, less than 3% of international tourist arrivals come by road, as opposed to about 90% by air. However, despite the bad road conditions, nearly 60% of domestic tourists travel by road because it is the least expensive mode of transport. Two international airports and 12 regional and domestic airports are undergoing renovations under the National Airports Development Plan covering the period 1999-2017. In this context, the national airline, Ethiopian Airlines, experienced growth and recently ordered new aircraft, valued at nearly US$100 million, for its fleet.

Travel Retail

The travel retail infrastructure is still underdeveloped in Ethiopia with just 70 travel agencies, led by Lalibela Travel and Tours. Travel retail sales are expected to continue growing, posting an increase of 7% in 2006 and with a forecast 5% increase in 2007. Total sales should reach approximately US$60 million dollars in 2011. Sales are driven primarily by expanding interest in ecotourism packages, including adventure tourism, trekking and walking safaris that are making up much of the tour operators' revenues.

On another note, although internet penetration remains very low in Ethiopia, travel agencies seem to have embraced the internet in their understanding of the importance of having an online presence and developing websites to start promoting online sales.

Table of contents

EXECUTIVE SUMMARY

GROWTH DEPENDS ON OVERCOMING NEGATIVE IMAGES

TRAVEL ACCOMMODATION

TRANSPORTATION

TRAVEL RETAIL

KEY TRENDS AND DEVELOPMENTS

ECONOMIC IMPORTANCE OF TOURISM

Outlook

Impact

GOVERNMENT TOURISM POLICY

Outlook

Impact

NEGATIVE GROWTH FACTORS

Outlook

Impact

ECOTOURISM

Outlook

Impact

TRAVEL ACCOMMODATION

TRENDS

Hotel expansion and renovation, and facility enhancement

Price platforms

Occupancy trends

PROSPECTS

TRANSPORTATION

TRENDS

Transport/airport infrastructure

Traditional airline performance

PROSPECTS

Internet retailing

TRAVEL RETAIL

TRENDS

Travel retail infrastructure

Adventure tourism & trekking

Walking safaris

PROSPECTS

Sales growth

Internet retailing and websites

MARKET DATA

Table 1 Length of Trip: 2000-2005

Table 2 Arrivals by Country of Origin: 2000-2005

Table 3 Arrivals by Method of Transport: 2000-2005

Table 4 Arrivals by Purpose of Visit: 2000-2005

Table 5 Departures: 2000-2005

Table 6 Departures by Destination: 2000-2005

Table 7 Departures by Mode of Transport: 2000-2005

Table 8 Departures by Purpose of Visit: 2000-2005

Table 9 Domestic Trips by Mode of Transport: 2000-2005

Table 10 Incoming Tourist Receipts: 2000-2005

Table 11 Incoming Tourist Receipts % Growth: 2000-2005

Table 12 Outgoing Tourism Expenditure: 2000-2005

Table 13 Outgoing Tourism Expenditure % Growth: 2000-2005

Table 14 Domestic Tourist Expenditure: 2000-2005

Table 15 Forecast Arrivals by Country of Origin: 2005-2010

Table 16 Forecast Arrivals by Method of Transport: 2005-2010

Table 17 Forecast Departures: 2005-2010

Table 18 Forecast Departures by Destination: 2005-2010

Table 19 Forecast Departures by Mode of Transport: 2005-2010

Table 20 Forecast Incoming Tourist Receipts: 2005-2010

Table 21 Forecast Domestic Tourist Expenditure: 2005-2010

Table 22 Forecast Outgoing Tourism Expenditure: 2005-2010

SECTOR DATA

Table 23 Hotels: Units 2000-2005

Table 24 Regional Hotel Parameters 2005

Table 25 Travel Accommodation Sales by Sector: Value 2000-2005

Table 26 Travel Accommodation Internet Sales: Internet Transaction Value 2000-2005

Table 27 Hotel Internet Sales: Internet Transaction Value 2000-2005

Table 28 Hotel Company Rankings 2005

Table 29 Forecast Hotels: Units 2005-2010

Table 30 Forecast Travel Accommodation Sales by Sector: Value 2005-2010

Table 31 Forecast Travel Accommodation Internet Sales: Internet Transaction Value 2005-2010

Table 32 Forecast Hotel Internet Sales: Internet Transaction Value 2005-2010

Table 33 Transportation Sales by Sector: Value 2000-2005

Table 34 Airline Company Rankings 2005

Table 35 Transportation Internet Sales: Internet Transaction Value 2000-2005

Table 36 Air Travel Internet Sales: Internet Transaction Value 2000-2005

Table 37 Forecast Transportation Sales by Sector: Value 2005-2010

Table 38 Forecast Transportation Internet Sales: Internet Transaction Value 2005-2010

Table 39 Forecast Air Travel Internet Sales: Internet Transaction Value 2000-2005

Table 40 Car Rental Sales: Value 2000-2005

Table 41 Car Rental Company Rankings 2005

Table 42 Car Rental Internet Sales: Internet Transaction Value 2000-2005

Table 43 Forecast Car Rental Sales: Value 2005-2010

Table 44 Forecast Car Rental Internet Sales: Internet Transaction Value 2005-2010

Table 45 Travel Retail Outlets: Units 2000-2005

Table 46 Travel Retail Sales: 2000-2005

Table 47 Travel Retail Internet Sales: Internet Transaction Value 2000-2005

Table 48 Travel Retail Company Rankings 2005

Table 49 Forecast Travel Retail Outlets: Units 2005-2010

Table 50 Forecast Travel Retail Sales: 2005-2010

Table 51 Forecast Travel Retail Internet Sales: Internet Transaction Value 2005-2010

Table 52 Tourist Attractions: Value 2000-2005

Table 53 Forecast Tourist Attractions: Value 2005-2010

DEFINITIONS

TRAVEL AND TOURISM

DEMAND FACTORS

Length of trip

TOURISM PARAMETERS

Arrivals

Departures

Outgoing tourism expenditure

Domestic tourists

Domestic trips

Domestic tourist expenditure

TRAVEL ACCOMMODATION

Hotels

Other travel accommodation

Number of bed nights

Occupancy rates

Number of rooms and beds

TRANSPORTATION

Air

Other transportation

CAR RENTAL

TRAVEL RETAIL

TOURIST ATTRACTIONS

INTERNET SALES

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