BY YANET FANTAYE WOGAYEHU – Ethiopia’s tourism could contribute over $5 billion annually to GDP, with international arrivals exceeding 2 million visitors by 2030.
Projections for the next 5 to 10 years suggest that with continued investment, Ethiopia’s tourism sector could surpass pre-pandemic levels by the late 2020s. Initiatives focusing on enhancing infrastructure, improving security, and developing new tourism products like ecotourism, will be key drivers of growth.
This is according to the Ethiopia Tourism Satellite Account (TSA), a tool for use in strengthening tourism for effective contribution to the country’s economy launched today by the United Nations Economic Commission for Africa (ECA) and the Ministry of Tourism in Ethiopia.
“As we mark a major milestone in the evolution of Ethiopia’s tourism sector—the launch of the Tourism Satellite Account (TSA). This launch is not just a technical exercise; it is a critical step in strengthening our understanding of tourism’s true contribution to the Ethiopian economy and its future potential,” said Geoffrey Manyara, on behalf of Mama Keita, ECA Eastern Africa Office Director during the launch in Addis Ababa, Ethiopia.
Before the COVID-19 pandemic, tourism was on an impressive trajectory in Ethiopia. The sector contributed nearly $4.8 billion to GDP, and international tourist arrivals reached over 1.4 million, marking the peak of a decade of consistent growth. This success was driven by strategic investments in infrastructure, particularly in roads and airports, and an increased global marketing effort that positioned Ethiopia as a premier destination for culture, history, and adventure tourism.
However, the pandemic dealt a severe blow to this progress. International tourist arrivals in 2020 fell by over 84% from the previous year, bringing the number of visitors down to around 228,200. “Looking ahead, the future is promising, but it will require sustained effort and strategic planning,” he said.
“The launch of the TSA provides us with the data, but it is up to us to interpret and use it effectively to understand the true magnitude of the tourism industry,” said Geoffrey Manyara. “Let us ensure that this tool helps us to make informed decisions that promote inclusive and sustainable growth in the tourism sector.”
The TSA is a unified framework for measuring tourism’s contributions to GDP, employment, and investment. It aligns with international standards as set by the UN World Tourism Organization, offering us a consistent and robust methodology for integrating tourism data into the national accounts.
“With this tool, we can now quantify not just the direct benefits of tourism—such as visitor spending on accommodation and transport—but also the broader economic ripple effects across sectors like agriculture, construction, and retail,” said Manyara.
Additionally, he said the TSA is a powerful tool for decision-makers, both in government and the private sector. It enables evidence-based policy, providing the detailed information we need to optimize tourism’s contribution to our national development goals, the creation of jobs, and the attraction of investments.
Furthermore, he said the ability to measure both monetary and non-monetary aspects of tourism enhance our capacity to plan for sustainable tourism development that benefits both the economy and the environment.