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A Senior Essay Submitted in Partial Fulfillment of the Requirements for Degree of Bachelor of Arts in Economics
July, 2008
Acknowledgment
I am faithful to the Almighty God for every thing He has dome to me. I extend my special thanks to my senior essay advisor Ato Atlew Alemu for his valuable comments and suggestions in undertaking this study. I would like take this opportunity to express my heartfelt and special appreciation to my brother Ato Abeje Zewdie and Dr. Wubaye Walelgn and his wife Wro. Abeba Mengesha, for their moral and financial as well as material assistance not only in my stay in the university but also in all way to wards my achievement. I would like to extend my gratitude to the CTTI Liberalist, Ministry of Culture and Tourism of Ethiopias workers, National Bank liberalist etc for providing me necessary material that helped me for the preparation of the study. Last but not least, I would like to extend my thanks to my father Blata Zewdie Tewlatu, my mother Wro Ziyn Alene and my brother Bayreyegn Zewdie to their contribution in my achievement and to the typist Wublame Haile. Bayebegh Zewdie
4.1 The Stock of Resources .................................................... 24 4.1.1 Profile of Tourism Resource base in Ethiopia ............ 24 4.2 Promotion and Advertisement............................................ 28 4.3 National Tourism Policy .................................................... 30 4.3.1 Budget Allocation for Tourism ................................. 30 4.3.2 Visa and Exit Tax Payment ..................................... 31 4.4 Tourist accommodation Facilities and Infrastructure ............ 32 4.4.1 Transportation ......................................................... 32 4.4.2 Telecommunication .................................................. 35 4.4.3 Accommodation ...................................................... 38 Hotels ....................................................................... 39 4.4.3 (a) Availability of Hotels and Ownership in Ethiopia . 39 4.4.3 (b) Distribution of hotels in Ethiopia ........................ 41 4.4.3 (c) Tourism Rating of Hotels and Restaurants .......... 42 4.4.4 Average Rating of Tourism Products by Tourists ...... 43 Conference Facilities ............................................... 44 4.5 Tour Operations and Guides ............................................... 45 4.6 Skilled Man Power ................................................................ 46 4.6.1 Human Resource Development in the Tourism Industry ............................................... 46 4.7 Social and Political Stability ................................................ 48 4.8 Attitudes and Habits ............................................................ 49 4.9 The State of Technical Knowledge ........................................ 51 CHAPTER FIVE 5. CONCLUSION AND RECOMMENDATION .................................... 53 5.1 Conclusions ......................................................................... 53 5.2 Recommendations ............................................................... 54 Bibliography
List of Table
Table 4.1.1 (a) National Parks .............................................................. 25 Table 4.1.1 (b) Game Reservers ............................................................ 25 Table 4.1.1 (c) Sanctuaries .................................................................. 26 Table 4.1.2 Other Major Tourist Attraction Sites by Region and Recognition by UNESCO ............................................. 26 Table 4.2 Ethiopias Market Share in the International Tourism Market from 1991 to 2003 ..................................................... 29 (Table 4.3.1) Budget Allocation for Tourism ......................................... 30 (Table 4.3.2) Visa and Exit tax Payment Comparison of Ethiopia to Keny (in USD) ................................................................... 32 Table 4.4.1 (a) Major Sites and their Accessibility by Road .................. 34 Table 4.4.1 (b) Major Sites and their Accessibility by Air ...................... 35 Table 4.4.2 Summary of Basic Telecom statistics (1993-1998 EC (2000/01-2005/06) ...................................................... 38 Table 4.4.3 (a) Number of star hotels, recommended hotels, ownership, and new additions until 2005 ....................... 39 Table 4.4.3 (b) Distribution of hotels in general and star hotels by region (end of 2005) ...................................................... 41 Table 4.4.3 (c) Tourism Rating of Hotels and restaurants ..................... 42 Table 4.4.4 Average Ratings of Tourism Products by Tourists .............. 43 Table 4.4.5 Summary of International Tourist by Purpose of Visit from 1991-2005 ................................................................ 44 Table 4.6.1 Level of Education and Training amongst Hotels and Tour Operators .................................................................. 47 Table 4.7 Arrivals and Receipts From 1991-2005 via Addis Ababa Airport and Other ................................................................ 48 Table 4.8 Arrivals by Age and Gender Group for 2003, 2004 and 2005 ..................................................................... 50
Acronyms
UNIDO WTO UN LDCs CSA GDP UNESCO AU ECA CTTI ETC United Nation Industrial Development Organization World Tourism Organization United Nations Less Developed Countries Central Statistic Authority Gross Domestic Product United Nations Educational Scientific and Cultural Organization Africa Union Economic Commission for Africa Catering and Tourism Institute Ethiopian Telecommunication Corporation
Despite this huge potential, the annual inflow of tourists in to the country is low. In fact, Ethiopias share of the African Tourism market in the year 1998 was only 0.5%, while that of the East Africa was only 1.7% (Abebech, 2001).
The trend of tourism contribution to GDP shows continuous increment, but there was a slight decline in 1998 and 1999 due to the reduction of tourist arrivals to Ethiopia following the Ethio-Eritrean war. In 1992 the sectors contribution was 0.28 which is very insignificant, in 1997 it reaches 0.67%, however, this increment in trends of tourisms share to GDP is negligible (Hawaz, 2006). Previous statistics shown that,Ethiopia with relative to great potential of both natural as well as man made tourist attraction sites, the economic benefit from this sector and the contribution to national income is insignificant. This is due to problems with in the value chain of tourism at that time. Tourism value chain cuts across many sectors, such as retail, housing construction, hotels and restaurants telecom and transportation, and activities like market promotion, tourism sector policy, political situation, (Abebeh, 2006). It also includes tour operation activities human resources development related to tourism profession and travel agents, tour operators, conference organizers etc. (Mekonnen, 2006). There for this paper investigates the value chain of tourism and identify where the main problems for the low contribution of tourism with in the value chain exists. The statements of the sub-problems are: (i) (ii) To investigate the existing value chains of tourism of Ethiopia. To identify where the main problems exist with in the value chain of tourism of Ethiopia.
(i) (ii)
What are the major factors that are included in tourism value chain? Where the bottlenecks of tourism development are with in the value chain exists?
1.3 Delimitations
On this paper, attempt is made to treat value chain of tourism industry and problems with in the value chain of tourism industry exist. This includes stock of resources like National parks, sanctuaries and Game reserves; promotion and advertisement; tourist accommodation and infrastructural like transportation that is road, rail, air, water; accommodation that is hotels and conference facilities; national tourism policy like budget allocation,and visa and exit tax; telecommunication; tour operations and guides; skilled man power; social and political stability; attitudes and habits of the visitors and the suppliers; and state of technical knowledge. Some of the sectors with in the value chain of tourism face quantitative data constraints due to lack of organized and effective statistical system in the country.
made for goods/ services received in the country. This also defined as expenditures and payments by the domestic travelers with in their country to visit historical and natural sites. (Ministry of culture and Tourism annual bulletin, 2006). 3. International tourism receipts are defined as expenditure of international inbound visitors including their payment to national carriers for domestic flight. They should also include any other prepayments made for goods/services received in the destination country. They should in practice also include receipts from same day visitors except in cases when these are so important as to justify a separate classification. It is also recommended that, for the sake of consistency with the balance of payment recommendation of the international monetary fund, international fare receipts be classified separately. (Ministry of Culture and Tourism anural bulletin, 2006). 4. Number of rooms refers to the total capacity in room of establishments offering accommodation 5. Number of bed refers to the total capacity of beds in the establishments offering accommodation. 6. Tourism is defined as the process, activities and out comes arising from relationships and the interactions among tourists, tourism suppliers, hot government, hot communities and surrounding environments that are involved in attracting and hosting of visitors. (WTO, 1995). 7. Value chain is defined as a sequence of productive (value-added) activities leading to and supporting end use, (Sturgeon T.J, 2001) and an alliance of enterprise, working vertically to achieve amore rewarding position in the market place. (K.H. Lei, 2002).
1.5 Assumptions
(i) (ii) Ethiopia wants to fully use its tourism potential properly and efficiently. Ethiopia wants to achieve rewarding position in worlds tourism market share in both absolute and comparative terms.
CHAPTER TWO 2. REVIEW OF THE RELATED LITERATURE 2.1 Historical Development of Tourism
Tourism deals with the movement of people away form their normal residence for holiday, recreation and leisure activities, business, meeting, visiting relatives and other purposes. Half a century ago, tourism was a particular little industry mainly in West Europe and USA. It was viewed largely as frivolous endeavor largely with in the domain of those with a lot of time and money of their part with better to spend it. As standard of living, levels of education and means of transportation and communication improved, the ability and willingness of the world upper, middle class to travel increased. Currently,tourism becoming the leading sector and major employer in the world and expanding at a steady rate. The sector being an important sector in its own right hand received considerable attention, especially in the 1960s (H. Robinson, 1997). The first step towards international recognition of tourism appeared in UN conference, On international travel and Tourism held in Rome in 1993. By the year, 2000 tourism was expected to become the largest industry in the world and will constitute the biggest component of international trade.
As indicated by WTO 2000 report, the volume of world tourism in 1996 was 459.2 million and the number had reached 546.3 million in 1998. However, the benefits of these developments were skewed towards Europe and USA as current trends may reveal. For instance in 1994 about 60% and 28% of world tourists visited Europe and USA respectively. While 50% of the total world tourism receipts went to Europe and 27% to USA.
All in all, international tourism is not developing at the same rate and unevenly distributed in different regions of the world. In LDCs weak development of tourism due to lack of infrastructure and super structure to develop their tourism sector (Martin, 2002).
Alternative tourism
Nature or ecotourism
Cultural
Educational
Scientific
Adventure
Agritourism
Source: the alternative tourism (after Mieczhowstes, (1995:459) and cited by Stephen, 2000).
Mass Tourism
Mass tourism is generally seen as being an overarching term for tourism that is undertaken by the majority of travelers. This thesis, in exploring the specific of particular tourist experience in depth, may contribute towards an understanding of not only the significant divergences and convergence that exist between both mass tourism and alternative tourism, but also the subtle nuances that subtend these tourist experiences. Therefore, it is to not simply a matter of differentiation, in a binary fashion, between a general category of mass tourism and the derivation of niche elements with in it.
Alternative tourism
The common feature of alternative tourism is the suggestion of an attitude diametrically opposed to what is characteristically viewed as mass tourism. Alternative tourism often is presented as existing in fundamental opposition by attempting to minimize the perceived negative environmental and socio-cultural impacts of people at leisure in tourism promotion of radically different approaches to tourism. Examples include eco-tourism, green tourism, nature oriented tour, soft tour and defensive tourism. Another classification is made by the world tourism organization (WTO and the Conference on Travel and Tourism Statistics in 1995), the following three major forms of tourism are outlined. i. ii. iii. Domestic tourism- involving residents of the given area traveling (as visitors) only with in that area Inbound tourism- involving non-residents traveling (as visitors) in a given area. Out bound tourism-involving residents traveling (as visitors) in area other than the given area.
Sustainable development is development, which meets the requirements of the present generation with out endangering the requirements of the future generation. This requires a development with out over exploitation of natural resources and with out destroying the basis of existence. The goal must be to make growth possible in the mid and long term while energy consumption and environmental stress under go absolute decrease. The world tourism organization (WTO, 1993), in which Ethiopia is a member, has defined sustainable tourism as follows:Sustainable tourism development meets the needs of present tourists and host regions while protecting and enhancing opportunities for the future. It is envisaged as leading to management of all resources in such a way that economic, social, and aesthetic needs can be fulfilled while maintaining cultural integrity, essential ecological processes, biological diversity, and life support system. The sustainable tourism development principles are there fore derived from the sustainable development principles. The deference lies on the scope. Tourism is part and parcel of sustainable development with in the broad frame work of sustainable development. Sustainable development of tourism has three basic principles as pointed out by WTO (1993). i. Ecological sustainability ensures that development is compatible with the maintenance of essential ecological processes, biological diversity and biological resources. ii. Social and cultural sustainability ensures that development increases peoples control over their lives compatible with the culture and values of people affected by it, and maintains and strengthens community identity.
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iii. Economic sustainability ensures that development is economically efficient and that resources are managed so that they can support future generation. Tourism is not smoke less any more. The increased movements of people due to high living standard (high income and free time) in the north, there is high air and water pollution from the exhaust fumes of aircrafts, motor cars and motor pleasure boats, threatening the physical environment. These are the reasons, which brought about the emergence of the idea of sustainable tourism development.
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In generals, value chain describes the full range of activities like which are required to bring a product or services from conception through the deferent phases of production delivery to final customers to final disposal after use
Unit of analysis is not a company, a country, or a region, but a net work of companies embodied in the internal and external governance system, and the analysis focuses on who adds value where in the chain that is the leading sector in the value chain. (Denial Roduner, 2004)
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2.4.2 The Importance of Value Chain Approach for Policy Makers and Practitioners
As stated by Schmitz, (2005) coming up with good economic policy appropriate to the level of development in an industry and country require and understanding of how local enterprises fit in to the global economy. This way is to focus on the sectors in which the local enterprises specialize and then ask how the global market for products from this sector, is organized. As panted out before, often these markets are not free for all open spaces. The spaces are coordinated by global buyers who source different products and services form around the world. There is increasing integration between internationally dispersed activities. The general point to be made here is that value chain is important, not only for the entrepreneurs, but also for the policy makers. Understanding value chains in an industry allows policy makers and practitioners to provide relevant and appropriate support to local enterprises. As pointed out by Schmitz, (2005) public policy aimed at the private sector typically tries to influence decisions of entrepreneurs (owners and managers) of the industry. So that, they can grow and improve their performance. However, entrepreneurs are skeptical of the advice they receive from government agencies or consultants employed by local or foreign support institutions. Entrepreneurs do, however, listen to their customers. If policy makers and practitioners start with this fact, they can more productively engage with the private sector.
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countries. Their tourism market shares have actually increased markedly over the past two decades. Tourism industry cuts across many sectors, such as retail, housing construction, hotel, restaurants, telecom and transportation. Serious policy issues in one of these sectors may threaten the whole tourism value chain. This makes that analysis of the sector complex but crucial as it could be the catalyst for widespread reforms of over looked issues (e.g. Land market) (Diagnostic methodology check list, 2007). As recommended by diagnostic methodology checklist for tourism study (2007), tourism value chain analysis includes identifying the main tourism segments based on countries comparative advantages, benchmark the countries economic performance on these key segments with relevant international good practice, policy and institutional issues which may constrains investment and growth, and then design station.
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Macro
As stated by Diagnostic Methodology check list for tourism study, this includes three important elements that are important for tourism value chain. They are: Basic macro back ground of the economy (structuremanufacturing, service etc GDP per capita level and growth, private and foreign investment as share of GDP); Tourisms contribution to the economy-share of GDP and growth trend: contribution to growth, exports and foreign exchange earnings; fiscal effect-taxes fees and incentives; job creation; Structure of the tourism industry-number of firms, owner ship and management, employment, direct and indirect, fulltime/per time, seasonality.
Demand
As stated by Diagnostic methodology checklist for tourism study, (2007) the demand part of tourism value chain includes: number of foreign tourists, average length of stay and average daily expenditure, percentage of tourists return (level and grow trends), main categories of foreign tourists by socio-demographic profile and country of origin as well as seasonalitys, revenue by main tourist categories and market shares (regional and global).
Supply: As stated by Diagnostic methodology check list for tourism study (2007) the supply part of tourism value chain also include; main tourist attraction and circuits, size and structure of industry of hotels and other accommodation, structure of key services sectors in tourism (such as restaurants, bars, good transportation), structure of key activities service providers in tourism (such as diving, horse back riding, guide tours, fishing adventure activities, main tourist project in the pipeline). 15
C. The current and potential tourist products where the country could be competitive.
As stated by Diagnostic methodology checklists for tourism study, this includes sun, sand and sea; other natural offerings (e.g. game reserves, national parks, water falls, mountains); natural events (e.g, volcano eruptions, eclipse); eco-tourism; sport events; sport offerings (eg. Golf, rafting, diving, horse back riding, fishing, bird watching and hunting), adventure activities; festival events; religious events; visiting friend and families; boating; cultural offerings (e.g. land marks/heritage; theme parks, museums, archeology, opera, music and dance); other cultural events and offerings (e.g. spa, serenity, dining, night life, shopping, gambling, leading hotels); stop on regional circuits; learning facilities 16
(language, music, dance); retirement homes; nursing homes; weekend homes; and conferences.
D.
As sated by Diagnostic methodology checklist for tourism study, they are young students, back packers, young professional bachelors, returning emigrants, expatriates, traveling business men, local business men, young families, upper in come foreign couple, and retirees.
2.5.2 Identifying the key policy and institutional constraints affecting performance
According to Diagnostic methodology checklists for tourism study and intuitional constraint include: I. Issues affecting tourists directly such as security concerns (social unrest, terrorism, crime/theft, harassment by people and/or policy, lack of regulations/enforcement on road traffic), health concern (HIV/AIDS,) food poisoning, tropical diseases, water safety, in adequate health care services, restrictive emigration policies (eg. Foreign retirees), issues with access to and ground services with in the country (in adequate infrastructure, policy and governance issues in the transportation sectors), payment issues (foreign exchange services, credit card facilities), and issues with management/governance of key tourist cultural land marks. II. Issue affecting investors directly as stated by Diagnostic methodology check list for tourism study, it includes difficult access to land (unsecured property rights, problematic access to government and customary land, issues with land use rights and development policies), issue with the work force (relative emigration policies for key workers, high minimum wages, social of security, hiring/firing training and regulations, unequal enforcement regulation,
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education issues, corporate social responsibilities and gender issues), restrictions on FDI for key products and services, barriers to trade for key imports (e.g. food products), contract enforcement issues (eg. ineffective commercial courts, problematic enforcement of courts decisions, lack of alternative dispute resolution , access to finance issues (e.g. lack of mortgages and secured lending), fiscal issues (high taxes and/or unequal enforcement), and administration barrier issues (business registration and inspections). III. Sector specific policy issues as stated by Diagnostic Methodology checklists for tourism study, it includes in adequate environment and conservation policies, licensing policies and practices for key products or services (e.g. hotels, restaurants, taxis, etc), restrictive policies (and/or unequal enforcement) in retail and other entertainments (e.g. opening hours, zoning, price regulations), standard certification issues (policies and unequal enforcement for key services. (eg hotels, restaurants, taxis, diving and nursing), and telecom sector policy and enforcement issue leading to poor internet and mobile services. (ibid)
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This
paper
in
addition,
include
tourist
accommodation
and
infrastructure which is the third with in the value chain of tourism that include datas on transportation like major sites and their accessibly by road to show the quality of road, cost of ticket by bus and distance from the capital city, and major sites and their accessibility by air to show the quality, size of the plane and cost of flight whether comfortable to tourists or not. This value chain of tourism also includes data on accommodation like distribution of hotels by region, star and recommended hotels for tourists, ownership as well as new additional hotels under construction to investigate the quality and quantity of hotels, besides the general evaluation of tourists facilities, it is important to see how the services provide look like in the eyes of tourists. This was shown by the data on tourism rating of hotels and restaurants and average rating the tourism products by tourists. This paper also uses data on Ethiopias market share in the world tourism market in both arrivals and receipts to show the effect of 19
promotion and advertisement on tourism which is within of the value chain of tourism and problems with in this to low performance of this industry. The paper has in addition data related with the level of education and training among hotels and tour operators to show the quality of facilities which the country offered to the tourists arrived to the country. power and problems related to skilled man power. The data on arrivals and receipts from 1991-2005 via Addis Ababa and other ports also used to investigate the political and social stability of the country which is within the value chain of tourism and data on arrivals by age and gender group for 2003, 2004, and 2005 to investigate the attitudes and habits of the people to visit with in the value chain of tourism, are used in the paper. This shows the effect of gender and age on the peoples behavior to visit or to move for pleasure. The last data this paper uses is that the basic telecom statistic to show the level of development of telecommunication in the country which is within the value chain of tourism, and problems with in telecom services. The above datas are obtained from National Bank of Ethiopia i.e datas on arrivals and receipts form 1991-2005 via Addis Ababa airport and other ports; Ministry of Culture and Tourism which is a place where much of the data obtained for this paper i.e. datas like budget allocation for tourism, number of hotels, recommended hotels, ownership, and new additions, distribution of hotels and stars, level of education and training amongst hotel and tour operators, arrivals by age and gender group for 2003,2004 2005; World Tourism Organization which the paper gets data on Ethiopias market share in the international tourism market form 20 This data is an indicator within the value chain of tourism that is skilled man
1991 to 2003; Central Statistic Authority (CSA) which contributes some data to this paper like data on number of national parks, game reserves and sanctuaries with their area coverage in square kill meters as well as their regional distribution; Ethiopian Road Transport Authority which contributes data on major sites and their accessibility by road for the fulfillment of this paper; Ethiopian Airline which the paper takes major sites and their accessibility which the by air; at like the last Ethiopian of basic Telecommunication data summery
telecommunication statistics are obtained from it. With regard to the methodology the paper focuses on the value chain analysis i.e. a sequence of activities that includes main tourisms segments, bench mark the countries economic performance on these key segments with relevant international good practice, policy and
institutional issues which may constrains investment and growth, and then design solution; and descriptive analysis supported by statistical fools such as tables, percentage, and ratios. Figure 2 Value Chain of tourism
Stock of resource national parks game reserves sanctuaries other cultural and natural attraction sites
Tourist services - visa and exist price - transportation like, road, air etc - telecom
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4. Value Chains of Tourism and Problems with in the Value Chain in Ethiopia
Even though there are numerous sectors and services with in the value chain of tourism sector this paper focuses on some of the value chains of tourism in Ethiopia that affects more the tourism industry of Ethiopia. Thus, what follows a particular treatment of the sectors with in the value chains of tourism with grater importance and problems with in the value chain.
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national parks like Awash, Omo, semen mountain etc game reserves like Balo, Gambela Mango etc sanctuaries like Harer, Yabelo other cultural and natural attraction sites like Gonder castle, Axum obelisks,
Promotion and advertisement By using - ETV, Ethiopia Radio, FM, News Papers, Magazines etc
Tourist services - visa and exist payment - transportation like, road, air etc - telecom etc ETC
Accommodation - hotels and restaurants like star, recommended etc - conference facilities like African Hall etc
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vally and attractive wild animals like Walia, Nyala, simen fox (Red Fox), Zebra, birds and others. In addition to the above, the country endowed with various nations and nationalities with diversified cultures and colors which is attractive for tourists. In general, Ethiopia with its vast area above 1,112,000 sq.km is endowed with various tourist attraction sites including parks, game reservers, sanctuaries, cultural heritages and others.
Table 4.1.1 (b) Game Reservers Game Reservers Awash kled Aledege Bale Gambela Mango Gewale Mnie Tenado Sendo Stefenie Chie Total Area sq.km Source: CSA Region Oromia Hareri Oromia Gambela SNNP Hareri Amhara Amhara SNNP Tigray Area in sq.km 800 2100 10,800 3,400 800 2000 1000 400 600 600 26,600
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As we see from the table above, Ethiopia has different natural and man made tourist attraction sites which are distributed among the regions of the country and most of them are recognized by UNESCO as world heritage i.e. eight of them are recognized as world heritage by UNESCO. These include Axum Oblisks, Lalibela rock hewncharehes, Gonder Castle, Omo vally, Hadar (where lucy was discovered), Tias curved standing stone and Simen National Park, and Jegol wall is recognized as worlds heritage recently. From this Amhara region has possessed three of the eight sites recognized by UNESCO as worlds heritage and has high contribution to the development of tourism industry; and followed by SNNP. As a result the recognition of the above tourist attraction sites as world heritage is important for the development of tourism industry in Ethiopia by attracting large number of tourists to the country and used to change the image that was attached to Ethiopia in previous years i.e. drought and famine. Indeed, the above tourist attraction sites are not the only sites but they are major ones indicated by ministry of culture and Tourism. There are large number of tourist attraction sites which are not recognized as tourist attraction sites and not included in the table. This is due to the problem with in the value chain like lack of transportation, lack of promotion and advertisement, low level of technical skills and others. Moreover Ethiopia is unique among African countries to attract tourists due to the fact that: (1) Ethiopia is a cradle of man kind as evidenced by the Skelton of Lucy and Selam that were found in Afar by Prof. Johnson in (1974) and Zeresenay Alemseged in (2006) respectively, (2) The country have its own alphabet (script), (3) It has its own calendar which has 13 months
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(4) The Ark of the Covenant which is believed that God gave to Mosses is suspected to be placed in Ethiopia in Axum Tsiyion. Etc.
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increases from this on wards to 1997 and then decreases from 1997 to 2000. After this it shows increment i.e. increase from 2000 to 2003. This shows the instability of tourist flows into the country due to problems with in the value chain like inadequate promotion and advertisement activities. The promotion and advertisement activity to promote the countrys tourist sites was not sufficient in comparison with other countries. Moreover, very poor tourism promotion services have occurred. These problems have seriously affected the tourism market and image of the country. Table 4.2 Ethiopias Market Share in the International Tourism Market from 1991 to 2003
Description 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Arivals Receipts Arrivals Receipts Arrivals Receipts Arrivals Receipts Arrivals Receipts Arrivals Receipts Arrivals Receipts Arrivals Receipts Arrivals Receipts Arrivals Receipts Arrivals Receipts Arrivals Receipts Arrivals Receipts Thousands Millions us $ Thousands Millions us $ Thousands Millions us $ Thousands Millions us $ Thousands Millions us $ Thousands Millions us $ Thousands Millions us $ Thousands Millions us $ Thousands Millions us $ Thousands Millions us $ Thousands Millions us $ Thousands Millions us $ Thousands Millions us $ World total 466,044 271,827 503,617 308,596 519,045 324,090 550,471 353,998 565,495 405,110 596,524 435,594 610,763 435,981 535,485.00 450,556.30 549,175 450,181 685,500 476,400 684,000 464,400 703,000 482,300 691000 524200 Ethiopias share Amount 82 20 83 23 93 22 98 25 103 26 109 28 139 43 112 32.7 115 33.6 136 68 148,4 75 156.3 77.1 179.9 89.9 Percent 0.0176 0.0074 0.0165 0.0075 0.0179 0.0068 0.0178 0.0071 0.0182 0.0064 0.0183 0.0064 0.0228 0.0099 0.0209 0.0073 0.0209 0.0075 0.0198 0.0143 0.0217 0.0161 0.0222 0.0160 0.0260 0.0172
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has shown an increase $806 than it was during the previous year. The budget in the new millennium has shown, a 400% rise than the year before, the next year shows a decline of $ 139,529 with constant decline in the following two years. This fluctuation implies that there is a problem of maintaining constant budget allocation standards leading to fluctuation to earnings from the sector thus its contribution to the national economy. Fluctuation in budgetary allocation can also affect development works in and around tourist sites, thus failure to handle tourists during peak seasons resulting in dissatisfaction among visitors contribution to the GDP. One of the main factors that can be sited to the lower number of tourist visits in Ethiopia is its reputation as a poor nation, which is affected by repeated drought and famine. Thus this requires undertaking a wide range of promotional activity on the part of the government. However, lower budget implies lower promotion of the tourism resources of the country and this means that a lot of tourists are curtailed from knowing what the country is really looking like and are not encouraged to visit.
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(Table 4.3.2) Visa and Exit tax Payment Comparison of Ethiopia to Keny (in USD) Ethiopia Visa free (single entry) Air port tax Getting in and out Number of countries that do not require a visa Source: World Travel Guide The table shows that comparing the Ethiopian visa free for a single entry, air port tax and transit fees, with the neighboring country Kenya, which is claimed to be one of the successful countries in tourism, the fees are much higher in Ethiopia than in Kenya explaining one of the reasons behind Kenyas success in the sector. In considering the numbers of countries that do not require visa to enter a nation are 52 to Kenya and only 2 countries which do not require visa to Ethiopia, limiting the number of inflow of tourist. Thus leading to lower earnings in the Ethiopian case. 70 20 90 2 Kenya 57 0 57 52
4.4.1 Transportation
Transportation for tourism is an essential element of the tourist product in two ways: it is the means to reach the destinations and it is necessary as a means of movement at the destination (Winhil et al, 1998).
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The most obvious way of analyzing by mode to denote the manner in which transports take place. There are four major modes of transport: road, rail, water and air. But in Ethiopia air and road transports are the most appropriate modes of transportations to reach major tourist attraction sites.
(a) Road Transport Road transport is dominated by the motor car and coaches. In deed, the car is almost the perfect tool for providing door-to-door flexibility, going views of the landscape and a means of transporting recreational equipment (Adrian, 1995). The number of tourist visit to a particular site is highly affected by its infrastructural facility and its accessibility by major means of transport particularly-road. As the table 4.4.1 (a) expresses the accessibility of different tourist sites by road interms of their distance from Addis Ababa or other major cities, the time it takes, the cost of round ticket by bus in birr, road quality and considers future plans to up grade the road for the betterment of the service below. As can be seen from the table the cost of transportation to get to the tourist sites is relatively cheaper to both foreigners and local tourists. However most of the roads are in poor conditions with the exception of the road to Hadar and Awash national park; and the road to Netchsar discouraging the use of land transport. The poor status of roads also means longer travel time ruling out the lower cost option of road transport. Most of the sites take between 1-3 days to reach from Addis Ababa due to poor status of the road.
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And as to the future plans, in nine out of twelve sites there in no plan of up grading the road to the sites while in 3 sites under consideration, up grading works have commenced but not completed.
1.5 days
135.80
Partially good
Semien mountains
Axum Lalibela
Harrer Jima Hadar Awash National park Bale mountains National park Netchisar National Park
32 from Bahir Dar 768 from A.A 83 from Bahir Dar 101 km to Debark $ 50 km from debark to the mountains 1005 from A.A 642 from A.A and 241 from Dessie 535 km from A.A 335 km from A.A 190 km from A.A 450 km from A.A 510 km from A.A
150.80 200
Poor road 2/3 good 1/3 poor Gonder to Debark is poor and Debark to the park is rough road Partically good
2.25 days
250
No
520 kms good $ 122 kms poor Good Up grading has started Very good Very good Partially good Very good
Source: Ethiopian Road Transport Authority (b) Air Transport The chief mode of travel to Ethiopia for tourist is by air, and the main carrier is the Ethiopian Airline. Major international carriers such as the Lufthansa, Alifalia and Saudi also land at Addis Ababa, the principal gate
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way to Ethiopia. Several other airlines are at various degrees of negotiation to fly to Ethiopia.
Source: Ethiopian Airline Even though the above table shows that most of the flights are full which is shown in column, there need to be a plan to increase the number of flight time to each site so as to satisfy both residents and foreigners as shown in column three. Though there is a gap between the price for foreigners and residents are charged, they remain expensive to most of the residents that are at a low or average level of income. Thus there should be a means of reducing the cost for local travelers to encourage residents visits to different sites.
4.4.2 Telecommunication
Ethiopian Telecommunication Corporation (ETC) is the sole state owned telecom service provider in the country. According to the Annual Statistical Bulletin (2005/06), ETC provides national and international
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telecommunication services using various media of communication such as satellite, Micro wave, Digital Radio Multi- access system (DRMAS), VSAT, UHF, VHF, long line and HF Radio. Currently, ETC is serving the public with its 904 public and exchanges, which showed 4.85 percent annual growth vis--vis the precious years. Consequently, the total number of fixed telephone subscription
(residential, business, government and others) has increased from 610,347 in 2004/05 to 725,046 in 2005/06 revealing 13.25 percent annual increase over that of previous year. The number of waiting list for fixed telephone subscribers, however, has decreased by 5.41 percent from 58,755 in 2004/05 to 56,053 in 2005/06 (Table 4.4.2). At the same time, the number of mobile subscribers reached 866,700 in the review year demonstrating 100.13 percent growth over the previous year level of 410,630 subscribers. But the policy followed by Ethiopian Telecommunication Corporation (ETC) is not suitable for tourists to get mobile services. Due to telecommunication service is supplied by the government only, that is the rules and regulations followed by ETC are not suitable for tourists. In other countries like South Africa Kenya, North American countries and Europeans mobile service give to those persons even coming to their country for one day or two day conference. Out it is true opposite to LDCs (Mekonen, 2006). Even ETC began to provide mobile services to its citizens in 1991 E.C. (1998/99). i.e. it is a recent phenomenon as shown on the statistical Bulletin of ETC. It is only in 2000 E.C (2007/08) ETC provide for visitors of the millennium who are more interested visitors. Even ETC has no rules and regulations related to mobile service to visitors. In the related development, the number of internet subscription went up from 17,710 in 2004/05 to 25,724 in the review year registering 36
42.8 percent increase. Reflecting the increased performance in fixed telephone, mobile and internet subscription, the countrys telecommunication penetration rate (tele-density excluding mobile or the number of telephone subscribers per 100 inhabitants) has increased from 0.83 in 2004/05 to 0.98 in 2005/06. The penetration rate was higher (2.14 per 100 inhabitants) when mobile subscriptions are included. With respect to telephone traffic, the registered domestic traffic picked up by 13.44 percent from 2,341.99 million pluses in 2004/05 to 2,475.56 million pluses in 2005/06. Similarly the out going international telephone traffic calls has increased from 8.6 million in 2004/05 to 11.48 million in 2005/06.
In the countrys five year plan (development strategy) Plan for Accelerated and Sustainable Development to End Poverty, (PASDEP), it is planned to increase the number of fixed line subscribers from 830.000 in 2005/06 to 3.2 million by the end of 2009/10. The number of mobile subscribers and internet users, on the other hand, is expected to pick up to a respective 6.67 million and 193,100 by the end of the plan period from 1.465 million and 48,970 in 2005/06.
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subscription 5 Number of internet subscription 6 Domestic traffic (pulses) 7 International telephone traffic 8 9 10 Population Tele density Tele density including mobile 65.394 0.43 0.48 67.22 0.53 0.59 69.13 0.59 0.66 71.10 0.68 0.90 73.20 0.83 1.3 75.2 0.98 2.14 2.97 10.11 30.82 4.62 4.62 4.93 6.67 8.57 11.48 12.90 1253.41 1573.99 1896.337 2,225.14 2,341.99 2,475.56 13.44 4073 6740 9534 12155 17,710 25,724 42.80
4.4.3 Accommodation
Accommodation is a necessary component in the development of tourism with in any destination that seeks to serve visitors other than day trippers. The quality and range of accommodation available will both reflect and influence the range of Visitors (Copper, Frecher, Gillbert, Shepered and Wan hill, 1998)). According to Adrian (1995), accommodation might be classified into commercial sectors such as hotels, motels, gust houses, holiday campus, etc Among these, hotels and conference facilities are the most important elements of accommodation facilities in Ethiopia.
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Hotels
The development of hotels is necessary condition for the development of tourism industry. After hard travel, and site seeing tourists desire comfort when they return to their rooms in the evening. Thus if tourists are to be satisfied and tourism to grow, hotel rooms should be of a tourist standard and be able to accommodate guests during peak periods with reasonable prices.
(a) Availability of hotels and Ownership in Ethiopia The table below depicts the number of star and recommended hotels, ownership structure, and new additions.
Table 4.4.3 (a) Number of star hotels, recommended hotels, ownership, and new additions until 2005
Region No of hotel available No of rooms % of Government ownership New hotels under construction New rooms to be added Hotels recommended for tourist among available
Addis Ababa 66 3823 47 Afar 4 109 17 Amhara 51 1455 47 Benshangul 1 26 0 Gumuz Dire dawa 14 405 31 Gambella 1 222 100 Harrari 9 238 30 Oromia 148 4072 31 SNNP 61 1378 24 Somali 2 104 0 Tigriay 31 1018 15 Total 388 13105 Average 31.5 Source: Culture and Tourism Minister, CSA
0 0 6 0 0 0 4 4 3 0 2 15
5 0 5 0 2 0 15 15 5 1 8 46
As explicitly illustrated on the above table, there are only 388 hotels in the whole nation with 13105 rooms of which nearly one third of which are state owned. Regarding new additions there are only 15 hotels under construction, which are expected to accommodate additional 893 guests. And as to the regional distribution of hotels, 17% are situated in Addis 39
while 38% are in Oromia, 13% in Amhara, nearly 16% is situated in SNNP and 8% in Tigray etc In addition, from the total number of hotels of 388 only 46 of them are recommended for tourists which have adequate provision of lodging and food, transport accessibility like road to the hotel and adequate parking, clean water supply, sanitary facilities, security services, post and telephone services, electricity etc... The above fact shows that there is no enough accommodation facility in the country with the necessary facilities like telephone and a continuous supply of electricity and other facilities that ensure tourists satisfaction. Deeply, there is uneven distribution of hotels among regions with which shows that there is an imbalance between the number of visitors and available accommodation facilities. This can be seen in the case of Benshangul Gumuz, Gambela, Dire Dawa, Afar, and Somali in these regions there are many tourist attraction sites but totals are no more than 15 in each. Aneven worse scenario is the case of Benshangul Gumuz and Gamblla, where there is only one hotel in each, accommodating only 26 and 22 people respectively regardless of the quality of the service provided. The construction of 15 hotels does not necessarily mean that there will be enough tourist absorption capacity during peak periods. The fact that most of hotels being owned by the state implies that further development/construction works are subject to government budget to the sector which is not sufficient let alone to add new ones, to sustain the quality of the existing ones. This leaves the standard of hotels at low level, not deserving the star rating given to them and unworthy of the price charged for their services. Regarding the number of recommended hotels, it shows the low level of performance in hotel quality, which is not enough to fulfill tourist demand, since only 12% of the hotels are recommended for tourists.
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Regional state Addis Ababa No hotels No rooms No beds Amhara No hotels No rooms No beds Dire dawa No hotels No rooms No beds Harari No hotels No rooms No beds Oromia No hotels No rooms No beds SNNP No hotels No rooms No beds Tigray No hotels No rooms No beds Somali No hotels No rooms No beds Gambela No hotels No rooms No beds
1-star
5-sar
Classified
Not classified 5 221 313 27 523 641 6 189 252 6 152 164 113 2474 2834 42 712 770 17 432 455 0 0 0 0 0 0
Total
14 1002 1484 10 213 360 5 81 93 1 42 80 12 818 1920 12 342 492 8 210 240 2 81 179 1 41 79
2 695 1074 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
66 3823 5483 51 155 2202 14 405 568 9 238 298 148 4072 5863 61 1320 1678 31 1018 1237 2 81 179 1 41 79
Table 4.4.3 (b) shows us the most important problem for tourism development in Ethiopia, which is uneven and inadequate distribution of hotels in the whole of the country. As we see from the table, most of the efficient and standardized hotels are found far from the tourist attraction sites of the country. Most of the hotels which have star are found in
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Addis Ababa, i.e. about 128 total with star hotels 49 are found in Addis Ababa, and the remaining are distributed in the rest of the regions. For example, Oromia which has the highest share in regional distribution of hotels contributes only 19 star hotels to the country. This shows high or large quantity but low quality hotels as well as low quality of services supplied to the tourist which affects the performance of the tourism industry.
Table 4.4.3 (c) Tourism Rating of Hotels and restaurants The quality of rooms and facility The quality and variety of dining 3.0 3.1 The quality of service Value for money 3.7 3.8 3.4 5=very
Total travelers 3.0 3.4 Low budget travelers 3.1 3.4 (<$40 per day) High budget travelers 2.9 2.6 3.2 (>$40 per day) Note: rating scale 1-5 with 1=very poor, 2-poor,3-average, 4=good good
Source: IF team survey with the support of Ministry of Culture and Tourism It can be seen that most of the services provided by hotels and restaurants and rated as average while the quality of rooms and verity of dining are rated poor by the high budget travelers indicating the needs for lot of work to upgrade the services provided so as to satisfy both high and low budget travelers. Monetary values for all the services are rated
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average revealing the belief of tourists that what they get is not worth what they paid, again indicating a disadvantage to future sectoral development.
4.4.4 Average Rating of Tourism Products by Tourists Table 4.4.4 Average Ratings of Tourism Products by Tourists The ability to use cash and credit cards Total Europe America America and Asia Average 2.2 2.55 3.6 3.15 2.5 3.0 3.6 3.0 and 2.0 1.9 Control of un official guides and beggars 2.3 2.1 3.6 3.6 Personal security The cost & regulation of taxis and buses 3.2 3..3
Source: IF team survey with the support of Ministry of culture and Tourism
Note: the rating system as follows 1=very poor, 2=poor, 3=average, 4=good, 5=very good In evaluating the tourist sector performance from the point of view of tourists, the above table shows that none of the tourism facilities or preparations has been rated above average. Actually only personal security and safety, and the cost and regulation of taxis and buses were rated average leaving the ability to use cash and credit cards and the control of unofficial guides and beggars at a poor level in the eyes of tourists. This fact will have an impact on the present conditions as well as the future prospects of the sector and its contribution to the national economy. Thus, efforts should be made to upgrade the facilities and
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services provided with in and around the tourist sites so as to maintain and sustain the earnings of the tourism industry.
Conference Facilities
Conference tourism is already a significant part of Ethiopias tourism product. The flagship facility of the United Nations conference center that can accommodate 1500 delegates and is a world class facility. There are also 20 other standard conference centers in star hotels and AU in Addis with total capacity of 6000. Of these Sheraton holds the greatest share with 1400 (w.w.w.eatil. org 1/2/2005).
1991 20042 1566 13166 7011 1992 20436 15974 13435 7768 1993 22896 17870 1984 8656 1994 27010 19522 10957 10264 1995 30538 19984 11610 12436 1996 28360 21446 15599 12127 1997 30494 23511 14952 13526 1998 26246 31143 8916 5983 1999 22646 28803 15425 6917 2000 27646 30768 18670 6689 2001 26577 41083 17216 5361 2002 32752 10612 49339 20113 2003 36571 11705 53315 31414 2004 35014 11379 56790 34129 2005 53873 42462 44576 25947 Source: Ministry of Culture and Tourism
5677 5789 6515 8690 9109 11866 12710 13272 13031 1589 14913 17779 19895 18209 24394
19419 19811 22151 21627 19659 19487 19539 5287 5037 10321 11288 25732 27010 28556 36146
81581 83213 93072 98070 303336 18885 139000 102000 115000 1359054 148438 156327 179910 184079 227398
Visitors who are coming for the purpose of attending conference, which are called conference tourists take the forth place. This is because Addis Ababa is a place where many international organizations like, AU, ECA and other international organization are found. Due to this many
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conferences take place in the capital city and as a result the number of tourists in flow in the case of conference becomes valuable for tourism growth in Ethiopia. From the table 4.4.5 the number of conference visitors shows ups and downs like business cycle that is it grows form 1991 to 1997 but it falls in 1998 due to the Ethio-Eritrean war, and then grows in 1999. It also shows a declining tend between 1999 to 2001 and then grows up to 2004 and falls in 2005. This type of movements in conference tourism affects the steadiness of the economy in general and tourism industry in particular.
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Moreover, there are individuals with out training and knowledge who calling themselves as tour operators and then robe and steal belonging of tourists. By doing so they create problems on tourists and tourism industry.
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the table below shows that the hotel industry in particular is characterized by low education levels and poor training. In this sector only 22.5% of the employees have completed grade 12 and further i.e. college and 69.7% of the employees are at a level below grade 12. On the training side, only 15.8% have received any formal hotel training. In contrast, the tour operator sector is better equipped and better trained. On average, 51.3% of the tour operators have completed grade 12 and above and only 41.3% have no sector specific training. Most of those have received training got it from short term courses from the Catering and Tourism Training Institute (CTTI). Table 4.6.1 Level of Education and Training amongst Hotels and Tour Operators
Formal education Profile of hotel employees Profile of tour operators employees Training Profile of hotel employees Profile of tour operator employees Read& write (%) 9.8 0 Grade 1-6(%) 15 10.9 Grade 7-8(%) 16.3 7.6 Grade 9-12 (%) 36.4 30.2 Grade 12+ (%) 19 28.2 College (%) 3.5 23.1
Source: Ministry of Culture and Tourism The general view is that the human resource development in the tourism sector in general and the hotel sector in particular are poor with little investment to change this picture. This will have its own effect on the effort to generate a quality service and limits the ability to come up with creative means of improving the existing structure of the industry by learning form the experiences of other nations.
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Table 4.7 Arrivals and Receipts From 1991-2005 via Addis Ababa Airport and Other Receipts in 1000 (birr) 1991 81581 81581 38824 1992 83213 83213 57763 1993 93072 93072 107822 1994 98070 98070 144315 1995 103336 103336 144972 1996 108,885 108,885 182665 1997 114732 24268 139000 27900 1998 90847 21153 12000 225000 1999 91859 23141 115000 252000 2000 108954 270000 378954 577800 2001 1116438 32000 148438 642000 2002 130947 25380 156327 676100 2003 166162 19748 179910 778000 2004 172954 11124 184078 991200 2005 187453 34110 22798 1177816 Source: Culture and Tourism Minister, National Bank of Ethiopia Note: other eatry ports are Dire Dawa, Galafi, Moyale, Dewale, Metema, Togo, Chale, Dolo, Omate, Terferibir, Gonder, BahirDar, Mekele etc Year Bole Other ports Total
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Table 4.7 shows that there is an increasing trend of both tourist arrival and receipts generated form tourists to the country. From the data, one can figure out a slow but a steady increase in the number of tourist inflow as well as receipts since 1997. Arrivals took a sever knock in 1998/99 for the duration of the war with Eritrean. Taking the arrivals by air as the only indicative of the trend over the past decade arrivals grew by 3.6% only. But this figure masks the much higher annual growth rate of 5.8% up until the war began and a high 9.2% growth form 2000 to 2001. The war caused a 20.8% drop in total arrivals but there was a rapid recovery as total arrivals almost reached their prewar level in 2000. Taking in to consideration the amount of receipts generated by the industry to the country, there is an increasing trend but with a decreasing rate over the past decade, even negative rate is recorded during Ethio-Eritrean war i.e. -24% decline in tourist receipts in 1998 from the previous. In 2001, total receipts was $642mln up from $577.8mln the year before by 8.5%, and in 2002 it grew to $676.1mln by 4.5%. However, the sector registered a very remarkable change in the years 2003, 2004 and 2005 where it grows to $778mln (16.6%),991.2mln (27%) and 1,177.8mln (17.7%).
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Secondly, on the demand side, tourism consuming habits are important. Two persons with similar level of income may, all things being equal, have deferent propensities to travel. This may be a function of cultural surroundings at home, age and gender. This propensity to travel will influence domestic tourism and the development of the sector in any destination closely linked to those generating areas.
Table 4.8 Arrivals by Age and Gender Group for 2003, 2004 and 2005
Year Sex <15 b/n 15 &24 2003 Male Female Note stated Total 2004 Male Female Note stated Total 2005 Male Female Note stated
Total
B/n 25&44 60832 27399 1119 89350 60899 26918 1807 89624 75495 33320 2243
111058
B/n 45&59 36960 11425 552 48937 36491 11033 1014 48538 45201 13604 1259
60064
>60
Not stated
Total
5593 3759 165 9517 5506 3790 325 9621 6744 4615 403
11762
8299 5552 191 14042 8188 6159 305 14652 10073 7555 379
18007
10593 3900 150 14643 10112 3687 325 14124 12462 4487 403
17352
2719 638 64 3421 4889 1968 662 7519 5979 2353 823
9155
124996 52673 2241 179910 126085 53555 4438 184078 155954 65934 5510
227398
Source: Ministry of Culture and Tourism From the table 4.8, in these three yeas adults i.e. age between 25 and 59 are higher in number than that of young and old aged group to visit Ethiopia that is 138287 in 2003 from the total of arrivals of 179910, and 138162 in 2004 from the total arrivals of 184078. It also 171,122 visitors from the total arrivals of 227,398 to the country which contributes 76%, 75% and 75.3% of the arrivals in 2003, 2004 and 2005 respectively. Regarding the gender group, male visitors are significant in number than those of females, that is form the total of 179,910 arrivals to Ethiopia in 50
2003, males account 124,996 (69.4%) of the arrivals, and from the total of 184078 arrivals to Ethiopia in 2004, males account 126085 (68.5%) of the arrivals. And also in 2005, from the total of 227398 males account 155954 (68.6%) of the arrivals to Ethiopia. This shows a bias that mostly those persons who are adults and that of males had a chance to visit Ethiopia in the previous years since more than 68% of the arrivals are males and more than 75% of the arrivals are adults. This is due to reasons and problems with in the country and the consuming tourist like image of the country as poor and highly affected by famine and by thinking not suitable for females and childrens in tourists mind, fear of disease due to children have no resistant ability to disease, low level of promotion and advertisement etc
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Certainly there will always be a place for low technology tourism; particularly while there are market segments which deliberately seek out the simple or natural life (current fashions i.e. ecotourism) but dominate cultural tourism generating areas will ensure that returns within tourism sectors will continue to be high where supported by good technical knowledge application. But our country has low level of technical knowledge which affects the productivity of the sector as well as the tourism contribution to the GDP.
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much of natural and cultural tourist attraction sites; hotels and restaurants are at low quality level and unevenly distributed; inadequate promotion and advertisement, low quality and even untrained tour operations and guides, low level of technical knowledge, and other inadequate financial and material support that are vital to the development of the sector and sectors with in the value chain of tourism. Moreover lack of peace and stability and periodic drought and famine have changed the image of the country from tourist attracting to tourist frustrating. With the value chain of tourism of Ethiopia government is the lead firm since it owns on average 31.5% hotels, most of conference facilities, controls visa and exit procedures, ownership and construction of roads (as public good), monopoly ownership of airline, training institutes like CTTI are owned by the government; national parks, game reservers, sanctuaries, other cultural and natural tourist attraction sites financed, protected and controlled by the government, monopoly of telecommunication, control of media monopolistically etc The dominancy of the government in tourism sector is not good for tourism development. But it is common in other most Less Developed Countries (LDCs) like Ethiopia and African countries which hinder the fast growth of tourism industry.
5.2 Recommendations
In order to facilitate the rapid development of tourism in Ethiopia both the government and the private sector or in general the society must participate in improving, protecting and advertising tourist attraction
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sites and, supply good quality facilities or services for the tourists in Ethiopia. The government must have designed strategies like: study, protect and develop the countrys tourist attraction sites, and give attention for those which are not known; encourage the private sector to: improve, develop and expand tourism facilitates that is facilities like high quality hotels and restaurants as well as conference facilities and others; Improve and expend tourism infrastructure that is develop the quality and the quantity of transportation sector like road, air, rail and water are important to the sector with the support of private sector; Promote the countrys tourism resources that is by promotion and advertisement in international media like DSTV, Show Time, G-TV, ETV and other medias; Awareness creation to the society about tourism industry; Create suitable conditions for tourists by avoiding war with neighboring countries and create internal stability in order to prevent from any fear of visiting the country. Provide high quality hotels and restaurants and other facilities which includes all gender and age groups; Improve the level of technical knowledge by giving high attention to the sector; Control illegal tour operators which have no license to secure tourists form danger; The government should allow the private sectors to participate/invest in the sectors with in the value chain of tourism like airline, telecom, hotels, road constriction, national parks,
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game reserves, sanctuaries and other cultural and natural attraction sites etc On the other hand, the private sector must invest, its resources in activities that are important for the development of tourism industry of Ethiopia. i.e: participate in protection and development of the countys tourist attraction sites; participate in improvement, expansion and development of tourism facilities like hotels and restaurants, conference facilities, transportation, tour operation and other and as well as control illegal tour operators which have no license etc
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