Assessment of Current Practices Contribution and Challenges of Tourism Insured in Ethiopia

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Date

2021-02

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Publisher

Addis Ababa University

Abstract

Tourism insurance, which refers to a type of insurance that covers the costs and loses associated with traveling. It is usefull protection for those travelling domestically or abroad. It plays an important role in tourism development in many countries. Nonetheless, its practice and contribution to tourism development in Ethiopia is hardly researched. Hence, it is imperative to examine this overlooked theme in an Ethiopian context. The purpose of this study is to investigate the current practices, contribution and challenges for the wider application of tourism insurance in Ethiopia. This study is a survey type and was carried out by analyzing qualitatively the collected data from insurance companies managers, tourists and tourism suppliers such as tour operators and, travel agency managers found in Addis Ababa. The research participants were selected using a purposive sampling method. A total of 14 respondants in-depth interviews were conducted with respondents from insurance companies as well as travel agencies. The results of the study show that the most important factors affecting the role of tourism insurance in tourism development are the insufficient development of tourism resources in the area, lack of financial resources, poor general infrastructure and lack of awareness. The current practices of tourism insurance and its contribution for tourism development in Ethiopia are also revealed in this study. It is concluded that the practice of tourism insurance is currently low. Hence, it is recommended that tourism insurance operating in the tourism sector should be encouraged to provide sufficient insurance packages to tourism service providers as well as tourists, both domestic and internationals. The study also paves the way for future interested researchers to conduct a thorough on the role of tourism insurance in the development of tourism by applying rigorous quantitative techniques.

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Keywords

Tourism insurance, Tour operators, Tourism suppliers, Ethiopia

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