Challenges and Opportunities of Investment in Tourism: A Case Study of Addis Ababa, Ethiopia
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Date
2012-06
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Addis Ababa University
Abstract
Addis Ababa has potential for attracting touri sts because it's the center of international
conferences and the city is the entry point for most of international tourists. Although the city has
also much to offer, investment is not sufficient for upgrading its attractions and tourist service
providing institutions. The main purpose of this study is to present specifically a situation of
tourism investment in Addis Ababa. The study has assessed challenges and opportunities of
investment in tourism sector in the city. The design of the study is descriptive and has employed
both quantitative and qualitative research approaches. The researcher used instruments such as
interview, questionnaire, focus group discussion and existing secondary sources for data
gathering. 128 questionnaires were distributed to investors selected from licensed star hotels and
tour operators. But only about 102 questionnaires were returned and analyzed. Interview has also
been conducted with different governmental and non-governmental bodies found in Addis
Ababa. The data was analyzed b)' triangulating both quantitative and qualitative method s. The
finding of the study shows many challenges and opportunities of tourism investment in Addis
Ababa. The main challenges include bureaucratic problem, in sufficiency of basic infrastructures,
low promotion in the sector, macroeconomic instabi lity and problem of implementation capacity.
According to this study general opportuilities of tourism investment include good attention of
government, large market size, and mixed market economy, existence of ample resources and
availability of trainable man power. The sectors of investment opportunities include public
infrastructures such as transportation, telecommunication, water supply, electricity etc and tourist
infrastrnctures such as hotels, restaurants, tour operation, conference centers, recreation centers
etc. In general, even if the city has many opportunities of tourism investment, the pelformance of
investment was found to be at low level.
Key words: Tourism, Investment, Challenges, Opportunities, Addis Ababa
Description
Keywords
Tourism, Investment, Challenges, Opportunities