The Role of Private Sector in the Development of the Tourism Industry: the Case of Privately Owned Hotels in Addis Ababa
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Date
2015-06
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Addis Ababa University
Abstract
The private sector has a key role in playing a vital part in one‟s country economic growth
and development. The economic contribution of privately owned hotels in Addis Ababa is
a theme of this paper that has been addressing to investigate the bottlenecks of the hotel
industry and assessing the substantial contribution of hotels to the economy. The
objective of the research is to critically examine and evaluate the impact of privately
owned hotels to the country‟s economic development. The researcher collected both
qualitative and quantitative data from primary and secondary sources, using
questionnaire, interview, focus group discussion, document review and personal
observation to make the study more reliable and vibrant. Findings indicate that privately
owned hotels have a crucial contribution to the economy as a means of generating
foreign currency, maintain country‟s trade balance, in income tax generation, creation of
job opportunities, skill development, building image of the country and encourage or
attract visitors. The sector has also shortcoming like not having competent policy makers,
lack of skilled manpower, and brain drain in the industry, lack of quality products for
luxury hotels in domestic market and long customs processes to import items. The
researcher concludes that the privately owned hotels contribution to the country‟s
economy is enormous and in its progressive stage. Finally, the researcher recommends
that the money generated by the sector should be reinvested to the hospitality industry;
highly skilled professionals should be assigned by the government to its institutions to the
sector so that they can solve problems related to the sector and also be able to
communicate satisfactorily in international level
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Keywords
Tourism industry