THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA SUSTAINABLE TOURISM MASTER PLAN 2015 2025 THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA SUSTAINABLE TOURISM MASTER PLAN 2015 – 2025 MINISTRY OF CULTURE AND TOURISM Copyright ©2015 United Nations Economic Commission for Africa www.uneca.org All rights reserved. The text and data in this publication may be reproduced as long as the source is cited. Reproduction for commercial purposes is forbidden. Disclaimer This report is the result of the analysis of a study commissioned by the United Nations Economic Commission for Africa (UNECA), Eastern Africa Sub-Region Office (SRO-EA) . However, the report does not purport to represent the views or the official policy of the institution. MAP OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA 5 THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA TABLE OF CONTENTS Map of the Federal Democratic Republic of Ethiopia 5 List of figures 10 List of tables 11 Foreword 12 Acknowledgement 13 List of acronyms and abbreviations 14 EXECUTIVE SUMMARY 18 1. INTRODUCTION 26 2 SITUATIONAL ANALYSIS 32 2.1 Global Tourism Outlook 32 2.1.1 World Tourism Receipts 35 2.2 The Tourism Industry in Ethiopia 36 2.3 Competitive Analysis of Ethiopia’s Travel and Tourism Industry 37 2.4 Tourism Trends and Markets 40 2.5 The Current Tourism Supply in Ethiopia 45 2.5.1 Tourism Resources and Products 45 2.5.2 Current Tourism Routes and Products 56 2.5.3 Some Segmented Tourism Products 57 2.5.4 Summary of Key Issues 63 2.6 Tourism Marketing and Promotion 63 2.7 Tourism Infrastructure 66 2.7.1 Summary of Key Issues 68 2.8 Human Capital and Resources 69 2.8.1 Summary of Key Issues 70 2.9 Tourist Safety and Security 73 2.10 Tourism Support Services and Infrastructure 74 2.10.1 Transport Infrastructure 74 2.10.2 Information and Communication Technology 81 2.10.3 Summary of Key Issues 83 6 SUSTAINABLE TOURISM MASTER PLAN 2.11 Environmental Conservation and Sustainable Tourism Development 84 2.12 Policy, Regulatory and Institutional Framework 88 2.12.1 Summary of Key Issues 91 2.13 Tourism Research and Development 92 2.14 Tourism Development Financing 93 2.15 Summary of Ethiopia’s Tourism Sector SWOT Analysis 95 3 VISION, MISSION AND SHARED VALUES 100 3.1 The Vision and Mission for Ethiopia’s Tourism Industry 100 3.2 The Shared Values 100 4 STRATEGIES AND ACTIONS 104 4.1 Introduction 104 4.2 Pillar One: Policy, Regulation and Institutional Framework 108 4.2.1 Introduction 108 4.2.2 Strategies and Actions 108 4.2.3 Framework for the Strategic Pillar 111 4.3 Pillar Two: Tourism Product Development 112 4.3.1 Introduction 112 4.3.2 Actions 112 4.3.3 Framework for the Priority Area 118 4.4 Pillar Three: Tourism Marketing, Branding and Promotion 120 4.4.1 Introduction 120 4.4.2 Actions 120 4.4.3 Framework for the Strategic Programme 123 4.5 Pillar Four: Investment in Tourism Facilities and Services 124 4.5.1 Introduction 124 4.5.2 Actions 124 4.5.3 Framework for the Pillar 128 4.6 Pillar Five: Human Resource Development 128 4.6.1 Introduction 128 4.6.2 Actions 128 4.6.3 Framework for the Pillar 130 7 THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA 4.7 Pillar Six: Tourism Research and Development 131 4.7.1 Introduction 131 4.7.2 Actions 132 4.7.3 Framework for the Programme Area 132 4.8 Pillar Seven: Tourist Safety and Security 133 4.8.1 Introduction to the Priority Area 133 4.8.2 Actions 134 4.8.3 Framework for the Programme Area 134 4.9 Pillar Eight: Tourism Support Infrastructure and Services 135 4.9.1 Introduction 135 4.9.2 Actions 135 4.9.3 Framework for the Priority Area 135 4.10 Pillar Nine: Conservation and Preservation of Natural and Cultural Resources 136 4.10.1 Introduction 136 4.10.2 Actions 136 4.10.3 Framework for the Pillar 139 4.11 Pillar Ten: Tourism Development Financing 140 4.11.1 Introduction 140 4.11.2 Actions 140 4.11.3 Framework for the Programme Area 141 5 STMP IMPLEMENTATION FRAMEWORK 145 5.1 Summary of STMP Implementation Road Map 163 5.2 STMP Financing Requirements 165 5.3 STMP Implementation Monitoring and Evaluation Plan 165 5.4 Tourism Industry Growth Projections 166 5.5 Institutional Framework for STMP Implementation 168 6 BIBLIOGRAPHY 172 7 GLOSSARY OF KEY TERMS 177 8 SUSTAINABLE TOURISM MASTER PLAN 8 APPENDICES 181 1.0 Methodological Note 181 1.1 STMP Formulation Activity Plan 183 1.2 List of Tourism Development Initiatives Considered in the STMP Formulation 184 1.3 List of Organisations Consulted 185 1.4 Stakeholders Consultation Data Collection Tool 190 1.5 Summary of Field Missions Undertaken 192 1.6 List of Benchmark Cases Considered 193 2.0 Ethiopia’s Ministry of Culture and Tourism Organisational Chart 195 3.0 Protected Wildlife Areas in Ethiopia 196 PHOTO CREDITS 198 9 THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA LIST OF FIGURES Map of the Federal Democratic Republic of Ethiopia 5 Figure 2.1 World: International Visitors Arrival between 1995-2012 (million) 32 Figure 2.2 Modes of Travel for International Arrivals, 2013 (%) 34 Figure 2.3 Inbound Tourism by Purpose of Visit, 2013 34 Figure 2.4 Direct Contribution of T&T to GDP ( ETB, m) 36 Figure 2.5 Total Contribution of T&T to GDP ( ETB, million) 37 Figure 2.6 The Most Problematic Factors for Doing Business in Ethiopia (2013) 39 Figure 2.7 International Arrivals and Visitor Exports (USD) between 2004 and 201 40 Figure 2.8 Ethiopia: International Tourist Arrivals 1990-2013 (to the nearest ‘000) 41 Figure 2.9: Top Ten Markets for Ethiopia (2009-2012) 42 Figure 2.10 Ethiopia: Growth Trajectory for Visitors by Purpose of Travel (2001-2012) 43 Figure 2.11 Ethiopia’s International Tourist Arrivals and Receipts 2010-2012 44 10 SUSTAINABLE TOURISM MASTER PLAN LIST OF TABLES Table 1.1: Indicative Cost Estimates of Implementing the Ethiopia STMP (2015-2025) 23 Table 2.1 World: International Visitors Arrival by UNWTO Regions between 1995-2012 33 Table 2.2 World: International Tourist Receipts 35 Table 2.3 Ethiopia’s Global T&T Competitiveness Relative to Selected Sub-Saharan Africa Countries (out of 140 Economies). 38 Table 2.4 Tourist Arrivals 2008-2012 41 Table 2.5 Ethiopia: International Arrivals by Purpose of Visit- 2001 to 2012 43 Table 2.6 Ethiopia’s Tourism Comparative Performance (2010-2012) 44 Table 2.7 Ethiopia UNESCO World Heritage Sites 45 Table 2.8 Leading MICE Destinations in Africa, 2012 57 Table 2.10 Distribution of Classified Hotel Rooms in Ethiopia 67 Table 2.11 WEF TTCI Select Human Resource Indications of Select Countries 70 Table 2.13 Global Ranking of the State of Infrastructure in Selected African Countries 74 Table 2.14 Ethiopia Air Transport Infrastructure Assessment (by 2013) 75 Table 2.15 GTP Targets for Roads 78 Table 2.16 Competitiveness of Ethiopia ICT Infrastructure 82 Table 2.17 Deforestation and Biodiversity for Selected East Africa Countries 2008 84 Table 2.18 T&T Policy, Rules and Regulations Ranking for Select African Countries (2013) 88 Table 2.19 2013 Ease of Doing Business Global Ranking for Select Africa States 90 Table 5.1 Indicative Cost Estimates of Implementing the Ethiopia STMP (2015-2025) 165 Table 5.2 STMP Monitoring and Evaluation Plan 166 Table 5.3 Ethiopia Tourism Growth Projections by 2025 166 Table 5.4 Summary of Ethiopia Tourism Growth Drivers towards (2015-2025) 167 Table 5.5 Institutional Framework for STMP Implementation 168 11 THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA FOREWORD thiopia is one of the fastest growing economies in the world, having registered impressive economic growth for the last Econsecutive twelve years. As part of its resolve to achieve various economic, social and political goals, the government of Ethiopia is investing heavily in large scale social and infrastructural projects aimed at bringing about institutional transformation. The implementation of the first integrated Growth and Transformational Plan has already proved its calibre in achieving all of the millennium development goals. The second Growth and Transformation Plan has been developed with the ultimate goal of attaining middle class income status by 2025. Ethiopia is a country with untapped tourism potential. The contribution of tourism to the overall development is, therefore, well recognised and is given significant attention in the Growth and Transformation Plan. Ethiopia is currently experiencing rapid growth in international tourism. This is a result of the remarkable socio-economic reforms and diligent endeavours and commitment of the Government of the Federal Democratic Republic of Ethiopia. Tourism is a sector that holds a bright promise for our country Ethiopia. That is why the Ministry of Culture and Tourism has placed considerable emphasis on developing and managing tourism in a competitive and sustainable way. The Ministry has collaborated with the Eastern Africa member states under the umbrella of IGAD in developing a Regional Sustainable Tourism Master Plan, 2013-2023. The Sustainable Tourism Master Plan for Ethiopia (ESTMP) is, therefore, a follow- through to the government’s commitment to guaranteeing that the tourism sector contributes to the country’s socio-economic development. The Master Plan sets out a vision for sustainable tourism development in the country and includes strategic programmes, priority projects, and activities in a 10 years implementation framework. In this sense, it marks an important milestone for the systematic development of Ethiopia. Needless to say, the country recognises the need for action if tourism is to play its part in Ethiopia’s development agenda as envisioned in the Growth and Transformational Plan, 2015-2020.