ADDIS ABABA – The service sector, mainly tourism, has been luring local and multi-national investors following the favorable incentives introduced by the government, the Ethiopian Investment Commission (EIC) announced.
EIC Public Relations Director Mekonnen Hailu told The Ethiopian Herald that 158 investment projects have been taking place in the tourism sector. Out of these, 52 and 106 projects are in the hotel and tour operation sector respectively, he added.
As to him, while 36 hotels are under construction, 16 hotels have started operation.
While 30 tour operation investments went operation, some 34 and 42 projects are under implementation and in pre-implementation phase respectively.
The majority of the hotels are being constructed in Addis Ababa City Administration, as well as Oromia, and Amhara states. Particularly, massive hotel construction is underway in Addis, the majority of which are expected to be above three-stars, he indicated.
“Currently, the Ethiopian government provides various incentives and tax holidays aimed at motivating the tourism sector including tax-free importation of construction materials, capital good, and vehicles needed for hotel construction.”
The government has given due attention to the tourism sector as part of its larger job creation and environment-friendly development plans, he said.
Expanding the hotel investment in major tourist destinations such as Gondar, Lalibela, Axum, Bahir Dar, Addis Ababa, etc. are advised to meet tourists’ luxurious demand, he emphasized.
Currently, next to the manufacturing and agro-processing sectors, tourism has the most preferred investment destinations in the country.
The country has several UNESCO registered tangible and intangible heritages. Addis Ababa is the third international city in hosting international and continental organizations next to New York and Brussels.
According to the Ministry of Culture and Tourism, Ethiopia has the potential to generate considerable income from conference tourism. It envisages securing six million USD from conference tourism annually.
Recently, the Ministry of Culture and Tourism said that the outbreak of COVID-19 pandemic internationally has significantly affected Ethiopia’s tourism sector.
The pandemic has particularly harmed the income from conference tourism as most international events due to be held were either postponed or canceled. Many trips to Ethiopia by foreigners have been canceled.
The Ethiopian Herald April 16/2020
BY TEWODROS KASSA
