Tourism Ambitions Hit Roadblocks as Violence, Red Tape Undermine Recovery

May 17 , 2025. By BEZAWIT HULUAGER ( FORTUNE STAFF WRITER )

The tourism sector, battered by security risks, bureaucratic slowdowns, and infrastructure gaps, is struggling to regain its footing despite promising signs of recovery. In an address to federal legislators, Selamawit Kassa, minister of Tourism, presented a mixed picture of the industry’s performance over the past year. Her report balanced tempered optimism and a sober accounting of persistent setbacks.

A former journalist, Selamawit spoke with characteristic frankness, acknowledging shortfalls in meeting key targets while defending the Ministry’s efforts during rising economic and political uncertainty.

“We've made some progress, but there is much more to do,” she told lawmakers last week.

The numbers unveiled both traction and trouble. The Ministry registered 148 new tourism-related investments, an impressive figure, though below the 175 forecasted. Official data claims tourist arrivals hit 942,000 last month, marking a nine percent increase over the same period a year ago. But this uptick still fell short of the one million visitor target set by the Ministry. The authorities report tourism revenues came in at 3.5 billion Br, underperforming by about 200 million Br compared to the projected amount.

Part of the government’s strategy has been to leverage heritage and cultural tourism, promoting museums and historical sites as key draws. One major initiative sought to attract 1.5 million people to the country’s national museums. But the goal remained unmet. The Ethiopian Heritage Authority reported a shortfall, with only 60pc of the attendance target achieved. According to the figures, national museums hosted 584,460 visitors, while regional heritage programs brought in an additional 311,573 people.

Restoration efforts, another pillar of the Ministry’s agenda, remain incomplete. Work on six key heritage sites, including the Dire Dawa Rail Terminal, the National Museum, and the former residence of renowned artist Afework Tekle, was just 58.6pc completed by year-end. Even more troubling, only seven of the 24 artefacts slated for repatriation were returned to Ethiopia.

Abebaw Ayalew (PhD), director of the Ethiopian Heritage Authority, was candid on some of the obstacles.

“Experts were kidnapped in conflict areas,” he said, referring to fragile regions such as Wag Hemra and the Lake Tana basin, particularly in the Amhara Regional State.

He also pointed to the complexity of cultural repatriation efforts, which often involve difficult diplomacy and intricate legal proceedings that defy fixed timelines.

Staffing shortages across critical departments compound these challenges. The Ministry’s infrastructure, quality control, and promotional divisions remain understaffed. Legal disputes over wildlife rights, filming permits, and fee collection further slowed progress. Conservation efforts suffered as well, impeded by conflict and funding constraints.

The Ethiopian Wildlife Conservation Authority, under director Kumera Wakjira, disclosed that deadly encounters between humans and elephants led to the death of 13 people and 12 elephants last year.

“Compensation is beyond our budget,” the authority said.

They attributed much of the problem to poaching, which has disrupted animal habitats and driven elephants into populated areas. Veterinary outreach efforts also fell short. Of the 200,000 livestock vaccinations planned, only 54,932 doses were delivered.

Environmental restoration has fared no better. The Ministry planned to rehabilitate 500hct of land but managed to restore barely a fifth of the target. The reasons were familiar, including limited funding and competing land demands. In Gambella Regional State, violent clashes over land designated for tourism investment left six people dead. Investment also encroached on 200hct of protected land in Babile. In the Omo Valley, efforts to reclaim 30,000hct have stalled. Only Bale National Park saw modest progress, with just 15hct rehabilitated.

Still, Selamawit held firm in her belief that the sector’s long-term prospects remain bright. She pointed to a 40pc increase in tourist arrivals compared to pre-pandemic levels in 2019 as evidence of underlying momentum. Globally, international travel jumped 11pc in 2024, reaching 1.4 billion. Africa, for its part, attracted 74 million tourists.

According to the Minister, one of the more persistent external threats to tourism is the wave of travel advisories issued by foreign embassies. These warnings, she said, deterred visitors. Her Ministry has begun hosting guided tours for foreign diplomats in an effort to soften the country’s image abroad.

Domestically, new fire safety regulations imposed by the Addis Abeba Fire & Disaster Risk Management Commission have triggered backlash from hotel owners. The reforms, which sought to reduce fire incidents by over 70pc, are proving costly to implement.

Fetih Woldesenbet, president of the Ethiopian Hotel Employers Federation, called the new rules impractical and burdensome.

“The necessary equipment is hard to find," he said. "Veteran hotels, especially, are at a disadvantage."

Many older structures now require partial reconstruction to meet the standards.

Fetih also advocated for designated hotel zones in municipal planning, arguing they could streamline regulatory processes and encourage compliance. The rising cost of fuel and frequent power outages have only worsened the situation. Hotels that invested in backup generators now face problems sourcing fuel and absorbing steep energy costs. Infrastructure bottlenecks continue to undermine operations.

Lawmakers were unimpressed.

Asha Yahya, chair of the Standing Committee on Trade & Tourism, questioned the Ministry’s sluggish pace in infrastructure development, inability to attract foreign direct investment, and poor record on illegal hunting and heritage site renovations. She also cited the acute shortage of skilled personnel.

In defence, the Ministry's officials cited ongoing collaborations with the Ethiopian Roads Authority and Ethio telecom to address core service gaps and improve access to tourism zones.

Beyond Addis Abeba, hotel operators face similar regulatory and infrastructure constraints. Many regional governments lack local offices to certify fire safety compliance, placing the burden on business owners to travel long distances or proceed without certification. Fetih warned that without affordable regulatory solutions, growth in the hospitality sector would grind to a halt.

In regional states like Sidama, the potential is clear but largely unrealised.

Abebe Marimo, deputy head of the Sidama Tourism Bureau, acknowledged gaps in infrastructure and service quality. According to him, the region welcomed roughly three million tourists over the past year, almost all domestic, but revenues have remained flat. Total earnings over the last nine months were 2.9 billion Br.

“We plan to double revenue in four years,” he said.

However, poor road access continues to constrain growth. Only two of the 25 new hotel projects launched in Sidama Regional State are by foreign investors. Their combined estimated worth is around 30 billion Br. Major international brands, including Hilton and Sheraton, are reportedly among those in early-stage talks.

Tourism expert Shiferaw Muleta, an associate professor at Addis Abeba University, placed the blame for falling foreign investment squarely on deteriorating security. Once concentrated in the country’s northern regions, tourism flows have shifted southward, following relative calm. But the South is underdeveloped.

“The industry has high resilience,” Shiferaw said, citing its rebound from COVID-19 disruptions.

He remains confident that tourism could recover swiftly with a return to peace.

The Ministry’s annual report, despite its aspirational tone, offered a stark assessment: chronic underfunding, regulatory friction, staffing woes, land disputes, and security concerns continue to hold the industry back. Yet Ethiopia’s natural and historical assets remain a powerful draw. Whether the country can translate that promise into sustained growth depends on how quickly it can align its policies, secure peace, and rebuild the confidence of tourists and investors alike.

PUBLISHED ON May 17,2025 [ VOL 26 , NO 1307]