TSA is key to optimizing tourism’s contribution to nat’l dev’t, investment attraction – ECA

Addis Ababa, September 18, 2024 (FBC) – The launch of Tourism Satellite Account will help strengthen the sector for meaningful contribution to Ethiopia’s economy, according to the United Nations Economic Commission for Africa (ECA).

Note that the Ministry of Tourism (MoT) and ECA launched the Ethiopia Tourism Satellite Account (TSA) on Tuesday, a tool for use in strengthening tourism for effective contribution to the country’s economy.

“The launch of the TSA provides us with the data, but it is up to us to interpret and use it effectively to understand the true magnitude of the tourism industry,” said Geoffrey Manyara, on behalf of Mama Keita, ECA Eastern Africa Office Director during the launch in Addis Ababa, Ethiopia.

“Let us ensure that this tool helps us to make informed decisions that promote inclusive and sustainable growth in the tourism sector.”

The TSA is a unified framework for measuring tourism’s contributions to GDP, employment, and investment. It aligns with international standards as set by the UN World Tourism Organization, offering us a consistent and robust methodology for integrating tourism data into the national accounts.

“With this tool, we can now quantify not just the direct benefits of tourism—such as visitor spending on accommodation and transport—but also the broader economic ripple effects across sectors like agriculture, construction, and retail,” said Manyara.

Additionally, he said the TSA is a powerful tool for decision-makers, both in government and the private sector. It enables evidence-based policy, providing the detailed information we need to optimize tourism’s contribution to our national development goals, the creation of jobs, and the attraction of investments.

Furthermore, he said the ability to measure both monetary and non-monetary aspects of tourism enhance our capacity to plan for sustainable tourism development that benefits both the economy and the environment.

Before the COVID-19 pandemic, tourism was on an impressive trajectory in Ethiopia. The sector contributed nearly USD 4.8 billion to GDP, and international tourist arrivals reached over 1.4 million, marking the peak of a decade of consistent growth. This success was driven by strategic investments in infrastructure, particularly in roads and airports, and an increased global marketing effort that positioned Ethiopia as a premier destination for culture, history, and adventure tourism.

However, the pandemic dealt a severe blow to this progress. International tourist arrivals in 2020 fell by over 84% from the previous year, bringing the number of visitors down to around 228,200.

“Looking ahead, the future is promising, but it will require sustained effort and strategic planning,” he said.

Projections for the next 5 to 10 years suggest that with continued investment, Ethiopia’s tourism sector could surpass pre-pandemic levels by the late 2020s. Initiatives focusing on enhancing infrastructure, improving security, and developing new tourism products like ecotourism, will be key drivers of growth.

It is anticipated that by 2030, tourism could once again contribute over USD 5 billion annually to GDP, with international arrivals exceeding 2 million visitors.