Director
ECA SRO-EA
Remarks
On the Occasion of the
Launch of Ethiopia Tourism Satellite Account
17th September 2024
Addis Ababa, Ethiopia
Your excellency PM,
Honorable Ministers,
Esteemed colleagues,
Distinguished guests, ladies, and gentlemen,
It is a great honor and a privilege for me to stand before you today on behalf of the United Nations Economic Commission for Africa during this important meeting where the results of the tourism satellite accounts for Ethiopia will be presented and launched . As we mark a major milestone in the evolution of Ethiopia's tourism sector—the launch of the Tourism Satellite Account (TSA). This launch is not just a technical exercise; it is a critical step in strengthening our understanding of tourism’s true contribution to the Ethiopian economy and its future potential.
Ladies and Gentlemen, we are gathered here today following a request from the Ministry of Tourism in Ethiopia to extend technical support towards the construction of the country’s tourism satellite account. I am happy to note that due to the dedication of the Ethiopia TSA committee in actively participating in the various workshops since the initial mission to assess Ethiopia TSA preparedness in February last year, we now have the approved TSA! This is indeed a remarkable achievement!
The TSA is a unified framework for measuring tourism's contributions to GDP, employment, and investment. 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. The TSA 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.
Before the COVID-19 pandemic, tourism was on an impressive trajectory in Ethiopia. By 2019, 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. The economic impact was equally stark, with significant revenue losses that reverberated across the tourism value chain. Despite a slight recovery following the peace accord in 2022, tourism receipts in 2023 were still down by 6% compared to pre-pandemic levels.
Looking ahead, the future is promising, but it will require sustained effort and strategic planning. 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 be contributing over USD 5 billion annually to GDP, with international arrivals exceeding 2 million visitors.
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, 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.
I want to take this moment to recognize the dedicated individuals, teams, and international partners who have contributed to making the TSA a reality for Ethiopia. Your commitment has paved the way for a new era of tourism management in this country.
As we move forward, let us keep in mind that this is only the beginning. 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. Let us ensure that this tool helps us to make informed decisions that promote inclusive and sustainable growth in the tourism sector.
In conclusion, I wish to reiterate ECA continued support to the Federal Republic of Ethiopia. This launch is a key milestone, but it is also a foundation upon which we will build a stronger, more resilient tourism sector for the benefit of all Ethiopians.
Thank you for your attention.