A Tourism Development Strategy for Ethiopia
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1 A Tourism Development Strategy for Ethiopia Dialogue on Cultural Heritage in Sustainable Development th April 2007 Shaun Mann Tourism Development Specialist Africa Region Private Sector Development World Bank First tourism project in PSD Starts from the premise that the project is there to create jobs and shared economic growth that s the PDO. If you start there then the inputs and outputs can be held accountable by all concerned. If activities are not contributing they can justifiably (politically) be weeded out. The PDO allows the project to fit with the CAS and the PRSP and most other partners can contribute. 2
2 Prepare thoroughly Use what had already been done, build on it. Four new studies (gaps in info available and extra rigor) Value chain Expenditure survey Economic impact in Lalibela Market survey Collaborative approach from the start, make inclusion a guiding principle. 3 Thorough analysis allows focused performance assessment Retail Travel Agent Tour Operator Airline Arrival Inland Transport Hotel Stay Food & Beverage Services Activities & Shopping KEY PROBLEM AREAS or WEAK PERFORMANCE Not enough product being sold Weak promotion Product image needs revitalization Expensive Inadequate supply Unreliable domestic airline Inadequate local supply linkages Seasonality Poor service quality Low service standards No variety Little outside Addis Poor credit card coverage Poor communications coverage Poor standards Not enough product being sold 4 2
3 Lessons Cultural heritage is not a commodity - like a beach - it s a way of life in Ethiopia. It s not perceived as having an economic value. Economic value has to be created; jobs and enterprises. This focus creates inclusion and participation at all levels local, regional and national see results. You can measure these results 5 Why Historic and Cultural Tourists? Unique & world class product Competition in Africa is limited Reinforces and preserves cultural identity and historic roots Builds a Distinctly Ethiopian Brand Tourists characterized by higher incomes, longer stays and tertiary education Large market (8M to developing countries compared to 3.5M safari tourists) 3
4 Current Economic Impact of the Historic Route Segment Estimated Number Daily expenditure Average Days Total Expenditure Foreign Package Tourist 7,000 $ 20 2 $ 0.08 Million Foreign Independent Traveler 3,000 $ 40 4 $.8 Million Visiting Ethiopian 8,500 $ 00 $ 5. Million Ethiopian Resident 35,000 $ 2 4 $ 3.4 Million Total US$ 20.5 Million 7 Economic Impact of Tourism in Lalibela Hub of the Historic Route Tourism creates direct jobs for 850 people, who in turn support 4.4 family members 3740 people depend on tourism to Lalibela ¼of the population of Bugna Woreda Tourism generated $ 2.35 Million for over 500 enterprises in 2004 Each tourist represents a per capita income of $7 to the economy of Bugna Woreda Who Earns the Money Accommodation 45% Transport Services 9% Church 3% Restaurants and Bars 0% Suppliers of Goods 8% Craft Sellers % Tourist Guides % Others (including 2% 20 beggars) 8 4
5 Weak Image and Market Presence Out of the 30 or so specialist Africa tour operators in the UK and Europe only 0% offer regular itineraries for Ethiopia. By this measure Ethiopia ranks 4 th in terms of market penetration. South Africa. Senegal 2. Kenya 2. Rwanda 3. Tanzania 3. Gambia 4. Botswana 4. Ethiopia 5. Namibia 5. Mali. Zambia 7. Zimbabwe 8. Mozambique 9. Uganda 0. Ghana 9 Foreign Visitors to Other Significant World Heritage Sites Ethiopia s share of the foreign market for visits to historic and cultural sites is out of every 450 tourists Angkor Wot Cambodia Slave Forts Ghana Petra Jordan Lalibela Ethiopia Machu Pichu Peru 0 5
6 50% 45% 40% 35% 30% 25% 20% 5% 0% 5% Ethiopian Tourism Product Misses Value Adding Opportunities How Costs are Allocated in a Standard 2-day High Season Package for 4 offered by UK-based Tour Operator Out of Pocket Expenditure Ethiopia Mozambique Uganda Mali Egypt 0% Ticket from London In-country Transport Accommodation Activities and Shopping Food and Beverage Tour Operator Profit A Five Year Plan Product Development Market Development Institutional Framework Improve existing and establish new accommodation stock Create holistic destination development plans for all key historic route destinations Implement plans Improve the quality of interpretation Support the development of a range of SMEs Targeted marketing and promotion strategy in 5 key source markets Launch Ethiopia s new Brand and execute a Brand Management Strategy Complete National Policy and Strategic Plan Formalize Council for Tourism and support its secretariat with TA and operational funds Support Regional Cultural and Tourism Bureaus as PPPs Review legal and regulatory environment Estimated Budget Estimated Budget Estimated Budget Public Sector $0M DONOR/NGO $35M Private Sector $30M Public Sector $5M DONOR/NGO $5M Private Sector $5M Public Sector $5M DONOR/NGO $0M Private Sector $0.5M 2
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