Getting Tourism bigger for augmenting economic growth
Needless to mention, tourism provides numerous benefits to economic progress in various ways as is playing a crucial role in local, continental and global contexts. As well attested from what the tourism sector has been contributing to economic progress, the sector is of paramount importance in bolstering economic growth by generating income and a number of employments for fellow citizens. Ethiopia is working a lot in this regard.
Taking the role of tourism in assisting the economic progress in various ways, The Ethiopian Herald conducted a short interview with Alemayehu Balcha, an agricultural economist graduated from Haramaya University, and working as an economic, environmental and agricultural expert.
He said, "Tourism has become the world's third-largest export industry after fuels and chemicals, and ahead of food and automotive products. The measures Ethiopia has these days been taking are being instrumental in promoting favorable tourism policies to push up the economic growth and in turn economic growth will positively contribute to national, regional, continental and even international tourism."
For instance, he said the mega projects undertaken at national level under the "Dine for Sheger," "Dine for the nation," are attested fruitful in terms of attracting tourists at home and from abroad. Even the very recently initiated project, the Corridor Development, has had triple merits--beautifying the capital as its name bespeaks by changing/modifying the slum scene, attracting tourists from different corners of the nation and from abroad as well as creating a range of job opportunities thereby contributing a lot to the economic growth. Such an appealing experience has to be duplicated to other towns and cities of the nation.
Yes, he further elucidated that the tourism sector is playing an irreplaceable role in introducing Ethiopia's historical, cultural and catchy spatial textures to the rest of the world. Basically, intensifying tourist destinations in Ethiopia attracts due attention and it has been proved that the tourism sector is playing a range of roles across the nation, among others, expanding investment, change nation's landscape, creating job opportunities, boosting nationbal image as well as supporting economic growth.
Cognizant of all this fact, the Ethiopian government has been implementing a number of remarkable projects to make nation's vision a reality. Ethiopia has now been seizing the right direction for growth and real change via properly and effectively employing what it has had a hand--untapped tourism potential.
"Ranging from Entoto park, Unity Park to nationally designed projects like Gorgora Eco Resort, which is part of the 'Dine for the nation,' and Koisha, Wonchi and others can be cited as an exemplary steps taken towards attracting many more tourists from all over the globe," he added.
As to him, the Dine for Ethiopia project, an endeavor spearheaded by Prime Minister Abiy Ahmed (PhD), encompasses tourism destination projects situated in Gorgora, Wonchi, and Koysha, located in the Amhara, Oromia, and South West Ethiopia regional states, respectively.
By the way, he further elucidated that all the tourist destinations expansion projects do definitely have the potential of creating a number of jobs, contributing their respective share to the effort geared towards changing national image thereby making great contribution to economic advancement, and so do have sectors.
He said, "The projects like Halala Kella Lodge; Chebera Churchura Elephant Paw Lodge and Wonchi Eco Lodge have been recently inaugurated, and started contributing a lot to the economic growth of the country. The 'Dine for Ethiopia' initiative has aimed at bolstering tourism, a cornerstone of our national homegrown economic reform program."
"All the regional and national initiatives stand as symbols of innovative project management and swift completion. Entrusting their operation and management to our national flag carrier, Ethiopian Airlines, promises not only enhanced service but also an avenue for international tourism promotion," he added.
Since Ethiopia's unique and mesmerizing tourism attractions have never been adequately tapped due to lack of infrastructures and other related facilities, engagement of the general public in financing the colossal projects like the aforesaid ones has to be well underlined. The ongoing extensive efforts to address the limitations and foster the development of the tourism sector have to be well reinvigorated and lessons need to be drawn to other sectors as the cumulative effect of all helps the nation bring about actual change. Mobilizing the public has to be given due emphasis, too, so as to well spearhead all the national initiatives.
"Coherently, tourism is an impetus to promoting economic growth from perspectives of its economic impacts, contributions to poverty reduction, the efficiency and productivity, and impacts of several external economic factors. To achieve this, labor, capital, technology, environment, pubic mobilization have to be focused on more than ever before," he opined.
Alemayehu also stated that apart from assisting the national economic strength, the various tourist attention sites exemplify the vast potential of tourism in the country and they are significantly useful in addressing nation's most pressing challenges, including socio-economic growth, inclusive development and eco-friendly settings.
"Once essentially entertained the tourism industry, Ethiopia has now been working to make its cities mesmerizing and suitable to live and work majorly by exploiting its tourism potentials across the nation," Alemayehu added.
He further elucidated that the importance of inbound tourism has grown exponentially, because of its growing contribution to the economic growth in the long run. It enhances economic growth by augmenting the foreign exchange reserves, stimulating investments in new infrastructure, human capital and increases competition, promoting industrial development, creating jobs and hence to increase income. The tight nexus between tourism and economic growth can all the time bear fruits if properly handled and well channeled.
As to Alemayehu, the positive impact of tourism on financial development can also be attributed to the fact that inflows of foreign exchange via international tourism not only increases income levels but also leads to rise in official reserves of national banks. This means that tourism is not only an engine for economic growth, but the economic outcome on itself can play an important role in providing growth potential to tourism sector.
On the other side, he said if economic-driven tourism growth is supported, more resources should be diverted to leading industries rather than the travel and tourism sector, and the tourism industry will in turn benefit from the resulting overall economic growth. The policy implication is that resource allocation supporting both the tourism and tourism-related industries could benefit both tourism development and economic growth and advancement.
Yes, said Alemayehu, tourism can spur economic prosperity in Ethiopia and for this reason; policymakers should give serious consideration toward encouraging tourism industry or inbound tourism. The country should thus focus more on tourism infrastructure, such as, convenient transportation, alluring destinations, suitable tax incentives, viable hostels and proper security arrangements to attract the very potential tourists. Both state and non-state actors must recognize this growing industry and its positive implication on the national economy.
He said, "Undeniably, tourism is vital for the success of many economies around the world for there are several benefits of tourism on host destinations. The sector boosts the revenue of the economy, creates thousands of jobs, develops the infrastructures of a country, and plants a sense of cultural exchange between foreigners and citizens. The jobs created are not only a part of the tourism sector but may also include the agricultural sector, communication sector, health sector, and the educational sector, too."
According to Alemayehu, many tourists travel to experience the hosting destination's culture, different traditions, and gastronomy. Safe and innovative infrastructures allow for a smooth flow of goods and services. Moreover, local people experience an opportunity for economic and educational growth.
Tourism creates cultural exchange between tourists and local citizens. Exhibitions, conferences, and events usually attract foreigners. Organizing companies, authorities, organizations, among others, usually gain profits from registration fees, gift sales, exhibition spaces, and sales of media copyright. Furthermore, foreign tourists bring diversity and cultural enrichment to the hosting country. Hence, as tourism is instrumental in boosting the economic growth of Ethiopia, it has to well embark on the sector.
Not only is tourism is a great opportunity for foreigners to learn about a new culture, but it also creates many opportunities for local citizens and allows the youth entrepreneurs to establish new products and services that would not be sustainable on the local population of residents alone. Moreover, citizens experience the benefits that come with tourism occurring in their own country, Alemayehu said.
The sector is one of the fastest growing sectors of the world economy. Tourism development may promote economic growth both directly and indirectly, first by stimulating the growth of other sectors and second by increasing domestic incomes and effective demand.
