The Travel & Tourism Competitiveness Index compiled by World Economic Forum measures the set of factors and policies that enable the sustainable development of the Travel & Tourism sector in a country. The index is expressed on a 1 (worst) to 7 (best) scale across 90 indicators, and assesses 141 economies.
Ethiopia attains the 1181st position overall. Tourism does not play a very important role in the economy, as it is ranking 1181st in terms of T&T prioritization. Given its cultural resources (79th) and natural assets (63rd), the country’s limited development of the tourism industry appears to be a missed opportunity for diversifying the economy and creating employment opportunities. However, several factors have constrained the potential development of the T&T sector in Ethiopia. Improving the inadequate infrastructures, the safety and security, human resources, business environment, heath and hygiene and ICT situations remain arguably the highest priority, as highlighted by low scores in the survey.
Sub-Saharan Africa
T&T in Africa has significant potential, notably due to richness in natural resources and the potential to further develop cultural resources. However, it is still mostly in the early stages of development and strongly connected with more general and longstanding development challenges, including infrastructure as well as health and hygiene. While improvements have been achieved in these areas, especially at the local level, they remain important hurdles to attracting international tourists. As the region’s average GDP per capita is less than 4,000 PPP USD, the industry’s growth depends heavily on attracting tourists from other continents.
Most countries in the region are aware of the potential role of tourism as an economic opportunity and development catalyst, and have drafted strategic plans to develop the sector. However, the extent to which the actual implementation of those plans is a national priority varies significantly. Tanzania, Gambia, Kenya and South Africa are all putting significant efforts into advancing T&T development, trailing behind only the Seychelles and Mauritius, where the tourism sector’s share of the economy is particularly large. Also related to political and institutional issues, the business environment varies widely, with South Africa, Botswana, Rwanda and Mauritius among the region’s leaders and Angola, Zimbabwe and Chad among those performing less well.
Two aspects in particular require more international cooperation. One is openness, with some recent policy changes showing a will to make progress—for example, the 15 members of Economic Community of West African States (ECOWAS) have introduced a visa policy that enables free movement of people across member states, offering a larger market to international travellers. Nonetheless, most countries in the region still have significant travel restrictions in place, and there are even discussions of tightening visa policies in countries such as South Africa.
While most countries in the region perform well on environmental sustainability, specific issues such as poaching also require more international collaboration. African governments have already started to work collaboratively to pool resources and information, deploy rangers across cross-border areas and collaborate with customs and law enforcement in destination markets for products derived from poaching, notably in Asia.
South Africa leads the regional ranking and ranks 48th overall, driven by its rich natural (22nd) and cultural (20th) resources, a positive business environment (15th) characterized by little red tape and modest administrative burden and relatively good infrastructure compared to neighboring countries. South Africa is still reaping the benefits of the 2010 World Cup, with several sports stadiums that can host significant entertainment events. In addition, several international association meetings take place in the country every year (36th). South Africa is blessed with abundant wildlife (25th) and several World Heritage sites (15th), which attract the attention of tourists worldwide, ranking 24th in online searches for nature-related activities. The country’s attention to forestry (5th) and participation in international treaties has further supported its tourism industry, though further efforts should be taken to protect coastlines (104th), biodiversity (almost 8% of the large variety of species is endangered) and land (only 6.5% is protected). South Africa also still needs to develop in terms of security (119th) and health (114th), which, together with the labour market (135th), represent the main challenges not only for the tourist sector, but also for the country’s general competitiveness. In addition, South Africa’s visa policy (where the country currently ranks 67th) is poised to become more stringent with the imposition of new immigration laws that also impact visitors, this could certainly harm South Africa’s T&T competitiveness going forward.
Mauritius is a major tourist destination, ranking 3rd in the region and 56th globally. Tourism is one of its main industries, accounting for over 10% of GDP and more than 16% of government investment. Mauritius offers a safe (33rd) and business friendly (24th) environment to develop the T&T industry, with qualified human resources (47th) and a ground (27th) and tourist service infrastructure (28th) that can adequately transport and receive the almost 1 million tourists visiting the country annually. Its air transport infrastructure is somewhat less developed (60th) and could perhaps extend its capacity and open to more airlines. However, sustainability is key for Mauritius; balancing infrastructure development with conservation is becoming more challenging, with a high share of species under threat (134th) and limited protected areas. Greater attention to all aspects of environmental conservation could be beneficial, both by maintaining its resources and by improving the country’s positioning and competitiveness in terms of natural tourism.
Kenya ranks 78th overall and 5th in the region. Natural resources (11th) are well-known assets, as seen in the high number of online searches for natural tourism (10th); Kenya is home to many species and UNESCO heritage sites. The government is trying to leverage these resources by attributing a high importance to the T&T sector (23rd): it is investing approximately 7% of its budget in tourism and has carried out an effective marketing campaign, according to both business leaders (21st) and an external assessment (31st). Environmental sustainability (39th) is also an area of strength, with the notable exception of deforestation (84th) and percentage of wastewater treated (109th). Similarly to other countries in the region, safety and security (131st) and health and hygiene (121st) are the main areas for improvement. For example, the business costs associated with crime and violence (127th) and the incidence of terrorism (131st) limit the tourism and business potential. Kenya’s low access to improved sanitation (125th) and drinking water (131st) highlight the efforts still required to develop the country, as does ICT readiness (103rd), especially in terms of mobile services and broadband internet availability which is going to play an increasingly important role going forward.
Botswana ranks only 7th in the region and 88th overall, despite its remarkable natural resources, including biodiversity and stunning landscapes, notably the Kgalagadi Park, which it shares with South Africa. Botswana has a strong price competitiveness advantage (14th), a relatively conducive business environment (36th) and better safety and security levels (84th) than many peers. However, infrastructures are not well developed, also compared to neighboring South Africa and Namibia. Ground transport (105th) attains a somewhat lower score, and air and tourist service infrastructures (91st) also need significant upgrades. The limited air service impacts the country’s connectedness and actual degree of openness (118th). In addition, despite the prevalence of rich cultural resources, they are not well leveraged, with very few oral and intangible practices recognized worldwide. Country branding is relatively poor given significant T&T-related investment, and a more effective marketing strategy together with long-term infrastructure development could certainly improve the country’s T&T competitiveness.
Nigeria attains the 131st position overall. Tourism does not play a very important role in the economy, accounting for only approximately 1.5% of GDP and employment, and it is not high on the government agenda, ranking 131st in terms of T&T prioritization. Given Nigeria’s cultural resources (57th) and natural assets, the country’s limited development of the tourism industry appears to be a missed opportunity for diversifying the economy and creating employment opportunities. However, significant challenges constrain the potential development of the T&T sector in Nigeria. Firstly, improving the safety and security (141st) situation remains arguably the highest priority, as highlighted by low scores for both the survey and statistics measuring the incidence of violence and terrorism. Secondly, infrastructure is inadequate, hindering economic competitiveness beyond the T&T sector. Nigerian business leaders consider lack of infrastructure as the most problematic factor for doing business, and Nigeria ranks only 127th on ground transport, 111th on air transport and 114th on tourism services infrastructure.7Improving on these aspects is complex and requires time, but would bring long-term benefits not only to T&T competitiveness but also Nigeria’s development path.
Oromian Economist 
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