Travel & Tourism - Ethiopia

Ethiopia

In Ethiopia, the Travel & Tourism market is expected to generate a revenue of US$2,297.00m by 2024, with a projected annual growth rate of 5.89% from 2024 to 2028, leading to a market volume of US$2,888.00m by 2028.
The Hotels market is anticipated to be the largest market, with a projected market volume of US$1,139.00m in 2024.
The number of users in this market is expected to reach 14,410.00k users by 2028, with a user penetration of 15.7% in 2024, which is expected to increase to 17.1% by 2028.
The average revenue per user (ARPU) is projected to be US$112.70.
It is expected that 73% of the total revenue in the Travel & Tourism market will be generated through online sales by 2028.
When compared globally, United States is projected to generate the highest revenue of US$199bn in 2024.
Ethiopia's travel and tourism industry is on the rise, with a focus on ecotourism and cultural experiences.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Market

Region

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Analyst Opinion

Ethiopia's Travel & Tourism market is experiencing significant growth and development, driven by various factors shaping the industry within the country.

Customer preferences: Travelers in Ethiopia are increasingly seeking authentic cultural experiences, eco-friendly tourism options, and off-the-beaten-path destinations. This shift in preferences is influenced by a global trend towards sustainable and responsible tourism practices.

Trends in the market: One notable trend in Ethiopia's Travel & Tourism market is the rising popularity of adventure tourism, with activities such as hiking in the Simien Mountains and visiting the ancient rock-hewn churches of Lalibela attracting more visitors. Additionally, the country's diverse wildlife and national parks are becoming key attractions for nature enthusiasts and wildlife lovers.

Local special circumstances: Ethiopia's rich cultural heritage, including its UNESCO World Heritage sites and vibrant traditional festivals, sets it apart as a unique travel destination. The country's unique cuisine, coffee culture, and traditional music also contribute to its appeal among tourists looking for authentic experiences.

Underlying macroeconomic factors: The Ethiopian government's focus on infrastructure development, including improvements in transportation networks and accommodation facilities, has played a significant role in driving the growth of the Travel & Tourism sector. Additionally, initiatives to promote the country's tourism offerings internationally and simplify visa procedures have helped attract more visitors to Ethiopia.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.