Ethiopia is becoming East Africa’s new economic giant. The country has become the biggest economy in the region thanks to the dominating agriculture and service sectors which account for much of the country’s gross domestic product.
According to Ethiopian Ministry of Finance and Economic Development, in the current phase of the Growth and Transformation Plan, Ethiopia has planned to reduce the share of the agricultural sector in its Gross Domestic Product in favor of industry and service sectors.
The overall growth of Ethiopia’s economy has come from the expansion of the service and agricultural sectors, while the performance of the manufacturing has been relatively modest.
According to World Bank research, private consumption and public investment have been increasing, assuming increasingly important roles in recent years.
Currently, Services accounts for more than 40 % of Ethiopian GDP and the sector expansion is expected to continue across the country. Some experts believe the service sector will dominate the economy in the near future.
The growth of Ethiopia’s hotel expansion has been truly impressive. But what is the reason behind the boom service sector, most particularly the hotel business?
Tesfaye Amenu, sales and marketing Director at Elilly International Hotel, showed us the not-so-secret reason regarding the growing demand behind the Expansion of the service sector. According to him, the development in the service sector is the result of growing demand and under supply. ‘The hospitality sector is poised for further growth in the wake of increased number of inbound travelers into the country. For example, the number of hotels in Addis Ababa has tripled. The booming competition in this market could potentially double in the near future, ‘ he said.
The fact that Ethiopia being home to the third largest diplomatic community in the world, after New York and Geneva, the country, and Addis Ababa in particular, has become home to several new star hotels.
Even though most of the hotels are 3-star, unbranded hotels, with the anticipated further economic growth and the increase in international corporate entry into the market, more branded hotels are coming to Ethiopia to serve business travelers from all over the country and the world.
Read more at: Walta