As part of its efforts to drive tourism throughout the nation, the Ethiopian government has introduced a new law meant to incentivize investment in the tourism industry. The new law provides investors who are willing to finance hospitality ventures at seven destinations the opportunity to pay zero profit taxes.
The policy, initiated by Tourism Ethiopia, is part of a partnership between the Ethiopian government and private entities involved in the hospitality industry. It is going to be effective for at least five years and includes destination in the Oromia, Afar, Tigray, Amhara, and Southern regions.
Geralda Mountains in Tigray, Semien Mountains National Park in Amhara, Nech Sar National Park in the South, and Abijatta Shalla National Park in Oromia are the specific tourist destinations that are offering incentives to investors.
Tourism Ethiopia Director General Sileshi Girma told members of the press that similar incentives need to proliferate in the industry to ensure its continued contribution to Ethiopia’s development and combat the effects that the COVID-19 pandemic has had on global tourism.
While Ethiopia is renowned for its natural parks, experts in the tourism industry affirm that the country is underdeveloped in terms of its utilization of these resources. According to Sileshi, modern facilities within these destinations are going to boost the profit that these regions make from tourism and should be the main focus of investment initiatives.