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Flows of People
Overall, significant improvements have been made in Ethiopian laws and institutions, both public and private, that affect the facilitation of trade-related flows of people. The Ethiopian Government has lessened legal travel restrictions, streamlined processes, and upgraded its automation. In addition, the safety of foreign travelers is not considered a real issue because the crime rate is very low when compared with that in some other African countries. As with the flows of goods, services, and money, however, Ethiopian institutions need to modernize further.
Although small when compared with its neighbors’ flow of people, Ethiopia’s flow of people, mainly tourists, has grown markedly over the last decade (see Table 1). Despite earning less than one-fourth of the tourist receipts of Kenya and Tanzania, Ethiopia’s tourism sector experienced robust growth in recent years and has significantly closed the gap between it and its neighboring countries. Although tourism accounts for only 2% of GDP at present, the increase in the number of visitors from 184,077 to 227,398 between 2004 and 2005, a growth rate of nearly 24%, it is encouraging as a future source of income for the country. Much of this increase can be attributed to an easing of rules that govern ownership of hotels and restaurants, which has dramatically improved the often-Spartan offerings. This is an area where Ethiopia clearly has room to improve and will likely be a key driver of economic growth in years to come.
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