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TOURIST HOSPITALITY

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Tourism is considered as one of the main trade and industry activities in the world that contributes to the economic, cultural, and political advancement of various regions.

Mastering the art of tourist hospitality for over 30 plus years in Ethiopia is one Samrawit Moges Beyene – a successful Ethiopian entrepreneur who founded Travel Ethiopia in 1994, a tour company involved in ecotourism. Travel Ethiopia was the first company to hire women as tour guides and following its success she went on to start Village Ethiopia in 1998, a company that used to operate Bilen Lodge in Afar which provided employment to the local community. Where Bielen Lodge was handed to the community.

Samrawit has also started a floral business that is the first in the sector to hire persons with disability. Capital caught up with Samrawit for an inside insight on the sector as well as its development over the years. Excerpts;

Capital: Tell us about yourself and the company you run?  

Samrawit: My name is Samrawit Moges. I am the founder of Travel Ethiopia – a private, eco-minded tour and safari operator which has been in business for more than 25 years following its establishment in 1994.

Apart from the tourism network industry, since 2003, I have also ventured into the agriculture and horticulture sector through our Chancho and Samore flower farms which sit on a 30-hectare plot of land in Sululta town in the Oromia region, which is about 20 km northwest of Addis Ababa.  The farm was founded by my late husband Thomas Mattanovich and Samor flower farm that is in partnership with Dutch shareholders.

Capital: What are your views on the tourism sector in Ethiopia?

Samrawit: I started working in the tourism sector after I graduated from Addis Ababa University. I worked at the National Tour Operation   (NTO), a government tour company that was under the umbrella of the Tourism Commission at that time, currently the Ministry of Tourism. After working for   10 years I established Travel Ethiopia. For me, Ethiopia is a unique country, with a harmonious blend of culture, nature, cuisine, arts & architecture brimming with unlimited numbers of fun & frolic.

In my view, Ethiopia attracts people from all walks of life. It offers a myriad of travel activities ranging from adventures like the jaggedly carved Simien Mountains, a UNESCO heritage site, to the Danakil Depression, which is the lowest and hottest place on earth and is said to be a geological marvel with more than 30 active and dormant volcanoes.

Ethiopia is also known for its rock-hewn churches of Lalibela, Wukro, and the obelisks of Axum, which are renowned for their architectural beauty and mesmerizing history, giving you a glimpse of one of the greatest empires in history. Ethiopia should be on the bucket list for all travel enthusiasts as it’s popularly referred to as the cradle of mankind.

Through time the industry has been moving forward, but not at a satisfying pace as expected. The tourism industry in general as observed in all sectors is challenges both global and local hurdling the growth here and there just like any other sector. Generally, nevertheless, Infrastructure and other related developments can be observed these last few years.

Furthermore, the number of Tour Operators has been growing in stride as many companies are engaging in the hospitality industry. But I believe there is still room for growth.

Capital: How does the industry compare from past to present in terms of development? What do you suggest for better development?                                                                                                 

Samrawit: A few decades back, many touristic sites and related infrastructure were not developed, at the same time the flow of tourists to Ethiopia was low.  During the Derg regime, there were only four famous hotels; Tana hotel in Bahirdar, Goha in Gondor, Roha in Lalibela, and Yeha in Axum which could meet basic standards. All four were owned by the government which later were privatized during the EPDRF  regime.

Samrawit Moges Beyene (Photo: Anteneh Aklilu)

Then the private sector was allowed to engage in different activates including building hotels, operating tours, and filling the gaps where services were required by the sector. However, the gap between the demand for more hotels, infrastructure, and transport facilities, cooperation between the tour operators, hoteliers, concerned government entities & local offices needs more coordination & effort.

The tourism sector in Ethiopia has been challenged constantly by political instability, war, and also the global pandemic.

On the brighter side, in comparison to former governments’ regimes, the Abiy Ahmed administration has placed immense emphasis on the sector by considering it as a priority sector.  The Prime Minister has been spearheading in promoting the sector which plays an integral role in the economic growth of our country by generating forex.

COVID-19 pandemic has hit the hospitality sector adversely; however, most African countries have been trying various mechanisms to expand local tourism. On the global arena, they have succeeded in attracting international tourists back again their businesses & national economies are bouncing back, as well as have a global bounce back.

We can learn a lot from the East African countries namely Kenya, Tanzania & Uganda. With limited tourist attractions as compared to the possibilities, we have mostly woven to around wildlife the aforementioned operate a lot on tourism& generate substantial amounts of hard currency.  On the other hand, Ethiopia has more tourist attraction heritages, and unlimited opportunities yet the lack of infrastructure, hotels, and awareness in the society is still playing a second violin. Having Ethiopian Airlines a world-known company we should take the advantage of retaining the lion`s share mainly the transit passengers to start with.

In my opinion, I  suggest the government give its full support to the sector by developing modern international tourism training centers thereby increasing affluent manpower in the sector. Every other graduate in Egypt has studied either tourism or water engineering. Moreover, I would encourage the private sector to invest heavily in the industry. Tourism is a very fast-growing industry, moreover, the employment opportunity is immense.

The media should also work on awareness creation among the public with regards to the importance of tourism and tourists and the beauty of protecting our heritage. This is beneficial as it goes a long way in helping the local community. Tourism plays a major role in inducing local economies. Unless local tourism sites benefit from the flow of tourists, we have not accomplished our mission. Lalibela is a good example here, while this is the site that is visited heavily & generates a  significant amount of income the local it has no dripping effect on the locals.

Tourism is a fast-growing sector and can easily generate huge revenue apart from providing the locals with employment opportunities. And for Ethiopia, it should be the backbone of the economy as it generates substantial amounts of foreign currency.  Visitors always mention that Ethiopia is a country where they do not spend money as most attractions do not have souvenirs to sell out and not many schemes and programs are designed for tourists to spend their money. In other countries, such programs & schemes are well developed and renewed as needed. 

The private sector needs to be supported by the government and due attention given to the sector. Government offices including Ethiopian Embassies, foreign offices, Ethiopian nationals working for the UN, and other international organizations, the Diaspora at large need to introduce & promote Ethiopia to the world. In this ever-evolving and exciting world, we need to develop our own promotions by using technologies, the internet, and all that modern developments bestow us with. As this is a huge endeavor, no one firm or the private sector on its own can successfully launch such programs. The private sector should need to work hand in hand with the government.

Capital: Is there anything you want to add?

Samrawit: A new dawn is breaking over Ethiopia. Addis Ababa is beautifying and preparing itself to receive a million Diasporas for this Christmas and new year. One can feel the vibe in the city. Hotels are reading their services, tours are being organized, we are all preparing to present our best foot to our long missed brothers and sisters. With the fresh wind of peace breathing over our country, it is high time that the tourism and hospitality sector deliver high-quality services.

In this highly competitive sector, to deliver internationally accepted services, the sector needs to be equipped with standard infrastructure, best practices in tourist handling, qualified manpower in all areas of tourism, enough 4×4 vehicles responding to the typical needs (wildlife tours including safari site seeing’s and hunting, historical routes, mountain hiking) boats, camping area development and equipment, especially equipped tourist buses. These all are prerequisites to develop tourism and handle the influxes of tourists. The Government needs to give priority to the sector by providing it with duty-free privileges for the import of critically needed vehicles, equipment, and other related necessities. Egypt and Kenya have invested a portion of their capital budget for years before they started enjoying the fruits of their decades’ expenditures. Not only do governments need to invest in infrastructure and developing the sector, but banks also need to provide long-term and less interest rate loans to the sector’s actors as in the long run, this sector does generate hard currencies to the economy. However, taking into consideration the blunder made in the past allocating duty-free privileges should be based on the merit of the tour operator in generating foreign currency.

Capital: What are the success stories you have in Travel Ethiopia?

Samrawit: As a member of the responsible tourism network, Travel Ethiopia also tries to minimize negative, social, economic, and environmental impacts and generates economic benefits for local communities. Travel Ethiopia is especially committed to contributing to women’s empowerment in Ethiopia. Travel Ethiopia became an example for others in the tourism sector in Ethiopia by being the first tour agency to hire permanent female guides. We also have numerous initiatives to minimize damages to the environment and wildlife. This allows our clients to travel responsibly, without the worry of causing destruction to local cultures, environments, and economies.

Capital: Is there anything you want to add?

Samrawit: We just went through a gruesome, ugly, and devastating war. Too many lives have been lost. Families ruined, infrastructure demolished, economies destroyed, schools, hospitals, in short, the fabrics of the society driven to the brinks of annihilation.

Following the historic tradition of our ancestors, our Prime Minister’s decision to lead the war-front has yet again affirmed our history. A history of a free people on a free land!

Coming back to your question, and back to our issue on tourism and its challenges, like his leadership on the war-front, knowing his affiliation for tourism, the green revolution, and his keen interest in developing Ethiopia in all sectors, I would love to request our Prime Minister to provide us with an audience and dialogue with the tourism private sector to have a common understanding and a roadmap to the future.

Tele Birr to interoperate with EthSwitch

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As a payment instrument issuer, telebirr of Ethio Telecom has embarked on a process to connect with the national switch of EthSwitch SC (ETS).
EthSwitch concluded the 2020/21 financial year with massive success along with commercialization of POS terminals interoperability and huge profit despite not being a profit oriented facility.
The company which was established in 2011 as a share company fully owned by all banks has celebrated its tenth anniversary in the presence of senior government officials.
Early this year, Ethio Telecom broke through the country’s financial bubble by availing telebirr; and has been making huge strides in the financial space by introducing the capabilities of mobile money. Yilebes Addis, CEO of ETS, said that his company, which is the only national switch as per the directive of National Bank of Ethiopia (NBE), is under discussion with the telecom giant to interoperate its scheme with other financial firms such as banks and micro finance institutions.

Messay Wubshet, Chief Communication Office of Ethio Telecom, confirmed that the leadership of telebirr has started discussion with ETS to interoperate its service with other financial firms.

Yilebes said that there are technical and legal criteria that the payment instrument issuer should fulfill to which ETS has tabled the same to Ethio Telecom. “Generally, Tele is on the process of integrating with the system,” he explained.
The pilot would be prior before transferring to full scale operation. The interoperability will allow telebirr to ease the transactions from banks to its platform and vice versa.
Currently, Ethio Telecom is working with banks by itself to interconnect its telebirr transactions, while under ‘Licensing and Authorization of Payment System Operators Directive No. ONPS/02/2020’ directive NBE, ETS is the only body to provide the interoperability scheme between payment instrument issuers be it telebirr or other financial firms.
Article nine sub article one of the directive indicates that there shall be a single national switch operator.
The same article sub article 2 adds that EthSwitch SC shall be the national switch for card and instant retail payments and transfers.
Yilebes did not disclose a given period when telebirr will engage in full scale operation under the national switch platform.
Capital’s effort to get further comment from Brook Adhana, Head of telebirr at Ethio Telecom, was unfruitful.
In the 2020/21 financial year the banking industry as a whole processed a total of over 226.6 million ATM transactions, of which over 38.3 million were interbank transactions facilitated by EthSwitch (ETS) infrastructure.
According to the annual report compared with the preceding year that ended on June 30, 2020, the total number of interbank transaction processed by ETS increased by 41.5 percent.
Out of the total interbank transactions over 23.3 million transactions have been eligible for free cash withdrawal with 109 percent achievement compared to the plan.
POS transactions volume carried out by the banking industry stood at a total of over 2.9 million with the value of over 7.4 billion birr in the stated period, while 109, 506 transactions were interbank transactions processed by ETS. The full scale interoperability of POS terminals was embarked early last fiscal year.
Compared with the performance achieved on ATM, the interbank POS activity is weak and at an event Yinager Dessie, Governor of NBE, expressed need for change. He said that the financial institutions are responsible to educate the community to boost the non-cash transactions through POS.
In the past fiscal year ETS has also successfully accomplished the person to person (P2P) piloting that involved banks and last month NBE has given green light for commercialization and all financial firms are now using the same.
Under P2P piloting period with all banks close to 30 thousand transactions with the value of about 215 million birr have been conducted.
The P2P is the interoperability of digital wallet, mobile and internet banking systems run by banks, microfinance institutions and E-money issuers.
According to the annual report the national switch has completed integration with four government service providers and financial institutions to realize the P2G. It added that ETS has completed P2G integration with different financial institutions.
Prior to the 10th anniversary ceremony at the 8th general assembly held on the same day at Hilton Hotel on Thursday December 12 Tsehay Shiferaw, Chairperson of the Board of Directors of ETS, remarked the achievements of the company. He added the profit before tax has expanded by 211.6 percent to 87.3 million birr.
For the year the profit after tax stood at 61.4 million birr from 24.3 million birr of a year ago.
“The financial year was a challenging year both at the global and national levels, yet, EthSwitch concluded a very successful year,” Tsehay, who is the President of Awash Bank, said.
The profit secured for the year is pushed by the total revenue that accomplished 115 percent of the projection. In the year the total revenue of the company was 142.3 million birr.
The statement ETS issued indicated that in the year the company registered significant growth in all areas of its business including assets and capital.
As of June 30, 2021 ETS’s asset has reached over 601 million birr that increased by 120 percent from 273 million birr in June 2020.
Similarly in the reported period the paid capital has expanded by 97 percent to 460 million birr, while the subscribed capital is 600 million birr.
Yinager, who strongly appreciated the 10 years journey of ETS, insisted the shareholders to increase the capital of their company to keep its strength and investment.
The CEO said in the fiscal year achievements like payment card industry data security standard (PCI-DSS), piloting of P2P and integration of P2G has been registered.
Ethswitch is a company established to service all financial institutions and payment operators in Ethiopia to provide channel interoperability, institute domestic payment scheme and provide shared infrastructure/platforms. Currently, it is implementing a five year strategic plan.

Gena Expo open doors with ECMDE as host

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The Exhibition Center and Market Development Enterprise (ECMDE) announces that several foreign companies will participate in the first ever Gena exhibition and bazaar that it will officially host at the Addis Ababa Exhibition Centre.
Earlier in August, Betahon Special Events received the nod to host the Gena (Christmas) and Fasika (Easter) eve Expo with a bidding price of 68 million birr and 43 million birr respectively but failed to come up with the required prior installment.
During the press conference held on Tuesday December 14, Tilahun Tadesse, General Manager of ECMDE, said that the event organizer failed to come up with the required payments because of several reasons including the National Bank of Ethiopia’s loan suspension and the state of emergency.
He said that on Thursday December 9, the management of ECMDE decided to manage the upcoming two events that are well known Expos because of the inability of Betahon to do so.
He explained that up to 150 exhibitors are expected to come from abroad to be part of the 500 participants on this Gena Expo that was opened yesterday.
“We have experience in exhibitions management at the facility so we can handle the latest one, which is huge in terms of participants and visitors,” Tesfaye Abate, Corporate Communication Director of ECMDE said.
Tilahun explains that the Addis Ababa City Administration, which is a co-owner of ECMDE alongside the Addis Ababa Chamber of Commerce and Sectoral Association, is strongly backing the ECMDE to realize the event.
This time around ECMDE has given up to 20 percent discount for those who are leasing booths for the three week event in addition to lower price for entrance ticket to visitors which are great incentives in comparison with the prior years.
According to Tesfaye, the event is held in a time that records a huge influx in diaspora, “We have taken into consideration to attract the diaspora and with facilities in Mesqel Square being rejuvenated I am certain that the Expo will draw huge visitors.”
For the past two decades the holiday exhibition and bazaars were commonly organized by the private sector. This time around the facility itself will get the opportunity to host it.
“It will be a good lesson for us and it will help us to host an even better event in the coming Fasika bazaar,” Tilahun expressed his excitement while looking ahead to the next festive season.
The exhibition that opened yesterday will come to a close closed on January 6 and is expected to attract half a million visitors in the town. Similar events are also organized in different locations by the private sector; however the Addis Ababa Exhibition Centre, which is conveniently located at the heart of the capital city, receives more traction.

City revokes 428 title deeds in Addis

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Addis Ababa City Administration revokes the title deeds of several individuals and companies who tried to use the current situation of the country to illegally expand their plots of land.
The city administration disclosed that massive illegal land possession has been observed in the past few months, this coming at a crucial time when the government has put its focus on the battlefront in the north.
According to the information that came from the administration in sub cities like Bole, Lemi Kura and Kolfe Keranyo, which are mainly at the edge of the city, have been found to be the major casualties of land grabbing.
Besides that there are tendencies that have shown some land owners in the city center trying to possess additional plots in addition to what they officially own which is against the legal process.
The city administration said that it has taken measures on those trying to expand their positions against their title deeds. As per the information of the city administration so far the title deeds of 428 plots of lands have been revoked because of the involvement in illegal acts.
The city administration has announced that those who have any claim on the measure of the city administration, filing of their case is only permitted to the head office as opposed to filing them at sub-city level..
Currently, the city administration has formed a committee which is closely following the case on illegal land possession. The committee that includes senior officers of the city administration is overseen by the mayor.
Besides the stated measure taken at the center, sub cites are aggressively acting to smash the move to possess lands illegally.
Information indicated that massive illegal settlement is observed in the periphery of sub cities mainly in Nifas Silk Lafto, Lemi Kura, Kolfe Keranyo, and Bole in the past few months when the country was fully focused on law enforcement.
As per the legal measure, hundreds of thousands of square meter of lands have been restored.
Additionally the city administration has also suspended hundreds of officers who did not act as per their responsibility to tackle the illegal land possession or by their cooperation with the illegal activity.
It has also announced that their case have been filed to the court for further legal measure.