Public-Private-Partnership in Ethiopia: The Inclusive Modality in Tourism Investment

Abstract

Public Private Partnership has gradually been becoming an operational concept attracting both Public and Private sectors in Ethiopia. The need for PPP has already been captured as an agenda since 1992 appearing in strategic government documents. Moreover, PPP has been institutionalized by issuing relevant Proclamations based on the priorities of the government. Nevertheless, in spite of the huge potential, the implementation of PPP has been very low in the tourism Industry. Therefore, this study sought to critically assess the alluring promises and the grim realities on the ground to ensure the applicability of PPP initiatives in Ethiopia‘s tourism. It examined the status of PPP application in tourism sector based on the conventional critical success factors. Hence, both quantitative and qualitative data types were used. Questionnaires and semi-structured interviews were also used. All available government documents and relevant empirical studies on PPP were also used as secondary sources. The method of data analysis used in this study is concurrent mixed method. The findings of the study generally indicate the need for fundamental changes in perceptions and policy directions about PPP across the tourism Industry to co-up with the national, global and regional dynamics. It captures the fact that the concept of PPP is not well understood across the sectors. Moreover, there is lack of awareness on the existing PPP legal frameworks which indicates the need for extensive policy dialogue .It proves the existence of Potential Investment areas in tourism that are appropriate for PPP with a possibility of implementing PPP initiatives inclusive of different stakeholders. Generally it implies that there is a positive attitude toward PPP in the tourism sector and a growing need for it. In spite of the existing potential and commitment to ensure development, it apparently recognizes the existence of restraining factors for PPP in the tourism sector. The mean Ranking and test results have revealed the existing differences between the opinions of the two sectors on major restraining factors that have been contributing to the stagnation of PPP application in the sector. The study found out that all the six restraining factors used in the study are seriously felt by the private actors in tourism indicating the huge task awaiting the Ethiopian government to strategically use private finance and knowledge to ease its burden of providing tourism infrastructure.

Keywords: Public-Private-Partnership, Tourism Infrastructure, Tourism Services and Inclusive PPP