Paper Editted Zewude Group Research Paper

ASSESSING THE ROLE OF TOURISM SECTOR IN JOB OPPORTUNITY
CREATION: A CASE OF ARBAMINCH CITY ADMINISTRATION
SATA TECHNOLOGY AND BUSINESS COLLEGE
DEPARTMENT OF MANAGEMENT
A RESEARCH PAPER SUBMITTED TO DEPARTMENT OF

MANAGEMENT FOR PARTIAL FULFILLMENT OF BACHELOR OF
ART IN MANAGEMENT.
BY:
ZEWDE ZAFA DD/MGT/109/12
MESKEREM KUSSE DD/MGT/97/12
ASHEBIR GEZAHAGN DD/MGT/101/12
AMENECH HANICHE DD/MGT/10/12
ETHENSHE BARO DD/MGT/28/12
ADVISOR:
TADESSE
MAY, 2014 EC
ARBAMINCH, ETHIOPIA
1
ASSESSING THE ROLE OF TOURISM SECTOR IN JOB OPPORTUNITY
CREATION: A CASE OF ARBAMINCH CITY ADMINISTRATION
A RESEARCH PAPER SUBMITTED TO DEPARTMENT OF

MANAGEMENT FOR PARTIAL FULFILLMENT OF BACHELOR OF
ART IN MANAGEMENT.
BY:
ZEWDE ZAFA DD/MGT/109/12
MESKEREM KUSSE DD/MGT/97/12
ASHEBIR GEZAHAGN DD/MGT/101/12
AMENECH HANICHE DD/MGT/10/12
ETHENSHE BARO DD/MGT/28/12
ADVISOR:
TADESSE
MAY, 2014 EC
ARBAMINCH, ETHIOPA
2
DECLARATION
Declaration we, the undersigned, declare that this research paper was our original work and has
not been presented or submitted partially or in full by any other person for a degree in any other
college or university, and that all sources of materials used for the purpose of this research have
been duly acknowledged.
Declared by Signature Date
1. ZEWDE ZAFA _________________ ____________________

2. MESKEREM KUSSE _________________ ____________________
3. ASHEBIR GEZAHAGN _________________ ____________________
4. AMENECH HANICHE _________________ ____________________
5. ETHENSHE BARO _________________ ____________________
ii
APPROVAL SHEET
TITLE: ASSESSING THE ROLE OF TOURISM SECTOR IN JOB
OPPORTUNITY CREATION: A CASE OF ARBAMINCH CITY

ADMINISTRATION
Approved by:
Advisor Name: Date Signature
------------------------------------ ------------------- -----------------------
Examiner Name: Date Signature
------------------------------------ ------------------- -----------------------
iii
ACKNOWLEDGEMENT
First of all, thanks to our Almighty God for making everything possible and for His abundant
blessings throughout our life. We could not be her right now without their guidance and unfailing
love.
Next our sincere and heartfelt gratitude goes to Mr. Tadesse, our advisor, for his tolerance and
fruitful advice during the hard times to complete the research.
Last but not least, we would like to thank Mr. Samuel for his advice and the precious time he
allows from his work. God bless you so much.
iv
TABLE OF CONTENT
Contents………………………………………………………………………………………Page
DECLARATION...............................................................................................................................................ii
APPROVAL SHEET.......................................................................................................................................iii
ACKNOWLEDGEMENT...............................................................................................................................iv
TABLE OF CONTENT....................................................................................................................................v
LIST OF TABLES.........................................................................................................................................viii
LIST OF FIGURES..........................................................................................................................................ix
ACRONYMS AND ABBREVIATIONS.........................................................................................................x
ABSTRACT.......................................................................................................................................................ii
CHAPTER ONE................................................................................................................................................1
1. INTRODUCTION......................................................................................................................................1
1.1 Background of the Study.....................................................................................................1
1.2 Statement of the Problem.....................................................................................................3
1.3 Objectives of the Study.........................................................................................................4
1.3.1 General Objective................................................................................................................................4
1.3.2 Specific Objectives...............................................................................................................................4
1.4 Research Questions...............................................................................................................5
1.5 Scope of the Study.................................................................................................................5
1.6 Significance of the study.......................................................................................................5
1.7 Organization of the Paper....................................................................................................6
CHAPTER TWO...............................................................................................................................................7
2. LITERATURE REVIEW..........................................................................................................................7
2.1 Introduction...........................................................................................................................7
2.2 Definitions and Concepts of Tourism.................................................................................7
v
2.2.1 Tourism................................................................................................................................................7
2.3 Tourism: Global Trend and Economic Contribution.......................................................9
2.4 The Contribution of Travel and Tourism to Ethiopian Economy.................................10
2.5 The Impact of Travel in Ethiopia......................................................................................11
2.5.1 Visits...................................................................................................................................................12
2.5.2 Spending.............................................................................................................................................12
2.5.3 Economic Impact...............................................................................................................................13
2.6 Unemployment and Tourism.............................................................................................14
2.7 UNWTO Recommendations to Optimize Employment and Income Generation in the

Tourism Sector.................................................................................................................................17
2.8 Promoting Tourism Sector to Create Adequate Jobs and Income for the Poor...........18
2.9 The Major Problems in Ethiopian Tourism Sector.........................................................20
CHAPTER THREE.........................................................................................................................................22
3. RESEARCH METHODOLOGY............................................................................................................22
3.1 Research Design..................................................................................................................22
3.2 Research Approach............................................................................................................22
3.3 Data Sources and Types.....................................................................................................22
3.4 Population, Sampling Technique and Size.......................................................................23
3.4.1 Population of the study area.............................................................................................................23
3.4.2 Sampling Techniques and Sample Size Determination.................................................................23
3.5 Data Collection Instruments..............................................................................................26
3.6 Methods of Data Analysis..................................................................................................26
3.7 Validity Test........................................................................................................................26
3.8 Ethical Considerations.......................................................................................................26
CHAPTER FOUR...........................................................................................................................................28
4. DATA PRESENTATION, ANALYSIS AND INTERPRETATION...................................................28
vi
4.1 Introduction.........................................................................................................................28
4.2 Response Rate.....................................................................................................................28
4.3 Demographic Data of Respondents...................................................................................29
4.3.1 Sex of Respondents............................................................................................................................29
4.3.2 Age Distribution................................................................................................................................30
4.3.3 Educational Level of Respondents...................................................................................................31
4.3.4 Respondents Tourism activities.......................................................................................................32
4.3.5 Tourism Enterprises Employees’ Years of Service........................................................................33
4.3.6 Respondents’ Average Monthly Income.........................................................................................34
4.4 Ways in which Tourism Contributes to Unemployment Reduction..............................35
4.5 Challenges to Participation in Tourism and Creating Job Opportunities....................38
4.5.1 Challenges at Local Level.................................................................................................................39
4.5.2 Challenges at Sectorial Level............................................................................................................40
4.5.3 Challenges at Government Level.....................................................................................................41
4.6 Actions taken to Reduce Unemployment through Tourism...........................................43
CHAPTER FIVE.............................................................................................................................................46
4. CONCLUSIONS AND RECOMMENDATIONS.................................................................................46
4.1 Introduction.........................................................................................................................46
4.2 Conclusion...........................................................................................................................46
5.3 Recommendations...............................................................................................................47
References........................................................................................................................................................49
Appendix-1.......................................................................................................................................................53
Appendix-2.......................................................................................................................................................57
Appendix-3.......................................................................................................................................................58
vii
LIST OF TABLES
Table 3.1 shows the sampling tourism enterprises and the number of workers working in
the enterprises.................................................................................................................23
Table.3.2 proportional allocation of sample size under each stratum..................................25
Table 4.1: Response Rate.....................................................................................................28
Table 4: 2 Respondents participation in tourism activities..................................................32
Table 4: 3 Respondents Years of Service.............................................................................33
Table 4: 4 Respondents Average Monthly Income..............................................................34
Table 4: 5 Contribution of tourism in unemployment reduction.........................................35
Table 4: 6 Employment Opportunities Created in the Tourism Sector in Arba Minch........39
Table 4: 7 Challenges of Tourism in Creating Job Opportunities in Local.........................39
Table 4: 8 Challenges of Tourism in Creating Job Opportunities in Sector........................40
Table 4: 9 Challenges of Tourism in Creating Job Opportunities in Government..............41
Table 4: 10 Actions to Enhance Employment Opportunity through Tourism.....................43
viii
LIST OF FIGURES
Figure 4: 1 Sex of Respondents.........................................................................................29
Figure 4: 2 Age categories.................................................................................................30
Figure 4: 3 Educational Level of Respondents................................................................31
ix
ACRONYMS AND ABBREVIATIONS
CBTI Community Based Tourism initiatives
GDP Growth Domestic Product
ICRT International Centre for Responsible Tourism
IIED International Institute for Environment and Development
ILO International Labor Office
LDC Least of Developed Countries
MDGs Millennium Development Goals
MNRT Ministry of Natural Resources and Tourism
MOE Ministry of Education
MSMEs Micro, Small and Medium Size Enterprises
NEPAD New Partnership for African’s Development
PPT Pro-Poor Tourism
PPTS Pro Poor Tourism Strategy
SNNPR Southern Nation Nationality Peoples Region
SPSS Statistical package for social sciences
ST-EP Sustainable Tourism – Eliminating Poverty
T&T Tourism and Travel
UN United Nation
UNDP United Nation Development Program
UNESCO United Nations Educational Scientific and Cultural Organization
UNWTO United Nations World Tourism Organization
USA United States of America
x
WEF World Economic Forum
WTTC World Travel and Tourism Council
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ABSTRACT
Tourism is one of the fastest growing industries in Ethiopia. Its rapid expansion has been
considered as an interesting possibility for unemployment reduction. Ethiopia currently is a
developing country, but it has a glorious tourist attraction and will have a glorious economy too
if steps are taken in the right direction. This study mainly examines the roles of tourism activities
in creating job opportunities in Arba Minch City Administration. With this in mind the study
addresses the contribution of tourist in generating employment and income in Arba Minch.
Further, an effort is made to find out the major constraints of tourism sector in creating job
opportunities and actions to be taken at national as well as Arba Minch level. Data were
collected from both primary and secondary sources. Primary data was collected using key
informant interview and questionnaire by approaching key actors in the tourism industry in Arba
Minch city. Thus, 95 sample populations were selected to fill the questionnaire. An interview was
also held with key informants. The study employed descriptive research design with
combinations of qualitative and quantitative approaches. The data were analyzed and the result
of the analysis was presented in descriptive statistics formats including frequency, tables, chart,
graphs, percentages and ratios. The study concludes that tourist flow, income and employment
generated from tourism are growing progressively. Tourism is contributing a lot to the economic
growth and unemployment reduction both at national and Arba Minch level. On the other hand,
lack of credits, lack of awareness on how to invest in tourism, ineffective local authorities, lack
of qualification to work in the tourism sectors, natural and human made problems, lack of
promotion of community based tourism and lack of incentives were some challenges that hinder
the participation of local peoples in tourism sector to reduce unemployment. In order to
overcome the current challenges and hence exploit tourism’s potential to the fullest limit the
researcher forwarded recommendations.
Key words: tourism, constraints, tourism enterprise, job opportunity, unemployment…
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CHAPTER ONE
1. INTRODUCTION
1.1 Background of the Study
Tourism has been referred to world-wide as the industry of the 21st century and it is one of the
most important economic, social, cultural and political phenomena of the century which the State
cannot be indifferent to (Ceballos -Lascurain, 2020). For the past two decades from 1990s, the
notion has prevailed that the tourism sector is an economic and unemployment reduction solution
for developing countries and Ethiopia in particular (UNWTO, 2014). The role of tourism as a
valuable force for unemployment reduction as well as unemployment reduction has been
formally recognized by international agencies and governments for some time (UNWTO, 2013).
Tourism shows a tremendous consistent growth and regarded as a tool for economic
development (Adongo, Choe, & Han, 2017; Birtukan, 2018; Asmare, 2016; Joseph, Lucy, &
Daniele, 2017). For instance, in 2017 the travel and tourism sector made a decent contribution
(10.4%) of global GDP and created 313 million jobs (WTTC, 2018). In the global perspective,
tourism is estimated to contribute to global GDP in 2011 was US $6.3 trillion to 255 jobs
(WTTC, 2011). This makes tourism be the largest industry that transfers resources from rich
people to poor.
The development of tourism in Africa continent and other developing world depends mostly on
natural capital such as wildlife, natural landscape, virgin beaches, water body and natural forest.
That means most of the tourists are attracted with natural attractions like mountain, beaches,
wildlife and others. Tourism product development can be shown in many ways: at one extreme,
it can be seen as embracing all elements with which the visitor to a destination comes into
contact, including infrastructure (e.g. transport, utilities), the service personnel, places of
lodging, attractions and activities, facilities and amenities; while, at the other extreme, tourism
product development can be indicated as comprising only those attractions, activities and
facilities that are specially provided for the visitors. What is clear is that without the
infrastructure to support the development of the attractions tourists wants to see and activities
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they want to do on their visit, tourism product development will not fully succeed.
Tourism development is concentrated in regions where the incidence of unemployment is higher:

Tourism in Ethiopia is concentrated in urban areas and in regions such as Amhara, Oromia,
Southern Nations Nationalities and Peoples’ (SNNP), and Tigrai where unemployment rate is
very high. And this can be an indication of tourism’s potential to generate growth where it is
most needed (ODI, 2009; cited in WB and MoCT, 2012). Tourism is employing segments of the
population among which the incidence of unemployment is also higher: The concentration of
females in Ethiopia is higher in urban areas (50.3 %), whereas unemployment is higher among
female-headed households in urban areas. Tourism is not only concentrated in urban areas
especially, but it is also employing a majority of women (72 % of the tourism work force). Again
this can be an indication of tourism’s potential to generate growth where it is most needed.
Tourism offers productive employment opportunities relative to other labour-intensive sectors:

Unemployment is found to be lower, relative to farming, in households headed by individuals
who work in hotels and restaurants and in other occupations, while the same does not apply for
people working in manufacturing and construction for whom the incidence of unemployment is
similar to those with primary occupations. This could be an additional indication of the positive
effects of tourism employment on general wellbeing.
Accommodation is a vital and integral part of the tourism market and it represents one of the
pillars of tourism. In the hotel segment of the industry, globally there is an average of one
employee for each hotel room. Further, there are three workers indirectly dependent on each
person working in hotels, such as travel agency staffs, guides, taxi and bus drivers, food and
beverage suppliers, laundry workers, textile workers, gardeners, shop staffs for souvenirs and
others, as well as airport employees (UNWTO,2014).
Nature and culture are the two most principal tourism resources in Arbaminch and its vicinity
(SNNPRS Culture and Tourism Bureau, 2018; Wondirad, 2018, 2017; Italemahu, 2015). As one
of the fastest-growing types of tourism, nature-based tourism constitutes a significant component
of the tourism sector, especially in the developing world (United Nations Environment
Programme, 2013). To properly manage and sustain the rapid growth of nature-based tourism,
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destinations must properly develop, maintain, manage and improve the conditions of attractions
and thereby ensure visitor satisfaction (Frias et al., 2008; Perunjodi, 2011). In view of that, it is
extremely important for tourist destinations to constantly assess the standard of products and
services, which in turn, enables to better manage visitor expectations and perceptions which lay
the foundation for further improvement and competitiveness. Generally, tourism is a powerful
economic force which can provide huge employment opportunities. Countries facing high levels
of unemployment could opt for tourism promotion as an effective means of absorbing the excess
manpower.
1.2 Statement of the Problem
Tourism is one of the major creative job opportunity generators especially in urban areas for the
local people’s; nevertheless one would like to know the net benefits from tourism, and also who
benefits from these net earnings, and whether such economic earnings have anything to do with
livelihood improvement. At a time when Ethiopia is projecting to be among the top ten tourist
destinations in Africa, it is worthwhile to examine and reflect on tourism’s effects on the
economy in generating job opportunity, in enhancing household income and improving the
livelihood condition of the poor local community in general in Ethiopia, and in particular at
Arbaminch Town level.
Currently aside from employment generated in the formal sectors such as hotels and tour
operations, there are fewer opportunities for poor locals to participate in the sector (Menbere,
2017). Lack of adequate know-how about the nature of tourism, limited understanding of
visitors’ needs and absence of government support are some of the challenges that hinder the
involvement of local community in Ethiopia (Tadesse & Weldegbriel, 2017). Furthermore, in
appropriate tourism development and management style that the country has been following for
long and lack of financial support to small-scale tourism businesses enterprises negatively affects
tourism’s positive economic contribution in the country (Toanoglou, 2018). In the context of
Arba Minch City and Southern Ethiopia, poor host-guest interaction negatively affects the
economic and socio-cultural roles that tourism could play. Despite their appreciable
contributions to the problem under study, there is still a considerable research gap where the
current study intends to fill in. For example, inadequate attention on its impact on unemployment
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reduction and failure to consider important variables of quality of life indicators such as living
standard and expenditure capacity of locals after joining the tourism sector are not properly
addressed in the above-mentioned studies. Moreover, studies have focused on measuring few
economic effects such as the contribution of tourism at the destination level and employment
creation paying little attention to the contributions of tourism in stimulating other sectors of the
local economy, especially small-scale tourism enterprises. As tourism has been recognized to be
one of the largest generators of employment, especially for those segments of the population
with less access to labor market, such as women, young people, immigrant and urban population,
there is a need for accurate, timely and comprehensive data on employment in the tourism
industries. To this end, the study area government and private sectors lack cooperation to ensure
the proper measurement of employment in the tourism industries in general, the number of jobs
directly generated by tourism as well as other variables such as hours of work, compensation, the
seasonality of employment and its distribution by gender, age, occupation, business type and
size, etc. To the best of researchers’ knowledge, there is also a paucity of research in Arba Minch
City pertaining to the role of tourism in creating job opportunity. The only exception is a study
conducted by D. Bogale and A. Wondirad (2019), which deals with the determinant factors of
tourist satisfaction in Arbaminch City and its vicinity, Southern Ethiopia. Therefore, in attempt
to fill this research gap, the current study focuses on examining the roles of tourism and its
contribution to unemployment reduction in Arba Minch City Administration. Further, the
characteristics of the tourism sector, especially fundamental subjects such as the trend in
international and domestic tourist flows, the potential and performance of tourism enterprises in
generating employment and income, and the major barriers that are currently obstructing the
development of tourism at Arba Minch and national levels have been discussed in this paper.
1.3 Objectives of the Study

1.3.1 General Objective
The major objective of this study was examining the roles of Tourism in creating job
opportunities in Arba Minch City Administration.
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1.3.2 Specific Objectives
The specific objectives of the study were including:
I. To explore the contribution of tourism activities on creating job opportunities in

Arba Minch City Administration.
II. To evaluate challenges facing tourism development initiatives in creating job

III. To identify actions to reduce challenges facing tourism activities in creating job
1.4 Research Questions

I. What are the contributions of tourism activities on creating job opportunities in
Arba Minch City Administration?
II. What are the challenges facing tourism development initiatives in creating job
opportunities?
III. Which actions can be taken to reduce challenges facing tourism activities in
creating job opportunities?
1.5 Scope of the Study
The fact that the discourse of creating job Opportunity and tourism issue is broad and multi-
dimensional. The study was delimited geographically, conceptually and methodologically.
Concerning geographical delimitation, it was scoped to Arba Minch City Administration.
Conceptually, the study was scoped on examining the role of tourism activities in creating job
opportunity and its implication in the tourism industry in Arba Minch Town and the country at
large. In addition, the study was methodologically scoped to descriptive and explanatory research
design. .
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1.6 Significance of the study
The study was aims to provide a clear identification of the interrelationships between tourism
and job opportunities created by the sector, thus the results were help to the government and
policy makers to realize tourism activities towards creating job opportunity and the challenges
facing the efforts of achieving the goals of unemployment reduction through tourism
development initiatives. The study were attempts to raise the voices of the poor communities
who have not yet enjoyed the full benefits of tourism, despite that most of the tourist attractions
being situated within their local areas. This study was also an attempt to analyze how a growing
sector like tourism can be utilized at local level by creating employment opportunity, mainly for
the majority of unemployed youth, women and other disadvantaged social groups; and boosting
their income and improving their livelihood. In doing so the result of the study was used as an
input for public sector policy makers and implementers at local government level to articulate the
right policy to gear the tourism sector for development and to improve the livelihood of the local
community. Finally, the study was serve as an important reference for further research (study)
and academic institutions in this dynamic area of the tourism industry, because it focuses to
advance knowledge based on the relationship between tourism development and creating job
opportunity to reduce unemployment in the context of developing the country like Ethiopia.
1.7 Organization of the Paper
These researches comprise five chapters. Chapter one up to three was a research proposal,
whereby chapter one were include background of the study, statement of the problem, objective
of the study, the scope of the study and significance of the study. Chapter two comprises of
conceptual definitions, critical theoretical review whereby various theories related to the study
and different international and national empirical literatures were reviewed. In chapter three a
researcher talks about research methodology whereby areas of the research survey, sample size
and data collection tools were identified. The last two chapters was a research report. Chapter
four was research findings, analysis and discussion of findings and chapter five was the
conclusion and recommendation of the study, where a researcher was conclude and make
recommendation on the study.
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CHAPTER TWO
2. LITERATURE REVIEW
2.1Introduction
This chapter reviews the literature related to tourism and job opportunity. The chapter covers the
definition of concepts, theoretical and empirical literatures. It further presents a research gap and
conceptual framework.
2.2Definitions and Concepts of Tourism

2.2.1 Tourism
There is no universally accepted definition of tourism. One of the earliest definitions of tourism
is the one given by (Schullard, 1910). He defined tourism as the sum of the operators mainly of
an economic nature which directly related to the entry, stay and movement of foreigners inside
and outside. According to the UNWTO (1993) tourism is defined as activities of people
travelling to and staying in places outside their usual environment for not more than one year for
leisure, business and other purposes not related to an activity remunerated from the place visited.
Matheson and Wall (1982) defined tourism as the temporary movement of people to destinations
outside their normal place of work and residence, the activities undertaken during their stay in
those destinations and the facilities created to cater to their needs. The motive for the journey
should be for holidaymaking, recreation, health, study, religion, sport, visiting friends or family,
businesses or meeting (Sinclair, 1998).
Tourists are persons who travel away from home staying at least one night. WTO (1995) defined
tourists as the temporary visitors staying in a place outside their usual place of residence, for a
continuous period of at least 24 hours but less than one year, for leisure, business or other
purposes. Tourism industries, also referred to as tourism activities, are the activities that typically
produce tourism characteristic products; and tourism characteristic products are those that satisfy
one or both of the following criteria: Tourism expenditure on the product (either good or service)
should represent a significant share of tourism expenditures-the demand condition, and Tourism
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expenditure on the product should represent a significant share of the supply of the product in the
economy-the supply condition (UNWTO and ILO, 2014).
As a demand-side phenomenon, the economic contribution of tourism has to be approached from

the activities of visitors and their impact on the acquisition of goods and services. However, it
can also be viewed from the supply side, and tourism will then be understood as a set of
productive activities that cater mainly to visitors or for which an important share of their main
output is consumed by visitors (UN, 2010). The ongoing interaction between demand and supply
side of tourism activities gives the tourism industry an enormous potential to generate
employment and income.
According to UNWTO, tourism comprises activities of persons travelling to and staying in

places outside of their usual environment for not more than one consecutive year for leisure,
business and other purposes. Thus, there are three criteria for tourism to happen:
 It involves displacement outside the usual environment;
 The type of purpose should be different from being remunerated from within the
place visited, and
 Duration of stay should not exceed one year (Luvanga and Shitundu, 2003).
The other important point which the readers should bear in mind is that three essential elements
make tourism happen, and without these components tourism would not exist. The list of the
basic components of tourism is: attractions, accommodations and amenities. Among the industry
practitioners, the basic components of tourism are commonly known as the three A’s. Attraction:
In a wider sense attraction includes: climate, scenery, beaches, flora and fauna, events, visitor
attractions, excursions, local foods and drinks. Accommodation: Is part of the hospitality sector
of the travel and tourism industry. It includes all types of serviced and non serviced, catered and
self-catering providers of lodgings. Amenity: The term amenity refers to a tourist destination.
Amenities include: shopping, entertainment, sports facilities… etc (UN, 2010).
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2.3Tourism: Global Trend and Economic Contribution
Tourism is one of the economic and social sectors registering rapid growth in the world, and now
a day it has been found to be making its contribution in supporting and accelerating national
developments. Tourism makes a tremendous contribution serving as a source of foreign
exchange, promoting micro and small-scale enterprises, creating creative job opportunities, and
ensuring sustainable development (WB and MoCT, 2012).
The COVID-19 pandemic has taken a significant toll on communities across the world and has a
devastating effect on Travel & Tourism. For 30 years, the World Travel & Tourism Council
(WTTC) has been quantifying the economic impact of Travel & Tourism, highlighting the
importance of the sector to the global economy. The 2021 annual research which covers 185
countries and economies, and 25 regions of the world, reveals the full extent and significance of
the COVID-19 crisis to the sector in 2020. The effect of COVID-19 has emphasized the
tremendous importance and positive contribution of Travel & Tourism. It enables socio-
economic development, job creation, unemployment reduction, driving prosperity and significant
positive social impact, including providing unique opportunities to women, minorities, and
youth. The benefits of Travel & Tourism spread far beyond its direct impacts in terms of GDP
and employment; with indirect gains spreading through the entire ecosystem and the supply
chain linkages to other sectors.
In 2019, Travel & Tourism was one of the world’s largest sectors, accounting for 10.4% of
global GDP (USD 9.2 trillion), 10.6% of all jobs (334 million), and was responsible for creating
1 in 4 of all new jobs across the world. Moreover, international visitor spending amounted to
USD 1.7 trillion in 2019 (6.8% of total exports, 27.4% of global services exports). As a result of
COVID-19 and the ongoing restrictions to international mobility, the Travel & Tourism sector
suffered losses of almost USD 4.5 trillion, with its global contribution to GDP declining by
49.1% compared to 2019 to reach only USD 4.7 trillion in 2020; relative to a 3.7% GDP decline
of the global economy and domestic visitor spending decreased by 45%, whilst international
visitor spending fell by an unprecedented 69.4%. In 2020, 62 million jobs were lost, leaving just
272 million employed across the sector globally. This 18.5% decrease was felt across the entire
Travel & Tourism ecosystem, with Small and Medium Sized Enterprises (SMEs), which make
Page 10
up 80% all global businesses in the sector, being particularly affected. Women, youth, and
minorities have been disproportionately affected during the pandemic, while the threat of
employment destruction persists. Millions of the remaining 272 million jobs that are currently
supported by government retention schemes and reduced hours could be lost without a full
recovery of the Travel & Tourism sector.
The proactive action of some governments around the world has effectively enabled the sector to
save millions of jobs and livelihoods at risk through retention schemes; without which the figures
would be significantly worse. Yet, with the sector’s contribution to GDP plunging by almost
50% in 2020, the support from public leaders remains more crucial than ever. While government
support has been instrumental throughout this crisis, international coordination is more crucial
than ever. The swift recovery of the sector will only be possible if leaders and public officials
have a coordinated response to the resumption of international travel, including clear roadmaps,
rules, and mobility protocols, providing certainty and restoring consumer confidence. We must
learn to co-exist with the virus, managing the risk, offering a safe travel experience and easing
the restrictions. This is all possible through a comprehensive solution including an aggressive
global vaccination rollout, a comprehensive testing regime for all non-vaccinated travellers, the
elimination of quarantines and continued health and hygiene protocols, including mask wearing.
Our research shows that if international mobility and travel is resumed by June this year, the 62
million jobs lost in 2020 could return before the end of 2022, therefore powering global
economic recovery. WTTC believes that effective policy and recommendations are made with
reliable and accurate data, which is crucial for decision making. That is why WTTC continues to
engage with governments and the private sector to share information and provide data to enable
leaders to build a clear path to recovery, which will enable the sector to once again support the
millions of livelihoods including those affected by the pandemic.
2.4The Contribution of Travel and Tourism to Ethiopian Economy
Ethiopia has great and largely unexploited tourism potential. Its tourist attractions are many and
varied. Ethiopia has much to offer to international tourists. It has a unique historical and cultural
heritage, magnificent scenery, a surprisingly cool climate, rich flora and fauna and important
archaeological sites. In fact, Ethiopia has nine-world heritage sites, the highest number than any
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African country (WB and MoCT, 2012). Addis Ababa, serving as a diplomatic capital and
regional hub for air transport hosts a number of international events which can be leveraged for
tourism purposes (USAID and Precise Consult International, 2013).
In recent years, Ethiopia’s tourism sector has been showing a positive trend and steady
growth in tourism arrivals and receipts. As the country appeals to diverse interests of tourists,
the number of foreign tourists that visited the country have unfailingly been increasing from
year to year for the last one decade or so.
Domestic and international visitor spending in the Ethiopian economy directly contributed
US$2.4 billion to Ethiopian GDP and supported a US$6.1 billion total impact including indirect
and induced impacts. The Ethiopian travel and tourism industry represented 7% of total GDP in
2019. This economic activity supported 2.0 million jobs. Travel and tourism makes a significant
contribution to national income from 2010 to 2019, total overnight visitation to Ethiopia grew
74%. International overnight stays rose 93% over these 10 years, while domestic visits
increased 65%. In 2019 domestic and international visitor spending directly contributed US$2.4
billion to Turkish GDP and supported a US$6.1 billion total impact including indirect and
induced impacts. The Turkish travel and tourism industry represented 7% of total GDP in 2019,
with this economic activity supporting nearly 2 million jobs (equal to more than one in every 20
jobs).
Tourism Has Experienced Massive Losses Total visitor spends is estimated to have declined by
almost US$1 billion in 2020, representing a near 40% drop from 2019 levels. The international
market experienced the most acute losses, with inbound spending down about 60% in 2020. The
reduction in visitor spending in 2020 jeopardized more than 1.3 million jobs within the
Ethiopian travel and tourism sector and related industries.
2.5The Impact of Travel in Ethiopia
The travel and tourism industry of Ethiopia represented 7% of total GDP in 2019. Total
employment generated by tourism totaled 2 million jobs. The shock to travel brought on by the
corona virus pandemic could lead to long-lasting effects on the Ethiopian economy as tourism
revenues fall. The estimated reduction in visitor spending in 2020 of over US$1 billion will put
nearly 1.3 million jobs at risk within the travel and tourism economy.
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2.5.1 Visits
From 2010 to 2019, overall tourism growth in Ethiopia in terms of visitation experienced steady
growth. In 2019, total visits peaked at 2.5 million, 75% larger than the 1.4 million visits in
2010.5 Domestic overnight stays grew 65% over the course of ten years, while international
visitation rose 93% during the same time, reaching 900,000 overnight visits in 2019. This
expansion was supported by the establishment of the Ethiopian Tourism Transformation Council
in 2014, which collaborated with foreign and domestic investors to expand infrastructure and
build a stronger tourism workforce. Growing visitation levels also contributed to Ethiopia
Airlines reaching their Vision 2025 goals seven years early. Further targets have now been
realigned to 2035 in anticipation of continued tourism growth throughout the recovery, including
the construction of an airport capable of handling 100 million passengers a year.
The spread of the corona virus in 2020 severely impacted travel and tourism across the globe.
The first case of the corona virus in Ethiopia was announced on March 13, 2020.8 The
Ethiopian government immediately imposed a lockdown that halted most public gatherings and
closed international borders on March 23.9 In addition to the official restrictions imposed on
travel between and within countries and regions, the corona virus pandemic depressed traveler
sentiment while households were hit with increased unemployment and wage loss Oxford
Economics currently forecasts real private consumption in Ethiopia fell over 4% in 2020, while
unemployment increased 4%.10 These factors, along with additional supply-side reactions such
as event cancellations, contributed to a significant reduction in domestic and international visitor
numbers in 2020. The majority of Ethiopia’s international borders officially began to reopen in
late September 2020. Although some areas are safer to cross than others, due to ongoing
conflicts at shared borders with countries such as Somalia, international flights were active.
International overnight visits are estimated to have dropped from 900,000 to 400,000 total
overnight stays, almost 60% less than in 2019. Domestic travel has also experienced a significant
decline we estimate overnight visits fell over 30% to 1.1 million in 2020.
2.5.2 Spending
In 2019, total visitor spending—which includes day visit spend as well as overnight spend
within Ethiopia excluding inbound air fares—totaled US$2.4 billion, a 91% increase since
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2010.12 Domestic tourism represented 65% of total tourism spend in 2019. From 2010 to 2019,
domestic spend grew US$800 million, representing a 113% gain from 2010. The strongest
period of domestic spend growth continued from 2015 to 2019 years which saw an expanding
Ethiopian middle class as real GDP grew 8.5% per year on average. From 2010 to 2019,
international spend increased 62%.
In 2020, we estimate that total visitor spend declined by nearly US$1 billion. Domestic travel
spend is estimated to have fallen around 25% while international spend plummeted over 60%.
Addis Ababa received more than 50% of all visitors spends from day and overnight trips in
Ethiopia in 2019, at US$1.3 billion. However, the city receives a higher share of inbound
spending as international travelers accounted for 40% of spend. The largest cities in Ethiopia
tend to be more reliant on inbound travel and will therefore have experienced some greater loss
from the pandemic. In 2020, visitor spend to Addis Ababa (US$1.3 billion in 2019) is estimated
to have fallen nearly 40%. Domestic travel spending has been relatively more resilient and is
expected to rebound faster than international markets.
2.5.3 Economic Impact
The economic impact of tourism in this analysis is expressed in terms of its annual contribution
to GDP and the total number of jobs it supports.13 This assessment begins with the impact of
spending by tourists, but also considers the downstream effects of this injection of spending into
the Ethiopian economy. This activity can be grouped into three core channels of activity: direct,
indirect, and induced. The sum of these three channels creates the total economic impact. •
Direct impacts occur through spending within a discreet group of sectors (e.g. recreation,
transportation). This supports a relative proportion of jobs and GDP within each sector. •
Indirect impacts stem from supply chain spending, where each directly affected sector also
purchases goods and services as inputs (e.g. food wholesalers, utilities) into production. •
Induced impacts are generated when employees whose wages are generated, either directly or
indirectly, by travel and tourism spend those wages in the local economy Travel and tourism
directly contributed US$2.4 billion to Ethiopian GDP in 2019, and US$6.1 billion total impact
including indirect and induced impacts. The Ethiopia travel and tourism industry represented
7% of total GDP in 2019. Employment in Ethiopia directly supported by the travel and tourism
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industry reached more than 700,000 jobs in 2019. Total employment as a result of tourism
measured 2 million jobs in 2019. Total employment supported by tourism decreased most years
through 2016, before returning to over 2 million jobs by 2018. Without intervention, the shock
to international travel brought on by the corona virus pandemic could lead to lasting effects on
the Ethiopian economy. A loss in Ethiopian GDP of over US$3.7 billion 2020 is estimated, and
this alone will have put almost 1.3 million tourism-related jobs at risk. Our current estimates
indicate that the number of tourism supported jobs has fallen over 60% from 2019 level
2.6Unemployment and Tourism
Unemployment is currently a global concern. Tourism becomes the most viable and sustainable
economic development option to overcome high unemployment rate especially in urban areas. If
tourism is managed with a strong focus, it can directly benefit the poor groups through
employment of local people in tourism enterprises, goods and services provided to tourists, or the
running of small and community based enterprises, etc., having positive impacts on improving
local livelihood of the community (UNWTO, 2010). In fact, many activities in tourism are
particularly suited to women, young people and disadvantaged social groups. Many tourism jobs
are potentially quite accessible to the poor as they require relatively few skills and little
investment (Shaaban, Ramzy and Sharabassy, 2013).
Tourism is recognized as an industry that generates jobs and income, while also bringing
beneficial socio-cultural change to the poor community. With its distinct advantages, tourism is
postulated as an important industry for unemployment and hence income generation. The
advantages include among others, creation of job opportunities, boosting up of sales of different
goods and services such as handcrafts and agricultural product supplies, as well as cultural
entertainment per-formed by locals, the majority of whom are poor. As such, tourism as an
industry can play very important roles on community economic and socio-cultural development
(UNWTO, 2010).
It is worth noting that tourism, employment and income are highly interlinked. Work, which is
central to people’s well-being, would enable people to generate income. Often, there is a positive
link between work and income, because, income obtained from work can be utilized to improve
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the social and economic status of employed people including their families. In other words,
employment generated in the tourism enterprises would enable the poor to generate income and
hence to improve one’s livelihood. Therefore, creating productive and remunerative jobs had
ever been promoted as an effective and sustainable solution to improve community livelihood at
tourist destination areas.
For any growth to impact on job creation and help improve livelihood, it needs to be broad based
and pro-poor. Ethiopia’s growth trend of last decade has proved to be broad-based and pro-poor.
The fact that unemployment has significantly declined in the country from 2004/05 on itself is an
indication that the growth in the country has been broad-based and pro-poor (UNDP, 2014).
Based on the analysis of the 2010/11 Household Income Consumption Expenditure Survey
(HICES), it is safe to say that the current growth has effectively been translated into
unemployment reduction. Real per capita consumption expenditure of average Ethiopians has
significantly increased by 50 % on average over its level in 1995/96 (MoFED, 2012). This has
resulted in a notable decline in unemployment incidence from 43.1 % in 1999/00 to 26 % in
2014 in Ethiopia (IMF, 2014).
Tourism has increasingly been viewed as a promising area of economic activity that could
become a structural part of sustainable development in developing countries like Ethiopia. Like
the rest service sectors, travel and tourism has an immense potential in generating employment
opportunities. With its capacity of employment generation, travel and tourism has been
contributing a lot to unemployment reduction, in addition to its bigger role to the advancement of
the Ethiopian economy (WB and MoCT, 2012). Travel and tourism is generating employment
either directly or through investment and induced impact (ILO, 2013). Direct jobs in the travel
and tourism sector considers employment opportunities created by hotels, restaurants, travel
agents, airlines, other passenger transportation services (excluding commuter services), and
leisure industries directly supported by tourists (UNWTO and ILO,2014). On the other hand,
total contribution of travel and tourism to employment is obtained through wider effects of travel
and tourism activities on investment, the supply chain and induced income impacts (WTTC,
2015). Rapid growth rate in the tourism sector over the last decade in Ethiopia has led to a
considerable increase in per capita GDP and an impressive drop in the unemployment rate
(UNDP, 2014).
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According to UNWTO and ILO (2014), the positive economic and non-economic benefits of
tourism that would have impact on community livelihood includes;
 Stimulating the creation and growth of new enterprises, and SMEs business
opportunities, which provide employment and earnings for the poor from the sales of
goods and services?
 Bringing an export market right to the doorstep of many sectors;
 Stimulating the development and improvement of infrastructure and transport Services;
 Increased sales of local crafts and associated increase in pride and self- confidence;
 Contributing to the tax base of national government, and sometimes also paying fees or
licenses to local government;
 The development of collective benefits where a community gains from concession or
lease agreements with formal sector enterprises;
 Charitable donations from tourism businesses or from tourists;
 Opportunities for empowerment and capacity building, improvements in health and
education, and other forms of well-being;
 Increased access to information (through improved infrastructure and communications);
 Strengthening of community institutions;
 Gaining knowledge about other societies and cultures and increasing tolerance for people
from different cultures, and
 Improved socio-cultural status through community recognition.
On the contrary, the same sources pointed out the negative knock-on effects of tourism affecting
particularly the poor as follows:
 Tourism can increase competition for water, land, and other natural resources and even at
some worst scenarios leads to loss of access of local community to resources
 As tourism boosts demand for local/rural goods (food, land, construction), so local prices
will rise, and if these goods and services are also purchased by the poor, the value of their
small income goes down;
 Local traditions and ways of life are negatively impacted;
 Traditional residents are displaced;
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 Increases in pollution; and
 Degradation of the environment.
While appreciating the positive changes, efforts must be directed to minimizing the negative
ones.
2.7UNWTO Recommendations to Optimize Employment and Income

Generation in the Tourism Sector
UNWTO is a specialized agency of the United Nations and International organization in the field
of tourism. UNWTO recommends to governments lots of strategies in connection with tourism,
employment and income generation and improvement of community livelihood at tourist
destinations. UNWTO’s general program of work includes a number of activities aimed at
maximizing the impact of tourism for the benefit of developing countries in general and the
Least Developed Countries (LDCs) in particular. To this effect, the WTO initiated and launched
the Sustainable Tourism-Eliminating Unemployment Initiative (ST-EP) program, at the
Johannesburg Summit in 2002 (UNWTO,2005). By those initiatives, it is hoped for alleviating
unemployment, bringing development and jobs to people living on less than a dollar a day
(Scheyvens, 2007; cited in UNWTO, 2010). Furthermore, The World Tourism Organization has
identified seven different ways of addressing unemployment, and to enhance socioeconomic
benefits that could be ensured from tourism which it suggests can be applied in almost every
country;
 Employment of the poor in tourism enterprises;

 Supply of goods and services to tourism enterprises by the poor or by enterprises
employing the poor;
 Direct sales of goods and services to visitors by the poor;
 Establishment and running of tourism enterprises by the poor–for example, micro, small,
and medium sized enterprises (MSMEs), or community based enterprises;
 Tax or levy on tourism income or profits with proceeds benefiting the poor;
 Voluntary giving/support by tourism enterprises and tourists, and
 Investment in infrastructure stimulated by tourism also benefiting the poor in the locality,
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directly or through support to other sectors (Yunis, 2005 cited in UNWTO, 2005).
2.8 Promoting Tourism Sector to Create Adequate Jobs and Income for
the Poor
The tourism sector is an economic engine with the potential to create business and employment
opportunities for the poor through generation of many and diverse jobs at all levels (Neto, 2003).
Along the tourism value chain, many businesses are Small and Medium Scale Enterprises
(SMEs) contributing to the sector’s valuable labour intensity. Because tourism is inherently
labour intensive and creates employment opportunities especially for the poor, the young,
women and the physically handicapped; it plays a significant role in improving the livelihood of
the community in developing countries by creating jobs and income (MoCT, 2009; Thomas,
2013).
Travel and tourism is human-resource intensive due to the service nature of the industry. Further,
one job in the core tourism industry creates about 1.5 additional (indirect) jobs in the tourism-
related economy. The wider travel and tourism economy creates about 8 % (both directly and
indirectly) of the global workforce. Half the workers in the industry are aged 25 or younger
(UNWTO and ILO, 2014). Women make up between 60 and 70 % of the labor force in the
industry. This gender dimension can be especially important. The UNDP empirical evidence
suggests that paid work by women reduces overall unemployment and inequality in developing
countries (UNDP, 2014). In fact, eliminating barriers to women’s participation in paid work (as
is typical of the tourism industry) has a much stronger effect on unemployment and economic
growth. The tourism industry has almost twice as many women employers as other industries.
Women make up a much higher proportion of own-account workers in tourism than in other
industries. A large amount of unpaid work is being carried out by women in family tourism
businesses.
Tourism development is concentrated in regions where the incidence of unemployment is higher:

Tourism in Ethiopia is concentrated in urban areas and in regions such as Amhara, Oromia,
Southern Nations Nationalities and Peoples’ (SNNP), and Tigrai where unemployment rate is
very high. And this can be an indication of tourism’s potential to generate growth where it is
Page 19
most needed (ODI, 2009; cited in WB and MoCT, 2012). Tourism is employing segments of the
population among which the incidence of unemployment is also higher: The concentration of
females in Ethiopia is higher in urban areas (50.3 %), whereas unemployment is higher among
female-headed households in urban areas. Tourism is not only concentrated in urban areas
especially, but it is also employing a majority of women (72 % of the tourism work force). Again
this can be an indication of tourism’s potential to generate growth where it is most needed.
Tourism offers productive employment opportunities relative to other labour-intensive sectors:

Unemployment is found to be lower, relative to farming, in households headed by individuals
who work in hotels and restaurants and in other occupations, while the same does not apply for
people working in manufacturing and construction for whom the incidence of unemployment is
similar to those with primary occupations.
Accommodation is a vital and integral part of the tourism market and it represents one of the
pillars of tourism. In the hotel segment of the industry, globally there is an average of one
employee for each hotel room. Further, there are three workers indirectly dependent on each
person working in hotels, such as travel agency staffs, guides, taxi and bus drivers, food and
beverage suppliers, laundry workers, textile workers, gardeners, shop staffs for souvenirs and
others, as well as airport employees (UNWTO,2014).
Tourism is a powerful economic force which can provide huge employment opportunities.
Countries facing high levels of unemployment could opt for tourism promotion as an effective
means of absorbing the excess manpower. The impact of tourism industries on employment is
measured in the following ways:
I. Through direct employment that the tourism industries generate,

II. Through indirect employment that the tourism sector create in the supply chain sectors
directly feeding inputs to the tourism industries, and
III. Through induced effect on employment as a result of subsequent rounds of spending and
total effect on employment which is reflected in the employment multiplier (UNWTO,
2014).
Tourism employment can be categorized at two separate levels depending on their involvement
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in or contribution to tourism supply-side. Front offices in hotels, restaurants, travel agencies,
tourism information offices, aircrafts, boat cruise, resorts or shopping outlets provide direct
employment because their employees are in contact with tourists and cater for tourist demand.
Tourism also supports indirect employment in activities like restaurant suppliers, construction
companies that build and maintain tourist facilities, as well as necessary infrastructure, aircraft
manufacturers, various handicrafts producers, marketing agencies, accounting services, which
are more or less dependent on the companies providing direct employment for their revenues
(UNWTO, 2014).
Tourism’s contribution to a local economy is enhanced by a phenomenon known as the tourism

income multiplier (TIM). This arises because money spent by tourists in the destination area will
be re-spent by recipients augmenting the total. The multiplier is the factor by which tourist
spending is increased in the process. When firms are at the hands of the locals, TIM is higher
(UNWTO, 2014).
2.9The Major Problems in Ethiopian Tourism Sector
The success of any tourism destination is dependent, to a large degree, on the nature of the
facilities, services, and infrastructure that are available to the tourists. Tourism requires a wide
range of supporting services, engages a wide range of other services as part of the delivery
of the tourism product, and diverse activity in a wide range of downstream and ancillary
industries. These can be categorized as: primary tourist facilities and services
(accommodation/hotels, restaurants, and travel and tour services); secondary tourist facilities and
services (shopping, recreation, entertainment and visitor information services) and tertiary tourist
facilities and services (health services and care, emergency and safety services, financial services
and personal services). Generally, these are not well developed in Ethiopia where available, these
services and facilities are not very competitive globally (United Nations Economic Commission
for Africa, 2013).
Tourism faces a combination of hard and soft infrastructure bottlenecks. Some of the bottlenecks
hindering the tourism potential in Ethiopia are infrastructure inadequacies and related high
transport costs, limited access to credit, poor ancillary services, lack of comprehensive and
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timely tourism data, ineffective marketing and development strategies, unavailability of e-
commerce, limited availability of alternative payment systems such as automated tailor machine
(ATM), point of sales (POS) and the limited supply and poor quality of training services (WB
and MoCT,2012).
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CHAPTER THREE
3. RESEARCH METHODOLOGY
3.1Research Design
In order to analyze the contribution of tourism sector in generating job opportunity and
enhancing house hold income in Arba Minch City Administration the researchers was employed
descriptive and explanatory research design. It is primarily concerned with present, although it
often considers past events and influence as they relate to current conditions. It is concerned with
conditions or relationships that exist, opinions that are held, processes that are going on, effects
that are evident, and trends that are developing and presented numerically (Creswell, 2004).
3.2Research Approach
In this study the researchers was applied mixed research approach or use both qualitative and
Quantitative approach. These methods involved the processes of collecting, analyzing,
interpreting, and writing the results of a study (Creswell, 2009). Similarly several research
approaches can be adopted for the conduct of a research, these was because employing the mixed
approach helped to converge or confirm findings from different data sources (Creswell, 2005).
3.3Data Sources and Types
Kothari (2004) classified data gathering into primary and secondary sources. The researchers
will use both primary and secondary sources of data collection .To achieve the objective of this
study the researchers were collect necessary data from the subject of the study with different
tools of data collection. The study was largely depend on primary data, which was collected
through survey method by using self designed questionnaires both close ended and open ended,
and interviews so, sources of data were sampled hotels, tour guides, culture and tourism office
employees, MSE and head officials. Secondary sources of data were obtained from the annual
reports, publications, written documents, internets and others.
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3.4Population, Sampling Technique and Size
3.4.1 Population of the study area
The study was conducted on the role of tourism in creating job opportunity in Southern Ethiopia,
particularly in Arba Minch city administration. So, the target population of the study was
tourism enterprises namely: “hotels, resorts, lodges, restaurants and pensions”, “handicraft shops,
and manufacturing firms” “tour guiding associations and tour operation”, “Boat, taxi, and Bajaj
drivers”, and Tea and coffee vender” and workers of Arbaminch Town Culture and Tourism
office who are directly tied to the tourism enterprises, was also considered as part of the target
population. The total target population of the study area was 2100 (two thousand five hundred)
employees of tourism enterprises (Culture and Tourism office, 2021).
3.4.2 Sampling Techniques and Sample Size Determination
There are different “tourism enterprises” in Arba Minch City Administration that are engaged in
tour service provision. Since collecting survey data from all the “enterprises” are cost and time
consuming, the researcher was obliged to determine sample size which represent the general
population for the purpose of data collection. Thus, there are different sampling techniques that
were determining the right number of sample size. For the purpose of this research, the
researcher employed probability and non-probability sampling method for its suitability to this
study. After categorizing the “enterprises” in to five categories based on their services they
provide as “hotels, resorts, lodges, restaurants and pensions”, “handicraft shops, and
manufacturing firms” “tour guiding associations and tour operation”, “Boat, taxi, and Bajaj
drivers”, and Tea and coffee vender”, the survey respondents /workers/ are also identified by
using systematic sampling techniques. Stratified Sampling provides one way to obtain
representative sample. It begins by dividing the population in to segment or strata based on their
similar characteristics (Kish, 1995).
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Table 3.1 shows the sampling tourism enterprises and the number of workers working in
the enterprises
No. Name of tourism enterprises Number of workers

Male Female Total
1 hotels, resorts, lodges, restaurants and 664 1096 1750
pensions
2 handicraft shops, and manufacturing 37 10 47
firms
3 tour guiding associations and tour 49 18 67
operation
4 Boat, taxi, and Bajaj drivers 89 - 89
5 Tea and coffee vender 16 131 147
6 Total 945 1155 2100
Source: Arba Minch City Administration culture and tourism office, 2022
The total survey respondent populations for this study were 2100 workers as indicated in the
table 3.1. Different authors use different formulas to determine the sample size of the study. The
formula set by Yamane, (1967) is used by considering the level of acceptable margins of error
90% and 0.1% of confidence level.
n= N
1+N (e) 2
Whereas: n= total sample size;
N= the number of total populations;
e= level of precision.
Therefore n = N = 2100 = 95
1+N (e) 2 1+ 2100(0.1)2
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As a result, from the target population size of N = 2100 a total number of 95 samples will be
drawn.
Therefore, 95 respondents were used as sample for this study to gather data through
questionnaire. The researchers were deeming necessary to take independent sample for each
strata to ensure equal representation because, the tourism enterprises have different number of
workers. Therefore, the sample size for each stratum was calculated using proportion. The study
was use proportionate sample allocation formula so as to make each stratum sampled identical
with proportion of the population.
ni= n* Ni/N
Where, ni= sample size of each stratum
Ni= total number of sample size
N= total number of workers
n= total number of workers in each stratum
Source, (Kothari, 2004)
Table.3.2 proportional allocation of sample size under each stratum
No. Name of tour service providers Number of Sample Percentage

workers size
1 hotels, resorts, lodges, restaurants and 1750 79 83.2
pensions
2 handicraft shops, and manufacturing 47 2 2.1
firms
3 tour guiding associations and tour 67 3 3.1
operation
4 Boat, taxi, and Bajaj drivers 89 4 4.2
5 Tea and coffee vender 147 7 7.4
Total 2100 95 100
Source: Researchers, 2022
Finally, sample respondents were selected from each stratum through simple random sampling
method using lottery. On the other hand qualitative research approach was used in this study to
examine multi dimensional views. The researchers were use non probability judgmental
sampling method to collect data for qualitative analysis purpose. This method was chosen
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because it is useful to get informants that have rich experience and knowledge about the
problems under study. Hence, interview were held with 6 interviewers of whom, one official and
one expert from Arba Minch City Administration Culture and Tourism office, 2 hotel enterprise
owners and 2 was hotel managers holding different positions.
3.5Data Collection Instruments

This study was utilizing a combination of different data collection techniques such as
questionnaires, interviews and observation. The purpose of combining different data collection
techniques was to maximize the quality of the data collected and reduce the chance of bias and
also to make research to be flexible in collecting data.
3.6Methods of Data Analysis
Data analysis is the process of inspecting, cleansing, transforming, and modeling data with the
goal of discovering useful information, suggesting conclusions, and supporting decision-making.
The data was checked for completeness. Then compiled and coded, it were entered in excel for
analysis. Both quantitative and qualitative data analysis techniques was used to analyze the data
gathered through questionnaire and semi-structured interviews as data gathering tools. The data
gathered through close ended questionnaire were tabulated and analyzed with the help of
descriptive statistical techniques mainly using percentage and frequency and the data was
presented using table, graphs and diagrams. Finally, the data gathered through semi-structured
interview and open ended questionnaires were analyzed using qualitative description.
3.7Validity Test
Validity indicates a degree to which a test, measurement and instrument is capable of achieving
certain aims. Validity is an integral mandatory component for any type of measurement, test or
instrument. In order to test the strength of questionnaires, the researcher was undertook pilot test
for questionnaires and all the necessary amendments such as reorganization of questions along
research questions, eliminating of unnecessary questions, and eliminating of grammatical errors
was made.
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3.8Ethical Considerations
In conducting the research, the following ethical considerations were taken into account.
 Respondents was informed fully about the purpose, methods and uses of the research,
what their participation in the research entails and what risks, if any, are involved.
 The confidentiality of information supplied and the anonymity of respondents was
valued.
 The independence of research was clear, and any conflicts of interest or partiality were
explicit.
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CHAPTER FOUR
4. DATA PRESENTATION, ANALYSIS AND

INTERPRETATION
4.1 Introduction
This chapter outlines the results of the data collected and existing relationships between the key
variables. The background characteristics of the respondents captured by this study presented at
the beginning of this chapter. The rest of the chapter presents the findings of the study as per the
research objectives and interprets the findings that drawn from the quantitative and qualitative
data collected.
4.2 Response Rate
To determine the total number of the respondents who participated in the study, the analysis of
the response rate was conducted as shown in the Table 4.1
Table 4.1: Response Rate
Frequency Percentage
Category
Response 80 84.2%
Non response 15 15.8%
Total 95 100%
Source: Field data, 2022
As presented in the table 4.1 the response rate comprised of 80 respondents who were
84.2% of the total response rate. The non-response comprised of 10 respondents who were
15.8% of the total response rate. The response rate of 84.2% of the respondents indicates
that the gathered data met the generalization standards since according to Cooper &
Schindler (2003) a response rate above 50% of the total sample size can be generalized to
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represent the opinions of the entire population. The gathered data was hence enough to
explore the roles of tourism in creating job opportunities in Arba Minch City
Administration.
4.3 Demographic Data of Respondents
The employees or workers working in the tourism enterprises in the city were part of the sample
frame in this study. This because information on nature of employment and its contribution to
employee’ quality of life could only be sourced from the people working in these tourism
enterprises. The results in figure and table below describes the population of tourism enterprises
employees and owners surveyed during the study in terms of gender, age, level of education,
years of service, average monthly income, terms of employment and other benefits received in
the course of their employment.
4.3.1 Sex of Respondents
The respondents were requested to indicate their sex in the survey instrument because gender is
an important variable in any society and is affected by any social or economic phenomenon and
employment in the tourism enterprises sub-sector would be no exception.
Figure 4: 1 Sex of Respondents
Sex
Male
39 49% 41 51% Female
The findings in figure 4.1 above shows that the gender distribution of respondents was almost
equal at 41(51%) male and 39(49%) female. This finding suggests that employment
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opportunities in tourism enterprises appeal to either gender. The most likely explanation for this
finding could be that the affirmative action campaigns that have been conducted over the years
have enabled both men and women compete on a level platform and the job opportunities in the
tourism and hospitality industry are no exception.
4.3.2 Age Distribution
The age of respondents was an important element because it not only determines their
understanding of particular problems facing their jobs but also denotes their level of maturity.
Figure 4: 2 Age categories
The results in figure 4.2 above shows that majority of respondents 38(47.5%) fell in the 26-35
years age category followed by the 18-25 years age group 20(25%), 36-45 years age group
17(21.25%) while those of 46 years and above had the least representation at 5(6.25%) of total
respondents surveyed. This finding suggests that most respondents in the city employed young
people who were aged 35 years and below. The most probable explanation for this finding could
be that young people are considered energetic, innovative and take instructions better than the
Page 31
older generation who are mostly considered as rigid and resistant to change. The young people
are therefore seen as valuable assets who may contribute greatly to the growth of the business.
4.3.3 Educational Level of Respondents
Education affects an individual’s personal attitude, way of thinking and looking at various social
and economic phenomena as well as their ability to respond to questions about their quality of
life in a meaningful manner. The respondents were therefore requested to indicate their level of
education.
Figure 4: 3 Educational Level of Respondents
The findings in figure 4.3 show that respondents with diploma level of education were the
majority at 40(50%) while those with bachelors’ degree had the least representation comprising
of 12(15%) of total respondents surveyed during the study. This finding suggests that most
people working in the tourism enterprises in the city had diploma level of education and below
comprising of 85% (n=80) of total respondents surveyed. The reason for this could be twofold.
First, it could be that respondents may have a distorted view that graduates are ‘expensive’ hence
they may not afford them or they may not be in a position to meet graduate expectations. Second,
it could be that graduates shy away from employment opportunities in tourism enterprises
probably due to the low salaries offered in such establishments as depicted later in this study. As
Assefa (2015) found, most graduates rarely consider employment in tourism enterprises due to
Page 32
the perception that tourism enterprises not only offer lower salaries and benefits compared to
larger firms but also there is a lack of clearly defined graduate positions, lack of training
opportunities and lack of formality in roles and career paths. On the other hands, tourism sector
require skills and professional workers to meet the need and demand of the customers (Aynalem,
Birhanu, & Tesefay, 2016). This finding implies that most respondents by virtue of their level of
education were in a position to understand the questions in the survey and provided meaningful
responses about their jobs and quality of life.
4.3.4 Respondents Tourism activities
The participation of local people in tourism related businesses and activities help to improve
their livelihoods and reducing unemployment in the community.
Table 4: 2 Respondents participation in tourism activities
Respondents tourism activities

Valid Cumulative
Frequency Percent Percent Percent
Valid Hotel/Lodge/Resort 64 80.0 80.0 80.0
Tour guiding 3 3.8 3.8 83.8
associations and tour
operation
Transportation 4 5.0 5.0 88.8
Handicraft 2 2.5 2.5 91.3
Tea and coffee vender 7 8.8 8.8 100.0
Total 80 100.0 100.0
In table 4.2 above, it is indicated that the main tourism activities that respondents were involved.
The result shows majority (80%) of respondents were involved in Hotel/Lodge/Resort/Pension
related activities while others “about 3.8%, 5%, 2.5% and 8.8% of respondents respectively were
Page 33
involved in tour guide, transportation, handcraft shopping and coffee and tea vending activities”.
Generally, the tourism sector plays a significant role in the labour market employing a large
number of local community members in various job opportunities. Tourism practitioners are
currently viewing the host communities as focal points in the sector development. Therefore,
promoting participation of local communities in tourism related activities seems to be a
promising means of supporting the development of the local communities.
4.3.5 Tourism Enterprises Employees’ Years of Service
The duration an individual has worked/served in an enterprise denotes the attractiveness of the
job in terms of the benefits offered and the general working environment. To this end, the
employees were asked to indicate the number of years they had worked in their respective
enterprises.
Table 4: 3 Respondents Years of Service
Respondents Years of Service

Valid Cumulative
Valid ≤1 17 21.3 21.3 21.3
2-3 33 41.3 41.3 62.5
4-5 19 23.8 23.8 86.3
≥6 11 13.8 13.8 100.0
Total 80 100.0 100.0
The findings in Table 4.3 above indicate that majority of respondents 33(41.3%) had worked in
their respective establishments for a period of 2-3 years while those who had worked for above
five (6) years had the least representation at 11(13.8%).
This finding suggests that there could be a high employee turnover in these tourism enterprises.
The most likely explanation for this finding could be that tourism enterprises do not provide
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attractive packages, clear paths for career progression and training opportunities hence
cultivating employee loyalty becomes an uphill task for the owners/managers.
4.3.6 Respondents’ Average Monthly Income
An employee’s income plays an imperative role in shaping their economic considerations and
their ability to afford material living conditions, education and healthcare that could translate to
an improved quality of life (Assefa, 2015). The respondents were therefore asked to indicate
their monthly income from their jobs.
Table 4: 4 Respondents Average Monthly Income
Respondents Average Monthly Before joining tourism After joining tourism

Income
Frequency Percent Frequency Percent
Valid Not employed 39 48.8 - -
≤2000 18 22.5 15 18.8
2001-3500 11 13.8 23 28.8
3501-5000 8 10.0 27 33.8
Above 5000 4 5.0 15 18.8
Total 80 100.0 80 100.0
It is evident from table 4.4 above that majority of respondents 27(33.3) earned an average
monthly income of birr 3501-5000 while those who earned an average income of above birr
5000 had the least representation at 15(18.8%) of total respondents surveyed. The range
observed in salary bracket among tourism employees who were approached is incredibly wide;
the minimum monthly salary is 1500birr, while the maximum is 15000birr. The income data
presented above shows that generally there is an improvement in the income of the employees,
and most of the employees are moving up the salary hierarchy, and hence their earning is getting
better and better gradually after they joined the tourism sector. This finding infers that most
tourism enterprises (81.2%) paid salaries of birr 5000 and below to their employees. The reason
for this could be twofold. First it could be attributed to the low level of education as depicted in
figure 4.3. Second, it could be due to the low volumes of revenue generated by these tourism
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enterprises as well as the seasonality behaviour of the sector. The key informant suggests that
apart from the mandatory medical and insurance cover as required by law, most tourism
enterprises in the town did not provide unique benefits to their employees. The reason for this
could be the low volumes of sales by these enterprises or it could be due to lack of clearly
defined employee motivation schemes largely attributed to their size and ownership.
4.4 Ways in which Tourism Contributes to Unemployment

Reduction
Tourism activities are among the major solution to unemployment reduction. There is strong
evidence that tourism if developed and managed in a sustainable manner can make a significant
contribution to unemployment reduction especially in urban areas where most of the unemployed
skilled man power live with large development options (UNWTO, 2006). The research findings
support the above assertion as it was revealed from the field data where the question asked “Is
tourism providing expected solution of unemployment reduction in your area? 86.3 percent of
respondents say YES and come up with a reason, such as tourism create number of formal and
informal jobs, help to improve social amenities, generate foreign exchange improve local trade
while only 13.8 percent say NO with the arguments that it lead increasing the price of goods and
services and tourism jobs are seasonally as demonstrated in the (Table 4.6).
Table 4: 5 Contribution of tourism in unemployment reduction
Tourism Provides Solution to Unemployment

Valid Cumulative
Valid Yes 69 86.3 86.3 86.3
No 11 13.8 13.8 100.0
Total 80 100.0 100.0
4.4.2 Improvement of Local Trade
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The study noted that development of tourism related activities in the study area leads the
increasing number of tourists, visitors and people who work in the tourism hotel. These groups
became an important asset in the development of trading activities as they increase the
purchasing power. The research participants argued that an increasing number of visitors in our
town increase the demand of the locally available goods such as fish, fruits and food. Some of
handcraft shop, hotel owners and, tour guide operation associations commented that during the
pick tourism season, the business flourished and benefit increases.
In Arba Minch city, four tourism enterprises i.e., hotels, restaurants, souvenir and handicraft
shops, and tour guiding, which provide direct employment opportunities are identified in the
area. In the case of Arba Minch, unlike the rest tourist destinations in Ethiopia, transfer, boat
and swimming services are included in the package service the hotels and recreational
establishments are offering. In fact, tourists are supposed to pay extra fee when they request boat,
swimming and transfer services.
4.4.1 Employment Generation Potential of Tourism at Arba Minch Level
The total contribution of travel and tourism to employment (including wider effects from
investment, the supply chain and induced income impacts) is by far greater than the direct jobs
generated in the sector. The total employment generated in the travel and tourism is more than
double when compared to the direct employment generated in the travel and tourism.
Arba Minch City Administration Culture and Tourism office is making periodic assessment on
hotels, restaurants, guiding associations, souvenir and handicraft shops, and other tourist
facilities to collect data on the direct jobs created by the enterprises. We obtained the most recent
years data for the year 2017 to 2021 (five years) regarding direct jobs generated by tourism
activity in Arba Minch city. Unfortunately, employment data for the years before 2018 is
unavailable in the office. According to Arba Minch City Administration Culture and Tourism
office data (2021) on employment, 1996 people were getting the opportunity to be employed in
tourism in the last four years. In 2018; 1025, in 2019; 128, in 2020; 320 and in 2022, 523 people
were directly absorbed into the tourism sector (Arba Minch City Administration Culture and
Tourism office report, 2021). Of these employed people, the males have got 48.5 percent share,
Page 37
and females took the remaining 51 percent. With regard to the ratio of male to female, most of
my respondents suggested that about (it is an estimation) 50 percent employees working in
tourism are female. Given that hotel is a dominant enterprise in tourism, and most of the
employees in the hotel are female, the researcher cannot rule out the position of the respondents.
In fact, the opinion of the respondents aligns with the CSA (2014) data for male versus female
ratio, for the accommodation and food service employment of Arba Minch.
Table 4.6: Employment Opportunities Created in the Tourism Sector in Arba Minch
Gender
Year
Male Female Total
2017 - - -
2018 425 600 1025
2019 102 80 182
2020 170 155 320
2021 273 250 523
Source: Arba Minch City Culture and Tourism office, 2021
From the employment data presented in the table 4.3 and 4.4, one can clearly comprehend the
contribution of travel and tourism in curbing unemployment in Ethiopia particularly, Arba
Minch. Therefore, the employment opportunities provided either through direct or induced
impact of travel and tourism is indispensable in helping the poor to rise out of unemployment in
Ethiopia
4.4.2 Improvement of Social Amenities
The tourism industry makes a significant contribution to the improvement of social amenities
among rural and urban communities in Ethiopia. The study found that, the improvement is
derived from two main ways – first tax collected from tourists’ arrival and tourism related
investments and second contribution of tourism enterprises like hotels and visitor donation. One
official from Arba Minch City Administration, culture and Tourism Office justified “the income
generated from tourism related activities enable the government to improve social service in the
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town like road construction, building schools, health centre and supplying of clean water”.
Similarly one hotel owner argued “before development of tourism activities in this town our road
was raff it take time to travel from here to town, but now the road is good as you see you use
short time from here to town”. Arba Minch tremendous improvement of social services was
observed. For example transport and communication facilities are progressively well constructed
to facilitate community development. Apart from that public building such as school, health
centre, different large Lodges, Resorts, Pension’s, shops and government office are well built
due to tourism development in the area.
Furthermore, water and electrical services are accessible to the communities. The Head Office of
Arba Minch City Administration, culture and Tourism justified the development reached by
saying “development of tourism in our village facilitates development of social service such as
water supply, electricity and transport as you see; and telecommunication service has become
better now due to tourism investments”.
Additionally, tourism enterprises like the hotel had provided a big contribution on the
development of social amenities in the study areas. The tourism investor and other development
partners were concerned with community well-being and the improvement of public services in
the study area.
4.5 Challenges to Participation in Tourism and Creating Job

Opportunities
Constraints which encounter participation in the tourism related activities and creating job
opportunities to local communities can be categorized into three categories relating to the
respondents’ answers from questionnaire and interview. There are challenges at the local level,
sectorial level and government level as shown in Tables below. The question asked was, “what
would you consider as barriers for people participating in tourism activities in Arba Minch City
Administration?
Page 39
4.5.1 Challenges at Local Level
The main themes identified that shed-light on the challenges of participation in tourism at the
local level and in creating job opportunity were shown in table 4.7 below:
Table 4: 7 Challenges of Tourism in Creating Job Opportunities
Challenges in Tourism and Creating Job Opportunities

Local Level Valid Cumulativ
Frequency Percent Percent e Percent
Lack of credit 21 26.3 26.3 26.3
Valid
Lack of awareness on how to 16 20.0 20.0 46.3
invest in tourism
Lack of qualification to work 12 15.0 15.0 61.3
in the tourism sectors
Poor foreign language ability 7 8.8 8.8 70.0
Ineffectiveness of local 10 12.5 12.5 82.5
authority
Lack of entrepreneurship 14 17.5 17.5 100.0
knowledge
Total 80 100.0 100.0
As it can be seen in Table 4.7, 26.3 percent of participant claim lack of credits, 20 percent of
respondents agreed lack of awareness on how to invest in tourism related activities, 15 percent
says lack of qualification to work in the tourism sector hamper their participation in tourism,
12.5 percent claimed on in effectiveness of local authorities on supervision their responsibilities,
17.5 percent says lack of entrepreneurship knowledge is an obstacle to reduction of
unemployment through tourism and 8.8 percent claim on poor foreign language among residents.
The answer from participants in the study area identifies unemployment as the main obstacle to
participate in tourism. Many participants expressed their views that the poor in their communities
may not be able to engage in tourism businesses because they do not have enough capital to be
able to supply high quality products and services in the tourism industry.
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Similarly, participants mentioned that the participation of the locals in tourism is hampered by
the lack of entrepreneurship knowledge on how to invest in tourism. The following are some
comments from the key informants tried to understand the role of tourism in creating job
opportunity:
“Our people had lack credit and entrepreneurship knowledge to utilize tourism opportunities in
the town so most of the important opportunities are dominated by other sectors” (Interview with
a head office of Arba Minch City Administration Culture and Tourism office) “Most of the
villagers are poor, so they lack the capital to participate in the tourism activities like supplying
of vegetable in the hotel, there are few villagers who supply vegetable in the hotel and most of
suppliers are from outside village” (interview with Culture and Tourism office expert).
Another challenge to participate in tourism that was reported in the town studied was that, most
of the community members were lacking qualifications to enable them to grab jobs in tourism
taking place in the town.
As not enough, another challenge to participate in tourism was due to the ineffectiveness of the
local authorities. This issue was raised, particularly by employers who answered the
questionnaire. They blamed their local authorities for failing to disseminate information they get
from the tourism sectors when they attend meetings in some occasions. Many people in the town
are said to be unaware about opportunity of tourism related jobs provided special for residents.
4.5.2 Challenges at Sectorial Level
The challenges of unemployment reduction through tourism at sectorial level were explained
from three perspectives: lack of involvement of the locals in tourism management, lack of
transparency in sharing the tourism benefit and seasonality of tourism jobs. The (table 4.8) below
summarizes the responses for the question
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Challenges of Tourism and Creating Job Opportunities

Valid Cumulative
Sectorial Level
Valid Lack of involvement of the 19 23.8 23.8 23.8
locals in tourism management
Lack of transparency in 27 33.8 33.8 57.5
sharing tourism benefit
Seasonality of tourism jobs 34 42.5 42.5 100.0
Total 80 100.0 100.0
Some research participants argued that communities are not involved in the tourism management
in the country. It was also complaining that there has been a lack of transparency in the ways
money donated from tourists and visitors are spent to benefit the communities. The analysis of
the result above indicates 23.8 percent of the respondents in the town signify the situation that to
a large extent people in the study area were not involved in the tourism governing. With regard
to lack of transparency in sharing the tourism benefit 33.8 percent of the respondents agreed that
it was one of the constraints that discourage residents to participate in tourism sector. Finally,
with respect to seasonality of tourism jobs 42.5 percent of the respondents agreed that it was the
major influential factor that discourages residents to participate in tourism sector.
4.5.3 Challenges at Government Level
The main themes identified that shed-light on the challenges of participation in tourism at the
government level were lack of promotion of community-based tourism, lack of incentives to
locals and inadequate infrastructure. Table 4.8 below show the responses for the questions.
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Challenges of Tourism in Creating Job Opportunities

Government Level Valid Cumulative
Valid Lack of promotion of 29 36.3 36.3 36.3
community based tourism
Lack of incentives to locals 25 31.3 31.3 67.5
Lack of adequate 26 32.5 32.5 100.0
infrastructure facilities
Total 80 100.0 100.0
As it can be seen in Table 4.9, 36.3 percent of participant claim Lack of promotion of community
based tourism, 31.3 percent of respondents agreed lack of incentives to locals and 32.3 percent
says lack of adequate infrastructure facilities hamper their participation in tourism. The answer
from participants in the study area identifies unemployment as the main obstacle to participate in
tourism. The study finding infer that if the government would promote community based
tourism, it could enhance tourism development in their towns, and eventually enhance
participation of the residents in tourism and unemployment reduction, especially if incentives are
made available to the community. Key informant Head Office of Arba Minch City
Administration Culture and Tourism state that “Community is the basic institution of
development of tourism in the nation particularly in Arba Minch so the national government
must create a clear policy to promote community based tourism”
Many studies confirms the study finding according to Assefa (2015), there are significant
numbers of barriers hindering effective usage of the tourism sector as a tool for unemployment
reduction. These barriers among others includes lack of government programs targeted to the
tourism informal sector, which plays an essential role in providing tourism services and has the
significant potential of helping to reduce unemployment especially in urban areas. There is very
little recognition of the potential of tourism development by government and aid agencies. One
of the challenges is to work with these agencies to demonstrate the essential role that tourism can
play in helping to address key development issues such as unemployment, unemployment,
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gender, trafficking of women, infrastructure and the provision of health services. Lack or low
education or training to stakeholders in using tourism as unemployment reduction tool. In many
instances the poor lack access to credit, which is essential in helping them to participate or
engage in the tourism economy.
4.6 Actions taken to Reduce Unemployment through Tourism
Table 4.10 presents the main categories of themes (suggestion/ideas) and sub-themes on
measures that were suggested by study respondents as a means of enhancing participation of
local communities in tourism in order to reach the target of unemployment reduction through
tourism in the communities.
Table 4: 10 Actions to Enhance Employment Opportunity through Tourism
Actions Taken to Unemployment Reduction through Tourism

Valid Cumulative
Valid Enhancing access of credits to local people 11 13.8 13.8 13.8
Raising awareness about participation in 7 8.8 8.8 22.5
tourism activities
Improving efficiency in local authorities 4 5.0 5.0 27.5
Enhance access of foreign language class 3 3.8 3.8 31.3
in the village
Encourage people to learn hotel 4 5.0 5.0 36.3
management and hospitality
Providing entrepreneurship knowledge to 8 10.0 10.0 46.3
local people
Involvement and empowerment of locals in 6 7.5 7.5 53.8
tourism management
Lack of transparency in sharing tourism 5 6.3 6.3 60.0
benefit
Reduce seasonality 5 6.3 6.3 66.3
Promoting of community based tourism 10 12.5 12.5 78.8
Giving incentives to the local poor 9 11.3 11.3 90.0
Invest on and maintain infrastructure 8 10.0 10.0 100.0
facilities
Total 80 100.0 100.0
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Actions at Local Level
Things that were proposed by research participants for improving the participation of the
inhabitants in tourism in the process of unemployment reduction through tourism at the city were
13.8 percent of participant propose enhancing of credits to residents, 8.8 percent emphasizing on
raising of awareness about participation on tourism activities, 10 percent of respondents suggest
on providing entrepreneurship knowledge to residents, 5 percent propose improving efficiency in
local authorities, 5 percent of participants encourage people to learn hotel management and
hospitality and 3.8 percent suggest enhancing access of foreign language class in the town. Most
of the research participants believed that if the above measures are put into action, not only could
the level of residents participating in tourism be improved, but also there would be a significant
reduction of unemployment through tourism related activities in their communities.
Action at Sectorial Level
At this level, 6.3 percent of research participants recommended a need for reducing seasonality
in the tourism sector do to different natural and human made problems (drought, flood, covid-19,
inflation, ware, conflicts…etc). They suggested to the government to mobilize domestic tourists,
take special measures and make tourists flow throughout the year. Actually, the government of
Ethiopia has formulated tourism policy directed to reduce seasonality. The policy state that “The
Government will encourage and support development and diversification of tourist attractions
and activities in order to attract various visitor segments at different times of the year” (Ethiopian
Tourism Policy, 2009)
Additionally, 7.5 percent of respondents suggested not only involvement, but also the
empowerment of local communities in tourism management. The research participants from the
city administration were not happy with the current trend lacking transparency in sharing the
tourism benefits in the city. Instead, they called for a new partnership that would recognize the
local communities as equal and important allies in the tourism. The participants suggested that,
national government, the local authorities and Ethiopian culture and tourism body should take
careful efforts to provide tourism, education, and show how the locals can engage in the
Page 45
management process. It is therefore argued that to distribute benefits to the community, the
tourism initiative need not always involve the community in any rights, tenure or control of the
project (Ahmad, 2001) In this view, it is encouraged that communities should be participating in
all stages in CBTIs because that gives stakeholders a better chance to have an influence in
shaping community development and to deliver the maximum benefits while ensuring the
sustainability of tourism ventures (Assefa, 2015).
Actions at Government Level
At government level, 11.3 percent of participants proposed the government and other financial
institution to provide incentives, such as improved access to loans, and grants to residents who
are willing to utilize tourism opportunities. Similarly, 12.5 percent of participants propose that
the government should promote community based tourism more practically not theoretical. They
believe community based tourism is the solution of conflicts of interest between tourism
investors, central government and local communities. Lastly, 10 percent of participants propose
that the government should invest to build and maintain infrastructure.
This confirms that tourism faces a combination of hard and soft infrastructure bottlenecks. Some
of the bottlenecks hindering the tourism potential in Ethiopia are infrastructure inadequacies and
related high transport costs, limited access to credit, poor ancillary services, lack of
comprehensive and timely tourism data, ineffective marketing and development strategies,
unavailability of e-commerce, limited availability of alternative payment systems such as
automated tailor machine (ATM), point of sales (POS) and the limited supply and poor quality of
training services (WB and MoCT,2012).
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CHAPTER FIVE
4. CONCLUSIONS AND RECOMMENDATIONS
4.1 Introduction
This chapter presents the conclusion of the study findings as guided by the specific objectives
and recommendations.
4.2 Conclusion
Based on the objectives of the study and the finding in this study, the research concludes that
tourism and its related activities had some contribution to the unemployment reduction in
Ethiopia particularly Arba Minch local communities. The purpose of this study was to find out
the contribution of tourism activities in creating job opportunity in Arba Minch and to prove the
belief that tourism is an important to reduce the unemployment rate in the town. From the results
of the study it is very clear that tourism is the suitability tool for unemployment reduction and
sustainable development. Tourism industry in Ethiopia is a major economic sector. The findings
also provide shade of light on the improvement income per day and assets ownership in the study
areas.
Furthermore, the employment becomes a major concern Statistic can shed light on the
contributions of tourism businesses to jobs creation and assess the impact of public policy and
private investments on the job creation potential of tourism characteristic activities. Although
most research participants in this study indicated that tourism could play a key role in enhancing
economic benefits and improving their livelihoods, however the study finding also noted some
challenges faced people participation on tourism related activities and unemployment reduction
such as being lack of credits (unemployment), lack of awareness on how to invest in tourism,
lack of incentives, and lack of qualification to work in tourism among others. These standpoints
remain the main obstacle of unemployment reduction through tourism in the study areas.
Page 47
Last, but not least, the research participant suggested some action to address the challenges
through tourism, such actions include enhancing access of credit to local communities, raising
awareness about tourism, enhancing access to education, involvement and empowerment of local
communities in the tourism management, enhancing capacity building programs, promoting
community based tourism. The believes of the research participant is that if the proper initiative
will taken to address that challenge, the proper beneficial economic and social benefit will
increase drastically in Ethiopia local communities.
5.3Recommendations
I. The need to remove barriers causing local people’s marginalization and exclusion
from opportunities in the tourism industry and market. As discussed in Chapters 4,
although it has the potential to create economic and non-economic opportunities for
local people through stimulation of small business, employment and decision-making
opportunities, there are several barriers that need to be overcome through government
policy interventions and actions by donors, non-governmental organizations and the
private sector. These include building capacity and access to training, credit,
diversified tourism.
II. The study suggests that the government should ensure viable, long-term economic
operations, providing socioeconomic benefits to all tourism stakeholders that are
fairly distributed, including stable employment and income-earning opportunities and
social services to host communities and contributing to unemployment reduction.
There is a need for a high degree of community participation in tourism planning and
management process as the key for tourism prosperities and public awareness of pro
poor tourism. That will enable the community to have full utilization of tourism
opportunities available in their destination
III. Design, promote and implement a strategy that creates linkage between tourism,
micro and small scale enterprise and other than agriculture sector for a better positive
impact of tourism.
IV. The concerned local government agencies should have to design and implement a
Page 48
regulation in which the community will benefit from the direct and tax revenue
obtained from tourism in order to enhance the community sense of ownership over
the tourist attraction.
V. Designing a mechanism for boosting the local craft, tourist shopping, local tourism
enterprises, direct sales outlet for tourism product of local community and building
the capacity of local community for running tourism business.
VI. Research and training is still required in the sector for further development in
the sector if its full potential to regional development is to be realized.
Page 49
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Education Limited.
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initiatives a conceptual oxymoron? Tourism Management, Vol. 29.
Swarbrooke, J. (1999). Sustainable tourism management, Oxford, England: CABI Publishing.
Tadesse, B., & Weldegebriel, M. (2017). Assessing the problems in linking tourism MSEs in
Aksum Town. Journal of Tourism, Hospitality and Sports, 21, 36 –44.
Taylor, G. (1995). The community approach: Does it really work? Tourism Management,
Vol.16, No. 7.
Torres, R. and Momsen, J. (2004). Challenges and Potential for Linking Tourism and Agriculture
to Achieve Pro Poor Tourism Objectives: Progress in Development Studies 4(4) 294-319.
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Tourism Economics, Data & Digital Platforms: Driving Tourism Growth in Ethiopia, 2020
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Appendix-1
Sata Technology and Business College
Department of Management
Page 53
QUESTIONNAIRE we are students of the Department of Management studying Management at
the Sata Technology and Business College conducting a research on the topic: Assessing the
Role of Tourism Sector in Job Opportunity Creation; A case of Arbaminch city
administration. We would be very grateful if you could candidly respond to this questionnaire
to assist us in the research. We wish to mention that anonymity and confidentiality of the
respondent is assured and all information given here shall be used solely for academic purposes.
Please tick [√] the appropriate box where applicable and write where necessary
General Instruction
 No need of writing your name on the sheet

 Feel free and attempt all questions
PART A: BACKGROUND CHARACTERISTICS
1. Sex: Male Female

2. Age (in Years): _ 18-25 26 – 35 36 – 45 ≥46
3. Educational Background:
Less than Grade 8 Grade 9 -10 Grade 11-12
TVT (Level I-V) Degree Masters and above
PART B: The following questions are prepared to gather tourism related information of the
respondent
Instruction: - Dear respondent, you are kindly requested to encircle or write your answers on the
given blank space
1. What is the type of your employment in the tourism sector?

A. I am employed in the formal tourism sector
B. I am working in the informal tourism sector
C. I am self-employed
D. If other please write on the space
provided______________________
2. What is the type of your organization?
Page 54
A. Private B. Public C. Association
D. Micro and small scale enterprise
E. If other please write on the space provided______________________
3. In what position do you currently serve the organization? (You can give multiple
responses)
A. General/ Deputy Manager B. Department/Section head
C. Supervisor D. Expert/Officer
E. Service staff F. If other please write……………..
4. How many years have you worked in the position you held currently? (You can
give multiple responses)
A. Less than 1 year B. 2-3 years
C.4- 5 years D. 5 years and above
5. From among the below listed tourism activities, in what kind of work are you
engaged? In case if you are involved in more than one economic activity please
encircle all the types of works you are involved in (You can give multiple
responses)
A. Tour Operation B. Travel Agent C. Hotel/Lodge/Resort
D. Transportation E. Boat Rental F. Recreation
G. Tea and coffee vender H. Handicraft
L. If other please mention on the space provided____________________
6. In which work type have you got better incentives and why? (You can give
multiple responses)
A. Tour Operation B. Travel Agent C. Hotel/Lodge/Resort
D. Transportation E. Boat Rental F. Recreation
Page 55
G. Tea and coffee vender H. Handicraft
L. Please write if you got any better incentive in the type of work you are doing in the tourism
sector as compared to your previous work experience
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
7. What is your monthly income/salary in Birr? (You can give multiple responses)
8. Do you support your family members with your income/salary?
A. Yes, I do support B. No, I don’t support
9. If your answer for question 8 is “yes”, please compare the value and type of
support you gave for your family; Before you joined tourism sector and after
your joined the tourism sector
10. Does tourism sector create job opportunity for local needy women and the youth
people in Arba Minch?
Yes No
11. Does the tourism activity bring positive economic impact on the income of
households who are engaged in the tourism service provision?
Yes No
If yes, how?
12. What are the challenges facing tourism development initiatives in creating job
opportunities?
13. Will tourism be a sustainable economic activity for the community? Why and
how?
14. Briefly describe what do you expect from the following stakeholders to realize
rapid and sustainable tourism growth in Arba Minch and make the city “Number
one Tourist Destination in Ethiopia”?
• From the Community
Page 56
• From the City Administration/the public sector
• From the Private Sector
THANK YOU FOR YOUR TIME AND PARTICPATION!
Appendix-2
INTERVIEW GUIDE FOR PRIVET BUSINESS OWNERS/MANAGERS
(KEY INFORMANTS)
 With regard to your work, how would you describe your business activities?
Page 57
 May we just ask, is that your own or a family business?
 In relation to your business, how do you perceive tourism development in Arba Minch?
 How long do the tourists stay, what activities do they engage in, and what things do they
buy when they visit the area?
 What are the things which you would say affect tourism development in the area?
 How would you describe the quality of life of the local people?
 How many persons have you employed in your business?
 In your view, what benefits/opportunities are created for the local people from your
businesses activities?
 What do you think are the most important issues the private sector should be dealing with
to improve tourism in Arba Minch?
Appendix-3
INTERVIEW GUIDE FOR EMPLOYEES OF ARBA MINCH CITY ADMINISTRATION
CULTURE AND TOURISM OFFICE (KEY INFORMANTS)
1. What are the major tourist attractions in and around Arba Minch City?
2. What are the major activities that the tourists are doing in Arba Minch? Which
Page 58
attractions do tourists prefer to visit in Arba Minch?
3. According to the official record/ the report you have compiled, what is the annually
number of tourist arrivals visiting Arba Minch in the last 5 years?
4. What are the highest and lowest tourist flow seasons of the year? When does high
number of tourists visit Arba Minch? Why?
5. Based on your observation/record what types of tourists are mainly visiting Arba
Minch?
6. Currently, how many tourist service providing facilities are registered in your office?
A. Hotels B. Lodges/ Resorts C. Guest Houses/ Pensions
D. Tour operators E. Travel Agents
F. Transport Operators (only tourist affiliated) G. Boat Service/ Rental
H. Recreation J. Gift Article/Souvenir shops
K. Suppliers in the tourism product value chain such as (vegetables, fruits,

weaving, wood work, gardening and land scope, bee farm etc)
L. MSEs
7. How many people are currently employed in the tourism sector in Arba Minch? From
where do you get the data?
A. Male B. Female
8. What was the employment rate in the tourism sector in last five years? Why changed
9. Does tourism create job opportunity for youth and women? Why and how?
10. What is your assessment in meeting your annual plan of creating job opportunity in
the tourism sector?
11. How many of the hotels/lodges/resorts in Arba Minch are rated/registered as tourist
standard properties?
12. What type of support does your office give to the tourism businesses operators?
13. What are the major challenges of tourism sector in Arba Minch?
14. Which actions can be taken to reduce challenges facing tourism activities in creating
Page 59
job opportunities?
Page 60

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ASSESSING THE ROLE OF TOURISM SECTOR IN JOB OPPORTUNITY

CREATION: A CASE OF ARBAMINCH CITY ADMINISTRATION

SATA TECHNOLOGY AND BUSINESS COLLEGE

A RESEARCH PAPER SUBMITTED TO DEPARTMENT OF

MESKEREM KUSSE DD/MGT/97/12

ASHEBIR GEZAHAGN DD/MGT/101/12

AMENECH HANICHE DD/MGT/10/12

ETHENSHE BARO DD/MGT/28/12

SATA TECHNOLOGY AND BUSINESS COLLEGE

A RESEARCH PAPER SUBMITTED TO DEPARTMENT OF

MESKEREM KUSSE DD/MGT/97/12

ASHEBIR GEZAHAGN DD/MGT/101/12

AMENECH HANICHE DD/MGT/10/12

ETHENSHE BARO DD/MGT/28/12

Declared by Signature Date

1. ZEWDE ZAFA _________________ ____________________

SATA TECHNOLOGY AND BUSINESS COLLEGE

TITLE: ASSESSING THE ROLE OF TOURISM SECTOR IN JOB

OPPORTUNITY CREATION: A CASE OF ARBAMINCH CITY

Advisor Name: Date Signature

------------------------------------ ------------------- -----------------------

Examiner Name: Date Signature

------------------------------------ ------------------- -----------------------

ACRONYMS AND ABBREVIATIONS.........................................................................................................x

1.1 Background of the Study.....................................................................................................1

1.2 Statement of the Problem.....................................................................................................3

1.3 Objectives of the Study.........................................................................................................4

1.3.1 General Objective................................................................................................................................4

1.3.2 Specific Objectives...............................................................................................................................4

1.4 Research Questions...............................................................................................................5

1.5 Scope of the Study.................................................................................................................5

1.6 Significance of the study.......................................................................................................5

1.7 Organization of the Paper....................................................................................................6

2.2 Definitions and Concepts of Tourism.................................................................................7

2.3 Tourism: Global Trend and Economic Contribution.......................................................9

2.4 The Contribution of Travel and Tourism to Ethiopian Economy.................................10

2.5 The Impact of Travel in Ethiopia......................................................................................11

2.5.3 Economic Impact...............................................................................................................................13

2.6 Unemployment and Tourism.............................................................................................14

2.7 UNWTO Recommendations to Optimize Employment and Income Generation in the

2.9 The Major Problems in Ethiopian Tourism Sector.........................................................20

3.1 Research Design..................................................................................................................22

3.2 Research Approach............................................................................................................22

3.3 Data Sources and Types.....................................................................................................22

3.4 Population, Sampling Technique and Size.......................................................................23

3.4.1 Population of the study area.............................................................................................................23

3.4.2 Sampling Techniques and Sample Size Determination.................................................................23

3.5 Data Collection Instruments..............................................................................................26

3.6 Methods of Data Analysis..................................................................................................26

3.7 Validity Test........................................................................................................................26

3.8 Ethical Considerations.......................................................................................................26

4. DATA PRESENTATION, ANALYSIS AND INTERPRETATION...................................................28

4.2 Response Rate.....................................................................................................................28

4.3 Demographic Data of Respondents...................................................................................29

4.3.1 Sex of Respondents............................................................................................................................29

4.3.2 Age Distribution................................................................................................................................30

4.3.3 Educational Level of Respondents...................................................................................................31

4.3.4 Respondents Tourism activities.......................................................................................................32

4.3.5 Tourism Enterprises Employees’ Years of Service........................................................................33

4.3.6 Respondents’ Average Monthly Income.........................................................................................34

4.4 Ways in which Tourism Contributes to Unemployment Reduction..............................35

4.5 Challenges to Participation in Tourism and Creating Job Opportunities....................38

4.5.1 Challenges at Local Level.................................................................................................................39

1. ZEWDE ZAFA _ ____