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Sustainable tourism investment financing in Eastern Africa

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Published
2020-03
Author(s)/Corporate Author (s)
United Nations. Economic Commission for Africa;
United Nations. Economic Commission for Africa;
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Abstract
Tourism has become one of the world largest economic sectors, with uninterrupted growth since the 1950s. Many countries continue to be or have become accessible to an ever-increasing tourist population in search of new destinations and experiences. According to the UNWTO, international tourist arrivals have been growing at an average annual rate of 4% since 2010 and exceeded the milestone of 1 billion a year for the first time in 2012. By 2017 they had surpassed 1.3 billion and are forecast to grow to 1.8 billion by 2030.Many Eastern Africa Member States view tourism as a sector that could attract investment. They have, therefore, included it in their investment prospectuses. Accordingly, this study reviews tourism investment and financing models that could be relevant in facilitating sustainable growth and development of the sector in Eastern Africa. The review includes public sector-led, private sector-led and public-private partnership (PPP) models of sustainable tourism investment financing. Each model offers its own sources of financing, ranging from domestic commercial banks and development finance institutions, to regional and international finance institutions, to social impact investors. The study examines policy measures that could facilitate the different types of investments. Since tourism is an industry with linkages in many other sectors and relies on many small business operators at destination level, challenges impacting SME involvement in tourism were examined and relevant strategies have been recommended to enhance their participation in tourism development projects.
Citation
“United Nations. Economic Commission for Africa; United Nations. Economic Commission for Africa (2020-03). Sustainable tourism investment financing in Eastern Africa. Addis Ababa. © UN. ECA. https://hdl.handle.net/10855/43800”
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https://hdl.handle.net/10855/43800
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  • Economic Development [7952]
 

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