The government outlined tourism as a key sector in the Djibouti Vision 2035 development strategy, focusing on further developing the business tourism sector as well as boosting the country’s reputation as a leisure tourism destination, supported through the establishment of ecotourism offerings over the next decade.
Business Tourism
Around 98% of current visitors travel for business purposes, a figure that the government hopes to decrease to 12% by 2030 as it invests in the country’s leisure tourism infrastructure and promotional campaigns. Djibouti has room to expand many of the facilities and services associated with work visits, with a relatively underdeveloped meetings, incentives, conferences and exhibitions (MICE) market offering significant potential for investment growth.
New resorts seek to address the lack of MICE facilities, including the planned Radisson and Accor Fairmont Djibouti, both set to open in 2024. The two hotels will include business centres and conference facilities, as well as bars and restaurants. Nakheel Hospitality’s 400-room Djibouti Palace Kempinski, for its part, has a conference room and business facilities.
The government also hopes to attract business tourists to regions of the country beyond Djibouti City. Improved transport links and international awareness of historical and natural sites could prompt business travellers to extend their work trips to explore more of the country. The government hopes to attract foreign investment in transport and hospitality infrastructure, which will support these efforts to encourage leisure and business travellers to visit sites outside the capital.
Ecotourism
The UN Development Programme (UNDP) has highlighted sustainable tourism projects as a major investment opportunity under the UN Sustainable Development Goals (SDGs) for 2030. Greater funding for ecotourism is expected to have a direct impact on two SDGs – direct work and economic growth, and responsible consumption and production. The UNDP predicts a return on investment of between 15% and 20% over five to 10 years. It identifies the domestic market size as between $50m and $100m, with a typical investment ranging from $1m to $10m.
The UNDP suggests that investment in ecotourism would provide opportunities in rural areas, helping to improve infrastructure and create jobs, particularly for women. Successful ecotourism projects that have been carried out in other African countries, such as the Little Etosha Lodge and the Tjiri Lodge in Namibia, which have achieved an internal rate of return of 24.2% and 21.35%, respectively, offer a framework for Djibouti to follow.
Three areas outside of Djibouti City have been highlighted as having potential for ecotourism development. The first, Obock, is one of the oldest settlements in Djibouti and the home of French colonialism in the region, where the Governor’s House and the French Marine Cemetery are located. The second, the semi-urban area of Tadjoura, is home to the Gran Bara and Petit Bara deserts, and includes the tourist site of Lake Abhe, a salt lake. The third, the rural Dikhil region, is where the Garbes Fumarole volcano is located.
The government has included climate action in its Vision 2035 strategy, in line with UN climate commitments. It is positioning the country to become a model for sustainable development in the Red Sea region through several initiatives, including national strategies for a green economy and biodiversity; the introduction of a conditional target to reforest 1000 ha in its agro-forestry system; and the rehabilitation of mangroves and coral reefs to enhance their role as a coastal shield against tides and erosion.
The well-established business tourism sector will be developed through the expansion of the MICE segment, supported by the construction of several large-scale hotels with conference facilities. Meanwhile, the focus on ecotourism as a main driver of leisure travel will help establish Djibouti as a sustainable tourism destination in the region, attracting a greater number of tourists to natural and cultural attractions beyond the capital city.
Read More from OBG
