Following the outbreak of the Covid-19 pandemic, which restricted visitor numbers staring in 2020, Djibouti reopened its borders to tourists in April 2021. With tourism identified by the government as a crucial pillar of future economic growth and job creation, Djibouti is working to expand its offerings, including exploring its potential to establish a sustainable ecotourism segment and attract a greater number of leisure arrivals over the coming decade.
Djibouti is aiming to reach 500,000 visitors annually by 2035, and the tourism industry is expected to play a key role in the country’s economic diversification goals under Djibouti Vision 2035. Currently, the tourism sector is underexploited, although there is potential for it to grow significantly as the country gains recognition as an international destination.
Structure & Oversight
The National Tourism Agency of Djibouti (Agence Nationale du Tourisme de Djibouti, ANT) was formed in 1969 to oversee, develop and promote the tourism sector. Another major player in the sector is the Ministry of Environment and Sustainable Development is responsible for implementing the country’s wider environmental policies and initiatives, and supports the government’s objective of establishing a sustainable tourism industry.
The government designated tourism as a priority industry in the Djibouti Vision 2035 strategy, which makes it eligible for funding from the Economic Development Fund of Djibouti (Fonds de Développement Economique de Djibouti, FDED), while also helping to attract private investment. The FDED provides businesses with loans of $19,700-280,000 with an interest rate of 6% or lower, as well as financial support of $19,700-39,400 to graduates looking to launch environmentally friendly tourism businesses.
In 2022 the Ministry of Commerce and Tourism worked with the UN Economic Commission for Africa to validate the national strategy for the implementation of the African Continental Free Trade Area (AfCFTA). Under this strategy, Mohamed Warsama Dirieh, minister of commerce and tourism, highlighted tourism, transport, communication, telecommunications and financial services as key sectors. The EU has awarded €8m for the project – officially known as Deepening Africa’s Trade Integration through Effective Implementation of the AfCFTA to Support Economic Integration – to realise these goals.
The development of an e-visa system in Djibouti has made it easier for tourists to enter the country by allowing visitors to apply for a 90-day visa online by completing a simple form.
Performance & Size
Located on the Horn of Africa, bordering Somalia, Ethiopia and Eritrea, and linked to the Middle East via the Red Sea and the Gulf of Aden, Djibouti is a major trade centre, connecting Africa with Asia. Due to its unique location, as well as its French colonial past, Djibouti City has influences from Africa, Asia, the Arab world and Europe, as evidenced by Les Caisses Market, where locals sell a range of artisanal products. The most popular time to visit Djibouti is between November and December, when temperatures fall to 23-29°C, compared to 35-40°C in the summer months.
Although the tourism industry is a relatively nascent stage of development, Djibouti has been recognised by several international tourist guides for its natural beauty and diverse landscapes. In its 2014 report “Country Partnership Strategy for the Republic of Djibouti”, the World Bank stated that only 10% of the country’s tourism potential was being exploited. Djibouti has a wide range of natural offerings, including salt lakes, extinct volcanoes, limestone chimneys, basaltic plateaux and canyons.
In 2018 Djibouti City became the first African city to be awarded the title of World Capital of Culture and Tourism by the European Council on Tourism and Trade (ECTT), which named President Ismaïl Omar Guelleh a World Leader of Tourism earlier that year. Djibouti was also made a host of World Tourism Day 2020, alongside Addis Ababa in Ethiopia, by the ECTT under the theme Tourism: Building Peace! Fostering Knowledge. These efforts have helped to promote the social, cultural, political and economic value of tourism in the Horn of Africa region.
In addition, 10 sites across Djibouti appear on the UNESCO Tentative List, which recognises locations with “outstanding universal importance” that have the potential to be designated as World Heritage sites. In 2020 UNESCO held a consultation with the Ministry of Muslim Affairs, Culture and Endowments to identify a site for nomination to the UNESCO World Heritage List. This recognition may help the government to obtain international investment for conservation and preservation efforts, as well as boost awareness of Djibouti as a tourist destination.
With arrivals continuing to grow each year and expected to reach 500,000 by 2035, tourism could contribute up to 10% to GDP by 2035, an increase from 3% today. The tourism sector is expected to provide around 30,000 direct jobs by 2035, compared to 4500 jobs in 2015, with further indirect jobs in construction, transport and other sectors.
Visitors & Source Markets
In 2021 Djibouti received approximately 114,000 tourists – compared to around 63,000 in 2013 – of which 38% were from France, 29% were from other European countries and 8% were from the US, according to government figures. Recent data shows that visitor spending totalled $57m in 2018, up from $32m in 2017. Business travellers continue to make up around 98% of arrival numbers due to Djibouti’s strong trade links and pipeline of construction projects.
The friends and family of military personnel stationed in Djibouti City make up a large share of tourist arrivals. Five countries currently have overseas military bases in Djibouti: China, France, Italy, Japan and the US. Most military personnel and their visitors remain in the capital during their stay.
Air Links
Although the country is a major maritime trading centre, there is limited connectivity by air at present, though the government is encouraging the opening of new air routes from Europe. The Djibouti-Ambouli International Airport, located around 5 km south of Djibouti City, is the country’s biggest airport, with flights to 10 destinations in Ethiopia, France, Turkey, Qatar, Saudi Arabia, Somalia, the UAE, Yemen and Egypt. In Djibouti Vision 2035, the government outlined its aims to construct two new international airports near Djibouti City and the Seven Brother Islands to establish the country as an important regional centre for air transport.
In 2015 the government approved the construction of a new international airport, the Hassan Gouled Aptidon International Airport. Initially, funding was expected to come from the China Civil Engineering Construction Corporation; however, following increased interest in the project, the contract was suspended in 2017 for retendering. In 2021 France’s Egis Group and ADP Ingénierie, a subsidiary of Groupe ADP, were awarded the contract by the Djibouti Ports and Free Zones Authority. The airport will be located in Bicidley, around 60 km from Ambouli, and is expected to handle 1.5m passengers and 100,000 tonnes of freight annually upon completion.
Djibouti launched its own airline, Air Djibouti, in 1963. It was relaunched in 2015 to begin cargo operations, and added passenger services in 2016, with a new route to Mogadishu, Somalia. Additional routes are being developed to Cairo, Jeddah, Dubai and Nairobi, which will help connect the Horn of Africa with the world and strengthen Djibouti’s status as a regional centre. In addition, the recent opening of the Beira Aviation Academy in collaboration with Canada’s International Pilot Academy is expected to create more skilled jobs and help Djibouti gain a foothold in an increasingly competitive industry.
Meanwhile, the low-cost airline flydubai opened a regular direct service to Djibouti in 2009, which operates three times per week and is helping to increase business travel flows from the UAE. Djibouti receives substantial investment in both its urban and seaport infrastructure from companies in the Middle East, and Dubai-based firms in particular.
Developing a reliable domestic transport network is seen as an important enabler of the country’s longterm tourism sector growth targets. While the roads in Djibouti City are relatively well maintained, those located outside of the capital city are mostly unpaved and are prone to flooding and rock slides. Although there were no domestic flights in operation as of mid-2023, there is a regular ferry service which runs twice per week and connects Djibouti City with Tadjoura. Another ferry service runs three times per week, connecting Djibouti City and Obock; however, the Djibouti City-Obock line temporarily ceases operations during the hottest months of the year.
Hotel Infrastructure
Several mid- and highend hotels have been opened by international and local investors in the last two decades. Dubai-based Nakheel Hospitality completed the first phase of Djibouti’s first five-star hotel, Djibouti Palace Kempinski, in 2006, with 177 rooms and suites, a conference centre, a ballroom and several meeting rooms. It has since been expanded to 320 rooms, a number of restaurants and bars, and a spa.
As of December 2017 there were 39 hotels in Djibouti, with a combined room capacity of 1310 rooms and 2097 beds. According to ANT figures, in 2015 occupancy rates averaged 82.6%, an increase from 78.6% in 2014. Airbnb operates in the country, and there are a number of offerings from local hoteliers. The government hopes to regulate the building materials used in hotels to ensure they reduce heat, as well as incorporate energy-efficient air-conditioning systems, to meet the 2035-50 national tourism objectives.
In 2022 France’s Accor hospitality group announced plans to open a new hotel, the Fairmont Djibouti, in Djibouti City. Construction of the 155-room property is slated to be completed by 2024. The hotel will include 10 serviced apartments, five bars and restaurants, and 1398 sq metres of event space. The hotel is situated next to the beach in Plateau du Serpent, close to the main port, with seafront views.
The US hospitality company Radisson Hotel Group has also announced a property in the centre of Djibouti City, close to a new shopping mall development. The 144-room hotel is being developed in partnership with Djibouti-based Salaam Properties and is expected to open in 2024, adding to Radisson’s 18 mid-scale to luxury offerings across the African continent. The property will be equipped with several restaurant and bar options, event spaces, a spa, a gym and an outdoor swimming pool. Radisson also highlighted the potential for further developments in the threestar segment in Djibouti to take advantage of limited international competition in the market at present.
Luxembourg’s Onomo Hotels, meanwhile, is planning the development of a 100-room hotel in Djibouti City. The hotel will be in the mid-scale range and will include a restaurant-bar, conference space, a swimming pool and a fitness centre. Funding for the project is being provided by the World Bank Group’s International Finance Corporation, in support of job creation in the hospitality sector.
Domestic and regional players are also active in the three-star segment. A local investor and property developer, for example, is behind the soon-to-beopening Gadileh resort hotel under The Gadileh Palm Village project. The first phase of the fully subscribed project consists of roughly 30 villas overlooking an 800m cornice by the sea and the Gulf of Tadjoura. Furthermore, a private Ethiopian investor has launched a project for a hotel complex comprising of roughly 42 bungalows and a spa on Moucha island.
Training
Considering the small population of Djibouti – just over 1m in 2021 – training schemes will be a vital element in the development of skilled human capital as arrivals to the country increase.
In line with this focus, the ANT and the Ministry of National Education and Vocational Training inaugurated the Arta Hotel Industry and Tourism Trades Training Centre (Centre Sectoriel de Formation aux Métiers de l’Hôtellerie et du Tourisme d’Arta, CSFMHT) in 2018, located 40 km outside Djibouti City. The CSFMHT trains youth to work in the hospitality sector, as well as providing additional training for individuals already working in the sector.
Unemployment stood at 28.4% of the working-age population in 2021. The government aims to tackle unemployment by preparing the country for an increase in tourism and training youth to work in the hospitality industry. New tourism jobs are expected to increase employment opportunities for women in particular; around 39.4% of the female working-age population was unemployed in 2021.
Ecotourism
To date Djibouti has primarily been visited by adventure tourists interested in exploring its unique natural offering. While the government has attracted investment for the development of Djibouti City’s infrastructure, as well as road links from the city – expanding the country’s road network from 700 km to 2900 km since 2010 – most natural sites are only accessible to off-road vehicles.
Sustainable expansion of transport links will improve visitors’ access to the country’s sites while emphasising Djibouti’s value as a sustainable tourism destination. The ANT has been promoting Djibouti as an ecotourism destination in the East Africa region, highlighting its many untouched historic and natural sites. Additionally, there is a significant opportunity to develop the ecotourism segment with financial support from international organisations and investors.
Djibouti is already known for hosting the annual Whale Shark festival in the Gulf of Tadjoura, providing travellers with the opportunity to swim with whale sharks between October and February. Home to a large coral reef with around 200 species of coral, Djibouti also has scope to develop its diving tourism industry. The currents in the narrow opening between the Red Sea and the Indian Ocean bring a wide array of marine species to the region. While the conditions are more appropriate for expert divers, open-water divers may be able to access the zone with a guide. The government is currently seeking investment to establish Ras Siyyan as a new destination resort for diving aficionados in the region.
The Seven Brother Islands – remote, uninhabited islands in the Bab Al Mandab Strait also known as the Sawabi Islands – offer some of the most biodiverse diving in the Red Sea. There are further diving options at Ghoubet Al Kharab, or Devil’s Goblet, a large bay connected to the Gulf of Tadjoura and the Djibouti Crack. As the diving segment develops, there should be greater impetus to train diving instructors that can operate tours on registered tourist boats in the region.
Marketing
Several initiatives have been carried out to promote domestic and international tourism. Following the pandemic, the ANT launched a social media campaign marketing Djibouti as a destination for domestic travel, to offset the decline in international arrivals. “What has changed is our approach to tourism promotion. Since our target audience is a national audience, we had to lower the prices of tourist attractions, hotels or tourist packages to make them accessible to Djiboutians. We, therefore, collaborated with hotel managers who agreed to participate in this initiative in order to give a preferential price to Djiboutians,” Kadoug Ibrahim Houssein, head of communication and marketing at the ANT, told local media.
A national marketing plan was rolled out to promote beach areas and encourage their clean-up and maintenance. Flower villages – areas decorated with floral arrangements – will also be included in future promotional activities. The government hopes to draw visitors from existing markets as well as tap new markets, including China, Ethiopia and Germany.
Osman Abdi Mohamed, director-general of the ANT, highlighted the importance of tourism development, because natural sites are the sector’s assets. The government launched a strategy in 2018 for the development of a sustainable tourism sector, encouraging operators to organise tours with a socially and environmentally responsible approach that focuses on generating income for local communities.
Outlook
Government and private sector efforts to develop Djibouti as a destination for sustainable and adventure tourism are expected to encourage a greater number of international travellers to visit the country within the next decade. Major hotel resort projects and the development of a well-trained hospitality workforce will draw both domestic and international tourists to Djibouti City, with the potential for further development outside of the capital city. Investment in domestic transport links, including improved road and rail infrastructure, as well as the potential for new flight routes, could see the tourism sector expand significantly in the coming years.
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