Business and economics department of hospitality management PDF
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HAWASSA UNIVERSITY
COLLAGE OF BUSINESS AND ECOMOMICS
DEPARTMENT OF HOSPITALITY MANAGEMENT
POST GRADUATE STUDIES IN HOSPITALITY MANAGEMENT
ADVANCED TOUR AND TRAVEL BUSINESS OPERATION
Term Paper on History and Operation of Hotel and Airline Business in Ethiopia
Prepared by:
Name Id number
Simon Shemelash GPHOSMR/0018/14
Submitted to: MR. Amare Y. (Assistant Professor)
December, 2021
Hawassa, Ethiopia
COLLAGE OF BUSINESS AND ECOMOMICS
DEPARTMENT OF HOSPITALITY MANAGEMENT
POST GRADUATE STUDIES IN HOSPITALITY MANAGEMENT
ADVANCED TOUR AND TRAVEL BUSINESS OPERATION
Term Paper on History and Operation of Hotel and Airline Business in Ethiopia
Prepared by:
Name Id number
Simon Shemelash GPHOSMR/0018/14
Submitted to: MR. Amare Y. (Assistant Professor)
December, 2021
Hawassa, Ethiopia
I
Table of Contents
1. Introduction ............................................................................................................................. 1
2. History of Hospitality Industry................................................................................................ 2
2.1 History of Hotel Industry in Ethiopia.................................................................................... 2
2.2 Operation of Hotel Industry in Ethiopia................................................................................ 3
3. History of Ethiopian Airlines .................................................................................................. 4
3.1 Operations of Ethiopian Airlines .......................................................................................... 5
3.2 Ethiopian Airline Performance.............................................................................................. 6
4. Conclusion ............................................................................................................................... 8
References
Table of Contents
1. Introduction ............................................................................................................................. 1
2. History of Hospitality Industry................................................................................................ 2
2.1 History of Hotel Industry in Ethiopia.................................................................................... 2
2.2 Operation of Hotel Industry in Ethiopia................................................................................ 3
3. History of Ethiopian Airlines .................................................................................................. 4
3.1 Operations of Ethiopian Airlines .......................................................................................... 5
3.2 Ethiopian Airline Performance.............................................................................................. 6
4. Conclusion ............................................................................................................................... 8
References
1
1. Introduction
Tourism is a huge global industry containing several sectors such as restaurants, transportation,
hotels and travel services. Every single sector plays its own important role to tourism
development and improvement (Ebisa et al., 2013). Hospitality is one of the sectors within the
giant tourism industry (Rahimi, 2007). Hotels are one of the greatest major organizations in the
field of hospitality in providing services and also play a necessary role in growing the tourism
industry and developing economic conditions (Sotoudeh, 2006).
The hotel industry comprises numerous services, containing accommodation, restaurants, cafes,
and catering. The hotel industry market, particularly hotels in Ethiopia and other developing
country, is closely associated with the tourism industry, because high numbers of consumers for
the sector services come from international tourists (Ebisa et al., 2013). The international total
number of tourists arriving in Ethiopia is gradually increasing. Addis Ababa has been taking the
lion’s share in the county’s tourist arrivals hosting an estimated 95-99% of the total international
tourist arrivals, because of entryway of all international inbound, outbound and transit tourists/
passengers of the country (MoCT, 2011).
Transport does not only mean just travel. Transport connects people, it provides access to jobs,
communities and goods, it delivers an important social services. Historically, individual transport
methods have progressed at different rates and times, from the decline of horse-drawn carriages
to the growth of the car, or the coming of canal freight to the expansion of the railways
(Vallance, 2019).
In addition to the tourism and hospitality sector, transportation also plays a vital role in any
economic, culture, social and industrial development of any country. Transportation is the
movement of human, animal and goods from one location to another. Now days we are using so
many method for transportation like air, land and water. Air travel remains a huge and
developing industry. It encourages monetary development, world trade, around the world
investment and tourism and is subsequently central to the globalization taking place in various
other industries (IATA 2015 as cited in (Gebeyew 2017).
In the world, the airline industry consists of a vast network of routes that connect cities
throughout the country (Wensven, 2007). Airlines all over the world are currently showing
strong growth in both traffic and profits because of a passenger boom, lower distribution costs,
and increased cooperation through alliances (Goeldner and Ritchie, 2003).
1. Introduction
Tourism is a huge global industry containing several sectors such as restaurants, transportation,
hotels and travel services. Every single sector plays its own important role to tourism
development and improvement (Ebisa et al., 2013). Hospitality is one of the sectors within the
giant tourism industry (Rahimi, 2007). Hotels are one of the greatest major organizations in the
field of hospitality in providing services and also play a necessary role in growing the tourism
industry and developing economic conditions (Sotoudeh, 2006).
The hotel industry comprises numerous services, containing accommodation, restaurants, cafes,
and catering. The hotel industry market, particularly hotels in Ethiopia and other developing
country, is closely associated with the tourism industry, because high numbers of consumers for
the sector services come from international tourists (Ebisa et al., 2013). The international total
number of tourists arriving in Ethiopia is gradually increasing. Addis Ababa has been taking the
lion’s share in the county’s tourist arrivals hosting an estimated 95-99% of the total international
tourist arrivals, because of entryway of all international inbound, outbound and transit tourists/
passengers of the country (MoCT, 2011).
Transport does not only mean just travel. Transport connects people, it provides access to jobs,
communities and goods, it delivers an important social services. Historically, individual transport
methods have progressed at different rates and times, from the decline of horse-drawn carriages
to the growth of the car, or the coming of canal freight to the expansion of the railways
(Vallance, 2019).
In addition to the tourism and hospitality sector, transportation also plays a vital role in any
economic, culture, social and industrial development of any country. Transportation is the
movement of human, animal and goods from one location to another. Now days we are using so
many method for transportation like air, land and water. Air travel remains a huge and
developing industry. It encourages monetary development, world trade, around the world
investment and tourism and is subsequently central to the globalization taking place in various
other industries (IATA 2015 as cited in (Gebeyew 2017).
In the world, the airline industry consists of a vast network of routes that connect cities
throughout the country (Wensven, 2007). Airlines all over the world are currently showing
strong growth in both traffic and profits because of a passenger boom, lower distribution costs,
and increased cooperation through alliances (Goeldner and Ritchie, 2003).
2
1. History of Hospitality Industry
The hospitality industry is one of the essential components of the tourism sector of an economy.
It refers to hotels, resorts and other lodging service giving businesses within the tourism sector
where its economic reach is uncommonly broad. Hotels also provide a forum for business
meetings, trade shows and conventions that are an essential catalyst of economic growth (ILO,
2010). Hospitality is a major global growth industry. There are now some 12.7 million hotel
rooms around the world and the number of new rooms planned or under development (1.3
million) equates to more than 7% of the existing worldwide, while in the Middle East and Africa
which together are responsible for almost half of the new rooms under construction the share is
more than 20% (Africa Travel Association, 2010). According to the Ethiopian Ministry of
Culture and Tourism, the number of hotels in the country has significantly increased particularly
over the last few years. Just a decade ago there were only 50 to 60 hotels while there are
currently some 350 (about 100 of them in Addis) that are expected to fall under five-star to basic
rating categories that can provide services ranging from highly rated to the basic ones. These
hotels are expected to accommodate 20,000 to 30,000 guests where the presence of lodges and
guests houses will increase that number (The Ethiopian Tourism bulletin, 2012).
2.1 History of Hotel Industry in Ethiopia
The history of hospitality sector in Ethiopia was started during the period of Emperor Menelik II
the first modern hotel of Ethiopia was Taitu Hotel built in the beginning of 1900s, assumed to be
the first modern hotel in Ethiopia. It was named after its founder Empress Taitu Betul, wife of
emperor Menelik II. It was constructed particularly for providing service to foreigners as
impressive place to rest and dine.
The building of Itege Taitu Hotel is a museum complete of antique fixtures and finely decorated.
Taitu Hotel is found in the center of Addis Ababa commonly known as Piazza. The hotel has 264
anciently decorated bedrooms, with diversified important facilities. Today, the hotel offers a lot
of history and inexpensive private rooms for only a few bucks a night (Tsegay, 2017).
Hilton is also another great 12 story establishment of Ethiopia which opened its door over four
decades ago. It was opened in 1969 by Emperor Haile Selassie. Together with the exquisite
garden wing extension, the complex offers a total of 402 rooms. The architectural design is
centered on the Lalibela Cross, one of the most popular tourist attractions in Ethiopia which is
also as considered the 8th wonder of the world. Blending traditional Ethiopian cultures with
contemporary style, Hilton Addis Ababa was designed to mirror the famous Lalibela Cross. It
has a geothermal outdoor swimming pool, spa, tennis court, and an 18-hole golf course. With six
distinctive restaurants and bars, Hilton Addis Ababa gives an enticing range of cuisine including
the popular poolside Sunday brunch with live music; music; that is a way of life that has been
stored for a long time (Eden, 2015).
The evolution of hospitality industry in Ethiopia, before, 1991 Ethiopia was struggling to be in
the list of the hospitality sector. The well known13 months of Sunshine slogan which was
1. History of Hospitality Industry
The hospitality industry is one of the essential components of the tourism sector of an economy.
It refers to hotels, resorts and other lodging service giving businesses within the tourism sector
where its economic reach is uncommonly broad. Hotels also provide a forum for business
meetings, trade shows and conventions that are an essential catalyst of economic growth (ILO,
2010). Hospitality is a major global growth industry. There are now some 12.7 million hotel
rooms around the world and the number of new rooms planned or under development (1.3
million) equates to more than 7% of the existing worldwide, while in the Middle East and Africa
which together are responsible for almost half of the new rooms under construction the share is
more than 20% (Africa Travel Association, 2010). According to the Ethiopian Ministry of
Culture and Tourism, the number of hotels in the country has significantly increased particularly
over the last few years. Just a decade ago there were only 50 to 60 hotels while there are
currently some 350 (about 100 of them in Addis) that are expected to fall under five-star to basic
rating categories that can provide services ranging from highly rated to the basic ones. These
hotels are expected to accommodate 20,000 to 30,000 guests where the presence of lodges and
guests houses will increase that number (The Ethiopian Tourism bulletin, 2012).
2.1 History of Hotel Industry in Ethiopia
The history of hospitality sector in Ethiopia was started during the period of Emperor Menelik II
the first modern hotel of Ethiopia was Taitu Hotel built in the beginning of 1900s, assumed to be
the first modern hotel in Ethiopia. It was named after its founder Empress Taitu Betul, wife of
emperor Menelik II. It was constructed particularly for providing service to foreigners as
impressive place to rest and dine.
The building of Itege Taitu Hotel is a museum complete of antique fixtures and finely decorated.
Taitu Hotel is found in the center of Addis Ababa commonly known as Piazza. The hotel has 264
anciently decorated bedrooms, with diversified important facilities. Today, the hotel offers a lot
of history and inexpensive private rooms for only a few bucks a night (Tsegay, 2017).
Hilton is also another great 12 story establishment of Ethiopia which opened its door over four
decades ago. It was opened in 1969 by Emperor Haile Selassie. Together with the exquisite
garden wing extension, the complex offers a total of 402 rooms. The architectural design is
centered on the Lalibela Cross, one of the most popular tourist attractions in Ethiopia which is
also as considered the 8th wonder of the world. Blending traditional Ethiopian cultures with
contemporary style, Hilton Addis Ababa was designed to mirror the famous Lalibela Cross. It
has a geothermal outdoor swimming pool, spa, tennis court, and an 18-hole golf course. With six
distinctive restaurants and bars, Hilton Addis Ababa gives an enticing range of cuisine including
the popular poolside Sunday brunch with live music; music; that is a way of life that has been
stored for a long time (Eden, 2015).
The evolution of hospitality industry in Ethiopia, before, 1991 Ethiopia was struggling to be in
the list of the hospitality sector. The well known13 months of Sunshine slogan which was
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