Addis Ababa, July 3, 2025 (FMC) — Over 1.5 million people visited tourist destinations in the capital, generating more than half a billion birr in revenue, Prime Minister Abiy Ahmed (PhD) told members of the House of People’s Representatives.
Responding to questions during the House’s 42nd regular session, the Prime Minister said that major developments in the service sector—particularly in tourism, transport, telecommunications, and trade—have contributed significantly to Ethiopia’s growth. He noted that the service sector is expected to register 8.1 percent growth this year.
According to the Prime Minister, more than 1.3 million foreign tourists visited Ethiopia this year, drawn by improved infrastructure, immigration reforms, Ethiopian Airlines’ expansion, and enhanced urban environments. In the capital, Unity Park, Friendship Park, the Science Museum, and the National Palace attracted 1.5 million domestic and international visitors. These sites alone generated over half a billion birr in tourism revenue.
Ethiopian Airlines continues to play a central role in this growth. It purchased 13 new aircraft this year, expanding its fleet to 180 planes. The airline has also added six new international destinations, increasing its network to 136, and transported over 19 million passengers this year.
The country’s railway sector, previously unable to cover operational costs, has now become a contributor to the national economy. Rail infrastructure has supported Ethiopia’s import-export trade, particularly in the transport of coffee and livestock, the Prime Minister noted.
The tourism boom has been further supported by extensive corridor development projects. In Addis Ababa and other cities such as Gondar, Bahir Dar, Bishoftu, and Jimma, these initiatives have improved urban sanitation, aesthetics, and quality of life. By the end of August, over 20,000 projects—including roads, health centres, schools, and parks—will be inaugurated across the country.
To support the country’s urban and rural growth, housing has also been prioritized. About 1 million homes have been built in the past five years, with more than 265,000 currently under construction. Over 100,000 homes have been renovated through rainy season volunteer campaigns. New housing corridor initiatives are underway in rural areas to promote balanced development.
The Prime Minister said the achievements in tourism, urban development, and housing demonstrate the growing contribution of Ethiopia’s service sector to the broader economy, supporting the country’s goal of 8.4 percent national growth this year.