Algeria plans to put tourism at the forefront of a drive to diversify the economy, attract foreign direct investment and create jobs. While the country has faced tough competition from neighbouring Morocco and Tunisia - both well-established tourism destinations - to attract more visitors and revenues, major initiatives have been launched with the aim of improving its position.
While around 1.9m tourists visited in 2009, a year-on-year increase of almost 8%, the vast majority of them - or around three-quarters - were Algerian expatriates returning home. Revenue generated by tourism in Algeria for that year was estimated at $330m, compared to $3.4bn in Tunisia.
A National Tourism Development Plan (Schéma Directeur d'Aménagement Touristique, SDAT) launched in 2008 aims to increase the number of tourists to 2.5m by 2015 and 20m by 2025. The plan features five main pillars: promoting Algeria as a prime tourist destination, developing high-quality tourist centres, introducing quality controls, encouraging public-private partnerships and attracting investment.
The government has recently taken steps to tap into Algeria's potential as a destination for eco-tourism and beach holidays. On December 9, the tourism ministry declared that 48bn Algerian dinars ($624m) would be mobilised to renovate and modernise 47 hotels and resorts built across the country in the 1970s. While the package is still awaiting approval by the Council of State holdings (Conseil des participations de l'Etat, CPE), AD2bn ($26.9m) will be allocated immediately to the renovation of nine hotels in the south of the country.
Similarly, 49 agreements for tourism projects were signed with Algerian investors on the sidelines of the 11th International Tourism and Travel Show (SITEV 2010), which took place in Algiers at the beginning of December. The hotel projects are expected to create 7767 jobs and expand capacity by 5200 beds. Coming on top of 474 projects launched by the SDAT back in 2008 - representing a total bed capacity of 45,000 and generating 68,000 jobs - the new developments will bring capacity up to 50,000 beds (with the government aiming for 70,000 beds by 2015). In early December, Mr. Mimoun also announced the construction of 20 bungalow-style holiday villages, including six in the Sahara and 14 in the country's northern regions.
The renovation and modernisation of the five-star Hotel El Aurassi, estimated at $75.6m, and launched as part of the SDAT plan in late October 2009, will be completed in July 2011. The construction of 24 hotels by the Mehri group - in partnership with the French chain Accor - is also on track. The first hotel opened close to Houari Boumediene Airport at the end of January 2009, and four more are under construction in Constantine, Oran and Tlemcen.
To ensure private tourism ventures are up to international standards, the government has adopted the Quality Tourism Plan Algeria (Plan Qualité Tourisme Algérie, PQTA). Under the plan, tourist businesses will work with researchers to identify weaknesses and areas for improvement. The ministry's own research department will then conduct anonymous inspections to determine whether the businesses are working up to standard. As of the end of 2010, only 10% of tourist facilities in Algeria had joined the programme.
The government has also highlighted the importance of training in the tourism sector. There remains a lack of Algerian hotel schools that offer specialised training, however, new training programs have been launched. For instance, the Tourism Management Company (Entreprise de Gestion Touristique EGT) of Annaba and the Tourism Training Institute of Tizi Ouzou, specialising in training for hospitality and tourism, have signed a partnership agreement to train the EGT's staff.
At the 2010 SITEV conference Frédéric Perret, the representative of the secretary-general of the UN World Tourism Organization (UNWTO), said the Algerian tourist sector has significant potential "[thanks to] its Mediterranean beaches, its fascinating Djurdjura [National Park] and its human, cultural and historical treasures."
Significant obstacles in the way for the industry's growth remain a lack of quality infrastructure is one of them, and crucially for tourists, security. According to a survey published last October by the Gallup polling group, only 39% of Algerians feel safe walking alone at night in the city where they live.
© Oxford Business Group 2011
