Tourism earnings, contributions to exports and Gross Domestic Product (GPD)

Foreign exchanges earnings have been increasing steadily in Somalia over the past ten years representing an appreciable growth.

While tourism is sensitive to the level of economic activity in the tourist generating countries, it provides higher and stable earnings than those primary products. Tourism earnings have tended to increase at higher rate than earnings from other export commodities in a number of countries the earnings incurred are in turn used to offset shortfalls on the visible trading account, and hence are of critical importance in the financial reckoning.

Tourism contributes greatly to government revenue through license fees, customs and exercise duty, VAT on tourism services landing fees, passenger service charge, entry fees to game parks as well as income tax levied on employees in the tourism industry. The generated revenues play a pivotal role in the overall development of the economy.

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