Sustainable Tourism Projects

Scenes in Djibouti City

Photo by UNDP Djibouti

Sustainable Tourism Projects
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Hospitality and Recreation
Business Model Description

Invest in eco- and community-based tourism, including construction and operation of hotels and other infrastructure and services that are environmentally friendly and that rely on local value chains

Expected Impact

Improve job opportunities for rural communities in regions with high tourism potential, and reduce the environmental damage caused by conventional tourism.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 50 million - USD 100 million
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Responsible Consumption and Production (SDG 12)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Sustainable Cities and Communities (SDG 11) Gender Equality (SDG 5)
Sector Sources
  • 1) International Trade Centre (ITC). Services Snapshot Djibouti. 2012. 2) International Trade Centre (ITC). Trade in Services. 2021. 3) AfDB, OECD, UNDP and UNECA. African Economic Outlook - Djibouti. 2012. 4) International Monetary Fund (IMF). Staff Report and Statement by the Executive Director for Djibouti. 2019. 5) African Development Bank (AfDB). Djibouti Economic Outlook. 2021. 6) International Centre for Trade and Sustainable Development. The Gender Dimensions of Services. 2016. 7) Djibouti Ports & Free Zones Authority. Djibouti International Free Trade Zone. 2019. 8) Republic of Djibouti. Vision Djibouti 2035. 2014. 9) Anadolu Agency. Djibouti: Investments needed to draw more tourist. 2018. 10) Oxford Business Group. Djibouti to capitalise on recent tourism industry accolades, with plans to improve accessibility. 2018.
IOA Sources
  • 11) Bale Mountain Lodge. Ecotourism. 2021. 12) Terres d'Amanar. Ecotourism. 2021. 13) Feasibility Study on Tjiri Lodge conducted by promoter. N.d. Not publicly available. 14) Hôtel et Spa Thermal du Lac Abbé. Project Brochure. N.d. Not publicly available. 15) World Bank. International Tourism, Number of Arrivals - Djibouti. 2021. 16) Knoema. Djibouti - International Tourism Receipts. 2018. 17) World Charter for Sustainable Tourism. The Return on Investment for Sustainable Tourism. 2015. 18) BizCommunity. How building eco-friendly hotels can help develop ROI. 2018. 19) PNUD Djibouti. 2018. Plan Cadre des Nations Unies pour l'Aide de Developpement. 2018-2022. 20) Oxford Business Group. 2018. Djibouti to capitalise on recent tourism industry accolades, with plans to improve accessibility. 21) Republic of Djibouti. Plan de development rural de Tadjourah. 2017. 22) Republic of Djibouti. Plan de Development Rural de Dikhil. 2017. 23) Republic of Djibouti. Plan de Development Rural de Obock. 2017. 24) Regional Investment Conference Tourism. Country Profile Djibouti. 2007. 25) Republic of Djibouti. 2015. Strategy of Accelerated Growth and Promotion of Employment. 26) Republic of Djibouti. 2019. Loi N° 45/AN/19/8ème L d'orientation stratégique pour le développement et la promotion du tourisme en République de Djibouti. 27) Republic of Djibouti. 2014. Loi N° 55/AN/14/7ème L portant organisation du Ministère délégué auprès du ministère de l'économie et des finances chargé du commerce, des PME, de l'artisanat, du tourisme et de la formalisation.