Project Owner: Mr.

Habtamu Mengesha
South West Ethiopia People Regional State,Bench Sheko Zone,Mizan Aman Town,Addis ketema
Kebele,Woshikin special Village

The Applicant
Promoter
Mr. Habtamu Mengesha
Region: South West Ethiopia People Regional State

Zone: Bench- Sheko Zone

Nationalities Ethiopian

The Project

Name
Habtamu Mengesha Cultural Eco Lodge
Address: Mizan-Aman Town Administrative

Region: South West Ethiopia People Regional State

Bench-Sheko Zone, Mizan-Aman Town Administrative,Addis Ketema

Zone: Kebele,Woshikin specialvillage

Project Details

Type of the project Cultural Eco Lodge

Products To offer a complete package Cultural Center & Resort standard of lodging and
dinning, recreational amenities for tourists/visitors

Status of the business: New

Investment Request

Date of Applications May ,2025GC

Land 9,000 m2 : Lease Agreement

Description of  To conserve the Beanch-Sheko people Heritage & Indigenous Culture

Project /Purpose  To serve as a place where tourists, visitors, vacationers and leisure travelers
could stay overnight, dine, and enjoy the breathtaking view of Mizan-
AmanForest Coffee side landscape of the forest with various endemic birds
 and tourisms attractions.
 To offer a complete package Beanch-Sheko Cultural Lodge/Eco lodge for
tourists/visitors,
 130 bed rooms
 55 Single, 45 Classic, 25 Family , and 5 Suite
 And conference hall for different clients for holding
meetings/seminars.
 Will have also healthiness and recreational facilities like
Sauna and massage
Gymnasium and Swimming Pool
Children Play Ground
 Beauty salon, shops, and front desk services.
 Travel Agency

Benefiters of the project JOB CREATIONS for 63 Employees

Project Construction One Year

Duration

Project Investment cost 25,600,000.00 ETBIRR,

Is estimates as Project Investment Cost for the establishment

of the Project,

Project Source of Finance Project will be partial finance from bank loan
:
25 % Entrepreneurs Equity (Cash)……. Birr 7.07 Million Birr

75 % Loan……………………..………. Birr 18.529 Million Birr

 1.1 Description of Proposed Development

The planned development on the site will be the following:

1. Accommodations/lodging/,
2. Restaurant,
3. Kitchen,
4. Cafeteria
5. Mini to medium sized conference halls,
6. Souvenir shop
7. Gymnasium,
8. Children entertainment facilities and play ground for children,
9. Green area and Parking

Eyasu Eco - lodge puts its focus on ensuring sustainability and ecological standards, as the site is located
in one of the most important biodiversity hotspots worldwide.

The proponent strongly gives emphasis to minimize the possible negative impacts of the development
intervention. The lodge and the services rendered will take into account the unique feature of the site.
The expected Buildings, structures and other constructions of Eyasu Eco- lodge will for the part be made
out of locally grown wood, nearby produced wall bricks, natural stone blocks from the close by quarry
and other building material produced

2.1. Project Benefits/Project justification/

The envisaged project can be justified by the benefits it delivers to the country, the promoter and
the local communities. The main justifying points are explained as follows;

The project will contribute immensely to the tourism industry in particular and changing of
country’s image in general by creating internationally accepted standard facilities,
The investment will benefit the country in generating hard currencies and in boosting the
GTP program,
The project will benefit the local communities through creating job opportunities and
markets for their products to be supplied for the hotel.

Increase investment with multiplier effect to the national economy,

 2.2. Objectives
The primary objective of the project has many folds, but targeting at the promotion of the
country’s tourism industry through modern families and contribute in making the country one of
the best tourist destinations in the world and encourage other Diasporas invest in their country.
The common objectives are;
 To establish and run modern a Five star Lodge
 To help develop the tourism sector of the region/country
 To generate profit from invested capital
 To create job opportunities for local community
 To generate revenues for the country in the forms of taxations and rents.
2.3. Technology and Techniques to be used

Obviously, as this is5-star designatedLodgeservices, the project will utilize Five star standard
hotel industry’s technologies as indicated in the background of this project and techniques in
serving the customer. Hence, the following activity flow, technologies and techniques are
common in hotel construction and services operations.

2.4. Service Provision capacity and Capacity utilization

The production capacity of the project is estimated based on the services the envisaged hotel is
going to provide and these are indicated in the following table.
Table1. Service Provision capacity oflodge service project
No Main services Unit Full capacity operation
1 Bed rooms pcs 100
Bar
1. Alcoholic beverages Lit 2000
2 2. None alcoholic beverages Lit 5000
3. Hot beverages
Cups 30000
4. Foods
Dish 80000
Other services
3 1. Meeting /conference service Occasion 12(once a month on average)
2. Weeding service “ 24(twice a month on average)
The project will utilize 50% of its capacity in the first year of operation, 75% its capacity in the
second year and 100% in the third year of operations.

3. Market prospect
Marketing opportunities for hotel servicesare directly linked with the level of the
country’s/regional/ economic and tourism development. As the region’/Country’s economy
develops, the citizens’ income improves and as income of the citizens improves they certainly start
looking for knowing their surrounding and their whole nation historical and natural attraction
hence the domestic tourist travelling culture will be developed. Similarly, as the country’s
infrastructure developed and its stability and security issues are insured, international tourist will
develop interests in travelling in the country visiting its historical and natural attractions.
Currently, the country’s economic and social development is on the right track and the future of
this nation is shimmering and the hotel and tourism market development will also do the same.

3.1. International and Domestic demand for Hotel services

3.1.1. International Demand For Ethiopian Hotel and Tourism
As aforementioned, Ethiopia is home for nine world historical and natural heritage sites and
these sites are to be visited by tourists coming from all-over the world. Based on the current
information on tourism market in the country, the demand for Ethiopian tourism market has been
increased by more than double as compared to the last ten years demands. This is because of;
1. Infrastructural development including quality hotels
2. Peaceful conditions of the country
3. Identification and promotion of more tourists attraction sites
4. Development of domestic tourists and so on. It is believed that this trend will continue for the
years to come and hence no marketing problems for Ethiopian tourism industry as long as
strong promotion works will continue for complete changing of the country’s image.
For example as study showed that the Inbound Tourist Arrivals in Ethiopia continued to grow
from 76,844 in 1989, to 115,000 in 1999, 184,078 in 2004, 427,286 in 2009 and reaching 523,438
in 2011. During the year 2011, Ethiopia witnessed a positive tourist growth of 11.8 % over 2010.
The compound annual growth rate in Inbound Tourist Arrivals in Ethiopia during 1989 to 2011
was 9.7%. Table 1 indicates the trends of tourist flows into the country and the growth rates over
the period (1989-2011).
According to Ministry of Culture and Tourism (MOCT) Tourism Statistics Bulletin of 2009, the
total number of hotels in Ethiopia in the year 2009 was 426. Recent data on the number of hotels
in the country was unavailable. As a result, to estimate the total number of hotels taking 20%
growth rate, it can be estimated as 511 hotels in 2012, and 613 hotels in 2013 the country. This
number includes all five stars, four stars, Five stars, two stars, one star and not classified
categories of hotels. Though it is clear as can be seen from an annual growth of 20% in hotel
industry, there are still a lot is to go at least to compute with some African countries who are
equally or less resource endowed as compared to Ethiopia. If we see only Kenya and Morocco,
we notice a big difference in number. According to The Embassy of Japan in Ethiopia (2008),
even by 2004 data the hotel stock amounted to more than 140,000 in Egypt, in Morocco 80,000
and more than 65,000 in Kenya. Even though the international hotel classification system is
adopted in Ethiopia and hotels are classified into categories with stars from one to five and hotels
without stars as other countries do.
It is possible to see the number of hotels, the rooms they have and the number of beds they
constitute in the following table.
Table2: Existing Hotels in Ethiopia
No of No of Average Room/Bed

No Category of Hotels No of Hotels Rooms Beds per hotel category

1 Five Star 3 794 1264 265Rooms & 422beds

2 Four Star 13 921 1197 71Rooms & 92beds
3 Five Star 37 1691 2314 46 Rooms & 63beds
4 Two Star 40 1465 1898 37 Rooms & 47beds
5 One Star 23 698 941 31 Rooms & 41beds
6 Not Classified 310 8549 10322 28 Rooms & 32beds
Total 426 14118 17936

Source: MoTC magazine

3.1.2. Domestic Demand For Ethiopian Hotel and Tourism
The domestic market for tourism industry is untouched and not promoted as required. In the
country with more 80 million populations, there are less than 5000 domestic tourist coming to the
industry in a year. Hence, this trend should be changed through strong promotion works by
concerned organs and by the same token, the infrastructures form domestic tourists like
reasonably priced hotels and accommodations, tour guide with adjusted domestic tours and strong
collaborations among tour guides and the hotel systems should be tantamount for the development
of this industry and increase in domestic market demand for the industry.

Physical and natural conditions of Bench Sheko Zone Mizan Aman Town
Bench Sheko, particularly the Mizan Aman area, is characterized by a diverse landscape and
natural conditions. The zone is located between 5.33° and 7.21° north latitude and 34.88°–36.14°
east longitude. It features altitudes ranging from 374 to 2639 meters above sea level. Mizan
Aman experiences a nine-month rainy season with a hot climate, and the region is known for its
agricultural diversity, with coffee being a major cash crop.
Elevation and Terrain:
Altitude Range: Bench Sheko's elevation varies significantly, ranging from 374 to 2639
meters above sea level.
Highest Point: The highest point in the zone is Mount Guraferda, reaching 2494 meters.
Agro-ecological Zones: The zone encompasses lowland (500–1500 m.a.s.l), mid-highland
(1500–2300 m.a.s.l), and highland (>2300 m.a.s.l) regions, supporting a variety of agricultural
practices.
Climate and Rainfall:
Rainy Season: Mizan Aman experiences a prolonged rainy season, lasting for nine months.
Temperature: The region generally has a hot climate.
Average Annual Rainfall: The annual rainfall varies, with some areas receiving an average
of 120–2000 mm.
Flora and Fauna:
Omo National Park: The western bank of the Omo River is home to the Omo National
Park.
Forest Cover: A significant portion of the zone, approximately 47%, is covered by forest,
particularly in the Sheka region.
Agro-ecological Zones: The diverse agro-ecological zones support a variety of plant species
and animal life, including cattle, goats, sheep, and various bird species.
Agriculture and Economy:
Main Crops:
Maize, taro (godere), enset, sorghum, teff, wheat, and barley are the primary food crops.
Cash Crops:Coffee, fruits (bananas, pineapples, oranges), spices (coriander, ginger), and honey
are important cash crops.
Mizan Aman
Mizan Aman is the largest town in South West Ethiopia Peoples' Region and one of four Capital
cities of the region. Mizan is also the administrative centre, of the Bench Sheko Zone in the
South West Ethiopia Peoples' Region of Ethiopia
Mizan Aman (also called simply Mizan) is a town and the administrative center, of the Bench
Sheko Zone in the South West Ethiopia Peoples' Region of Ethiopia. Located about 160
kilometers southwest of Jimma, Mizan Tefere has a latitude and longitude of 7°0′N 35°35′E /
7.000°N 35.583°E / 7.000; 35.583Coordinates: 7°0′N 35°35′E / 7.000°N 35.583°E / 7.000;
35.583 and an elevation of 1451 meters. Mizan Aman, together with the neighboring town of
Aman, forms a separate woreda called Mizan Aman.
Mizan AmanTown Population

Mizan Aman Population 2007-05-28 Population Census 34,080

Mizan Aman Population 2022-07-01 Population Projection 91,437