Diasporas are groups of individuals or communities who carry an image of a homeland that separates them from the host land in which they reside. The role of Diaspora groups in destination image building has attracted considerable policy interest in Ethiopia. The purpose of this study is to analyze the Diasporas’ tourism investment challenges and opportunities in Amhara region major tourist destinations. To achieve these objectives quantitative data have been gathered using questionnaires and analyzed and presented using descriptive statistics. The study revealed that most of the respondents are currently engaged in hotel, lodge & resort business. The tour & travel operation and restaurant business are another major area. Involvement in a traditional restaurant and club, tour and travel operations and car rental business being third most preferred future investment options. The challenges with the highest mean are foreign currency controls, complicated custom procedure, limited access to financing, lack of reliable, comparable, and timely tourism data, lack of trained manpower, insufficient information available to analyze opportunities and bureaucratic inefficiency. The existence of diverse tourism attractions, government’s attention for the tourism sector, increasing tourism industry market, well developed air transportation system, existence of good incentives, were the major opportunities for Diaspora investment. On the other hand, poor infrastructure such as telecommunication, water supply, electricity and road connectivity are the major challenges for the future Diaspora investment. Responsible government bodies should work to provide reliable, comparable, and timely tourism data, promote the region, improve access to finance, provide basic infrastructures, and smoothen the bureaucratic bottlenecks for diaspora investors.
Keywords: Amhara, Diaspora, Ethiopia, Investment, Tourism