Defending the privileged status of the Ethiopian Tourist Trading Enterprise (ETTE) and its 800 employees, the main tourism and hotel labour association in Ethiopia has protested in writing to the Ministry of Revenue (MoR) against permission given Country Trading Plc to open a duty free shop at the Bole International airport.
 

On September 13, 2006, the Tourism, Hotels and General Services Employees Association Industry Federation wrote a letter to the MoR stating that the only body that has the right to give duty free selling privileges in Ethiopia is the Enterprise.
 

“Due to the illegal decision made, the jobs of over 800 employees working under ETTE have been put at stake,” the letter says.
 

The letter, signed by Aregawi Belay, the Federation president, requested that the office under the Ministry that granted Country Trading these privileges, review its decision.
 

Private company Country Trading had requested a permit from MoR for selling duty free items as early as April 1999. Without a response, it reapplied to the Ministry in April 2005.
 

The Minister of Revenues in 2005, Getachew Belay, denied the request to operate a duty free shop in downtown Addis, but granted permission for Country Trading to operate a duty free shop within the Bole International Airport terminal. The Minister responded to the request five days after he received it.
 

The decision made, Country Trading immediately searched for a space it could rent at the airport. Six months ago, the company won 74sqm of space from the airport’s Administration Enterprise, but was eventually only offered 58.72sqm for which the company pays 3, 532 Br per month.
 

Country Trading is the second private company to receive privileges to operate duty free retailers within Ethiopia. The first company to receive the privilege four years ago was Alfarag Plc, which leased over 1,000sqm of space at the airport to establish its duty free store.
 

An official from MoR doubts the emergence of a new duty free operator will adversely affect tourism jobs. “Although the Federation had made similar protests three years ago when Alfarag was given the privilege of operating,” the official told Fortune, “we have seen just how well they have done and how modern the store is, so we believe that we had made the right decision.”
 

He added that this was one of the main reasons behind the Ministry’s decision to give Country Trading the same permission, so that the business can have an even stronger competitive streak. Not once was it thought that this would put someone’s job at risk, he said.
 

A lawyer defended the Federation’s grievances, based on the fact that the pertinent directive, as approved by the Council of Ministers, actually names ETTE as the sole duty free operator in the country. “It is not fair that permits are being handed out to some companies even while sector regulation still remains the same,” he said. “I don’t understand why it is so hard to actually amend the directive.”
 

In the letter from the Federation, no call for further action made. Fortune tried to approach the President of the Federation, but Aregawi was unavailable for comment.
 

Head of Public Relations of MoR, Yezina Worku, confirmed that the letter was indeed received. “The letter has been submitted to the State Minister of Revenues, Tereza Wedajo; a response will be given as soon as there is one,” she said.
 

Biniam Berhane, owner and general manager of Country Trading, said that he does not understand exactly what philosophy or logic is behind the Federation’s protest. In any case, he said, “the government should not even enter this business sector let alone monopolize it.”