Tourism investment in Addis Ababa is challenged by many factors such as Lack of good integration among different stakeholders, bureaucratic problems, insufficient and low standardized infrastructures and tourist facilities, macro economic situation of the country etc. There are also other hindering factors of tourism investment in the city such as the general image problem of the country, competition from neighboring capital cities, insufficient promotion and lack of trained man power. The current status of tourism investment in Addis Ababa is very fragile. This was witnessed by the low development of tourist attractions and below standard tourist facilities, low quality tourism education, and others. Addis Ababa also lacks other ancillary facilities, such as entertainment centers (theatre and cinemas for international tourists), recreation parks, galleries, museums, well organized handicraft centers. On the other hand, the city has many promoting factors for tourism investment related with abundance of resources, market size, trainable manpower, climate and geopolitical location. Ethiopian government gives very limited incentives for tourism investors which is less sat