Tourism Investment in Algeria: Bridging the Gap Between Potential and Performance in the SDAT 2030 Framework

Abstract

This study focuses on tourism investment environment in Algeria and its potential to drive economic diversification beyond hydrocarbon reliance. The study used a mixed methodology, reviewing the official tourism statistics (2018-2025) and legislative frameworks and the Tourism Development Master Plan (SDAT 2030) to evaluate the current performance in relation to the strategic goals. Even with recent legislative changes under the 2022 Investment Law and the ambitious target of reaching 12 million visitors annually rather than 2.5 million by 2030, research indicates that there are still ingrained issues: tourism has become a mere contributor to GDP at 1.47% in 2023 compared to the Mediterranean average of 10%, accommodation facilities are critically inadequate at 0.1 hotel rooms per 100 inhabitants and 66% of registered tourism projects are either not started or uncommented. The study concludes that although Algeria holds considerable comparative advantages in desert, coastal and heritage tourism, the opportunities in the country could only be actualised by overcoming the shortcomings in infrastructure, institutional coordination and international marketing.