Tourism in Eritrea made up 2% of Eritrea's economy up to 1997. After 1998, revenues from tourism fell to one quarter of 1997 levels. In 2006 it made up less than 1% of the country's GDP. The World Tourism Organization calculated that the country's international tourism receipts in 2002 were just US$ 73 million. The government has started a twenty-year plan to develop the country's tourist industry. However, the development of tourism is hampered by drought, political instability, and war.
Eritrea, now inclusive of the entire coastline of Ethiopia, appears to suggest a long-term potential for development of tourism. However, due to political unrest, the tourism industry is struggling to gain stability. In 2003, there were 80,029 visitors, a 20% decrease from 2002. There were 4,139 hotel rooms with 8,794 beds and an occupancy rate of 52%. Passports and visas are required. Proof of yellow fever vaccination may also be required if travelling from an infected area. In 2005, the US Department of State estimated the cost of staying in the capital Asmara at $150 per day. In other areas, the cost was estimated at $81 per day.