Impact of community-based tourism on rural households' livelihood diversification and assets in North-Western Ethiopia

Community-based tourism (CBT) interventions have been widely implemented as a tool for poverty reduction through livelihood diversification and improvement. However, empirical evidence on the role CBT plays in rural livelihood diversification and livelihood asset improvement is hard to find. Based on cross-sectional survey data, this study analyzes the impact of CBT on rural household's livelihood diversification and asset accumulation. Sampled respondents were reached through multistage sampling. The Propensity Score Matching (PSM) finding revealed that CBT had diversified the livelihood of CBT participants by 6%. The asset accumulation analysis result also showed that the livelihood asset value varies by participation and was found to be high among CBT participants by 31%. Thus, policymakers and poverty reduction practitioners should promote CBT participation by providing adequate training and credit facilities, strengthening cooperatives, narrowing down gender differences, and recognizing the priorities and preferences of educated youths for the sustainability of tourism development and optimum CBT impacts.