Abstract:
Ecotourism is a recently emerged concept described as an ecologically, friendly, economically 
viable, and socially acceptable form of tourism. It has basic principles for conservation of 
environment, local culture, and ensuring the major beneficiaries and participation of local 
communities. The purpose of this study was to assess the practices and challenges of community
based ecotourism on local economic development in case of Bishoftu town. To achieve the 
objectives of the study, a descriptive survey design and both quantitative and qualitative mixed 
methods were employed. The researcher took a total of 171 respondents for quantitative analysis 
from total population, key informant interviews, field observation and FGDs for qualitative data 
collection. Stratified and simple random sampling techniques were employed. Three community
based ecotourism-developed areas were selected for the study using a simple random sampling 
method. The data were gathered through a questionnaire, key informant interviews, focus group 
discussions, field observation, and document analysis. The quantitative data were analyzed using 
frequency and percentage, while the qualitative data were analyzed through a theoretical method 
based on the data collected from the respondents from the study area. The result of the study tried 
to identify the following challenges against ecotourism development and local economic 
development: Lack of safety and security, lack of community awareness, lack of trained manpower, 
the absence of clean tap water, the seasonal nature of the business, language barriers for efficient 
communication with tourists, lack of cooperation among stakeholders, natural and culturally 
incompatible infrastructural developments, cultural commercialization, and abuse from tourists 
and the community were among the challenges that merely seek quick intervening solutions. The 
effort made to improve the participation of the local community through ecotourism development 
was very low. In light of those circumstances, the study strongly recommends that the Bishoftu 
town Culture and Tourism Office use ecotourism as an alternative economic source through local 
community empowerment and involvement, which was the main challenge of ecotourism 
development activities.,