Algeria and Other African Airlines Face Roadblocks in MICE and Leisure Tourism Growth

Published on December 11, 2025

Algeria, alongside other countries in Africa and the Middle East, is grappling with a mounting crisis in the aviation sector as USD 1.2 billion in airline funds remain blocked due to government controls. The latest figures from the International Air Transport Association (IATA) reveal that 93% of the trapped funds are concentrated in the two regions, with Algeria taking the lead with USD 307 million. This has caused significant disruptions in the aviation industry and poses a substantial threat to the tourism and business travel sectors, which rely heavily on reliable air connectivity.

The blocked funds are primarily the result of stringent currency repatriation regulations that prevent airlines from accessing their earnings in foreign currencies. These restrictions, while driven by economic and political factors, are starting to undermine the financial stability of airlines, many of which are now struggling to operate efficiently due to the difficulty in repatriating revenue. This is a major issue for African and Middle Eastern carriers, which are experiencing a significant slowdown in revenue, despite global demand for air travel on the rise.

The Growing Impact of Currency Repatriation Issues on African Aviation

The situation has become especially acute for African airlines, with countries like Algeria, Mozambique, and those in the XAF Zone facing some of the largest amounts of blocked funds. This includes the Central African Republic, Cameroon, Chad, Equatorial Guinea, and Gabon, which collectively account for a significant portion of the $1.2 billion total. For Algeria, this blockage is particularly troubling, as its airline, Air Algérie, is unable to access funds that could help it expand its route network or improve services.

The inability to repatriate funds is also felt across the Middle East, with countries like Lebanon experiencing similar issues. The Lebanese aviation sector, struggling with its own financial and economic challenges, sees more than USD 138 million of airline funds stuck under government controls, further compounding the region’s aviation crisis.

For the tourism industry, the ramifications are serious. Airlines play a critical role in connecting countries and regions, facilitating international tourism, business travel, and cargo operations. When airlines cannot repatriate their revenues, their ability to maintain competitive pricing, invest in fleet expansion, or improve customer service is severely limited. This, in turn, can directly affect the flow of tourists, disrupt business travel, and negatively impact the overall economic growth of these countries.

Boosting Regional Tourism Amid Aviation Challenges

Despite the challenges posed by blocked airline funds, many African countries are making significant strides in improving their tourism sectors. Ethiopia, Kenya, South Africa, and Morocco have been successful in attracting international tourists by capitalizing on their natural and cultural attractions. These countries have worked to ensure that their aviation infrastructure is more accessible and reliable, making it easier for tourists to visit key destinations like Cape Town, Marrakech, Addis Ababa, and Nairobi.

In the Southern African region, Namibia’s tourism sector has benefited from increased air access through improved airline routes and partnerships. As African countries seek to improve connectivity, the growing focus on MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism will also support the growth of business travel. As global airlines and regional carriers establish partnerships, air traffic will likely increase, boosting tourism and trade across the continent.

While Algeria and other countries with blocked funds struggle with this issue, regional tourism in Africa continues to grow. More countries are focusing on diversifying their tourist offerings, from eco-tourism and cultural heritage to luxury tourism and adventure travel, providing a broader spectrum of options for visitors. However, without improved air connectivity, this growth could be hindered, as potential tourists find it more difficult to access these regions.

The Role of Strategic Partnerships in Aviation

Given the challenges presented by blocked airline funds, strategic partnerships and global alliances are becoming more crucial in improving regional air connectivity. For instance, partnerships between African and international carriers can help expand the reach of regional airlines and increase air capacity. By participating in codeshare agreements, African airlines can access a larger number of international markets and improve their operational efficiency.

Furthermore, partnerships with Middle Eastern airlines, like Qatar Airways, Emirates, and Ethiopian Airlines, have already helped some African destinations expand their global network. These alliances often provide more direct flights, which in turn can help generate increased tourism and business travel.

Future of Tourism and Aviation in Africa

Looking ahead, the African aviation industry faces several challenges, but also growth opportunities. The ability to repatriate airline funds will remain a critical issue, and countries like Algeria must streamline their regulatory processes to address the bottleneck. Efforts such as the Single African Air Transport Market (SAATM) are designed to foster collaboration and eliminate barriers to regional air transport, helping increase intra-African connectivity.

Simultaneously, digital transformation within the tourism and aviation sectors could provide new ways to track and manage data, improve booking systems, and enhance overall service offerings. Digital tools can help tourism professionals and aviation stakeholders better anticipate market trends, manage passenger flows, and ensure a seamless customer experience.

Conclusion: Overcoming Challenges for Sustainable Growth

The issue of blocked airline funds presents a serious challenge to Africa’s aviation and tourism sectors, but also highlights the importance of regional collaboration and infrastructure development. As African nations continue to focus on expanding their air travel networks and attracting tourists, they must address the regulatory barriers to ensure the seamless movement of capital and resources. By adopting digital solutions and creating strategic partnerships, African airlines can work toward improving connectivity, expanding their reach, and delivering higher-value travel experiences.

In the meantime, countries like Algeria, Mozambique, and those in the XAF Zone must look toward a future where their aviation sectors can become more integrated into the global tourism landscape, offering new opportunities for economic growth and prosperity across the continent.