This study was concerned with developing a strategy for the Ethiopian Tourism Industry. The literature review attempted to show the significance of tourism to any country, and more appropriately to developing countries. Field research was conducted in Ethiopia to obtain secondary data applicable to the study and to conduct interviews with various officials. Survey questionnaires were administered in Ethiopia, in Sub Saharan African countries and in Australia to elicit perceptions of Ethiopia as a tourist destination. The study contributes in various ways. First, it is the first of its kind to thoroughly investigate Ethiopia's tourism development process. Second, it has looked into the concept of tourism from many angles - strategic, marketing, promotional, infrastructure, environmental, etc. Finally, the strategic models developed for the Ethiopian Tourism industry by incorporating a strategic planning process at various levels can also be used by other less developed countries in their efforts to develop tourism.