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Algeria, with almost 2.38 million square kilometers—the largest country in Africa and the Arab world—offers a wide range of unique attractions. Although it had more than 2.6 million international arrivals in 2012, most of the visitors were Algerian expatriates visiting their families without requiring travel accommodation. The modest level of international tourism is attributable to a combination of poor hotel accommodations, intricate visa requirements, and the perceived risk of terrorism.

The government has adopted a plan known as Horizon 2030, which is designed to address the lack of high-standard infrastructure by attracting international chained hotels to invest in hotel projects, particularly along the Mediterranean coast. However, there are important handicaps for international investors. The country’s business climate is negatively affected by numerous bureaucratic and financial ...

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