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It is a case study to assess the potential and challenges of tourism development in Bahir Dar, Ethiopia, through the view point of international tourists. Study covers the tourist spots of in and around Bahir Dar town, Blue Nile falls and island monasteries of Lake Tana. Information was gathered from 165 international tourists, randomly selected. A  questionnaire was developed and used for tourists, and interviews were taken from the local professionals in the industries. Descriptive statistical techniques were used for the analysis of the data. The general trend of tourism shows growth in Ethiopia as well as in Bahir Dar but not with the expected rate. Among the foreign tourists visiting Bahir Dar, 60 percent are male. It seems to be a major destination for youth and middle aged people (72.72%) but not significant for children (3.66%) and families (5.46%). Maximum tourists are coming from the countries of Europe  (30.9%) and North America (27.27%). Internet (34%) and books (32%) are the prime source of information. A large number of old aged tourists (21.31%), and visits more than one time (44.24%) are the unique feature of this tourist destination, which express its potential of tourism and secure social environment. Lake Tana is the prime attraction among tourists and visited with boat by all. Visit to lake Tana is the first priority among the tourists. As we go deep into this huge lake, the frequency of tourists  drastically decreases. Spot-II, ‘Zige Peninsula and Narga Salase  Monastery’ in Daq Island is visited by only 12.73% tourists and Spot-III ‘crossing the lake at Gorgora’ by just 5.45% only, however there priority of liking remains in tacked with the deeper destinations. A big gap was  observed in projection of spots by tourists’ authorities and appreciation by visitors. Blue Nile Falls and Traditional Orthodox Church School are the glaring examples. Study recommends the update, accurate and detailed information through internet and books. Projection of the spots in tourism information network should base upon the liking and disliking of tourists.

Challenges and Prospects for Promotion of International Tourism in Ethiopia: A Case Study of Bahir Dar