Service is now the largest sector of the economy in terms of output, contributing an average of 48 percent of the GDP from 1994 to 1998 and 56 percent by 2000. However, only 20 percent of the workforce is employed in services. The service sector generates the highest incomes in Comoros, and earnings are particularly high in government service and tourism.
The tourism industry was undeveloped at independence and still has made only modest progress towards its potential. The major hindrance has been the lack of political stability, which clearly has discouraged visitors. Fortunately, the regular unconstitutional changes of government have not resulted in any serious problems for tourists who have visited the islands. The bigger issue is that foreign investment in hotels and resorts has been discouraged. Nevertheless, a number of development projects have been completed, and there has been some recent rise in tourism receipts. In 1996, there were 23,775 tourist arrivals by Air Comoros and receipts totaled $9.1 million.