In Africa the adoption of Information and Communication Technologies (ICTs) varies considerably from one country to another, for example between Kenya and Tanzania on the one hand and Ethiopia on the other. In Kenya and Tanzania telecommunications systems have been liberalized, while in Ethiopia all ICT infrastructures and services are provided by one single telecommunications operator – one that is owned and run by the government. ICT plays a significant role in poverty reduction and empowerment of the disadvantaged, but this requires that ICT has first to be adopted by them. The main research question is: what are the factors affecting the adoption of ICT in the small hotel and tour operator sector? The purpose of this paper is to examine the factors that affect the adoption of ICT in small hotels and tour operators in Ethiopia’s capital city, Addis Ababa. The sector was chosen because, driven by demand from customers, it uses ICT more than many other sectors, and because the government requires hoteliers to use a particular software for tax purposes. During the course of several visits between 2009 and 2013 data were collected from hoteliers and tour operator owners/managers. Sixteen hoteliers who had adopted ICT in their businesses were interviewed. One hundred and twenty-eight hoteliers and 57 tour operators responded to a questionnaire. Analysis of the findings indicates that factors affecting the adoption of ICT in these organizations can be arranged according to three levels: individual, organizational and national. The major factors that affect the adoption arise from the national level factors: the political, socio-economic, technological and legal factors that play a critical role in the adoption or rejection of ICT in this sector. This paper provides insights into the impact a monopolized telecommunications service can have on the adoption of ICT.