Home » Africa: Mitigating measures toward recovery of tourism and M.I.C.E. industry in Uganda – Part 5

Africa: Mitigating measures toward recovery of tourism and M.I.C.E. industry in Uganda – Part 5

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Uganda

In the concluding part to the presentation by Deputy-CEO of Uganda Tourism Board, Bradford Ochieng for Destination Uganda on MICE tourism, we bring you the measures taken to mitigate the effects of COVID-19 on the industry.

This paper was presented at the 16th Akwaaba African Travel Market, the leading Pan-African Tourism Expo held online in September 2020. For the previous articles on the presentation, click here:

Tourism, and specifically business tourism, is one of the world’s fastest growing industries with a strong multiplier effect into the greater economy.

In Uganda, the nature-based leisure tourism sector has increasingly become a major contributor to economic growth, empowerment and government revenue.

To support this, the importance of embracing MICE to diversify tourism receipts has been recognized in the Uganda Vision 2040 and the National Development Plan.

Tourism is regarded as a key driver of the social and economic transformation of Uganda.

Also, the MICE industry is an emerging sector in Uganda’s economy, and therefore has the potential to generate high incomes for the country when invested in, and its prospects explored further.

Therefore, UTB will continue to prioritise both leisure and business travel, since business travel over time can convert to leisure travel.

Also, MICE activities contribute directly to investment stock of the country.

Mitigating Measures

❖ The Government of Uganda has provided fiscal incentives to tourism enterprises such as, VAT exemptions on upcountry tourism accommodation facilities.

❖ Recapitalization of the Uganda Development Bank where tourism and hospitality industry can borrow at very low-interest rates to cover the deficit incurred from abrupt cancellations as well as for refurbishing of facilities to conform to the new normal ushered in by COVID-19.

❖ Relaxed rescheduling of gorilla and chimpanzee tracking for a maximum of two (2) times up to March 31, 2022.

❖ Bank of Uganda (BoU) has reduced the Central Bank Rate (CBR) to 8 percent to stem the effects of coronavirus on the economy.

❖ The band on the CBR to remain at +/-3 percentage points and the margin on the rediscount rate and bank rate to remain at 4% and 5% on the CBR, respectively.

❖ BoU Supervised Financial Institutions (SFIs) to defer the payments of all discretionary distributions such as dividends and bonus payments effective March 2020, depending on the evolution of the pandemic.

❖ At the regional level (EAC), exploring to respond as a region to recover the tourism sector by developing regional protocols in light of COVID-19.

❖ Encouraging appropriate messaging: Don’t cancel! Instead, postpone or reschedule the travel or bookings in order to release pressure on refunds.

❖ Develop Standard Operating Procedures for Tourism post-COVID-19. Ensure all COVID-19 safety protocols are adopted as SOP’s in the tourism service points and sensitize the providers on adoption of the new normal protocols. Uganda has already developed SoPs for MICE Facilities and is in the final stages of completion of all other protocols in order to open up the borders (including airport) for tourism.

❖ Through the Ministry Of Health and tourism private sectorto design operational guidelines to support the sector’s recovery in line with the global standards regarding covid-19.

❖ Tax incentives in place beginning FY 2020/21 to be provided to developers of MICE facilities in an effort to promote and encourage investment in MICE facilities and to reduce the cost of establishing and doing business. This should incentivize investors to establish more MICE facilities, particularly upcountry.

❖ With support from Partners, UTB will be placing MDR firms for MICE in selected regions/countries to market Uganda as a MICE Destination.

❖ With support from Development Partners and private sector, Uganda will be establishing a convention centre that will ease MICE business.

❖ UTB has developed a Business Recovery Plan in which MICE is an important component.

Concluded.

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