The Ugandan government has been urged to take advantage of the growth in the country’s tourism sector and invest more on infrastructure to complement the successes recorded.
President, Uganda Tourism Association (UTA), Pearl Hoareau-Kakooza, made the call while giving a speech at the annual Pearl of Africa Tourism Expo tagged POATE 2020 which kicked off on Tuesday February 4, in Kampala.
Hoareau-Kakooza while citing the Minister of Finance in his 2019/2020 budget speech, noted that tourism is the number one foreign exchange earner for the country with USD 1.02 billion in revenue.
She stated that the Tourism budget was also increased from UGX 118 billion (approx. USD 33 million) to UGX 194 billion (approx. USD 53 million) in the financial year 2019/2020.
Hoareau-Kakooza decried the high interest rates from commercial banks which according to her are prohibitive for direct investment in the private sector.
She stated that the government need to train and skill the persons already employed in the tourism industry adding that soft skills within the hospitality industry are still lacking.
She said: “As the Private Sector in Tourism, UTA appreciates the steps the Government of Uganda has taken to prioritize Tourism by recognizing the performance of the Tourism Industry in Uganda. We have, as a sector, seen the growth in visitor numbers now standing at 1.6 million tourists (2018). The Tourism budget was also increased from UGX 118 billion (approx. USD 33 million) to UGX 194 billion (approx. USD 53 million) in the financial year 2019/2020.
“To make us more competitive, we need to train and skill the persons already employed in the tourism industry. Soft skills within the hospitality industry are still lacking. Some progress has been made through UTA and the greening Uganda project funded by the EU.
“New Product Development requires feasibility studies for new tourism products. There are existing products which have been given to the Ministry and UTB and these should be funded adequately so that they can be included among our itineraries.
“Interest rates ranging from 18-25% from commercial banks are prohibitive for direct investment in the private sector. UTA members would wish to have access to affordable financing for this sector which the Minister of Finance confirmed in his 2019/2020 budget speech as being Uganda’s number one foreign exchange earner with USD 1.02 billion.
“Most of the success thus far has been from private initiative. Imagine if we had affordable financing for our tourism projects this would translate to a broader tax base and by extension, more taxes into URA’s coffers. A vibrant tourism private sector would really stimulate growth economically.”
