Concerns as Uganda's tourism sector runs into more budget cuts

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Players in Uganda’s tourism are concerned over trimming of the sector’s budget by the Treasury, saying it will puncture its recovery efforts.

According to the Budget Framework Paper, which is being scrutinised by different committees of parliament, the government has slashed the tourism budget from Ush194.6 billion ($52 million) in the current financial year to only Ush89.29 billion ($24 million) for 2023/2024.

Tourism Minister Tom Butime cautioned that the proposed cuts will a ripple effect on other sectors.

Other stakeholders add that budget cuts will affect activities like upgrading, maintaining and redeveloping of tourism sites, participation in international meetings and exhibitions, review and implementation of a national tourism marketing strategy, and developing new sites and products.

Curtailing growth, recovery

Uganda ranks low among its East African peers in terms of financing and marketing of tourism, with less than $2 million invested annually. Rwanda invests $30 million and Kenya, more than $40 million.

Karim Masaba, the shadow minister for tourism, says constant budget cuts for a sector that contributes significantly to the economy means Uganda will continue to lag behind its regional peers in tourism development.“The budget cuts will mostly affect tourism promotion and marketing. But also, according to the National Development Plan III, new tourism products which are supposed to be developed for the next five years will not be realised,” he said.

For example, Uganda Tourism Board, mandated with marketing the sector will receive a paltry Ush4.3 billion ($1.1 million) next financial year.

Prior to the Covid-19 pandemic, tourism employed over 600,000 people, but the two-year shutdown crushed earnings, swallowed jobs and left hotels operating at below 40 percent occupancy rates.

Daniel Tusiime, chief executive of Hurra Uganda Safaris, warned that Uganda may take longer to reach its full potential due to low support from government in terms of visibility, awareness and infrastructure.“I understand the government itself was affected financially by the Covid period, but I was hoping that would have been an eye opener to focus on sectors like tourism that require more funding to directly realise returns of foreign income in the shortest time possible,” he said.

As part of the grand plan to revive the economy following a two-year lockdown, the government had earmarked tourism as one of the priority sectors to concentrate on to realise more returns in a short run.