Tourism generates US$1 billion (UGX2.7 trillion) for Uganda, Boosts Exports and Growth

Greetings Friends,
The Ministry of Tourism, Wildlife and Antiquities (MTWA), in partnership with The World Bank and DFID has launched a report Economic and Statistical Analysis of Tourism in Uganda - Attached, is the e-copy and a press release(See attached file: Tourism in Uganda.revised. July 30.2013.docx)
(See attached file: Tourism in Uganda.pdf)
The report is a sequel to the Rapid Tourism Sector Assessment delivered last year. It shows, on the basis of robust statistical and economic analysis, how tourism in Uganda --  especially the nature-based tourism segment which contributes most to the economy -- can be further developed by targeting a policies and investments, including (i) investing in natural assets and management of national parks that drive Uganda's tourism, (ii) removing infrastructure bottlenecks, particularly roads providing access to protected areas, (iii) increasing supply or tourism services through private investments, and (iv) marketing Uganda.
 

                                   

NEWS RELEASE                                                           

Tourism generates US$1 billion (UGX2.7 trillion) for Uganda, Boosts Exports and Growth
Government and World Bank estimate that 100,000 additional tourists to Uganda would add 11 percent to exports and 1.6 percent to GDP

KAMPALA, August 1, 2013 – Tourists in Uganda spend a total of UGX 1.1 trillion, generating US$1 billion (UGX 2.7 trillion) in revenue annually, according to recent study on the tourism sector.  

This spending amounted to 38 percent of exports and generated 5.6 percent of 2012 GDP, making it the biggest source of national income for the country, according to the Economic and Statistical Analysis of Tourism in Uganda.

“Policy simulations show that attracting an extra 100,000  tourists to  Uganda would add 11 percent to exports and 1.6 percent to GDP, which would further boost the country’s efforts to reduce poverty and boosts its development prospects,” according to Kirk Hamilton, Lead Economist at the World Bank and the key author of the report. “If each tourist visiting Uganda stayed one additional night then exports would rise by 7 percent and GDP by one percent.”

The study conducted in 2012 by the Ministry of Tourism, Wildlife and Antiquities (MTWA), in partnership with the World Bank and DFID, collected data from tourists leaving Uganda on how much they spent, how long they stayed, where they went, and surveyed their levels of satisfaction, and suggestions for improving tourism. .

The survey found 32 percent of foreign visitors and tourists came for business reasons, 11 percent for conferences, 17 percent for leisure, 20 percent for visiting friends and family, 5 percent for spiritual/religious purposes, and two percent for cultural tourism.

The survey also found that tourists were for the most part highly satisfied with their  trip to Uganda was high; however, respondents identified transport within Uganda and insufficient visitor information as well as the quality of customer service as the main areas for improvement.

The main policy intervention areas proposed by the study include:(i) investing in natural assets and management of national parks that drive Uganda's tourism, (ii) improving road and transport access to  areas of high tourist interest, along with other infrastructure services (iii) increasing supply or tourism services through private investment, and (iv) marketing Uganda as a tourist destination. .

“Investing more in infrastructure, particularly roads can lower the cost for tourists to visit the natural areas of Uganda. Reforms of the concession policy for tourism operators to increase transparency and security of tenure will boost private investment in the sector, said Hon. Maria Mutagamba, Minister of Tourism, Wildlife and Antiquities. “Filling the skills gap in the sector will increase visitor satisfaction.”

The data show that leisure and cultural tourists spend 30-100 percent more than other types of tourists per visit to Uganda. These tourists are therefore an attractive target in government efforts to increase the economic contribution of the tourism sector.

“In order to attract more tourists to visit Uganda, the government has to adopt stronger ‘branding,’ of the country, use new media, strengthen links with travel agencies in source markets, and attract high-profile foreign operators,” said Ahmadou Moustapha Ndiaye, World Bank Country Manager, Uganda. Going forward the new Competitiveness and Enterprise Development Project that the World Bank Board approved of, will support Uganda’s tourism sector by first building a skilled tourism labor force through the rebuilding of the Hotel and Tourism Training Institute in Jinja; Second, through improving destination planning, product development and expanded global promotion and third, through supporting the Ministry and private sector collaboration. This will enable support to tourism and conservation..