Hotel owners want govt to boost tourism funding

While meeting the ministers of Tourism, Finance and Investment recently under their umbrella organisation Uganda Hotel Owners Association (UHOA), the hoteliers revealed that national average room occupancy currently stands at less than 25 per cent.

Ms Jean Byamugisha, the UHOA executive director, said: “According to Ministry of Tourism, Wildlife and Antiquities, hotel establishments in Uganda were estimated to be 2,678 by 2013. Today, Uganda has more than 3,500 hotel establishments with over 20,000 rooms and 30,000 beds.”

Statistics show that in Kampala alone, accommodation facilities operate at approximately 53 per cent while hotels out of Kampala operate at less than 22 per cent occupancy.

Statistics further reveal that the lodges in the national parks operate between 8 and 13 per cent occupancy. Yet if more tourists visited the facilities, the country would be earning more than the current $16m (Shs40b).

Although government’s investment in the tourism sector increased from $5,000 (Shs17m) to $2m (Shs7b), critics say more is still needed for the sector to flourish.

In October 2013, the presidents of Uganda, Kenya and Rwanda announced the introduction of the single tourist visa.
This was intended to increase tourists’ movement freely among the three partner countries. It should, however, be noted that full operationalisation of this visa is still not yet achieved.
“There is therefore need for government to lay strategies to ensure this is achieved,” Ms Byamugisha said.

The demands
UHOA also wants government to reduce visa fees from $100 (Shs330,000) to $50 (Shs165,000) to increase the number of tourists coming to Uganda.

They also want the construction of the Hotel and Tourism Training Institute speeded up to allow hotels send in their staff for refresher courses.

They also propose the scrapping of the proposed VAT on upcountry hotels to reduce the tax burden on the hotel sector and improve occupancy rates; and to harmonise communication out of the country so as not to scare away potential tourists.

Marketing Uganda
Uganda has not been marketing her country image much as it has comparative advantage in tourism. For instance, government has been investing only Shs241m to market herself.
The Uganda Tourism Board (UTB) budget funding has for long stalled at Shs1.5b only, too thin for the country to be marketed thoroughly.

UHOA also wants government to allocate more funds to UTB so that it can increase marketing of Uganda and private sector.
Sharing his views, Mr Amos Wekesa, the executive director Great Safaris – tour and accommodation company, said: “Tourism must be taken seriously not only for forex but employment as well. But it’s a good gesture from the President to start listening to the players.”

Tourism minister Maria Mutagamba revealed that some of the concerns that were tabled at the meeting were already being handled by government, for instance, the issues of the visa fees which will now be cut to $50 (Shs165,000) from $100 (Shs330,000).

She promised the hoteliers that all issues raised, would be submitted to
Prime Minister Ruhakana Rugunda for his attention.
She also encouraged the private sector to continue reaching out to government through the Ministry of Tourism for assistance.

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