of Tourism has asked Parliament to exempt the tourism sector from budget
cuts to enable the sector to recover from the COVID-19 pandemic.
During a meeting on Thursday between Parliament's committee on Tourism,
Trade, and Industry and officials from the Ministry of Tourism, Wildlife and
Antiquities, Uganda Tourism Board (UTB), and others, MPs learned that activities
worth 87.2 billion Shillings under the Tourism Sector are not financed by
government in the coming financial year 2022/2023.
Documents before the committee indicate that part of the 87.2 billion, UTB
needs 49.97 billion, the Ministry 28.44 billion, Uganda Wildlife Education
Centre (UWEC) 4.3 billion, Uganda Wildlife Authority (UWA) 2.5 billion, and
Mugarra Bahinduka, the Minister of State for Tourism, Wildlife and Antiquities
told MPs that the sector remains poorly funded to perform its role
The government has allocated 176.9 billion Shillings for the Tourism Sector under the
2022/2023 financial year Budget Framework Paper.
Bahinduka, this is a reduction of 20.5 billion Shillings from what was
allocated to the sector in the last two financial years.
“the Ministry and its…
Doreen Katusiime, the Tourism Ministry Permanent Secretary said that the sector's
performance and efforts to achieve faster recovery are being derailed by
funding situation has been worsened by budget cuts which were applied on
consumptive items such as advertising and public relations, travel abroad, travel
inland, consultancy services, maintenance, hire of venue, allowances and
subventions among others. The application of this policy did not consider the
nature of business processes of particular Ministries, Departments, and Agencies
and as a result, Tourism agencies were deeply affected given the nature of
their operations and we lost 20 billion in the financial year 2021/2022," said
She added that the under funding in addition to the budget cuts are worsening
their situation and destroying the country's tourism competitiveness, yet Uganda's
neighbors in the East African region are sustaining and increasing funding to
current financial year 2021/2022, Kenya allocated a total budget of 532.9
billion to Tourism while Tanzania allocated 617.1 billion to the sector.
and Kenya allocate more than 1 percent of their total budget compared to Uganda
that allocates less than 0.5 percent of its total budget for tourism. Both
Tanzania and Kenya inject 3 times more resources in tourism than Uganda. As
a result of the funding to tourism in Kenya and Tanzania, at least 7 in 10
visitors to Kenya or Tanzania are Leisure Visitors compared to Uganda where
only 2 in 10 visitors are Leisure tourists," Katusiime further explained.
that with the Covid-19 pandemic, it is important that Uganda gets an appropriate
response in order to recover its tourism through adequate funding. She told MPs
that tourism has a high transformative power to Uganda's economy if fully
“in light of…
onset of the Covid-19 pandemic, tourism was Uganda's leading foreign exchange
earner for the economy and society bringing in US Dollars 1.6 billion,
contributing about 8 percent to the Gross Domestic Product- GDP and over
500,000 jobs. The country's tourism had expanded with its contribution to GDP
reaching 8.36 trillion Shillings.
However, this has changed since 2020 following the outbreak of Covid-19. Foreign
exchange earnings have dropped to US Dollars 0.5 billion, foreign visitors
dropped by 69.3 percent from 1,542,620 visitors recorded in 2019 to 473,085.
Kamugisha Timuzigu, the Kajara County MP said that the Ministry needs to be
very assertive to ensure that the tourism sector is allocated enough resources.
“there is no…
Cue out:…will read it
Mugole, the Kabweri County MP said that the financing gap in the tourism sector
is unfortunate given that the sector is one of the worst-hit by the Covid-19
“last year we…
out:…what was happening.”//
Atukwasa, the Mbarara City MP wondered what the Ministry and other tourism
entities are doing to develop domestic tourism.