The tourism sector, a key driver of economic growth, faces significant funding challenges that could hinder its potential to contribute more effectively to national development.
A recent position paper by Civil Society Organizations (CSOs) in response to the FY 2025/26 National Budget Framework Paper (NBFP) presented last month highlights glaring financial gaps in critical areas such as infrastructure, marketing, and accessibility.
Submitted to the Parliamentary Committee on Tourism, Trade, and Industry, chaired by the committee vice chairperson Boniface Okot (Northern Uganda Youth Representative), the paper underscores the need for increased investment to sustain and enhance tourism competitiveness.
Tourism remains one of the most lucrative economic sectors. According to the 2023 Tourism Development Programme Annual Performance Report, the sector contributed sh2.7 trillion (4.7% of GDP) to the national economy, with tourism revenues growing from $1.07 billion in 2022 to $1.28 billion in 2023. Despite these promising figures, the Medium-Term Expenditure Framework (MTEF) allocation for the Tourism Development Programme in FY 2025/26 stands at only sh175.98 billion, far below the sh464 billion recommended under the National Development Plan IV. This leaves a sh288 billion funding shortfall, further exacerbated by a reduction from the sh311 billion allocated in the current FY 2024/25.
Concerns over tourism infrastructure
One of the most pressing issues raised in the CSO position paper, as presented by Jeff Waduulo, team lead at Jenga Afrika, is the deteriorating state of tourism-related infrastructure. While the government has allocated sh10 billion for product modernization and development under the Mt. Rwenzori Tourism Infrastructure project and sh9.5 billion for roads and bridges under the Source of the Nile Development Phase II, these investments fall far short of what is required.
The government has made commendable efforts in improving key transport infrastructure, including 600 km of tourism and oil and gas roads, the repair of Karuma Bridge, and the expansion of ferries across various River Nile crossings. However, significant gaps remain in the protected areas, which are crucial for tourism. The Capital Development budget for FY 2025/26 stands at only sh37.069 billion just 21.06% of the total tourism budget compared to the non-wage budget of sh130.539 billion.
The position paper highlights particularly neglected roads, including the Kisoro-Nkuringo-Rushaga-Ruhija-Bwindi-Buhoma-Kihihi-Ishasha-Katunguru and the Kisoro-Mgahinga roads. These routes serve as critical links to Bwindi Impenetrable National Park and Mgahinga National Park, two of the top tourism destinations renowned for their mountain gorillas. Poor accessibility to these parks is causing Uganda to lose a significant number of gorilla trekking clients to neighboring Rwanda and the Democratic Republic of Congo.
Similarly, the Kitgum-Karenga Road, a major link between West Nile and Northern Uganda to Kidepo National Park, remains in dire need of repair. Other affected areas include the Buyaga-Mount Elgon Trail, Sipi-Kapkwai Exploration Centre, and the Piswa Trail in Kween, which are essential for Mount Elgon tourism.
The CSOs recommend increasing the Capital Development Budget for the Tourism Development Programme to at least 50% of the program’s total budget, prioritizing the urgent tarmacking of major tourism roads to enhance accessibility and the overall visitor experience and investing in other tourism-enabling infrastructure, including broadband connectivity, reliable electricity, and water access in key tourism destinations.
Weak Tourism Marketing Efforts
Despite Uganda’s rich tourism potential, the country struggles with inadequate marketing efforts, limiting its global appeal. While the Uganda Tourism Board (UTB) has attempted to market the country through international expos and events such as INDABA, overall efforts remain insufficient and lack innovation.
Uganda’s embassies abroad have been tasked with promoting tourism but are constrained by limited annual budgets of just sh100 million per mission. This is in stark contrast to regional competitors such as Kenya, Tanzania, and Rwanda, whose post-pandemic tourism recovery has been significantly faster due to more aggressive marketing strategies.
The private sector has historically supplemented government efforts in marketing the attractions. However, since the COVID-19 pandemic, many industry players can no longer afford to sustain these initiatives. Only a few individual hotels and tour operators continue to invest in new websites, drone footage, and valuable online content such as travel blogs, leaving Uganda lagging in global tourism promotion.
CSOs recommend an increase of government investment in international tourism expos, fairs, and direct marketing campaigns to boost Uganda’s visibility, raising the tourism marketing budget for embassies and high commissions to at least sh500 million per mission and providing financial support to private-sector players for supplementary destination marketing efforts, ensuring a sustained and coordinated push for Uganda as a top-tier travel destination.