Before the emergence of COVID-19, tourism was the leading foreign exchange earner for Uganda, generating US$1.6 Billion in annual foreign exchange earnings, creating 536,600 direct jobs, and bringing in 1,542,620 foreign visitors as of 2019.
According to a study conducted by the Tourism Ministry, the sector was significantly impacted by the COVID-19 pandemic.
“Annual foreign exchange earnings dropped by 73% to US$0.5 Billion while foreign visitors dropped by 69.3% to 473,085. Employment opportunities also dropped by 70% to 160,980. As of June 2020, hotel occupancy rates dropped from an average of 58% to as low as 5% with over 75% of hotel bookings (448,996) canceled causing a direct loss of US$ 320.8 Million, an equivalent of UGX 1.19 Trillion.” states the tourism ministry in a study released on 27th May 2021.
Government to the rescue
As a result of these massive losses, the Government of Uganda, working with the private sector and development partners, undertook several interventions to resuscitate the sector as follows;
“Working with the Ministry of Health, we developed and disseminated tourism sector Standard Operating Procedures to guide the reopening of the tourism businesses, Upcountry accommodation facilities, and Kampala based hotels were exempted from VAT up to 30th June 2021. Uganda Development Bank was capitalized by Government to extend low-interest credit to tourism enterprises. Interest rates offered by UDB are about half the rates availed to private businesses by other commercial lending institutions within the country,” says the Ministry’s Permanent Secretary in a statement.
The government has intensified promotional campaigns aimed at attracting tourists from both domestic and international markets. Tourism promotion drives like “Take on the pearl” and “Pearl of Africa Virtual Expo”, branding of international sportsmen, all aimed at attracting tourists to various destinations in Uganda have been implemented.
The government through the Uganda Tourism Board engaged Market Destination Representatives in key source markets to keep Destination Uganda afloat in the source markets. The government effectively responded to COVID-19 and as a result, case fatalities and transmission rates were kept in control.
Uganda was ranked among the top best countries in Africa that effectively responded to the COVID-19 pandemic.
“We intensified law enforcement operations in protected areas to keep poaching, illegal wildlife trade, and tracking in control. In addition, community engagement, control of invasive species and management of human-wildlife conflicts was intensified to keep the tourism resource base intact. Tourism product development continued amidst challenges. Regional museums were finalized, Mugabe palace renovated, Rwenzori Mountaineering infrastructure upgraded and source of the Nile infrastructure improved,” states Doreen Katusiime, the Permanent Secretary in the Ministry of Tourism, Wildlife and Antiquities.
The government has continued to improve infrastructure at Uganda Hotel and Tourism Training Institute (UHTTI) and Uganda Wildlife Research Training Institute (UWRTI) to offer quality skills development services for the sector
Signs of recovery
With concerted efforts to recover the sector, results from a recent survey undertaken by the Ministry of Tourism, Wildlife, and Antiquities indicates that the country’s tourism has started showing positive signs of recovery as follows:
Overall tourist bookings have tripled by the first quarter of 2021 increasing from 27,542 bookings recorded by end of August 2020 to 83,464 bookings by end of March 2021.
Foreign tourist bookings increased faster-growing fourfold between August 2020 and March 2021 while domestic tourist bookings tripled over the same period.
Bookings registered by Airlines and Accommodation facilities doubled by end of March 2021 while bookings recorded by tour operators increased eleven-fold between August 2020 and March 2021. At least 30% of tourism jobs were recovered by end of March 2021.
Hotel occupancy rates in Uganda increased by 10% by end of March 2021 to an average of 31% down from 20.1% at the end of the year 2020. Weekly Flights within or to and out of Uganda increased fourfold by end of March 2021 rising from a weekly average of 3 flights in 2020 to a weekly average of 11 flights in 2021.
“This means that 73% of the flights that fly our routes have resumed.” she says, adding that: “The Foreign Non-residents visiting our parks doubled, increasing from 3,577 visitors to 7,318 visitors.”
National Park Visits by students tripled in the same period increasing by 834 visitors in the first three months of CY2021. Revenue collections recorded by the Uganda Wildlife Authority doubled in the first three months of CY2021 (January to March 2021) compared to the last three months of CY2020 (October to December 2020) increasing from UGX 3 billion at the end of December 2020 to UGX 6 billion at the end of March 2021.
This is still far below the expected revenue of about UGX60Billion but there is a positive trend. Visitation to the Source of the Nile increased by 3.9% in the first quarter of 2021 (January to March) compared to the last quarter of 2020 (October to December).
Visitation to the Entebbe Zoo increased by 12.9% in the first quarter of 2021 (January to March) compared to the last quarter of 2020 (October to December).
Plans to consolidate the gains
“In the next one year, we plan to undertake the following key interventions to consolidate the tourism sector recovery: Two national-wide domestic tourism awareness drives will be conducted to promote the country’s tourism offering and encourage Ugandans to visit tourism sites,” says Katusiime.
World Tourism Day 2021 will be celebrated targeting to reach out to 100,000 Ugandans (mainly virtually) on the importance of tourism Tourism sites of Kagulu Hills, Bishop Hannington and Kayabwe Equator are planned to be developed to improve competitiveness. Construction will focus on Information centres, fencing, parking, sanitary facilities, information & directional signages, monuments, trails, resting sheds.
“As a sector, we are fully committed to recovering the tourism industry so that it can once again play its transformative role in Uganda’s economy. We are determined to aggressively promote and market Uganda, expand our tourism product range, improve the skills along the tourism value chain, improve support infrastructure and facilities, strengthen conservation of natural and cultural heritage as well as sector regulation. We count on all Ugandans and our development partners to support the full recovery of the tourism sector.” said Katusiime.
Kitagata Hotsprings are going to be developed (including pools, parking, monument, trails, resting sheds). Two (2) cultural heritage sites will be developed including Mugaba Palace in Mbarara (phase 3) completed and Nyero Rock Art site in Busoga region.
Ten (10) tourism private enterprises and initiatives are to be nurtured to participate in local, regional, and global tourism value chains through training. Three (3) species re-introduced in Protected Areas (PAs) (15 Giraffes translocated to Pian Upe) and 200 Uganda Kobs moved to Kidepo Valley National Park.
Up to 3,000 hectares cleared of invasive and exotic species in Protected Areas. Degraded area restoration plans were developed and implemented with the restoration of 640 hectares in all Protected Areas (PAs). Eight (8) camping sites will be developed in Queen Elizabeth National Park, Murchison Falls NP, Rwenzori Mountains NP, Lake Mburo NP, Mountain Elgon NP and Mgahinga Gorilla NP.
Enforcement and compliance to tourism standards and regulations will be strengthened through registering, inspecting and licensing tourism service providers (500 Tour and travel guides, 500 agents and operators, 3000 accommodation facilities).
Market Destination Representatives (MDRs) hired to promote the destination in 6 core and emerging markets i.e. North America, Japan, China, Gulf States, UK & Ireland, Germany, Austria & Switzerland. Training facilities constructed at UHTTI including office block, students’ instructional facilities, kitchen, cafeteria, sports facilities and Infirmary; phase 2 of the hotel (including additional 30 rooms, Health club, and swimming pool).
UWRTI infrastructure developed including classrooms, laboratories, admin block, fence, staff housing, and guest house. Refurbishments/renovations at UWEC focusing on the National Wildlife Quarantine center (hospital), 6 enclosures/holdings, Extension of animal Food store with cold room.