OPINION
Editor, in March 2025, the Ministry of Finance tabled the FY 2025/26 budget estimates to parliament which was estimated at UGX 71.9 trillion which represents a significant increase from the previous proposed amount of UGX 57.4 trillion. The budget strategy for FY 2025/26 aims at strengthening economic growth drivers, particularly those related to the government’s ten-fold GDP expansion strategy which includes sectors like tourism and other growth drivers
Notably, the Uganda’s ambitious “Tenfold Growth Strategy” was officially launched in March 2024 as a central component of the Fourth National Development Plan (NDP IV). This strategic initiative aims to expand the nation’s economy from approximately USD 50 billion in FY 2023/24 to USD 500 billion by 2040, effectively doubling the GDP every five years over a 15-year period.
However, it is concerning that the budget allocations for tourism sector that is among the sectors identified in the forthcoming NDP IV continues to be less which does not resonate with the government’s targets of ensuring creation of jobs, improving standards of living and promoting inclusive development across the country. For instance, the planned resource allocation for tourism sector is only UGX 175.98 billion which is insufficient and is against the NDP IV indicative planning figure of UGX 464 billion and this may sabotage green growth and climate change mitigation. The tourism sector needs adequate funding to accelerate the country’s socio-economic transformation.
Note that, tourism sector plays a vital role in Uganda’s economy and is a source of livelihood for a significant proportion of Ugandans where the sector contributes 3.2% to the country’s GDP. According to the Ministry of tourism, wildlife and antiquities report released in April 2025, tourism is projected to create employment amounting to 803,000 jobs, contributing to a significant portion of the country’s overall employment which means that the sector’s development should be well planned through increasing its investments. The sector offers a great opportunity to citizens’ quality of life and region’s economy vitality which underscores the potential of tourism in achieving the National Development Plan, Vision 2040 and the Sustainable Development Goals that includes poverty eradication, job creation and environmental preservation.
According to the tourism performance statistics report, in 2024, Uganda’s tourism sector attracted 1,371,895 international visitors which represents 89.2% of pre-pandemic levels. The sector also saw a significant increase in earnings, reaching Shs 4.8 trillion, driven by longer stays and higher spending per visitor. Globally, international tourism also rebounded strongly, with an estimated 1.4 billion international tourists worldwide, recovering to 99% of 2019 levels. It is noted that Uganda is poised to exceed 1.6 million tourist arrivals by 2025, with targeted efforts in sustainability, high-value tourism, and infrastructure development.
Therefore, as Uganda strives to diversify its economy and boost foreign exchange earnings, the tourism sector has emerged as a promising venue for growth. With its rich biodiversity, stunning landscapes and vibrant culture, Uganda has the potential to become a leading tourist destination in Africa. However, to achieve this, the country needs to increase investments in the tourism sector to address several challenges hindering its growth such as limited access to funding, inadequate infrastructure, destruction of wildlife corridors like rivers, forests reserves such as Bugoma and Zoka forest reserves that are being destructed with human activities for instance sugarcane growing, timber logging among others.
Addition of more investments in the sector will help in enhancing the tourist experience, promote ecological balance and create employment opportunities for Ugandans. Sustainable management of national parks such as Murchison falls national park and other natural heritages around Uganda should be prioritized since they are of great importance to our economy’s tourism and future generations. Addressing all these tourism sector challenges will help the country increase foreign exchange earnings, creating jobs and stimulating other industries.
By Olive Atuhaire,
The writer is a Research Associate at AFIEGO.
E-mail: oliveatuhaire63@gmail.com
