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Tourism instrumental for economic development
Over the years tourism is increasingly becoming instrumental in socio economic development of the country. With careful planning and commitment of resources, the tourism sector has a potential to greatly contribute to the strengthening of the fundamentals of the economy to enable the country harness her abundant opportunities.
Although the sector is recognized in the National Development Plan 11 and Vision 2040 as one of the fastest growing service sector of the economy and a major foreign exchange earner, there has been limited strategic planning and investment and inadequate mainstreaming of tourism in all government activities to boost the sector. This is in contrast to many countries in the region and beyond that have significantly invested and benefited from the high rates of return.
The case for intensifying and increasing Government support for the tourism sector is as compelling as it is self-evident based on key socio-economic and environmental indicators which justify increased government support to the sector. In spite of limited support, the tourism sector is making significant contribution to the economy as indicated below.
Export earnings: from a balance of trade perspective, tourism is Uganda’s single largest export earner and generator of foreign exchange, at USD 1,039 million per annum (UBOS, 2014). This represents more than twice the earnings of coffee, the country’s second biggest export.
Employment: being a labour intensive industry, tourism employs directly 247,000 people (WTTC, 2014) and provides employment for an additional 345,000 (WTTC, 2014), indirectly and induced. Very significantly in a country with such high youth unemployment (over 80% in 2009, WB), including high levels of graduate unemployment, the sector employs a high proportion of youth and women. Nowhere else in the economy can so many jobs be created so quickly and cost-effectively as in an expanding tourism sector.
Economic transformation and inclusive growth: in progressing to a modern, middle income economy, tourism makes a highly significant contribution to achieving the Millennium Development Goals in Uganda, especially with regard to MDG1 – Poverty Eradication; MDG3 – Gender Equality and Women Empowerment; MDG7 – Environmental Sustainability. These are mainly being achieved through direct and indirect employment in the sector and through related value-chain linkages.

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