UGANDA: Uganda Civil Aviation Authority Sets Tough Conditions For AIrline Licence Applicants

The Uganda Civil Aviation Authority (CAA) has set tough conditions to airline companies that applied for licenses to operate local and regional flight services.

According to the aviation body’s Managing Director, Mr David Kakuba, the tough conditions are intended to ensure safety and high standards because worldwide, the industry is highly regulated.

The sector manages risk at almost 100 percent. Therefore, if you want to come and fly in the air space of this country, you must go through very many procedures to be cleared, he said.

He was speaking on Thursday in Kampala, during the Civil Aviation Board Air Services Licensing Committee public hearing session where six companies were defending their applications.

A public hearing session is one of the conditions, where companies have to defend their proposals.

The public is free to raise any objections against the companies that have applied for either new license or renewal of license with the aviation body.

According to David Kakuba, the managing director for the Civil Aviation Authority (CAA), 48 operators are currently licensed to access Uganda’s airports.

Upon the arrival of Uganda’s aircraft Bombardier CRJ900 into the country on April 23, Lilly Ajarova, the Chief Executive Officer for Uganda Tourism Board (UTB), expressed optimism at the benefits, the carrier was to bring to Uganda’s tourism industry.

Likewise, several aviation operators revealed plans aimed at tapping into Uganda’s improving tourism potential, saying the number of tourists visiting the country, is increasing day by day.

Anthony Njoroge the country manager of AeroLink, noted that the company currently operates three aircraft which fly within different national parks in Uganda.

World over, tourism numbers are increasing and Uganda is one of the key tourist destinations. We, therefore, want to position ourselves for such a viable market, intimated Njoroge.

He added that the planes are chartered to fly tourists to Semuliki national park, Kidepo, Murchison Falls, Queen Elizabeth national park and Bwindi impenetrable forest.

This was during a public hearing of applications for air services licensing which was conducted at Mestil hotel in Kampala, on Thursday where aviation operators were subscribed to public scrutiny, as one of the processes for renewing or acquiring an aviation operating license.

According to David Kakuba, the managing director for the Civil Aviation Authority (CAA), 48 operators are currently licensed to access Uganda’s airports.

He also noted that some operators have already expressed interest in increasing the number of flights into Uganda, for there carriers.

Every operator must, however, embrace competition which is very stiff in the aviation industry, advised Kakuba.

He, however, intimated that Uganda airlines will be accorded preferential treatment like free office space and exemption from parking charges. As a national airline, its screens shall be used to market Uganda’s tourism sites and destinations, stated Kakuba.

McKenzie Ongwen the chairperson for the licensing board revealed that licensing process has been eased for air service operators in the interest of promoting Uganda’s tourism sector.

When an airplane is fit for flying and has competent and qualified personnel, as well as a certificate of regular maintenance, other processes are easier.

He called upon more air service operators to join Uganda’s aviation industry, saying, there are ongoing expansion works being carried out at Entebbe, Arua, Kabale and Gulu airports.

Meanwhile, Godfrey Kitagenda of AirServ company said, their operations are centered to humanitarian works among which include medical services. He, however, acknowledged the booming tourism industry in Uganda, saying it’s tempting.

According to Ephraim Kamuntu, the minister for tourism, wildlife, and antiquities, Uganda has seen steady growth in tourism, in terms of tourists arrivals, foreign exchange earnings and tourism contribution to Gross Domestic Product(GDP).

Kamuntu said the sector accounted for 7.3 percent of GDP, foreign exchange earnings worth US$1.45bn and more than 600,000 jobs in the year 2017.

Six companies have been shortlisted for licensing to operate local and regional flight services, the Civil Aviation Authority (CAA) has revealed.

Among the airline companies shortlisted is Sun Guru Limited which applied for new licenses to operate private and domestic non-scheduled passenger flight service and Misk Air Limited which applied for domestic non-scheduled passenger flights.

Four companies applied for license renewal and they include; Aero Link, Air Serv Uganda, Premier Services East Africa, and Jobihani Investments. Speaking during the Civil Aviation Board Air Services Licensing Committee public hearing session, where the six companies were defending their applications on Thursday in Kampala, CAA’s Managing Director, David Kakuba said they have set tough conditions for the applicants to ensure safety and high standards because worldwide, the industry is highly regulated.

The sector manages risk at almost 100 percent. Therefore, if you want to come and fly in the air space of this country, you must go through very many procedures to be cleared, he said.

According to Kakuba, a public hearing session is one of the conditions, where companies have to defend their proposals and the public is free to raise any objections against the companies that have applied for either new license or renewal of license with the aviation body.

He said companies interested to operate in Ugandan must have aircrafts which have a valid certificate of air of worthiness, qualified and competent personnel, regular maintenance records, the economic viability of the operation among other requirements.

The shortlisted companies will give competition to the recently revived government-owned Uganda Airlines in the provision of flight services.

On April 23 two Bombardier CRJ900 jets touched down at Entebbe International Airport, marking the official revival of Uganda’s national carrier, which was grounded in 2001.

Vule Airways

Vule Airways Limited, is a privately owned airline in Uganda. Established in March 2017, the airline expects to begin scheduled commercial flights in November 2017.

According to the company website, the corporate headquarters are at 515 Mbogo Road, Kibuli Hill, Kampala, Uganda.

The airline maintains a sales office in the central business district of Kampala, at 13-15 Kimathi Avenue, and another office in southwest London, in the United Kingdom.

As of August 2017, the company is waiting for the award of an air operator's certificate by the Uganda Civil Aviation Authority (UCAA).

The company plans to hire 60 employees initially and lease 6 aircraft to provide domestic, regional and international passenger and cargo services.

In August 2017, Ch-aviation reported that Vule Airways had secured an Air Services Licence (ASL) from the Ugandan Civil Aviation Authority.

The company's shares are owned by Ugandans (55 percent) and non-Ugandans (45 percent).

Vule Airways expects to start services to 6 domestic airports. Services will then expand to the regional airports, within the countries of the East African Community.

The company also expects to serve Johannesburg, Tunis and London; services will be expanded as demand grows.

According to the company website, the company expects to lease 6 aircraft, including a one 40-seater Bombardier Dash 8-200, one 78 seater Bombardier Dash Q400, three 128-seater Boeing 737-700 and one 300-seater Boeing 777-200ER.

The six-person board of directors includes the following individuals:

- Robert Mwesigwa Nviiri, the Chairman and Managing Director

- Lameck Nsubuga Mukasa, Company Secretary

- Fixon Akonya Okonye, Director Finance and Administration

- Jones Yosiya Kyazze, Director Public Relations

- Margaret Anne Mazzi Wampamba, Director Marketing

- Perpetua Kabaitira Biraaro, Director Internal Audit.


Tourism Observer

UGANDA: Uganda Expects To Earn $700M From Bird Watching Tourists

Uganda, home to more than half of Africa’s bird population, seeks to earn over $700 million from its rich birding variety over the next decade, government officials said during the Africa Birding Expo held in Entebbe from 18-21 November.

The East African nation hosted the event for the first time at Botanical Gardens in Entebbe and hopes to use the show to increase its tourism revenue. Tourism currently contributes about 10 percent of the country’s GDP.

“We have more birds than U.S. and Europe combined but they earn more than us. We are targeting 100,000 birders who will bring in $700 million a year in the next 10 years,” New Vision quoted Stephen Asiimwe, the chief executive officer of Uganda Tourism Board (UTB), saying.

The event which attracted over 100 exhibitors from Africa and across the world, is organized by UTB and Uganda Safari Guides and funded by the World Bank in efforts to showcase the country’s vast bird heritage.

Uganda has over 1,000 bird species but its tourism numbers are about 500 visitors every year, paltry figures compared to other nations like the U.S., which attracts about 17 million bird watchers every year despite its paltry number of species.

The East African nation has about 10 percent of the world’s bird population.

Some of the most sought-after birds in Africa that are found in Uganda include Shoebill, Fox’s weaver, Black bee-eater, Rwenzori Turaco and the Green-breasted pitta, which are mainly found in the Mgahinga Gorilla National Park, Ichuya Forest and Bwindi Impenetrable Forest National Park.

Queen Elizabeth National Park, found in the western region of East Africa’s second biggest economy has over 600 species, the highest for any protected area across the continent.

The Ugandan government is increasing its efforts to tap more earnings from this rich bird diversity, through extensive training of its bird guides, developing infrastructure to help tourists access the birds easily and improved marketing of sector as a major tourism attraction product.

UGANDA: Targeting 100,000 Birders Who Will Bring $700 million A Year In Next 10 Years

Uganda, home to more than half of Africa’s bird population, seeks to earn over $700 million from its rich birding variety over the next decade, government officials said during the Africa Birding Expo held in Entebbe from 18-21 November.

The East African nation hosted the event for the first time at Botanical Gardens in Entebbe and hopes to use the show to increase its tourism revenue. Tourism currently contributes about 10 percent of the country’s GDP.

“We have more birds than U.S. and Europe combined but they earn more than us. We are targeting 100,000 birders who will bring in $700 million a year in the next 10 years,” New Vision quoted Stephen Asiimwe, the chief executive officer of Uganda Tourism Board (UTB), saying.

The event which attracted over 100 exhibitors from Africa and across the world, is organized by UTB and Uganda Safari Guides and funded by the World Bank in efforts to showcase the country’s vast bird heritage.

Uganda has over 1,000 bird species but its tourism numbers are about 500 visitors every year, paltry figures compared to other nations like the U.S., which attracts about 17 million bird watchers every year despite its paltry number of species.

The East African nation has about 10 percent of the world’s bird population.

Some of the most sought-after birds in Africa that are found in Uganda include Shoebill, Fox’s weaver, Black bee-eater, Rwenzori Turaco and the Green-breasted pitta, which are mainly found in the Mgahinga Gorilla National Park, Ichuya Forest and Bwindi Impenetrable Forest National Park.

Queen Elizabeth National Park, found in the western region of East Africa’s second biggest economy has over 600 species, the highest for any protected area across the continent.

UGANDA: Uganda Tourist Board (UTB) A Statutory Organisation Established By Uganda Tourist Board Statute 1994

Uganda Tourist Board (UTB) is a statutory organisation established by the Uganda Tourist Board Statute 1994. The Board's mandate is to promote and popularise Uganda as a viable holiday destination both locally and internationally in order to:
- Increase the contribution of tourism earnings and GDP
- Improve Uganda's competitiveness as an international tourism destination
- Increase Uganda's share of Africa's and World tourism market.

Objectives of the Board
In pursuit of the above mandate, the functions of the Board are:
- Increase the quality and volume of tourist arrivals and their expenditures.
- Improve on the marketing and promotion of Uganda as a tourist destination.
- Provide of accurate and timely information services on the country's tourist attractions and facilities.
- Strengthen its capacity for tourism planning, research and marketing? How
- Improve and diversify in consultation with stakeholders' tourist products.
- Enhance and strengthen competitiveness of the private sector in the tourism industry.

Strategy of Tourism marketing development
The Successful marketing of Uganda safaris in the market place requires an effective partnership between the public and private sector. While UTB may have a lead role in destination marketing and in creating promotional opportunities for the Ugandan industry, the sale of the product to the trade and consumer is almost entirely the responsibility of the private sector tourism service providers.

In order to encourage greater partnership with it, the industry in marketing and promotional campaigns, it is important to encourage joint public/private sector promotional opportunities, improve communications and provides more market intelligence and user-friendly research.

Based on the varying needs, structures and stage of development of individual markets and the limitations of resources, each market will be approached with a mix of marketing activities best suited to market conditions. For example, in some markets, the campaigns may include both consumer and trade promotional activities such as advertising, publicity, trade and consumer promotions whereas in other markets, the focus may be exclusively on working with the travel trade.

Partnership with existing airlines operators in Uganda and market based travel trade, will be encouraged, to maximise impact in the value achieved and level of business generated. In addition, a greater use of new information technology for information and distribution functions will be promoted.

In order to maximise the effectiveness of the limited resources - budgets and capable personnel - a consistent approach will require that resources are allocated on the basis of a prioritisation of markets that offer the best potential for tourist earnings.

UGANDA: Uganda Tourism Board Blamed For Not Marketing Uganda

Members of Parliament complained about Uganda Tourism Board (UTB) for failure to promote Uganda as a tourist destination.

UTB officials led by the chief executive officer Stephen Asiimwe and head of marketing Edwin Muzahura appeared before Parliament's committee on Tourism, Trade and Industry on Tuesday to make a presentation on activities and strategies being undertaken by the board.

Asiimwe told the committee that the board has to operate within a budget of only Shs 11.4bn, money he said is inadequate to execute its plans.

He noted that the board needs to carry out training exercises for tour operators, guides and hospitality staff across the country as well as continue with marketing Uganda abroad through foreign public relation agencies.

Asiimwe also criticized the continued levy of 18 percent value added tax (VAT) on hotels upcountry as having a negative toll on the sector.

“There is still a challenge on upcountry accommodation. Government has been charging 18 percent VAT. Now, what happens there, is that, every time a visitor comes to a hotel in an upcountry facility where the majority of the leisure tourists go, the VAT is put on the visitor. Then they pay more money, the experience is more expensive and you become less competitive. The issue of national carrier is still very critical. By last week, getting a ticket to Kenya was $800”, he said.

However, some MPs on the committee dismissed the presentation as merely ‘cosmetic’, containing no concrete and viable strategy to increase tourism revenue. The legislators insisted that funding was not the major setback dogging the board. Moses Balyeku, the Jinja West MP, told UTB officials to be more creative and bring in more money to the country.

“Government can’t keep on giving you money all the time, it is not there. You need to be more enterprising. Get your own money. UWA,Uganda Wildlife Authority, makes its own money. You have a board member here from UWA who sits on your board. What value does he bring on your board. What value does hotel owners does the hotel owners bring on your board? You first market us as Uganda, as a tourist destination and brand us. The reason why we have been singing all these years is, the other time we spent money on CNN that we are marketing Uganda in a wrong way.”, he said.

Dokolo county MP Felix Okot Ogong criticized the board for presenting the same challenges to the committee every year without ever finding solutions.

“I find a problem with the tourism board here. They are into other things but not focusing on what should promote tourism. I think this time, we should do it differently. You have Shs 11bn. Most people don’t have those billions of shillings but how efficiently are you using it? Is it being effectively used to promote what we are saying. The problem actually to me, committee chairman, lies with the board”, he said.

But Asiimwe insisted that Uganda had the best tourism master plan on the continent and stressed that the sector had the potential to fund the nation's entire budget. He however noted that there needed to be a fundamental shift in priorities and attitudes as far as tourism is concerned.

“If you read the UTB tourism master plan, it is a 10-year fantastic paper, countries are clamoring to own it, countries are dying to own it. In terms of what it takes to market this country, we have but we need a fundamental shift in the way we look at its products. And I really insist, this thing needs to be taken beyond just the committee but of course the committee can spearhead this and we fundamentally look at tourism as a very important sector”, Asiimwe said.

Despite underfunding, in FY 2014/15, sector contribution to Gross Domestic Product (GDP) increased to Shs 6.3 trillion (9 percent of GDP) up from 5.6 trillion (7.9 percent of GDP) the previous year. In the same period, the number of tourists increased from 1,206,334 visitors in 2013 to 1,266, 046 visitors in 2014. UTB attributed this to better marketing strategies.