Government is finalising arrangements to have taxes on hotels in the country either scrapped or reduced so as to enable entrepreneurs invest in the business to attract more tourists, Minister of Tourism Ephraim Kamuntu has said.
“Many hotels in the country have failed to improve their services to international standards because of the tax burden on them. As government, we have finished reviewing the demands for hotel owners and we are ready to revoke taxes so that they could expand their businesses to attract more tourists,” he said.
He added that the scrapped or reduced taxes will be reflected in the 2017/2018 budget because government wants to increase the number of tourists that come to Uganda annually from the current 1.3m to 4m by 2020.
Prof Kamuntu revealed that the tourism industry currently contributes 9 percent to the country’s Gross Domestic Product, adding that if the taxes on hotels are scrapped, government would collect much money due to the increased number of tourists caused by the improved hotel services.
“There is no government that can survive without the private sector and that’s why we have to consider some of their demands because they help us in terms of development.
Tourism is one of the fastest growing sectors in the world and this means that we must prioritise it as a country,” he said. However, he challenged hotel owners to train their staff on hospitality so that they could get as many tourists as possible.
He made the remarks last week in Kampala while officiating at the launch of the four tourism products that were unveiled by the Uganda Tourism Association (UTA).
The new products are; Uganda National Museum Indigenous dinner, Namugongo Shrine son et lumier, Uganda Rwenzori Cultural Trail and Interpretation capacity building for birding and the Uganda iconic tourism product development.
The UTA president, Mr Boniface Byamukama, said the development of the new products follows Uganda’s quest to be a leading tourism destination with the purpose of creating employment opportunities and increase revenue.
“I urge our partners in the government and private sector to take advantage and invest in these products. By working together, we will sustainably push Uganda tourism sector to the next level. We now have strategic plans that will guide us in policy and planning,” he said.
Mr Byamukama said that their strategic plans include marketing Uganda to the international arena, training tour guides and hotel managers and also embrace the use of internet to get more customers.
But he expressed concern over the high taxes levied on hotels yet others, especially those located upcountry, as well as very low occupancy rate.
Currently, hotels in Uganda have an occupancy rate of 17 per cent. However, if taxes are scrapped, Mr Byamukama anticipates that the percentage will increase since many hotels will then invest in having better services to attract more tourists.
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Showing posts with label Uganda National Museum. Show all posts
Showing posts with label Uganda National Museum. Show all posts
Tuesday, 4 April 2017
Tuesday, 22 November 2016
UGANDA: Government Injects Shs 231 billion To Boost Tourism Capacity.
Three government and private tourism agencies have unveiled four Uganda tourism products, costing Shs231 billion to boost the countries tourism capacity.
Uganda Tourism Board (UTB) and Uganda Tourism Association (UTA) in collaboration with Trade Mark East Africa (TMEA) unveiled the new products, including Namugongo Shrine Faith Based Tourism, Uganda National Museum Indigenous Dinner, Uganda Rwenzori Cultural Trail, and Interpretation Capacity Building for Birding on Wednesday at a tourism review workshop in Kampala.
The money will be raised through partnership with local and tourism companies from neighbouring countries such as Kenya and Rwanda, among others, with UTB, UTA and TMEA contributing the biggest percentage.
According to Mr Richard Kawere, UTA's technical coordinator, the funds will be used to construct accommodation structures, cultural museums and marketing of the new products.
"This is just an estimate of the costs that would be incurred in establishment and marketing of new tourism products. The final budget will be established after consultation meetings and site visits," Mr Kawere said.
Mr Wanjiku Kimamo, the TMEA senior programmer, whose organisation has supported the project with Shs1.1b, and Mr Stephen Asiimwe, the chief executive officer, UTB, said the new products will, among other things, enhance tourism institutional capacity and sustainability through building national tourist apex associations; encourage private public dialogue; as well as improve competitiveness and marketability of Uganda tourism products.
"Our partnership is to increase trade for prosperity in the EAC region. We are looking at increasing tourism and export capability of EA countries," Mr Kimamo said.
Mr Kimamo called upon EA governments to take tourism as one of the priority sectors because of its strong participation of enterprises, opportunities to create jobs, increase incomes and contribution to national economies.
Mr Asiimwe said new products will boost tourism earning from $1.4b (about Shs4.9 trillion) to more than $2b in the next two years. He said the products are estimated to attract 100,000 potential visitors annually, spending $250 (about Shs900,000) a night.
"Focusing on visitor's stay and what they spend will translate into increased visitor volumes and value to the economy. If implemented, this will strengthen competitiveness of Uganda as a destination," Mr Asiimwe said.
Mr Bonifence Byamukama, the UTA president, said their 2015 study revealed that many tourists go back with the money because Uganda tourism has been reduced to only wildlife.
"Uganda's tourism has been rotating around guerrillas and other wild animals. We need new spice in the tourism industry," Mr Byamukama said.
Details. The sector's total contribution to Gross Domestic Product in 2015 was 9.9 per cent at Shs6,395.4 billion compared to 7.9 per cent at Shs5,495 billion) in 2013 and 8.8 per cent in 2012 which was Shs4,993.6 billion. Receipts from tourism have also increased from Shs449 million in 2007 to about Shs1.148 billion in 2014.
Uganda Tourism Board (UTB) and Uganda Tourism Association (UTA) in collaboration with Trade Mark East Africa (TMEA) unveiled the new products, including Namugongo Shrine Faith Based Tourism, Uganda National Museum Indigenous Dinner, Uganda Rwenzori Cultural Trail, and Interpretation Capacity Building for Birding on Wednesday at a tourism review workshop in Kampala.
The money will be raised through partnership with local and tourism companies from neighbouring countries such as Kenya and Rwanda, among others, with UTB, UTA and TMEA contributing the biggest percentage.
According to Mr Richard Kawere, UTA's technical coordinator, the funds will be used to construct accommodation structures, cultural museums and marketing of the new products.
"This is just an estimate of the costs that would be incurred in establishment and marketing of new tourism products. The final budget will be established after consultation meetings and site visits," Mr Kawere said.
Mr Wanjiku Kimamo, the TMEA senior programmer, whose organisation has supported the project with Shs1.1b, and Mr Stephen Asiimwe, the chief executive officer, UTB, said the new products will, among other things, enhance tourism institutional capacity and sustainability through building national tourist apex associations; encourage private public dialogue; as well as improve competitiveness and marketability of Uganda tourism products.
"Our partnership is to increase trade for prosperity in the EAC region. We are looking at increasing tourism and export capability of EA countries," Mr Kimamo said.
Mr Kimamo called upon EA governments to take tourism as one of the priority sectors because of its strong participation of enterprises, opportunities to create jobs, increase incomes and contribution to national economies.
Mr Asiimwe said new products will boost tourism earning from $1.4b (about Shs4.9 trillion) to more than $2b in the next two years. He said the products are estimated to attract 100,000 potential visitors annually, spending $250 (about Shs900,000) a night.
"Focusing on visitor's stay and what they spend will translate into increased visitor volumes and value to the economy. If implemented, this will strengthen competitiveness of Uganda as a destination," Mr Asiimwe said.
Mr Bonifence Byamukama, the UTA president, said their 2015 study revealed that many tourists go back with the money because Uganda tourism has been reduced to only wildlife.
"Uganda's tourism has been rotating around guerrillas and other wild animals. We need new spice in the tourism industry," Mr Byamukama said.
Details. The sector's total contribution to Gross Domestic Product in 2015 was 9.9 per cent at Shs6,395.4 billion compared to 7.9 per cent at Shs5,495 billion) in 2013 and 8.8 per cent in 2012 which was Shs4,993.6 billion. Receipts from tourism have also increased from Shs449 million in 2007 to about Shs1.148 billion in 2014.
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