East African Business Week

Kampala, Uganda-The growth of Uganda's tourism sector is in part dependant on the promotion of domestic tourism.
The Budget Analysis report indicates that the tourism industry in Uganda is still lagging behind its neighbours calling for the need to develop it domestically.
Despite the growth of the industry in the recent years, the industry has the lowest estimated contribution to GDP at 3.2% in 2011 compared to Kenya and Tanzania's 4.5%.
In his analysis report, Mr Francis Kamulegeya concedes that the higher contribution of the industry to GDP in Kenya and Tanzania is in partly attributed to the greater emphasis and support the governments provide to the sector to develop it domestically.
"Uganda has unique offerings that if promoted and utilized domestically appropriately should increase the sector's contribution to GDP and result in greater employment," said Kamulegeya.
Kamulegeya explained that the country's all year round sunny climate and unique fauna and flora make it potentially one of the most popular tourist destinations.
With the industry as the key source of foreign exchange for the country, there are several initiatives that have been undertaken to develop the industry but a lot more needs to be done.
"Establishment of the Uganda Tourism Board (UTB) and Uganda Wildlife Authority (UWA) together with tax exemptions on motor vehicles imported for transportation of tourists will only make government realize its goal after promoting it domestically," reads in Kamulegeya's report.
He reveals that the greatest challenges in the tourism sector include political unrest that impacted on Uganda's reputation as a safe tourist destination coupled with poor infrastructure, low levels of domestic tourism and relatively low levels of investment in the industry.
Kamulegeya advocates for increased government spending directed at promotion of Uganda as a destination of choice for tourists, providing incentives for investment into the sector and development of domestic tourism.
"Government should ensure that the development of the transport network has a direct impact on improving accessibility to tourist destinations within the country," he said.
He expressed concern about the increased budget allocation of Ushs 1,219 billion to transport wandering whether this investment will address the transport network in the tourism sector.
Kamulegeya maintains that promoting domestic tourism will advance the sector in the country.