Uganda Tourism at Cross roads

IN 2012, almost 1,196,765 tourists visited Uganda compared to 1,151,356 in 2011. This number represents an increase of almost 4% over the previous year.

Tourism brought US$834m into the economy in 2012 compared to US$805m in 2011. It is presumed that overall, each visitor to Uganda spends about US$800 per visit thus representing 4% of total GDP. Tourism’s total contribution to GDP which incorporates indirect and induced imports stood at US$1.7 billion in 2011 which was equivalent to 9% of total Ugandan GDP with corresponding figures for Rwanda, Tanzania and Kenya being 8.4%, 13.3% and 13.7% respectively.

The writer says Efforts must be made to increase funding to the sector if Uganda is to remain relevant in the tourist trade

This is an indication that the tourism industry is not only continuing to grow but is also now recognized at the highest level for its significant impact on the Ugandan economy albeit the continued meagre funding.

Regionally, Kenya is Uganda’s number one Tourist Market with 383,369 visitors, followed by Rwanda with 256,004, Tanzania 79,795, Sudan 43,258 and DRC with 42,258 visitors. On the international front 55,912 visitors came from USA, 42,508 from United Kingdom, 24,849 from India, Germany 11,701, while 10,186 came from Canada, 8,275 from Netherlands; 8,645 from China, Italy 6,732; Sweden 5,866 and 5,094 from Belgium.

Of the 1,196,765 who visited Uganda last year, only 182,149 were able to visit our National Parks as compared to the 207,994 that visited the parks in 2011. Obviously even these numbers are contestable as there is a margin of error through double counting where on many occassions some tourists have been counted as different people yet it is the same tourist visiting a number of national parks.

In as much as the above statistics have made government identify the tourism industry as one of its key priority economic sectors, there is little to show from its input. From Hon. Maria Kiwanuka’ s proposed budget for financial years 2013 / 2014, it is evident that government continues to deliberately under fund tourism. Efforts must be made to increase funding to the sector if Uganda is to remain relevant in the tourist trade. Government continues to behave like a herdsman that keeps milking his cows without feeding them. What would you expect from such a cow? It is surely not enough for government to say so much about tourism and the economy’s growth without making something tangible for it to prosper in real terms.

While the 2013-14 Budget contained some benefits for tourism these were tempered by a combination of tax increases and omissions that represent a missed opportunity for the industry as a whole.

In rural Uganda where the road network is still very poor, services are not up to international standards, Electricity and water not readily available one would ask is there any value addition. Why is government adding 18%VAT on up country accommodation well knowing this will make it difficult for tour operators to attract tourists and quality labor to employ in such remote places? Until some of these issues are solved, we feel that a value added tax is not applicable to these investments.

Tour operators normally sign contracts with foreign wholesalers (tour operators) for a period ranging from one to two years and others three years. The contract rates are agreed upon normally to run from 1st January – 31st December of every year. Based on this information, the foreign tour operators make expensive brochures and undertake very expensive marketing strategies to market our packages. To many, Uganda is still a blank page out there. Many a time we the tour operators (Uganda’s un paid Ambassadors) spend a lot of our money traveling all over the world marketing Uganda as a prime destination. It is important that government recognizes our efforts and realizes the fact that we are still struggling to get tourists and as such cannot afford to be perceived as expensive.

In South Africa VAT is reclaimed at the point of departure. In Kenya and Tanzania they have also rejected the proposed 18% VAT. It’s also important to note that these countries have huge budgets for marketing tourism which we don’t enjoy. How will we compete if our products are more expensive?  Our humble request is that these efforts are recognized and the government suspends the issue of VAT on hotel accommodation upcountry for now. Up country hotels do charge VAT on the food and drinks they serve any way. An additional 18% VAT on accommodation will be unrealistic from a business point of view. Why implement the tax in the middle of the year?

As a country, we stand to lose our tourism market share if this VAT is implemented in this manner. It has cost us a lot of money to capture this market and we are not sure we can recapture it that easily once it’s lost. Government can choose to be a little greedy but eventually lose even what you had planned to achieve.

Over the weekend, I met Mr Silajji Kanyesigye, the Manager Medium Taxpayer’s / Domestic Taxes Department who told me he was working on behalf of the Ministry of Finance to better understand the implication of this 18% VAT on up country accommodation. I took him through the costing and showed him how this tax is causing tour operators a loss ranging from 3 – 9%. He concurred with me and assured me that he was to present his findings to the Ministry of Finance.

I told him if government continues with this, we expect tour prices to increase due to the cascading effect of the 18%VAT tax increase on up country accommodation resulting in an adverse impact on the travel and tourismindustry as a whole. The increase in tax will not only make Uganda noncompetitive as compared to countries like Tanzania, Kenya, Rwanda and South Africa but will also show inconsistency and breach of contract from our international whole salers perspective.

Murchison Fall National park. Tourism is recognized at the highest level for its significant impact on the Ugandan economy albeit the continued meagre funding.

This tax increase is one of the worst business decisions. When the whole world including Kenya, South Africa, Tanzania, Rwanda are inviting tourists to their country to fight slowdown in their economies, we are making ourselves less competitive with burden of taxes on Tourism sector. I wish our government would realise sooner the importance of tourism. The Tourism Sector worldwide is Zero rated since they already pay VAT on fuel, beverages, park fees, permits to mention but afew. Tanzania one of the East African countries did introduce the same 18% tax on accommodation but later scrapped it after the key players in the tourism fraternity realized the damage this could bring to their economy.

While we recognize the budgetary need for additional funds by government and for all to contribute, it is our hope that other sources can be found that will not damage this vital sector of Uganda’s economy and diminish its ties to the international community. Government tax incentives need to be maintained for another 10 years so as to be able to stimulate investment in rural areas or alternatively withhold it for the next 2 years until contracts already signed expire. Tax incentives for up country accommodation are partly the reason why several hotels sprung up in the rural areas. If we are to reap the benefits, this move needs to be sustained until there are more investments and those that are there have recovered their investment capital.

 By Bruce Amp

How far does our tourism have to be a success?

Uganda has received a lot of praises especially in tourism sector. The problem is; little seems to be done about this.

The last two years have raised Uganda’s tourism potential to the world stage, one of the biggest of these being the 2011 endorsement by the world’s largest travel guide book publisher, Lonely Planet. It voted Uganda as number one destination to visit for the year 2012, basing on its natural beauty of sprawling landscape, wildlife, fauna and flora. Birding excursions, lake cruises and culinary adventures.

 This opened way for more recognition. Ideally this set the stage for Uganda to shine by exploiting the attention the attention drawn to it by engaging in a vigorous marketing Champaign to splash out all it offers and is naturally endowed.

Uganda a spending giant

In the words of the executive director of Uganda Wildlife Authority (UWA), Dr. Andrew Seguya, the peal of Africa is a sleeping a giant that id yet to wake up. “Uganda remains that giant, so big, so strong, so capable of moving mountains but guess what… it is sleeping. It does not matter how strong you are, what capabilities you have if you are, what capabilities you have, if you are sleeping, your brain is sleeping. It is until you wake up and you put your brains to work and you put your muscles to move things that you actually became a giant,” he argues, and as Uganda tosses and turns in its sleep, its neighbors who have only a fraction of what it possesses are keeping their eyes wide open, making the most of their tourism packages.

Not that there are enough resources to market what we have.
Uganda tourism board (UTB), the body in charge of marketing Uganda’s tourism sector hardly has a budget to sustain itself. Cuthbrt Baguma, Executive Director of UTB in a recent interview with EA Business explains, “UTB budget declined from Shs2.05b approximately $1m in the financial year 2011/2012 to Shs1.42b approximately $ 0.568m in the financial year 2012/2013 and further declined to Shs1.4b approximately US$0.56million in 2013/2014.”

The minister of finance distributes national resources to different ministries; Maria Kiwanuka proposed an 18 per cent value added tax increment on accommodation which irked players in the tourism sector. But the ministry spokesman, Jim Mugunga says this increment is meant to cater for improvement in the road and other infrastructure that can aid growth of tourism. “But if we are going to do the roads that make it easy for tourists to reach the destinations, we have to collect taxes, so I think the bigger picture should be looked  at objectively and accepted as one of those solutions that must be in place for the tourism sector to grow,” Mugunga argued.

Need to revise strategies

Hebert Byaruhanga, the President of the Uganda Tourism Association (UTA), states that whereas government has the bigger role of developing infrastructure, the ministry has to study its marketing strategy too. “We still need more effort to create means of strategic marketing with the meager resources that we have” he says. Seguya agrees with Byaruhanga that there are basic tenets of marketing. “You have to communicate your products, develop and communicate them regionally – under the East African Platform, under the African Union, and then in the international world,” he explains. He says that Uganda needs to put her adverts out there, with dedicated people to build the brand of the country internationally. He adds, “Many countries have employed agencies in source markets so that those agents on a full time basis communicate her brand of the country, you have to have access to those markets through attending meetings, special shows, the bird shows, the street show etc.”

Amos Wekesa another entrepreneur in the industry says the tourism ministry needs to position herself strategically because she is already disadvantaged. “When you look at the bigger picture, East Africa has got 100,000 beds/ rooms. 80,000 of these rooms are in Kenya and the rest of the 20,000 beds are shared among Tanzania, Uganda and Rwanda. The leading owner of these 20,000 in Tanzania followed by Uganda then Rwanda which is about to overtake us,” Wekesa states.

Mugunga is sure the government is going to deliver on its part, of developing the infrastructure. “How prepared are they to use the improvements to match up the competition? We need to sort out the infrastructure that makes the cost of doing business tourism very expensive,” he says

Branding is important

Seguya is emphatic that in the face of competition next door it will take more than infrastructural development to get Uganda its due attention. He argues that Uganda needs to advertise at big events like forth coming World Cup next year. He says, “Building Brand is somethibg that is well known and definitely costs money and we are not putting in that money. We need to build the brand of Uganda.” However Byaruhanga says that the sector should not wait on government.

“We cannot expect the government to pour huge sums of money into the sector without justification. If you want a Doctor to treat your wound, show it to him,” he argues. He adds, “We need to create standards for the sector that do not derail us from our brand. While we are gifted by by nature we must walk the talk. Our standards and services should bear out brand which will give us an advantage over others Uganda’s challenging history is an opportunity for the tourism industry.”

Wekesa says the big boys need to come on board. “ofcourse you need to have people like Madhvanis, Patrick Bitature, BMK. The Kenya tourism Federation is actually run by people who have the most money because you have to invest money in tourism to be able to attract attention you need,” he exprains.

The way is pretty clear. Half of the problem, if you like, is solved. The other half entails all the big prayers getting together and coming up with actions that will propel the country’s tourism sector.

By Bruce Amp

50-year-old Kidepo is waking up

This month, KidepoValley National Park is celebrating 50 years since it was gazetted as part of the independence celebrations. Hilary Bainemigisha visited the park and brings you firsthand information of what more is needed, beyond the Golden Jubilee

Kidepo valley was like a beautiful nun in a convent, inaccessible to suitors, but attractive. Fifty years down the road, the nun seems to have completed her celibacy vows and is storming out of the convent gates ready for love, marriage and twins. Will Kidepo valley now measure up to the world expectations?

In January, Kidepo National Park was listed Africa’s third in importance by CNN Travel, a US publication of Cable News Network.

The reasons given were its spectacular landscapes, great buffalo herds and its nature as a real wild park. However, like a beautiful nun in the convent, it has not been a popular destination of tourists compared to its sister parks in Uganda.

According to the Uganda Bureau of Statistics, it received just 3,208 visitors in 2010, as opposed to Queen Elizabeth national Park (76,037), Murchison Falls National Park (52,460), LakeMburo National Park (20,966) and Bwindi Impenetrable National Park (15,108). Even Mgahinga, Semliki and Kibaale got more visitors.

In the last 50 years, Kidepo’s beauty has accumulated a lot of dust with political instabilities, lack of security, hostile neighbours, far location from Kampala, poor roads and lack of prioritisation.

At its jubilee celebrations, the park stakeholders are determined to blow off this dust to let Kidepo’s light shine. What are their chances of success?

According to the park’s chief conservation officer, Johnson Masereka, the future has never been brighter. The park’s fortunes are rising and rising, he said.

“Five to 10 years ago, we hardly got 100 tourists a year. Today, we get 2,500 to 3,000 a year,” said the amiable Masereka.

“Revenue has more than doubled! In the 2010/11 financial year, we made sh384m. Last financial year, it increased to sh466m. If we can market this park maximally, we can even go to sh600m!”

Resources
The problem of lack of resources has been taken care of, thanks to the American people.

USAID is funding a Uganda Tourism for Biodiversity Programme, implemented by African Wildlife Foundation (AWF) to support and promote tourism and wildlife conservation through Uganda Wildlife Authority.

According to Abiaz Rwamwiri, the communications officer, AWF, the $10m will turn Kidepo’s fortunes around.

“The four year project is intended to provide communities with opportunities to develop tourism businesses and services that will enhance communities’ appreciation of Uganda’ natural resources thereby protecting critical systems,” he said.

“In Kidepo, the programme is supporting UWA to market the park, develop trails especially the Mt. Murongole trail that goes to the Ik people, plan land use in Karenga and Lubalangit Sub-counties and product development.”

Location
Kidepo’s location, 700km from Kampala should not have been a problem. But for a long time, the poor and slippery roads to the park, the flooding rivers and the hostile and armed communities around the park have been the real threat.

The park is now easily accessible.

There are daily flights at $550 for the two hour journey from Entebbe Airport by Aerolink but for those whose pockets prefer staying closer to gravity, the roads accessing the park through Kitgum and Moroto are fairly fine. The Kitgum road we took was fine but could be better.

The park will still depend on the neighbouring districts to improve their roads in order to increase the variety of vehicles that access the place.
“Government promised to tarmac Gulu-Kitgum road. It is in the budget.

That will definitely open up Kidepo,” Masereka says. “I have paired with UNRA and we are opening up roads heading into the parks.

As for roads within the park, that will be a guarantee. USAID has given us a complete road unit and it will be arriving soon.” 

Security
On hostile neighbours, Masereka says it is now a story of the past. UWA always engaged the communities to get involved in conservation. Kaabong district officials have been active in supporting the park.

Another milestone has been Government’s success in disarmed the Karimojong. The army claim of 90% success is correct. The Karamoja elders I talked to were now happy with the exercise. People are more friendly and no clashes have been reported this year.

Karamoja has changed. Roads are built and more, people are more settled and trading centres developing along roads.

Schools are more, crop growing is increasing and cattle rusting has fizzled away. UPDF detatches are littered along the border with Sudan and Kenya, animal branding and tracking devices are in place. All this makes the place more peaceful than it was five years ago.

Kidepo that has 80% more chance of citing lions than any other park in Uganda

Poaching
The park’s other challenges include poaching especially from the Didinga of South Sudan. “South Sudan is just recovering from war and lots of arms are still in the population.

People cross over for commercial poaching and often there is exchange of fire with our rangers. We lost two last year.”

The UPDF has responded with army detaches along the border. UWA also keeps liaising with colleagues in South Sudan where Kidepo extends but as a game reserve. However, structures there are not as strong enough to stop poachers.

After 50, what next?
The park boss is optimistic, the future has never been brighter. He revealed that there is a 50 year grand plan aimed at pulling crowds with a target of 60,000 visitors a year. It includes infrastructure development to improve roads, tourist handling capacity, and animal viewing facilities. 

Asked if this won’t be a tall order, Masereka was optimistic. “It is achievable. We have lots of NGOs in Northern Uganda whose staff can be attracted to spend their holidays in the park, we have rare animals and birds, it is only Kidepo that has 80% more chance of citing lions than any other park in Uganda and visitors often sight cheetahs, which are very shy animals and difficult to see elsewhere.”
Apart from big herd animals, birds and scenery, he added, the park has Kanangoro hot springs, treks, traditional communities like the Ik and Karimojong in the neighbourhood.

“For us, the jubilee is for rejoicing because we are doing a good job. The population of animals has increased, so has people sensitisation, the park has more developments and we have identified more places for lodge developments and invite the public to come and participate,” Masereka said

The public, he added, is invited to invest with UWA in conservation, catering, lodging and transport.

“All you need to do is visit our UWA offices, look at our management plan and see what you can express interest in. Come and add value.”

Kidepo Park
Kidepo Valley National Park lies in the rugged, semi-arid valleys between Uganda’s borders with Sudan and Kenya, some 700km from Kampala. It is found in Kaabong District, North Eastern Uganda, sprawling over 1,442 square kilometres.

The park actually straddles the Narus and Kidepo river valleys, both located in the great Kidepo basin, bounded by the highlands of Mount Morungole in the southern, the rugged Napore-Nyagia mountain range in the western area, the Natira and Lokayot hills in the north-east, the Lotukei mountains in the south of Sudan marking the north of the park.

By Bruce Amp

FUNDRAISING FOR OPHRNED CHIMPANZEES AT NGAMBA ISLAND

The Chimpanzee Sanctuary & Wildlife Conservation Trust (CSWCT) was established in 1998 to support the welfare of orphaned rescued Chimpanzees at Ngamba Island Chimpanzee Sanctuary in Lake Victoria. Today Ngamba Island Chimpanzee Sanctuary cares for 48 orphaned chimpanzees. AfricanPearl Safaris is proud to join Ngamba Island in this fundraising for a noble cause of Wildlife Conservation

 

The Sanctuary is facing a challenge of meeting the food expenses and maintaining the facilities for the chimpanzeesand this is due to the ever rising cost of food and increased number of chimps at the sanctuary.

In addition to the above the organization has been experiencing a reduction in the income over the years due to a reduction in visitor numbers and donations to the sanctuary and this is all due to the global economic recession which affected many of the supporters both individuals and organizations.

 

Due to the above factors, CSWCT in partnership with Sheraton Kampala Hotel is organizing a fundraising dinner dance to raise money for the welfare of the chimpanzees with the theme “Rumblein the Jungle” on the 31^st August 2013 at the Sheraton Rwenzori Ballroom. Individual tickets cost UGX 200,000 and a corporate table at UGX 2,000,000.

 

This is therefore to humbly request for your support buying the dinner tickets and become a chimpanzee champion- "A Chimp Champ".  Tickets are available at the Sheraton Kampala Hotel lobby, Game Stores, Kampala and CSWCT office, Entebbe. For more information please drop us an email apsafari@africaonline.co.ug

By: Bruce Amp

Tour Operators Oppose Purchase Of Gorilla Permits Online

While Ugandans are being advised to modernize tourism in a bid to enhance the country’s untapped but potential sector, tour operators are contesting the purchase of gorilla permits online saying that it will leave them with no business.

In a July 1st letter to President Yoweri Museveni, the chairman of the operators’ association Boniface Byamukama asked him to stop UgandaWildlife Authority (UWA) from going ahead with their plan to make the permits accessed online.

Tour operators are contesting the purchase of gorilla permits online

Byamukama argues that if the purchase of the permits is put online, agents from other countries will be able to buy directly from UWA which will run the local operators out of business. He told local media that if UWA goes ahead with that plan, the operators will be rendered irrelevant and many people will remain unemployed.

Byamukama proposes that UWA puts the permits online only for illustration purposes but leaves the transaction to the operators.

UWA executive director Andrew Seguya says however that there is no cause for alarm. He says that the tour operators will remain in business because not all the tourists can access services online. He adds that even tourists who purchase gorilla permits online will require the operators’ other services like transportation.

He said that airline travel agencies and hotel operators have not run out of business yet a person can buy an air ticket or book a hotel room online.

Seguya wondered why Byamukama has not raised the matter to the board where he is a member instead of taking it to the president.

He said the President would not stop the plan because it would be against what he advocates for saying that the Finance Minister has said it a couple of times in the budget speech that tourism needs to be marketed online.