ITC_Opportunity_study_Uganda by linfengfengfz

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									    OPPORTUNITY STUDY

INCLUSIVE TOURISM PROGRAMME




 UGANDA INCLUSIVE TOURISM

            October 2011



             Prepared by

         Dr. Frederic Thomas
           Mrs. Grace Barya
        Mr. Celestine Katongole
                                      Table of contents



TABLE OF CONTENTS                                                                             2
ACRONYMS                                                                                      4
LIST OF TABLES                                                                                6
LIST OF FIGURES                                                                               8

EXECUTIVE SUMMARY                                                                                  9

1.     INTRODUCTION                                                                               10
1.1.     COUNTRY PROFILE                                                                     10
1.2.     ITC IN UGANDA                                                                       12
1.3.     INCLUSIVE TOURISM                                                                   13

2.     PURPOSE AND STRUCTURE OF THE STUDY                                                         14
2.1. TIMEFRAME AND OBJECTIVES OF STUDY                                                       15
2.2. METHODOLOGY AND LIMITATIONS                                                             16
2.2.1. METHODOLOGY                                                                           16
2.2.2. LIMITATIONS                                                                           17

3.     TOURISM DEVELOPMENT IN UGANDA                                                              18
3.1.     KEY TOURISTIC RESOURCES AND ATTRACTIONS                                             18
3.2.     TOURISM STATISTICS                                                                  19
3.3.     TOURISM ECONOMICS IN UGANDA                                                         23
3.4.     TOURISM MANAGEMENT AND PLANNING                                                     26
3.5.     RECENT AND ON-GOING TOURISM INITIATIVES                                             29
3.5.1.    EU - UGANDA SUSTAINABLE TOURISM DEVELOPMENT PROGRAMME                              29
3.5.2.    UNDP (2011-2014) / UNCTAD (2012-2015)                                              29
3.5.3.    THE USAID/STAR PROJECT                                                             30
3.5.4.    THE WORLD BANK PAMSU PROJECT                                                       30
3.5.5.    COMMUNITY PROJECTS OR ASSOCIATIONS                                                 30

4.     SITUATION ANALYSIS                                                                         36
4.1.     TOURISM COMPETITIVENESS                                                             37
4.1.1.    COMPARATIVE ADVANTAGE                                                              37
4.1.2.    COMPETITIVE ADVANTAGE                                                              38
4.2.     SWOT ANALYSIS                                                                       40
4.2.1.    SWOT ANALYSIS FOR THE TOURISM SECTOR IN UGANDA                                     41
4.2.2.    SWOT ANALYSIS FOR THE CRAFT SECTOR IN UGANDA                                       43
4.3.     TOURISM DEVELOPMENT PLAN                                                            45
4.4.     PERCEPTION AND SATISFACTION REGARDING UGANDA’S TOURISTIC ATTRACTIONS AND SERVICES   47
4.4.1.    TOUR OPERATORS’ PERCEPTION OF TOURIST RESOURCES AND ATTRACTIONS                    47
4.4.2.    VISITOR SATISFACTION WITH UGANDA’S TOURISTIC ATTRACTIONS AND SERVICES              49

5.     UGANDA TOURISM VALUE CHAIN                                                                 51
5.1.     THE VISITORS                                                                        52
5.1.1.    VISITOR DEMOGRAPHICS                                                               52
5.1.2.    MEANS OF TRANSPORTATION AND NUMBER OF COUNTRIES VISITED                            55
5.1.3.    TRAVEL PARTY                                                                       56
5.2.     ACCOMMODATION AND FOOD                                                              58
5.3.     EXCURSIONS AND GUIDES                                                               60
5.4.     TRANSPORTATION                                                                      60


                                                                                              2
5.5.    CRAFTS, VISUAL ARTS AND ENTERTAINMENT                                           63

6.     DEFINITION OF THE POOR                                                                 64

7.     AGGREGATED TOURISM EXPENDITURES AND PRO-POOR INCOME                                    66
7.1. TOTAL AND LOCAL ECONOMIC IMPACT OF TOURISM ON THE UGANDAN ECONOMY                  68
7.2. PRO-POOR IMPACT OF TOURISM ON UGANDA ECONOMY                                       71
7.2.1. PRO-POOR IMPACT IN THE ACCOMMODATION SECTOR                                      73
7.2.2. PRO-POOR IMPACT IN THE SOUVENIR SECTOR                                           74
7.2.3. PRO-POOR IMPACT OF TOURISM IN UGANDA                                             75

8.     OPPORTUNITIES FOR PRO-POOR INTERVENTIONS                                               76
8.1.    SUSTAINABLE TOURISM SECTOR DEVELOPMENT                                          77
8.2.    SUSTAINABLE TOURISM-RELATED SECTORS DEVELOPMENT                                 81
8.3.    HOLISTIC APPROACH WITHIN A SUSTAINABLE PARTNERSHIP FOR INTERVENTIONS            88
8.4.    SUMMARY OF ITC INTERVENTIONS                                                    88

CONCLUSION                                                                                    90

ANNEXES                                                                                       92
ANNEX 1: ADDITIONAL TABLES                                                               92
ANNEX 2: VISITOR ARRIVALS BY COUNTRY OF USUAL RESIDENCE (2005 – 2009)                    95
ANNEX 3: OBJECTIVES, STRATEGIES AND INTERVENTIONS OBJECTIVE FOR THE TOURISM SECTOR -
NATIONAL DEVELOPMENT PLAN (2010-2014)                                                    96
ANNEX 4: AREAS IN WHICH THE OPPORTUNITY STUDY WAS UNDERTAKEN                            100
ANNEX 5 – UGANDA: CULTURAL AND RELIGIOUS SITES                                          102
ANNEX 6 – LIST OF INTERNATIONAL ORGANISATIONS INVOLVED IN SUSTAINABLE TOURISM DEVELOPMENT
                                                                                        105
ANNEX 7 – NON-EXHAUSTIVE LIST OF NATIONAL ORGANISATIONS INVOLVED IN SUSTAINABLE TOURISM
DEVELOPMENT                                                                             110
ANNEX 8 – LIST OF CONTACTS                                                              112
ANNEX 9 – DETAILED SWOT ANALYSIS                                                        113




                                                                                          3
                          ACRONYMS

ACP       Agricultural Commodities Programme
AGOA      American Growth Opportunities Act
AUTO      Association of Uganda Tour Operators
CBOs      Community Based Organisations
COBATI    The Community Based Tourism Initiative
CPAE      Consumption Per Adult Equivalent
DfID      UK Department for International Development
EBA       Everything But Arms
EPII      Employee ProPoor Income Impact
FIT       Free Independent Travellers
GIT       Group Inclusive Tour
GTZ/KFW   Gesellschaft   für     Technische   Zusammenarbeit/Kreditanstalt   Für
          Wiederaufbau
ICBTs     Ugandan Women Informal Cross Border Traders
IFAD      International Fund for Agricultural Development
IT        Inclusive Tourism
ITC       International Trade Centre
KAFRED    Kibale Association for Rural and Environmental Development
LEI       Local Economic Impact
MICE      Meetings, Incentives, Conferences and Events
MTTI      Ministry of Tourism, Trade and Industry
MTW       Ministry of Transport and Works
MWTA      Ministry of Wildlife, Tourism and Antiquities
NAADS     National Agricultural Advisory Services
NACAU     National Arts and Crafts Association of Uganda
NAWOU     National Association for Women Organisations in Uganda
NAWOU     National Organisation of Women Associations in Uganda
NDP       National Development Plan
NGOs      Non Governmental Organisations
NTF II    Netherlands Trust Fund
PACT II   Programme for Building African Capacity for Trade
PSFU      Private Sector Foundation of Uganda
ROI       Return on Investment
RVR       Rift Valley Railways


                                                                             4
TA       Technical assistance
TEI      Total Economic Impact
TLB      Uganda Transport Licensing Board
TO       Tour operators
TSIs     Trade Support Institutions
UCOTA    Uganda Community Tourism Association
UDTA     Uganda Development Theatre Association
UEPB     Uganda Export Promotion Board
UHOA     Uganda Hotel Owners Association
UMA      Uganda Manufacturers Association
UN       United Nations
UNDP     United Nations Development Programme
UNCTAD   United Nations Conference on Trade and Development
USAID    United States Agency for International Development
USSIA    Uganda Small Scale Industries Association
UTB      Uganda Tourism Board
UTODA    Uganda Taxi Drivers Association
UWA      Uganda Wildlife Authority
UWEAL    Uganda Women Entrepreneurs Association
WTO      World Trade Organisation
WTTC     World Travel and Tourism Council




                                                              5
                                                             List of tables
Table 1: Size of tourism supply chain and sample - Uganda 2011 .............................................. 16

Table 2: Origin of visitors to Uganda ....................................................................................................... 19

Table 3: Basic tourism indicators ............................................................................................................. 20

Table 4: Arrivals and departures from main border checkpoints (2009) ................................ 21

Table 5: International tourist arrivals to National Parks - Uganda (2009) .............................. 22

Table 6: Visitors to national parks (2009) ............................................................................................ 23

Table 7: Share of primary growth sectors in GDP and growth performance .......................... 24

Table 8: Annual turnover by industry (millions shillings), 2008-2009 ..................................... 25

Table 9: Employment, median earnings and average weekly hours of work .......................... 25

Table 10: Strategic actions for improving the quality of public physical infrastructure .... 28

Table 11: Tourist Arrivals, receipts and purpose of visit in East Africa (2008) ..................... 38

Table 12: Ease of doing business rank (out of 183 economies) ................................................... 39

Table 13: WTTC tourism competitiveness index 2011 .................................................................... 39

Table 16: Expenditure framework under the NDP 2010-2014 .................................................... 46

Table 17: Market size of different regions for Uganda based TOs ............................................... 47

Table 18: Main reasons for not selling Uganda provinces .............................................................. 47

Table 19: Difficulty to sell the main attractive factors by region ................................................. 49

Table 20: Level of satisfaction for touristic attractions and services ......................................... 50

Table 21: Favourite activities in Uganda ............................................................................................... 50

Table 22: Concept and structure of the tourism value chain ......................................................... 52

Table 23: Nationality and origin of respondents ................................................................................ 52

Table 24: Main purpose for visiting Uganda by region of origin .................................................. 53

Table 25: Specific purposes of visit .......................................................................................................... 53

Table 26: Age by country of origin ........................................................................................................... 54

Table 27: Age bracket by country of origin ........................................................................................... 54

Table 28: entry and exit points of interviewees ................................................................................. 55

Table 29: Travel party, frequency of visit and ALOS ......................................................................... 56
Table 30: Country of origin and travel party........................................................................................ 56

Table 31: Travel party and package tour ............................................................................................... 57

Table 32: Travel party by purpose of visit ............................................................................................ 57

                                                                                                                                                6
Table 33: Distribution of hotels and restaurants by region in Uganda ...................................... 58

Table 34: Employment in hotels and restaurants .............................................................................. 59

Table 35: Accommodation capacity for selected hotels in Uganda, occupancy rates and
    guest nights in 2003/2005/2008 ................................................................................................... 59

Table 36: Contribution of hotels and restaurants subsector to Uganda’s GDP ....................... 60

Table 37: Poverty statistics in the UNHS 2005/06 ............................................................................ 65

Table 38: Comparison of poverty estimates by region .................................................................... 66

Table 39: In-country spending per person per day and per stay by purpose of visit .......... 68

Table 40: Distribution of expenditures by supply chain and purpose of visit ........................ 69

Table 41: Breakdown of operating costs for the accommodation and restaurant sector .. 70

Table 42: Percentage of both cost of various food items in total food products and locally
    sourced products (accommodation facilities)............................................................................ 70

Table 43 : Handicraft and imported purchases level ........................................................................ 71

Table 44: Breakdown of interviewed workers and average monthly salary .......................... 73

Table 45: Poverty profile and salary distribution in the accommodation sector .................. 74

Table 46: Pro-poor Impact by supply chain ......................................................................................... 75

Table 47: Pre-identified interventions for sustainable tourism sector development .......... 79

Table 48: Average amount of underspending by purpose of visit ............................................... 83

Table 49: Opportunities in the crafts sector ......................................................................................... 83

Table 50: Percentage of locally purchased products and volume of imports ......................... 84

Table 51: Pre-identified interventions for the sustainable development of tourism-related
    sectors ........................................................................................................................................................ 85

Table 52: ITC logical framework ............................................................................................................... 89

Table 53: Main attracting factors by region.......................................................................................... 92

Table 54: Weaknesses and strengths of each Ugandan region ..................................................... 92

Table 55: Categories of hotels and restaurants where international tourists stay ............... 93

Table 56: Suggestions from tour operators to encourage tourism benefits for local
    communities ............................................................................................................................................ 93

Table 57: Main reasons and specific purposes to visit Uganda..................................................... 93

Table 58: Mean age by category ................................................................................................................ 94

Table 59: Average expenditure for accommodation per night by country of residence .... 94




                                                                                                                                                                     7
                                                             List of figures


Figure 1: Uganda Poverty rates (2005) .................................................................................................. 11

Figure 2: Areas of expertise in inclusive tourism projects ............................................................. 14

Figure 3: Monthly visitor arrivals to Uganda (2005-2009) ............................................................ 21

Figure 4: Tourist arrivals to Uganda and visitors to national parks (2005-2009) ................ 23

Figure 5: Diagram of the Tourism Value Chain/visitor journey ................................................... 24

Figure 6: Problem tree of main issues related to tourism in Uganda ......................................... 37

Figure 7: SWOT Analysis of Tourism in Uganda ................................................................................. 42

Figure 8: Specific SWOT Analysis for the crafts sector..................................................................... 45

Figure 9: Map of Uganda showing exit points ...................................................................................... 55

Figure 10: Number and types of businesses in the accommodation sector ............................. 58

Figure 11: Impact concept for tourism ................................................................................................... 67

Figure 12: Simplified Tourism Value Chain .......................................................................................... 67

Figure 13: Economic impact of tourism by supply chain ................................................................ 68

Figure 14: Conway's approach for calculating the poverty profile of tourism staff ............. 72

Figure 15: Traditional barriers to PPT ................................................................................................... 76

Figure 16: Priorities for an inclusive tourism development in Uganda..................................... 78

Figure 17: Priorities for a sustainable tourism-related sector development .......................... 81

Figure 18: Different steps of the production process ....................................................................... 82

Figure 19: Simplified value chain steps for the crafts sector ......................................................... 82

Figure 20: UN agencies partnership ........................................................................................................ 88

Figure 21: Survey itinerary ...................................................................................................................... 100




                                                                                                                                                    8
   Executive summary

This paper presents the findings of an opportunity study which focused on the possible
linkages between (i) agriculture, and (ii) creative industries (crafts/visual
arts/dance/music) and the tourism industry in Uganda. The survey was undertaken
between August and October 2011 by an international inclusive tourism expert, in
tandem with two national experts, and in straight collaboration with the Ministry of
Tourism, wildlife and heritage, the Uganda Tourism Board (UTB) and the Uganda Export
Promotion Board (UEPB). Thanks to the UNDP’s funding, it was possible to hire 10
additional national consultants to conduct a visitor survey at all exit points, thereby
providing the team with a clear understanding of both the Tourism Value Chain in Uganda
and the existing opportunities for vulnerable populations to benefit more from a rapid
increase in international arrivals.

While tourism development offers significant potential for increased incomes in Uganda,
it has also been contributing to a rise in conflicts between the communities adjacent to
national parks and the local authorities. The human-wildlife conflict is becoming a serious
threat to the survival of many endangered species in Uganda. In areas where either these
human-wildlife conflicts exist or the population suffers from resilient poverty, inclusive
tourism development now appears as a key factor to provide new or alternative sources
of livelihood.

The results of the opportunity study and visitor survey show several challenges to the
development of an inclusive tourism in Uganda. The management of tourism, and more
particularly the attractiveness of the destination, was highlighted as the main challenge
by visitors and the private sector. Road quality and access was the main area of concern
on the supply and demand sides. The absence of incentives to investment, especially
regarding middle range businesses, was also considered as detrimental to a rapid
expansion of the tourism sector through a diversification and an improvement of its
products and services. Furthermore, Uganda suffers from weak in-country and external
communication strategies towards both tourists and investors. However, the low
occupancy rate for most of the accommodation providers (31%) cannot solely be
explained by an inappropriate marketing strategy. It is mostly due to an incorrect
understanding of the tourism market by most private investors. It appears also that low-
tourism skilled managers or owners operate a majority of tourism businesses - especially
in the middle range and low-end segments. Uganda suffers from a very heterogeneous
quality of services and products, in the tourism sector as well as in other sectors,
including creative industries and agriculture.

This opportunity study highlights the lack of capacities of both the crafts and agricultural
sectors in profiting from the tourism expansion and in being able to fulfil the needs of the
tourism sector. Added to this weakness, with few very notable exceptions, the private
sector’s lack of concern over making tourism a tool for development was noted.

It is therefore recommended that local producers consistently supply tourism businesses
with competitive products, and that tourism businesses engage themselves in supporting

                                                                                          9
local producers with a minimum rate of local purchases. To address these issues (in both
areas of interventions), the following actions are recommended:

   -   Design support and brand creation (craft) / increase-enhance production of
       diversified/specialised products (agriculture)
   -   Business development and other types of training
   -   Market placement and sales opportunities

To conclude, the survey evidenced unexploited markets and products. As products,
processed food (jam, honey, juice) and crafts (wood carvings & sculptures, clothing,
jewellery, textiles, fashion accessories and scarves) were identified as most promising
backward linkages with a high level of economic opportunities (high demand, potential
import substitution). The project will not only contribute to poverty reduction but the
findings of the opportunity study could help the Ministry of Tourism define strategic
options to increase tourism in Uganda.

Acknowledgements:

ITC wishes to thank the staff of the Ministry of Tourism, the Ugandan Tourism Board and
the Ugandan Export Promotion Board for their extremely helpful support without which
this Opportunity Study exercise would not have been possible. It was very much
appreciated that UNDP Uganda funded under the “Support for Development of Inclusive
Markets in Tourism” project the undertaking of a visitor survey, providing a clear
understanding of the Tourism Value Chain in Uganda and the existing opportunities for
vulnerable populations to benefit from it as well as the funding of the validation
roundtable in November 2011 to disseminate the Opportunity Study findings and further
project development.


1. Introduction

   1.1.Country profile

Uganda has a 765 km border with the Democratic Republic of Congo to the west, a 933
km border with Kenya, a 169 km border with Rwanda, a 435 km border with south Sudan
to the north and a 396 km border with Tanzania to the south. The country’s total area is
241,550.7 square kilometres, of which 41,743.2 sq. km are covered with open water and
swamps. Land area is 199,807.4 sq. km, of which 99,018.4 sq. km is cultivated land. In
total there are over 113 districts and Kampala has the highest population (over 1.6
million people). The central region has about 16 districts, the eastern region has 24
districts, the northern region has 21 districts and the western region has 19 districts.

The climate is tropical for most of the country, it is generally rainy with two dry seasons
(December to February, June to August), and it is semiarid in the northeast. Uganda has
substantial natural resources, including fertile soils, regular rainfall, small deposits of



                                                                                        10
copper, gold, and other minerals, and recently discovered oil. Agriculture is the most
important sector of the economy, employing over 80% of the work force.

The main threats are the draining of wetlands for agricultural use, deforestation,
overgrazing, soil erosion, water hyacinth infestation in Lake Victoria and widespread
poaching.

Uganda has made enormous progress in reducing poverty, slashing the countrywide
incidence from 56 % of the population in 1992 to 24.5 % in 2009. And, at 12 %, the
reduction of poverty in urban areas has been even more marked. Notwithstanding these
gains, however, poverty remains firmly entrenched in the country’s rural areas, home to
more than 85 % of Ugandans. About 40 % of all rural people – some 10 million men,
women and children – still live in abject poverty.



                            Figure 1: Uganda Poverty rates (2005)




                                   Source: UBOS (2005)




                                                                                    11
Who are Uganda's rural poor people?

Uganda’s poorest people include millions of subsistence farmers living in remote,
scattered areas throughout the country. Remoteness makes people poor insofar as it
prevents them from benefiting from the country’s steady economic growth and dynamic
modernisation. Taking into consideration the increasing number of visitors to Uganda
every year and the geographically dispersed key tourism sites, pro-poor tourism
orientation in key areas can have a strong impact on poverty reduction in the country.

Where are Uganda's rural poor people?

The poorest regions are the north and northeast of the country, where outbreaks of civil
strife and cattle rustling have disrupted small farmers’ lives and agricultural production.
The northeast particularly is a fragile, dry and sub-humid region where the extreme
variability of rainfall and soil fertility means that farming presents a challenge.
Production falls short of minimum household needs, rendering the inhabitants
particularly vulnerable to food insecurity. For instance, the region experienced a dry spell
of over three years in the last four years. Even when rain falls, it only happens four
months scattered between February and July, with some in-between months which are
extremely dry. While other regions of the country have two rainfall seasons in a year, the
northern region has only one season which lasts about six months.



       1.2.ITC in Uganda


The International Trade Centre (ITC) is the technical cooperation agency of the United
Nations (UN) and the World Trade Organisation (WTO). Taking into account its business
lines 1, ITC designs projects aimed at developing export strategies, increasing the
competitiveness of sectors and enterprises, producing and disseminating trade
intelligence, improving the capacity of trade support institutions as well as strengthening
business and trade policies.

In Uganda, ITC works with exporters, policy makers and trade support institutions (TSIs),
such as the Uganda Export Promotion Board (UEPB). Among the implemented projects in
Uganda, some do not directly target the country but rather the region. This is the case
with the Programme for Building African Capacity for Trade (PACT) II2 project, for which
the objective is to achieve diversified and expanded exports within and outside of Africa,
thereby contributing to sustainable economic and social development. Within this
broader context, the objective is to build the capacity of the COMESA Secretariat as well
as TSIs in the COMESA to use market analysis tools and methods to prioritize export
sectors and markets with due consideration to poverty reduction, women and
environment impact. Implementation was done in the following areas: learning about the
use of market analysis tools to assess export performance of products and selecting

1
 Business and Trade Policy, Export Strategy, Strengthening Trade Support Institutions, Trade Intelligence and Exporter
Competitiveness
2
    9 projects

                                                                                                                         12
markets COMESA regional Trade Flow Analysis3; providing an effective interface between
the COMESA REC Secretariat and the private sector in the region4; strengthening regional
trade support networks, including businesswomen’s networks5; strengthening regional
trade information networking in the leather sector; improving access to international
market information sources6; setting up an inter-regional web-based platform with
reference materials for regional trade development7; developing a sustainable supply
chain sourcing between COMESA producers and major international leather industries;
increase intra-regional trade flows; and diversifying the offer of products in the “Ethical
Fashion”8 market segment.

        Under the Agricultural Commodities Programme (ACP)9, ITC assists stakeholders
to design, programme and coordinate multi-agency and multi-year development activities
to respond to their commercial market and socio-economic development objectives in
agricultural commodity sectors. ITC supports cotton associations and trade support
institutions to identify and evaluate specific markets, and equally builds capacity through
training and counselling of country counterparts to support African countries to
understand and apply quality requirements and address other supply impediments (e.g.
reduction in contamination, improved cotton consistency and delivery).

       It is expected that the Netherlands Trust Fund (NTF II)10 project will build
sustainable exporter competitiveness in the coffee sector in Uganda. The project outcome
focuses on strengthening the effectiveness of umbrella institutions and farmer
organisations in the coffee sector in accessing the EU market.

        Other projects carried out in Uganda have the following aims: to help women
derive greater economic benefit from their participation in export-oriented value
chains11; to create a Pan-African trainers and advisers network for African exporters and
their supporting IOs 12 ; to strengthen the international competitiveness of micro-
enterprises from the developing world - through a form of global partnership13; to
enhance the capacity of Ugandan Women Informal Cross Border Traders (ICBTs) to
increase their exports to neighbouring countries by reducing and eliminating trade
facilitation impediments at points of entry and exit14.

    1.3. Inclusive Tourism

ITC’s Inclusive Tourism (IT) programme is an innovative trade promotion approach
which aims to integrate local community producers into promising tourism industry

3
  COMESA Market analysis and sector prioritization, (2009-2011)
4
  COMESA Networks of national and regional TSIs, (2009-2011)
5
  COMESA Regional private sector apex bodies for public-private dialogue, (2009-2012)
6
  COMESA Regional trade information networks, (2009-2011)
7
  Pan Africa e-based repository of trade tools and services, (2010-2011)
8
  COMESA Leather sector regional export development, (2009-2011)
9
  3 projects: Coordination Team, (2007-2011); Cotton sector strategy development, (2008-2012); Cotton sector
strategy implementation, (2008-2011)
10
   2 projects: NTF II – Management, (2009-2011) and NTF II – Uganda, (2010-2013)
11
   Women and trade - Empowering women in the coffee sector, (2010-2011)
12
   Empowering the African Private Sector network to strengthen the international competitiveness of small and
medium-sized enterprises (SMEs), (2011)
13
   Poor Communities and Trade Program, (2010-2011)
14
   Trade facilitation - Facilitating women informal cross border trade in Uganda, (2010-2011)

                                                                                                                13
value chains, to harness their entrepreneurial capacities and to generate income and
employment for the poor. Inclusive Tourism is understood as a sustainable approach to
tourism development. By adopting a local approach to economic development, it
identifies products and services supplied by poor communities that have the potential to
be integrated into the tourism value chain and thus generate income for the poor.
Inclusive Tourism creates and strengthens linkages between local producers
(particularly women) and the tourism markets by integrating local producers into
existing tourism value chains and by reconfiguring these value chains to ensure more
equitable redistribution of revenue. Inclusive Tourism works with both the producers
and the tourism industry (tour operators, hotels, tourism boards etc.) to improve supply
capacity on the one hand, and to create awareness for win-win situations on the other
hand. The linkages created enable the poor rural communities to export their products,
first on local national markets through the channel of tourism, and then on international
markets, while creating value-addition along the value chain. Inclusive Tourism focuses
on poverty impacts as well as on the promotion of gender equality/empowerment of
women, thereby complementing the more environmental focus of much Corporate Social
Responsibility and Sustainable Tourism work. To achieve these impacts, ITC focuses on
market-oriented business issues.


                      Figure 2: Areas of expertise in inclusive tourism projects




                                            Tourism
                                           Marketing


                                                                Specific
                      Environmental
                                                                Service
                      Management
                                                               Provision

                                           Enhancing
                                              local
                                          communities
                                          development
                        Artisanal
                      Product and                              Tourism
                         Artistic                             Hospitality
                        Services                             Management
                      Development

                                             Linking
                                          Agriculture to
                                            Tourism




2. Purpose and structure of the study

The aim of this Opportunity Study was originally to identify suitable project interventions
through which ITC’s technical expertise could make a pro-poor change within a project
timeframe of three to five years. The involvement of two other UN agencies (UNDP and
UNCTAD), both in favour of a sustainable development of the tourism sector in Uganda,
has encouraged ITC to broaden the scope of the opportunity study which initially only


                                                                                        14
focused on enabling artisans that work as micro producers along with Ugandan artists to
reach tourists.

The study is divided into three distinct phases:


      Phase 1: Diagnosis of current situation and context: This phase includes tools
       to map the tourism economy of the selected destination, and the participation of
       the poor within it. The purpose is to understand financial flows and how the
       tourism sector currently works.

      Phase 2: Project opportunities, prioritisation and feasibility: This phase
       includes a systematic approach to develop a ‘long list’ of project options. It then
       guides to move towards a ‘short list’ of high priority interventions for poverty
       reduction.

      Phase 3: Project planning: This phase is used to package proposed interventions
       into a project document for future interventions.



   2.1.Timeframe and objectives of study

The project is based on the request of the Government of Uganda to develop an approach
to tourism that is able to strengthen the capacities of potentially competitive micro-
enterprises that provide work and income generating opportunities for some of the most
marginalised communities of the country. The request is based on the acknowledgment
that certain indirect effects of tourism (purchase of products and souvenirs by tourists,
purchase of supplies, general services and so on) can be disproportionately more pro-
poor if compared with direct employment generated by tourism itself.

Based on stakeholders’ feedback, ITC started to develop a project aimed at enabling
artisans that work as micro producers along with Ugandan artists to reach tourists by
selling four kinds of products:

      Ethical fashion products, i.e. accessories (and maybe basic garments) that are
       designed and conceived by international and local designers and are sold to
       tourists in hotels and top resorts;
      The market of lifestyle products (homeware and high street fashion), i.e. products
       with a design component but cheaper and for larger distribution, sold not only in
       hotels and resorts but also in local shopping centres and tourist hubs;
      Visual arts, to be sold in hotels, resorts and galleries;
      Music to be performed at tourist locations and CDs to be sold to tourists.

In order to avoid duplication of works, and therefore to benefit all stakeholders involved
in a sustainable development of the tourism sector in Uganda, it was decided to extend
this opportunity study to a full value chain analysis of the tourism sector. With additional
financial support from the UNDP in Uganda, the number of interviews conducted among

                                                                                         15
international tourists and tourism stakeholders was extended to be more statistically
representative of the sector and to offer a better understanding of where interventions
would be most efficient.

   2.2.Methodology and limitations

       2.2.1. Methodology

A team of three consultants (national and international) worked under the overall
supervision of the ITC/ Sector Competitiveness Trade Promotion Adviser and with the
support of the Uganda Export Promotion Board and the Uganda Tourism Board.
Throughout the research, the team consulted widely with stakeholders in several tourist
destinations (see itinerary – Annex 4). Discussions were held with government
departments, namely: The Uganda Tourism Board (UTB), The Uganda Wildlife Authority
(UWA) and the Uganda Export Promotion Board (UEPB).

A first stakeholders workshop was organised in Kampala to present both the opportunity
study objectives and itinerary to tourism professionals and government officials. Heads of
the Association of Uganda Tour Operators (AUTO), Uganda Hotels Owners Association
(UHOA), Department of Industrial Art and Design of Makerere University, Uganda
Tourism Board and National Crafts and Arts Association of Uganda (NACAU), the Uganda
Community Tourism Association (UCOTA) and the representatives of the USAID/STAR
project attended this meeting.

The team also met with local associations and communities such as the Boomu women’s
group, the Kyaninga community, the Albert Nile Conservation and Tourism Association,
the Mubako local women Craft Association, the Nyabwina women groups, The Kibale
Association for Rural and Environmental Development (KAFRED), the Njara Muslim
women group, the Kikongoro women community tourism group, the Katwe community,
the Buhoma community rest camp, the Bunyoni community, the exposure Africa project,
etc. Furthermore, face-to-face interviews were held with representatives of tourism
businesses such as hotels, safari lodges, resorts, tour operators, handicraft vendors,
wholesalers and restaurant managers.
                   Table 1: Size of tourism supply chain and sample - Uganda 2011

                    Categories                          Actual       Survey
                    Accommodation                                        28
                    Restaurants                                          21
                    Food producers                                        5
                    Souvenir shops & wholesalers                         29
                    Tour operators                                       15
                    Staff                                               117
                    Community projects                                   11
                    NGOs                                                  3
                    Tourists                                            335


In total, 28 hotel managers and owners from Kampala, Paraa and Packwach, Bunyaruguru
– amongst other regions - as well as 117 members of their staff were interviewed to


                                                                                       16
determine the pro-poor income in the accommodation/food sectors. These tourism
establishments ranged from safari lodges, hostels, and hotels to resorts, and accounted
for a total of 800 rooms. Apart from the 28 establishments mentioned above, 21
additional restaurant owners were interviewed to complement the data/information in
the food and drink sub-chain. These ranged from small food stalls to restaurants serving
over 100 meals per day.

A total of 15 tour operators specialized in Western tourists were interviewed to give
insight into the current functioning of tour operators (TOs) in Uganda, and to assess the
excursion sub-chain. In addition, some informal discussions with other TOs completed
these interviews.

Interviews and focus groups were held with 29 handicraft producers/sellers (basketry,
wooden products) and dance performers in all of the visited destinations. Within the
crafts sector, recommendations notably targeted innovation and processed food.

Over a period of 5 days, a total of 335 international tourists completed a survey aimed at
defining international tourist travel behaviour, as well as satisfaction and average daily
spending while visiting Uganda. The interviews took place at the main exit points of
Uganda (Entebbe, Busia, Mutukula, Katuna and Malaba), in order to cover all different
categories of tourists visiting the country. For a summary of the survey categories refer to
table 1.

       2.2.2. Limitations

Although this study attempts to provide a comprehensive tourism situation analysis for
Uganda, it was not possible to travel to all the main tourist destinations within the
amount of time spent in Uganda. In addition, high-end businesses, especially in the
accommodation sector and tour operators, were not all very cooperative with the team.
The fact that high-end hotels are mostly foreign-owned made it difficult for the local
managers to accept sharing financial and other sensitive information.

Many operators (especially small and medium ones) did not have the relevant data on
income, operating costs, etc. and although cooperatives, they sometimes provided
conflicting information. The absence of sector regulation, leading to a high level of
informality, also impeded the data collection process.

The exit survey at the airport is representative of the international tourists visiting the
country at the period of the survey only. Strong variations exist within the year in Uganda
regarding visitor arrivals and their characteristics.

Moreover, tourism statistics are either not coherent or simply non-existent. The data
collection system concerning the size of the tourism sector (number of operators, number
of rooms, employment, etc.) is in process under the current leadership of UTB. It is
therefore difficult to accurately extrapolate the results from the Opportunity Study.




                                                                                         17
3. Tourism development in Uganda

Commercial tourism in Uganda began in the 1950s, though significant growth was only
registered between 1962 and 1971. During this period, the tourism industry experienced
a 34% annual growth rate (Ministry of Wildlife Tourism and Antiquities (MWTA), 1996)
with 1970 recording the highest earnings of Uganda shillings: 132.3 million (US$ 18
million). At that time, average per capita spending was US$ 2,306 and the industry was
Uganda’s third largest foreign exchange earner after coffee and cotton. However, due to
the political instability of 1971-1986, the industry declined by 13.8% annually. In 1980
only 1,000 tourists were received down from 85,000 in 1969. During this period, wildlife
conservation areas were heavily poached to the extent that some species of wildlife
became extinct and others came to near extinction. Hotels, infrastructures and most
facilities were destroyed as government neglect of the sector was at its peak.

Following attainment of political peace by the current National Resistance Movement
government in 1987, Uganda adopted a structural adjustment programme that revamped
the tourism industry. The Tourism Master Plan of 1993 had projected that tourism would
grow at an annual rate of 13%, but a 53% annual growth rate was registered by 1996.
Compared to 1980, when only US$ 0.125 million were earned, the 1995 earnings had
reached a level of US$ 90 million. Despite some setbacks over the last few years, resulting
from the political instability in the Great Lakes Region, tourism has remained one of the
fastest growing sectors of the economy with an annual growth rate of 21% over the years
1992 – 2000. In 2010 Uganda recorded a total of more than 946,000 tourists, spending
over US$662 million (Uganda Bureau of Statistics, 2011).

   3.1.Key touristic resources and attractions

For the government of Uganda, the current Ugandan tourist products are nature-based
and centred on distinct geographic areas. Several of these are linked to national parks,
wildlife reserves, forest reserves or specific attractions, and activities such as white water
rafting at the source of the Nile in Jinja. Other attractions include Eco-Tourism, Cultural
Heritage, Faith-Based Tourism, Community Development Tourism and Meetings,
Incentives, Conferences and Events (MICE).

    Game viewing: Likely to be the main reason for visiting Uganda for a majority of
     leisure tourists. Uganda comprises 10 national parks in which the big five mammals
     of Africa can be found (lion, leopard, elephant, rhino and buffalo) and several
     natural reserves. A majority of the parks are in the western part of the country.

    Eco-tourism: The greatest unique attractions in the so-called area of « eco-tourism »
     include: gorilla tracking, viewing chimpanzees, golden monkeys and Patas monkeys,
     (nature) guided walks, community walks, butterfly viewing and bird watching.
     Additionally, Uganda’s position as a plateau astride the equator has given it a niche
     in the variety of bird life with over 1060 bird species.

    Cultural Heritage: Uganda is endowed with diverse heritage and cultural treasures
     that attract both foreign and domestic visitors. The archaeological treasures which

                                                                                           18
     open a window into the beginning of mankind, the monarchical leadership that
     predated the early explorers, the living culture and the history manifested in Idi
     Amin’s leadership, are all touristic products that Uganda can capitalize on (see
     annex 5). However, Uganda’s tangible cultural heritage is vanishing fast.

    Faith-Based Tourism: In Uganda, the Namugongo Martyrs Shrine stands out as a site
     of pilgrimage, as do the hills housing the important symbols of Catholic, Anglican,
     Bahai, Pentecostal and Islamic faiths. The National Development Plan states that the
     current policy and practice has however not integrated tourism in the development
     and promotion of these sites.

   Community and Development Tourism: Thanks to the efforts of some individuals
    and/or organisations, community-based tourism is slowly expanding in Uganda but
    efforts from the private sector to include community based activities remain
    limited. This is a growing source market that has not been specifically targeted
    through policy and practice.

    Meetings, Incentives, Conferences and Events (MICE): It is estimated that the
     growth of the urban hotel industry in Kampala, Entebbe and Jinja is largely
     attributed to this segment. With 20% of visitors officially travelling to Uganda for
     business purposes, the MICE market represents a growing source of income at each
     level of the tourism value chain.

   3.2.Tourism statistics

The total number of tourists entering the country has steadily increased from 468,000 in
2005 to 946,000 in 2010. But in 2009 there was a 5 % decline in the number of tourists -
from 844,000 in 2008 to 806,000. About 50 % of these visitors travelled to the country to
visit friends and relatives, while 21 % travelled to Uganda for business purposes and
about 16 % travelled to Uganda for leisure and holiday.

                              Table 2: Origin of visitors to Uganda

                                             2008           2009       2010
                Africa                     624,352        631,258     677,774
                Kenya                      249,786        261,329     294,170
                Rwanda                    181,339         199,530     177,043
                Tanzania                     45,276        48,948     42,289
                America                    53,950         56,131      65,175
                USA                          42,418        37,971     45,856
                Asia                       33,532         29,656      41,200
                India                        16,236        12,946     16,747
                Europe                    106,020         79,710      112,870
                UK                           51,812        35,716     39,171
                Germany                      8,083         6,778       8,650
                Middle East                  7,995         7,698      13,695
             Source: MTTI 2010, UBOS, 2011




                                                                                      19
A large number of tourists come by road (61 % of total arrivals in 2010), although the
growth in terms of arrivals by air appears to be picking up much faster (57 % growth
between 2007 and 2008).

                                  Table 3: Basic tourism indicators




      Source: Uganda Bureau of Statistics (2010)

As seen above, visitors from Africa represent the main source market with 78.2 % of total
arrivals. Uganda’s main overseas source market is Europe, which made up for 12 %
(113,000) of the tourist arrivals in 2010. From this source market, the UK accounted for
35 % (39,171) – see Annex 2. According to the Ministry of Internal Affairs and the Uganda
Bureau of Statistics, males represented 73 % of international arrivals to Uganda in 2009
(796,009 out of 1,092,970). There is low volume of tourists from key source markets in
Europe and North America. This is possibly due to inadequate marketing and weak
positioning of Uganda in these markets. However, there is a positive growth trend in the
volume of visitors from Europe, America and the Middle East. With better marketing, this
trend is likely to further increase.




                                                                                      20
                                  Figure 3: Monthly visitor arrivals to Uganda (2005-2009)


                                  Monthly visitor arrivals to Uganda (2005-2009)
              120000

              100000

                80000
                                                                                                2005
                60000                                                                           2006
                40000                                                                           2007

                20000                                                                           2008
                                                                                                2009
                       0




  Uganda tourism has a growing peak season in July and August. Monthly arrivals by
  nationality and purpose of visit would allow us to understand whether this growing peak
  coincides with the growing number of “holiday” segments or not.

  It has been observed that a sizeable number of overseas visitors to Uganda (38 %) pass
  through Entebbe International Airport, and that in the five year period of 2005 -2009 it
  has handled 247,000 tourists on average. Possibly a consequence of the international
  financial crisis, there was a 24 % decline in the number of tourist arrivals through
  Entebbe International Airport in 2009.

  There are however more overseas visitors who leave the country by road than those who
  enter by road (Table 4). The table below also indicates that these four main entry points
  account for the majority of arrivals in the country.
  Table 4: Arrivals and departures from main border checkpoints (2009)

                                                 Port of Entry                               Port of exit
                                                                 Malaba &                                   Malaba &
             Port of entry/exit      Entebbe      Mutukula                      Entebbe      Mutukula
                                                                  Busia                                      Busia
                 Resident             104,738        64,286         59,660        110,547      72,337        68,875
Ugandans
               Non resident            18,530        5,373          3,858         15,005       4,005          3047

                     Total            123,268        69,659         63,518        125,552      76,342        71,922

                 Resident              34,982        6,563          17,940        37,872       5,427         15,879

              Western Europe           65,916        2,773          2,783         64,548       4,276          4,400

               Other Europe            2312           213            230           2116         349           313

  Non-        North America            39,457        2,010          1860          40,398       2,500          3,283

Ugandans         COMESA                66,924       229,134        235,530        62,142      219,716        210,904

                Other Africa           38,821        23,602         22,863        33,961       24,288        21,392

              Other not stated         39,171        2,350          2940          36,821       3,117          4,206

                     Total            287,583       266,645        284,146        277,858     259,673        260,377

       Grand Total                    410,851       336,304        347,664       403,410      336,015        332,299

  Source: UBOS (2010)



                                                                                                                21
The figures in the table above show that overall visitors arriving through Entebbe
International Airport mainly come from distant destinations in Europe and America. Few
visitors arrive by air from Kenya, Rwanda or Tanzania. However, in the COMESA region
as a whole, air travellers have been increasing over the last five years. The key message in
these trends seems to be that the visitors who arrive at the airport are long haul tourists,
and the increase over the last five years has not been as big as that for the entire sector.
That is, about one third of visitors to Uganda arrive by air. It is noted that, overall, not all
people who entered Uganda as tourists in 2009 returned during the same period.




Table 5: International tourist arrivals to National Parks - Uganda (2009)

 Circuits                                           2005         2006        2007      2008      2009
Western & Southern Circuits
 Fort Portal & Kasese
 Kibale National Park and Bigodi                    6,490        7,741       8,440     7,733     8,247
 Queen Elizabeth National park                     48,720       43,885      51,749    53,921    62,513
 Bwindi Impenetrable National Park                  9,012       10,176       9,585    10,128    11,806
 Mgahinga Gorilla National Park                     1,910        2,071       2,676     3,244     1,886
 Rwenzori Mountains National Park                    906          948        1,583     2,020     1,281
 Semliki Valley National Park                       1,949        2,584       1,940     2,701     2,701
 Lake Mburo National Park                          16,181       12,508      14,264    16,539    17,521
 Lake Bunyonyi
Eastern Uganda
 Mount Elgon National Park                         3,751         2,964       3,472     3,708     2,943
Northern
 Murchison Falls National Park                     39,133       26,256       32,049    36,752    39,237
 Kidepo Valley National Park                        758          959          795       1,558     2,924
                                        Total     128,810      112,098      128,560   138,304   153,068
 Source: UWA (2010)

From the table above, we can observe that not all international tourists in Uganda visit
the national parks. The two main visited parks are Queen Elizabeth National Park in the
western part of Uganda, which received more than 60,000 tourists in 2009, and the
Murchison Falls National Park, found in one of the poorest areas of the country, with
almost 40,000 visitors in 2009. Interestingly, the number of visitors to national parks
increased for the year 2009, when arrivals to Entebbe airport went the opposite.




                                                                                                     22
              Figure 4: Tourist arrivals to Uganda and visitors to national parks (2005-2009)


                      Tourist arrivals and visitors to National Parks ('000's)
      1000
                                                                        Non-resident Tourist arrivals
                                                                        through Entebbe Airport
       800

       600                                                              Visitors (Citizens and Foreigners) to
                                                                        National Parks (000’s)
       400
                                                                        Total Non-resident Visitor Arrivals
       200                                                              in Uganda

         0
              2005       2006       2007      2008       2009

       Source: UBOS (2010)


The majority of visitors to national parks are non-resident foreigners (40 %), followed by
students (28 %) and Ugandan Nationals (20 %). A survey among tour operators, made by
the Ministry of Tourism, Trade and Industry (2008), showed that most of the tourists
they handled preferred to visit Queen Elizabeth Park, followed by Bwindi, Murchison falls,
Kibaale National park, Lake Mburo national park and Rwenzori National park, in that
precise order. Overall, the above six tourist areas attracted 71% of the tourists during the
2004-2007 period. Within the same survey, gorilla tracking and game views emerged as
the most preferred attractions of tour operator clients. The other preferred attractions
were chimpanzees, landscapes, mountain climbing and bird watching.

                                Table 6: Visitors to national parks (2009)




Source: UBOS (2010)


   3.3.Tourism economics in Uganda




                                                                                                                23
According to the Uganda Bureau of Statistics (UBOS), hotels and restaurants contributed
4.1 % to the total GDP at current prices (revised to 4.3%) in 2009/10, representing 1,487
billion Shillings at current prices (US$ 571 million). The growth performance of the sector
(12.5 %) is the second behind the post and telecommunications sector (39.6 %)
Table 7: Share of primary growth sectors in GDP and growth performance




Source: National Development Plan (NDP, 2010-2015)

Tourist expenditures were estimated at US$ 564 million for the year 2009, surprisingly
less than the amount spent in hotels and restaurants indicated below in table 8. Knowing
that hotel and restaurant categories usually represent 40% to 50% of visitors’
expenditures, the total tourism-related spending in Uganda could therefore be at least
twice more than officially recorded. Basically, the journey of a tourist does not solely boil
down to accommodation and catering. Other items, such as excursions and souvenirs, to
cite a few, must be taken into account in the balance of payments.
Figure 5: Diagram of the Tourism Value Chain/visitor journey




Source: Peter Lanes

With an annual turnover of 137,302 million Shillings (US$ 52.8 million) for the hotel
sector in 2009, the table below confounds the understanding of tourism economics in
Uganda. First, it is far below the data announced in other tables of the “2010 Statistical
Report”. Second, the turnover for the hotel sector was two times higher in 2009, while a
decrease of about 5% in the number of tourists was observed. One explanation for the
increase of revenues from hotels can however be found in the fact that the overall PPI-



                                                                                          24
H&R15 rose by 13.5 % in 2009: prices for accommodation and catering services rose by
15.7 % and 11.0 % 2009.
Table 8: Annual turnover by industry (millions shillings), 2008-2009




Source: Uganda Revenue Authority

According to WTTC, tourism contributed 7.4 % of total employment – direct and indirect -
(420,000 jobs). The hotels and restaurants sub-sector has shown strong growth in their
contribution to employment from 13,898 jobs in 2001/02 to 32,796 jobs in 2006/07.
Wildlife based tourism and conservation programmes in Uganda directly employ over
80,000 persons. However, the average level of salary is the lowest among other economic
sectors, whereas workers have the highest average of working hours per week (see
below).
Table 9: Employment, median earnings and average weekly hours of work




Source: Uganda Bureau of Statistics (2010)



15 The PPI-HR is an Output Price Index that measures the change in the prices that Hotel and Restaurant Service Providers
receive for the Services they provide. These Services include: Accommodation, Conference Facilities, Food, Drinks


                                                                                                                      25
   3.4.Tourism management and planning

The Uganda Wildlife Policy (1999), the National Tourism Policy (2003-2010) and,
nowadays, the National Development Plan (2010- 2015), have consecutively guided the
tourism sector. The legal framework that governs the development and regulation of the
tourism industry includes: the Tourism Act (2008), the Uganda Wildlife Act (2000), the
Game Preservation and Control Act (2000) and the Historical Monuments Act (1967). The
tourism sector policy is stipulated in the Tourism Policy for Uganda (MTTI, 2003). The
tourism policy expired in 2010 and effort is underway to develop a new one by the
Ministry of Tourism Wildlife and Heritage. The major objective of the outgoing policy was
to translate tourism into a major economic sector; this is also a key objective of the NDP.
According to the NDP, the government intends to put in place a policy and operational
framework to fulfil the potential of the tourism sector. The tourism policy stipulated that
the sector should be developed in such a way that the communities and people of Uganda
participate in and benefit from the sector (MTTI, 2003). The policy aimed at developing
and promoting eco-tourism, community development and sustainable conservation.

The tourism policy (2003 -2010) highlighted a number of key objectives:

    Economic objectives: to derive greater revenues from an increasing number of
     leisure tourist arrivals and to promote longer lengths of stay and higher daily
     expenditure. Also, to distribute revenue earnings widely, with the large-scale
     participation of communities and districts in tourism.
    Environmental objectives: to channel tourism revenue towards the conservation
     of natural resources, to use protected area entry fees to generate interest in
     environmental protection and to generate revenue for local governments and
     communities.
    Cultural objectives: to emphasise tourism development based on Uganda's rich
     culture and history, and on the diverse traditions and hospitality of its people (e.g.
     museums, performance arts, monuments), to forge a Ugandan identity and
     encourage cultural pride.

To complement the aspirations in the tourism policy, the NDP (2010-2015) focuses on
two key strategic interventions: developing and reviewing tourism policies, legal and
regulatory frameworks of the sector, and increasing the contribution of tourism to GDP
and employment. In the NDP, tourism is earmarked as the third primary priority sector
for eradicating poverty after agriculture and forestry.

To further assimilate these broader goals into its strategic mandate, the Uganda Tourism
Board (UTB) has developed a strategic plan which has the following specific objectives:

      Position Uganda as a premier East African holiday and ecotourism destination,
       with a variety of quality experiences to both inbound and national tourists by
       2016
      Diversify Uganda’s tourism product range
      Generate, mobilise and utilise finances to enable execution of its mandate



                                                                                        26
      Mobilise, develop and support private sector operators to become sustainable and
       competitive along the entire sector value chain
      Develop and equip the human resource and institutional capacity to meet the
       competitive demands of the organisation
      Become a research-driven proactive planning and decision-making organisation
      Adopt innovative and modern technological tools in the tourism sector operations

The Uganda Wildlife Authority (UWA) is charged with conserving, sustainably managing
and economically developing the resources in Uganda’s national parks, in partnership
with neighbouring communities and other stakeholders, for the benefit of the people of
Uganda and the global community. The UTB constitutes the other main agency of the
Ministry of Tourism, Wildlife and Antiquities.

The UTB is a statutory organisation established by the Uganda Tourist Board Statute in
1994. According to the new Tourism Act (2008), UTB's mandate is to promote and
popularize Uganda as a viable holiday destination both locally and internationally in
order to increase the contribution of tourism earnings to GDP, improve Uganda's
competitiveness as an international tourism destination, and increase Uganda's share in
the African and World tourism market. Owing to the institution’s inability to execute its
mandate since it was created, the current management team has decided to draft the first
ever strategic plan and business plans. These tools are to help UTB play its role in
positioning the sector in the NDP. The plan is in the final stages of its development, and if
adhered to, its impact is likely to be high.

The strategies highlighted in the national development plan should help the tourism
sector to achieve broader development objectives including: decentralisation of tourism
sector responsibilities to lower local levels, institutional and human resource capacity
building, product development, improved marketing and promotion, improved research
and planning, and overall infrastructure development. The government recognises the
insufficient resource allocation to the sector and has allowed for the tourism levy to be
operationalised by UTB (Tourism Act, 2008). Although not yet implemented, this levy
must form the key funding for tourism marketing and training activities. The government
has also promised to provide financial support through the Ministry of Finance and
Economic Development.

Despite these objectives, tourism promotion and marketing activities are nowadays still
very limited because of insufficient government funding, combined with the poor
financial situation of the private sector. Since June 2011, Uganda’s Ministry of Tourism,
Trade and Industry separated into the Independent Ministry of Tourism - Wildlife and
Antiquities and the Ministry of Trade and Industry. It is now expected that strong efforts
will be devoted to the sector’s growth and sustainability. In the National Development
Plan (2010-2014) the government of Uganda announces that actions should be taken to
improve the quality of public infrastructures.




                                                                                          27
Table 10: Strategic actions for improving the quality of public physical infrastructure




Additionally, the World Bank has recently funded sustainable development tourism plans
for four districts in Western Uganda. Each of the plans was created independently, and
prepared as four different development plans. These districts contain the UNESCO World
Heritage site of Mgahinga Gorilla National Park, Bwindi Impenetrable National Park,
Ruwenzori Mountain National Park, Kibale Forest National Park and Queen Elizabeth
National Park – protected areas that are important watersheds for Africa and which
harbour the largest number of primate species in the world.

In the National Development Plan, as well as the outgoing Tourism Policy, the private
sector is expected to play a leading role while the government provides an enabling
environment. The government observes that the private sector needs to develop a strong
organisational structure with the participation of all major stakeholders, and that the
sector’s actors need to improve their professionalism and general capabilities. The
private sector is further expected to undertake the necessary investments. The private
sector should however be provided with market data and statistics, and should be
provided with financial incentives to develop new tourism products.

While the government has positively articulated intent to prioritise and strongly support
the tourism sector, resource allocation and strategic prioritisation have not favoured the
sector over the years, until the expiry of the Tourism Policy in 2010. For instance, in the
financial year 2009/2010, the government allocated about UGX 2 billion (US$1 million)
budgetary support to the sector, yet in the same year the sector contributed more than
half a billion dollars to the economy, employed close to half a million people (compared to
263,854 in civil service in 2010) and contributed 4.3% to the GDP (UBOS, 2010; MFPED,
2011; PSFU, 2010). Efficiency of the sector is hampered by poor road networks in the
tourist circuits (it takes over 6 hours to cover a 76 km distance from Bwindi to Kabale),
inadequate technical skills of tour guides and hospitality facilities, Uganda’s bad image in
the international tourism market, uncompetitive hotel charges and ungraded hotel
facilities, lack of an operational tourism policy and 18% VAT levied on safaris to Uganda,
among others (PSFU, 2010). For the private sector, it still needs to be seen whether the
government will commit to its promises towards the sector, all the more so as an
independent Ministry for Tourism was created in 2011.

                                                                                          28
     3.5.Recent and on-going Tourism initiatives16


        3.5.1. EU - Uganda Sustainable Tourism Development Programme


Completed at the end of September 2007, the main objective of the UGSTDP was “to
contribute to the growth, development and diversification of the Ugandan economy
through sustainable growth and development of the tourism sector”. The Programme’s
specific objective, or central purpose, was to create additional sustainable economic and
financial benefits to stakeholders in the tourism sector. The Programme also sought to
build on past interventions in the tourism sector by the European Commission and
initiatives by other development partners, such as the World Bank, United States Agency
for International Development (USAID), GTZ/KFW, UK Department for International
Development (DfID) and other non-governmental organisations (NGOs).

        The four result areas were as follows: 1) Uganda’s image in the tourism market
improved; 2) Range and quality of tourist attractions and services improved; 3)
Effectiveness of public and private sector actors in the tourism sector increased; and 4)
Involvement of local communities in tourism-related activities increased.

The Programme did not have an adequate M&E system in place to satisfactorily monitor
progress and assess the impact that it had both during its implementation and after the
Programme ended.



        3.5.2. UNDP (2011-2014) / UNCTAD (2012-2015)


In the process of being implemented, the UNDP’s project aims at supporting the
development of markets in tourism, and at focusing on the participation of the poor and
local communities in the tourism sector as entrepreneurs, employees and consumers.
This will contribute to increased benefits for the poor in terms of improved access to
labour and markets, increased opportunities for decent work, income, choice and
affordability for essential goods and services. The project aims to achieve the above
results by engaging specialised agencies like UNWTO, ITC, UNCTAD and others, to
provide expertise in the form of technical assistance. This technical assistance (TA) will
be short term and might take on a phased approach depending on the output area. In
particular, short term international technical advisors will be provided in the following
areas: market development, product development and institutional capacity development.
One UNV, which will have technical expertise in the implementation of tourism projects,
will also be sourced to support the project manager/implementing partner (UTB) in the
overall implementation and for the duration of the project.




16
  See Annex 6 - 7, a synoptic matrix that brings together the main players/actors? in tourist promotion and
development.

                                                                                                        29
       3.5.3. The USAID/STAR project


The overall objective of the STAR program is to strengthen sustainable tourism in the
Albertine Rift by supporting biodiversity conservation. STAR intends to improve the
competitiveness of Uganda’s tourism industry through the following major strategic
initiatives:
     Renew and upgrade the Albertine Rift tourism product through market-driven
        product development opportunities;
     Increase awareness and demand for Ugandan tourism products;
     Create linkages between tourism, natural resource stewardship and biodiversity
        conservation;
     Establish and foster business-to-business linkages and investments;
     Improve local capacity through training, while enhancing the quality of local
        tourism offerings and artisan products;
     Connect small enterprises and community-based entrepreneurs in Uganda to the
        global market place;

     Monitor, and where possible, mitigate the social, cultural, and environmental
        impacts of tourism development; and
     Strengthen national and local government, civil society, as well as private sector
        capacity to develop and manage tourism offerings in a sustainable way.


       3.5.4. The World Bank PAMSU Project


The five year project, which ended in 2007 and is now under evaluation, was supposed to
put up new offices for the Uganda Wildlife Authority, work on infrastructure in the 10
national parks and 12 wildlife reserves, build staff quarters in all the parks, demarcate all
the parks and reserves, procure equipment such as tractors for road maintenance in
parks, procure vehicles, radio equipment, as well as construct boreholes and plant trees
around Mt. Rwenzori and Mt. Elgon National Parks.

In the end, PAMSU was supposed to boost UWA’s revenue collection, minimise poaching
of key species, lead to the increase in the population of key mammal species in Queen
Elizabeth, Murchison Falls and Kidepo, among others. The program was stopped and it is
still under investigation for the misuse of US$ 33 million.

       3.5.5. Community projects or associations

    UCOTA

The Uganda Community Tourism Association (UCOTA) was established in July 1998 to
empower local communities in sustainable development through small-scale tourism and
handcraft enterprises, also known as Community Tourism. To date, UCOTA has grown
into 50 member-groups countrywide, representing about 1200 individuals of whom 63%
are women and 37% men. The groups operate small enterprises ranging from
accommodation, guiding services, and restaurants to craft shops, music, dance and drama

                                                                                          30
performances. Most of the groups fund a community project, such as clinics, schools,
water sources and literacy programmes.

The association empowers the communities through capacity building, offering in-kind
grants, marketing for community services by making brochures, making presentations at
exhibitions, and linking communities to the private sector, as well as through advocacy at
all levels. The communities benefit further through UCOTA’s efforts to network them with
development organisations, resource mobilisation and link them with technical
volunteers and interns.

   Amongst the communities, women are generally in charge (at 99%) of production and
   sales of handicrafts. These women are mainly located in rural impoverished
   communities that depend on subsistence farming and opportunities.

   Challenges for UCOTA communities:

   i)        Lack of exposure

   ii)       Lack of initiative to have a collective marketing of products

   iii)      Duplication of handicraft products by other communities

   iv)       Lack of availability of raw materials like natural dyes used as input in basketry
             and tie/dye textiles.

Example: KIKORONGO WOMEN COMMUNITY

This community is located along Fort portal – Mbarara highway, just 30 km south of
Kasese town at the Bwera road junction. The project was started in 2007 with 12 women
but has grown to 63 members in 2011. It was registered in 2009 with the intervention of
the USAID- STAR project as a way of restraining the community from poaching for
survival. The community is involved in 3 main activities:

          a) Crafts. The community group conducts crafts training workshops during the
             peak season (June –August) at the Simba Safari Lodge. Usually each group of
             tourists pays 160,000 UGX for a maximum of 3 hours training in basket
             weaving and bead work. This is spent as follows: room hire at Simba Safari
             Lodge - 20,000 UGX, the community receives 28,000 UGX while the 2
             instructors both receive 112,000 UGX.

          This community mainly makes hats and baskets with the main raw materials
          (palm leaves and raffia) from the Lake Katwe area and from Congo. On average, a
          basket will take 3 weeks (part-time) to be completed and will be sold at 20,000
          UGX. It was observed in their register that from July 2010 to July 2011, 5 out of 8
          groups of tourists visiting the community attended the training workshops. From
          these statistics, the implication is that during the high season - between June and
          August - the community is able to get a gross income of 800,000 UGX from the
          training.

          b) Drama. The community has a drama group which also performs for tourists.
             The tourists usually come in groups of 5 to 10 people and each person pays

                                                                                           31
          20,000 UGX for this entertainment. During the low season of September to
          October, the community receives an average of 8 tourists per month. From July
          2010 to June 2011, it was observed from the community’s register that a total
          of 188 tourists visited the community. If each of them paid at least 20,000 UGX
          for a performance or training session, the community earned a gross income of
          3,760,000 UGX.

       c) Bee keeping. The Kikorongo women community has 12 male members. These
          were recruited to help women manage the 30 beehives that the community
          owns. Bee keeping has been done for 1 year now and the first harvest was in
          the last week of July 2011. The group has so far harvested only 10 litres (12kg)
          of honey, of which 1kg is sold for 6,000 UGX.



Recently, UCOTA, in partnership with the STAR project, has launched “pearls of Uganda”
to promote authentic cultural community attractions and experiences located throughout
Uganda ()

    COBATI – The community based tourism initiative

A Ugandan social entrepreneur called Maria Baryamujura started the community tourism
initiative in 1998. The purpose of this initiative was to empower and involve Ugandan
communities into fully participating and benefiting from tourism in their communities.
This was paused to be achieved through enhancing the capacity of local people to harness
and fulfil the tourism potential within their reach. All this was seen as a means to improve
livelihoods amongst the communities. This initiative therefore strives to empower
communities to develop and utilise community tourism as a tool for income generation.

COBATI has promoted the benefits of community tourism to target communities through
mentoring, on-spot training and outreach visits. This has particularly been carried out in
the central and western regions of the country, including Luwero district, Mbarara, and
the Bushenyi and Kanungu districts.

This initiative has three main strategies for community poverty reduction:

       a) Encouraging the development of a network of homesteads across Uganda by
          establishing homestead and village tourism. The idea of homestead and village
          stays was developed in order to enable the traveller to experience the true
          lifestyle of rural Ugandans. There are 2 main homesteads:

          i)      The Bombo Village includes 3 homestays, a women’s handicraft group,
                  traditional dancers and a mini cultural centre. This cluster involves over
                  600 people, although 65 women are the main participants in the
                  activities. A number of activities are carried out in this village, including
                  hair braiding and henna painting, a traditional greeting ceremony, local
                  food cooking lessons, storytelling, and basket weaving lessons, all of
                  which are charged 10,000 UGX and last 1 to 2 hours.



                                                                                            32
                  Accommodation for one night is 30,000 UGX, while the traditional meal,
                  Nubian coffee and Nubian snacks each cost an average of 10,000 UGX,
                  depending on one’s choice.

          ii)     The Ishanyu Village is another Nubian community in the Mbarara
                  Municipality, involving about 200 members, and which offers tourists
                  an opportunity to experience Nubian family hospitality along with an
                  opportunity to participate in some great activities including milking,
                  ghee making, cleaning traditional milking pots, making local yoghurt,
                  weaving and braiding.

                  As the Nubians in Bombo, this community also charges 10,000 UGX per
                  activity, carried out for a period of 1 to 2 hours. Their accommodation
                  fee is 30,000 UGX per night.

       b) The initiative also offers an opportunity for the HOMESTEAD EXPERIENCE;
          here the tourists participate in the activities of the host family, which becomes
          their guide during the stay. Some of the activities offered to the travellers
          include village walks, canoeing, listening to traditional stories from the elders,
          watching how food is prepared under hot stones, games with village children,
          helping with village chores and, if one is lucky, attending a local wedding
          ceremony.

       c) Community training is one of those activities offered by the initiative. This is
          provided to Ugandan communities and individuals who are interested in
          understanding the basics of community tourism and how to participate in its
          development. Participants are empowered to be able to establish and provide
          tourism-related services and products from their homes and communities.

On average, COBATI handles 2 of such trainings per month, with an average of 15
participants per session. Training is tailor-made and the cost usually ranges from 25,000
UGX per person to 100,000 UGX, depending on the audience. Such trainings have so far
been arranged for the Bwindi conservation trust in Buhooma, the UNDP/private sector
development programme in the districts of Bushenyi and Soroti, UCOTA, SNV Uganda etc.

    Exposure Africa

Exposure Africa was started in 1998 by a group of handicraft producers in the areas of
basketry, textile, sculpture and woodcarving, which together with the Uganda Small Scale
Industries Association (USSIA) bore an initiative of cluster marketing for their products.

The group of about 15 women grew to what holds over 35 stalls and employs about 140
persons directly, and another 450 persons indirectly through supplies and related
business.

Initially this market was created:

   1. To “show case” the products as a production hub for Ugandan products. Today the
      market has grown to a cosmopolitan market, displaying products from various


                                                                                         33
      parts of Africa, including Madagascar, Zimbabwe, Kenya, Congo, Rwanda and
      Ethiopia.

   2. To enhance quality improvement, so that different producers are able to see and
      analyse what others produce and how it is done. This should create healthy
      competition thereby resulting in good quality.

   3. To enable producers to plan and arrange for national and international exhibitions,
      as these are channels and platforms for the marketing of Ugandan products.

The market boasts collective high sales throughout the year with June, July, August,
December and January as their peak business months. On average, a stall owner in this
area is able to sell items worth 2,800,000 UGX (US$ 1,000) during these high peak months,
and will sell items worth 600,000 UGX (US$ 230) in the very low peak months.

Most of the buyers in the market are tourists who are led there by designated tour
companies that the management of Exposure Africa has approached and who have agreed
to do so. This is an initiative that is greatly boosting the market.

There is no register for Exposure Africa, but one of the leaders revealed that the market
receives a daily average of respectively 200-300 and 50-100 tourists per day in high and
low seasons.

Challenges:

   1. Market saturated by handicraft items from neighbouring countries.

   2. Unsystematic pricing structure which sways off buyers (e.g. when the price of an
      item varies in 3 or more ways from one stall to another).

   3. Inconsistency of product quality from suppliers.

   4. Lack of specialisation of display in the stalls. Out of 35 shops only one stall selling
      bark-cloth products is PRODUCT SPECIFIC.

   5. Many stalls display products from other countries, therefore taxation, fluctuation
      of the US dollar, coupled with market dues, are a big hindrance to the business in
      the market.

   6. With the revival of the East African community and the likelihood of a future free
      movement of goods and a free trade zone within the region, the local and
      indigenous products are facing a big threat.

   Strengths:

   1. Exposure Africa has the project to build a crafts centre, grouping local producers
      in one place to respond to a huge demand.
   2. Exposure Africa has built an international network of students, researchers and
      volunteers providing support to local producers all year round.




                                                                                          34
    The National Theatre

   The crafts centre was started in 1993 by a group of lecturers from the School of
   Industrial and Fine Arts of Makerere University.
   Reasons for establishment:

   1. The university lecturers use this area to exhibit both their works and those of
      their students.

   2. With its proximity to the National Theatre, this area is generally a good tourist
      stop-shop centre for Ugandan made handicrafts.


This crafts village previously specialised in batiks and tie-dye materials, as these were not
traditional styles but rather new and academically developed styles.

Today the crafts village has 42 stalls many of which still display batiks, textiles and
traditional bead work, but nearly all the stalls have started selling products from other
regions of the country, such as animal masks, traditional musical instruments, traditional
games (the “omweso”-board game) as well as China beads and Chinese textiles, together
with a host of products from Kenya, Rwanda, Madagascar etc.

Challenges:

   1. Uniformity, consistency, workmanship or a professional “touch” are not apparent
      in the products on display.

   2. There is much duplication of the products from one stall to another. Every stall
      displays what is on the next or previous stall.

   3. There is a limited amount of Ugandan crafts that are eye-catching! Everything that
      looks nice is often imported.

   4. There are no specific Ugandan souvenirs being promoted. It is difficult to find a
      good Ugandan product to take home.

   Strengths:

   1. Compared to Exposure Africa, this area has better chances of being visited by
      tourists because of its proximity to the National Theatre.

   2. About 50 schools drop and pick their children up from the park in this area.
      Therefore the population in the area is high and offers a big turnover for the crafts
      village.

   3. This area does not seem crowded, it therefore gives the buyer an opportunity to
      peruse or browse through the products with minimal interference.

   4. A section of the market specialises in metal fabrication and carvings. This is an
      edge over other producers and can attract the development of a production cluster
      there.


                                                                                          35
   5. During the high season (June to August and December to January), the village is
      visited by an average of 60 tourists per day. In the low season, the numbers do not
      drop so much but could have an average of 35 tourists per week. This is because
      the theatre area is an affiliation of researchers, drama groups and trainers that
      come throughout the year.

   6. The products in this area have a better-improved quality than those of Exposure
      Africa. As a result, they get better prices. On average, a stall is able to make
      2,500,000 UGX (US$ 950) during high season and 1, 200,000 UGX (US$ 450)
      during low season.

    Ndere/UDTA

NDERE CENTRE is Uganda’s cultural ambassador which strives to market the country so
that foreigners will cease to attribute havoc to the country but rather see its beauty. This
centre, which was conceived in 1984, sells Uganda through its cultural image, building on
the country’s languages which are used to create cultural diversity. The centre, which
operates under the Uganda Development Theatre Association (UDTA), boasts 2084
member groups in the country which have been able to create employment, promote
handicraft production and position themselves in various ways, serving:

   a) As a platform for marketing Uganda’s cultural products.

   b) As a cultural conduit for annual festivals to bring groups together from village
      level to sub county, district and national levels (including the Ketwu Festival which
      has existed since 1997).

   c) As a hub for the art of fashion, so as to create a unique Ugandan brand.

Although manpower is available in terms of cultural trainers, financial issues are a
challenge as the centre depended so strongly on funds particularly from the private
sector and the Austrian Agency - which are no longer available. The management and
planning structure are there but require to be improved so that the centre’s cause could
be adjusted to best suit the situation and timing.


4. Situation analysis

The following chapter examines the environment in which the Uganda tourism business
operates and the key factors that influence how the tourism business is developed,
marketed and managed over time. We will start with an analysis of the tourism
competitiveness, including its comparative and competitive advantages. Then we will
study the SWOT of both the tourism and the crafts sectors, before looking at the policy
objectives and strategies to manage the development of the sector. Finally, we will
conclude the chapter with the perceptions and levels of satisfaction of respectively the
tour operators and the visitors.




                                                                                         36
The figure below summarizes the main identified issues by these tourism stakeholders.
These matters of concern can be classified within three broad categories: the lack of
access to information - both inside and outside of Uganda - for the visitors and private
companies of the sector, the low level of product and service competitiveness and the
weak management of the tourism sector.

                    Figure 6: Problem tree of main issues related to tourism in Uganda


                                   Situation analysis




   Communication &           Products and services                      Tourism
      Marketing                 competitiveness                        management




                                  Low quality and        Weak regulation /
       Gaps in information                               standardisation of        Infrastructure and
                                      product
           channels                                                                  attractiveness
                                   diversification       the tourism sector




                                   Low access to
       Low awareness of              market for                No classification         Poor roads and
        tourism-related           promissing CBT              and pricing system         access to power
         opportunities              products and
                                      services




   4.1.Tourism competitiveness

The competitiveness of the tourism sector can be analysed from three different
perspectives: its competitive and comparative advantages as an economic sector, and its
contribution to the development of the non-tourist economy through economic linkages.

      Comparative advantage relates to things such as climate, beautiful scenery,
       attractive beaches, wildlife etc. Comparative factors are close to the primary
       tourism supply (natural, cultural and social attractiveness); and
      Competitive advantage relates to tourism infrastructure, the quality of
       management, the skills of the workforce, supporting industries and the role of
       government policy.

To understand the competitiveness of Uganda, we should consider both the basic
elements of its comparative advantage as well as the more advanced elements that
constitute its competitive advantage.

       4.1.1. Comparative advantage



                                                                                                           37
The visitor survey made at exit points shows that game viewing is not the main reason
why international leisure tourists visit Uganda. This is of serious concern when most
efforts seem to be devoted to national parks. Actually, the interviewees expressed a broad
range of reasons for visiting the country (see table 55 in Annex 1).

Therefore, the question is about the real comparative advantage that national parks can
offer to Uganda over its neighbouring countries, since international tourists are
interested in a variety of activities and the five big mammals also live throughout the sub-
region (Kenya, Tanzania, etc.). Simply relying on the image of high-end safaris to generate
international tourist flows in Uganda is a high-risk strategy. Similarly, to keep giving such
emphasis to a small population of gorillas, which can be enjoyed at an expensive rate only,
could equally associate Uganda to an exclusive destination. Additionally, the limited
number of visitors that the gorilla population can withstand and the geographical
limitations that are associated with these visits are not favourable to a better distribution
of the tourism rent.

Actually, with 1060 bird species and other non-exploited cultural and natural resources,
Uganda has the opportunity to differentiate itself from its neighbouring countries. It does
not mean that safaris and gorillas should be neglected. A clear understanding of the real
comparative advantage of Uganda can be obtained through a long-term involvement of a
dynamic private sector and regular assessments of the attractiveness of Uganda on the
basis of individual visitors’ perception.

       4.1.2. Competitive advantage

Uganda does not yet perform favourably in East Africa despite the fact that it reports
increased tourist arrivals. As an example, 90% of tourists in Tanzania visit for leisure
compared to 52% in Kenya. In both countries tourists visiting friends represent less than
12%. It is further shown that over 78% of Uganda’s tourists come from Africa, a region
known to be economically disempowered and generally unviable as a tourist market.
While over 48% and 34% of tourists respectively to Kenya and Tanzania originate from
Europe, in Uganda European tourists only represent 10% of the total tourist inflow.
                Table 11: Tourist Arrivals, receipts and purpose of visit in East Africa (2008)
                                                    Uganda         Kenya        Tanzania
                 Arrivals (000’)                     806            729           714
                 Receipts (US$ million)                564           767         1,159.82
                 Market share
                 Europe                              9.8%           48%             33%
                 Africa                              78.3%          24%             48%
                 Americas                            6.9%           14%             9%
                 Asia                                3.6%           12%             4%
                 Other                               0.0%            2%
                 Purpose of visit
                 Holiday                             14.9%          52%             90%
                 Business                            20.7%          18%             4%
                 VFR                                 50.4%          12%             0%
                 Other                               13.3%          18%             6%


                                                                                                  38
                         No. of tourists in hotels                             665,000
                       Source: UTB, 2011

 From the table above, it is seen that Uganda receives more tourists than both Kenya and
 Tanzania (806,000, 729,000 and 714,000 respectively) but benefits the least from the
 sector. In 2008 Uganda earned about US$ 564 million, Tanzania earned over US $1.1bn
 and Kenya US $767 million.

 In 2004, a survey carried out with 41 tour operators in the UK, US, Italy, Germany and the
 Netherlands, rated Uganda the lowest in terms of tourist awareness and destination
 appeal among four other Eastern and Southern African countries 17. Amidst the reasons
 behind the low interest that Uganda arouses in international tourists, a weaker
 attractiveness in terms of doing business does not encourage the private sector to invest
 and therefore to create its own image. In order to attract foreign capital and therefore
 new experiences and knowledge, which later on will lead to an increase of
 competitiveness, Uganda needs to ease or to provide incentives in doing business in the
 country.
 Table 12: Ease of doing business rank (out of 183 economies)
 TOPIC RANKINGS                                        DB 2011 Rank   DB 2010 Rank   Change in Rank
 Starting a Business                                       137            132               -5
 Dealing with Construction Permits                         133            132               -1
 Registering Property                                      150            150          No change
 Getting Credit                                             46            109              63
 Protecting Investors                                      132            131               -1
 Paying Taxes                                               62             63               1
 Trading Across Borders                                    148            147               -1
 Enforcing Contracts                                       113            116               3
 Closing a Business                                         56             53               -3
 Source: World Bank (2011)

 The World Bank report of doing business (2011) places Uganda at the rank of 137 in
 starting a business out of the 183 economies ranked by the financial institution. The 2010
 report had put Uganda at 129th out of the 183 economies, thus indicating that instead of
 improving, Uganda slipped backwards by eight places. Coupled with the WTTC tourism
 competitiveness index, it appears that Uganda mostly suffers from both a lack of
 infrastructure compared to Kenya and a deficit in terms of natural and cultural resources
 when compared to Tanzania.
 Table 13: WTTC tourism competitiveness index 2011

                                                             Uganda           Kenya          Tanzania
 Travel and tourism competitiveness index
                                                          Rank    Score    Rank   Score    Rank    Score
2011 INDEX                                                  115     3.36     103    3.51     110     3.42
T&T regulatory framework                                    116     3.75     113    3.87     121     3.67
                  Policy rules and regulations              100     3.89     103    3.83      97     3.92
                 Environmental sustainability                40     4.90      26    5.12      43     4.89
                            Safety and security             117     3.93     139    3.17     115     4.00
                            Health and hygiene              125     2.07     130    1.64     134     1.28
               Prioritisation of T&T strategies             110     3.94      18    5.56      90     4.26
T&T business environment and                                125     2.65     106    2.93     127     2.62

 17
      http://allafrica.com/stories/200403100025.html

                                                                                                      39
infrastructure
                    Air transport infrastructure     119   2.25    72   2.94   121     2.19
                Ground transport infrastructure      119   2.73    87   3.18   123     2.69
                          Tourism infrastructure     126   1.66   111   2.05   125     1.68
                                ICT infrastructure   125   1.90   112   2.14   130     1.80
         Price competitiveness in T&T industry        57   4.71    93   4.33    56     4.75
T&T human, cultural, and natural resources            80   3.67    72   3.75    56     3.97
                                 Human resources     113   4.22   106   4.35   125     3.83
                  Affinity for travel and tourism     57   4.75    70   4.61    80     4.50
                                Natural resources     29   4.38    28   4.42     2     5.86
                               Cultural resources    125   1.35   107   1.61   101     1.70
 Source: WTTC (2011)



     4.2. SWOT Analysis

 Before looking at the strengths, weaknesses, opportunities and threats of the tourism
 sector in Uganda, a number of issues were identified during the fieldwork. We therefore
 propose below a non-exhaustive list of these issues for each of the tourism stakeholders.

      Central and local governments

              o Tourism     management        and    competitiveness  (costing,  pricing,
                standardisation)
              o Effectiveness of tourism marketing and communication (internal and
                external)
              o Effectiveness of tourism funds management (park entrance fees)
              o Weak infrastructure in some areas (roads, power, telecommunications,
                access to water)
              o Weaknesses in the decentralisation process. Tourism is managed at central
                government level, and not assimilated within local government plans;
                district commercial offices are not empowered
              o Lack of effective awareness of and sensitisation on general issues
                pertaining to tourism

      Private sector

              o Competitiveness of middle range/low-end supply (low cost/value
                products)
              o Needs support for the establishment of linkages with local communities
              o Low general level of salaries / absence of contracts
              o Absence of regional leadership
              o Needs to desist from recruiting non-professional and unqualified personnel
              o Weak, disjointed and uncoordinated
              o Opportunistic approach to business

      Local communities



                                                                                       40
          o Low benefits from the tourism rent (share of expenditure going to the
            poor)
          o Lack of skills and capacities (innovation, empowerment)
          o Lack of knowledge and appreciation of tourism development and
            potential/opportunities
          o Exploitation by the private sector due to disparity caused by high poverty
          o Conflict with wildlife (vermin)

    NGOs and CBOs

          o Lack of capacities and technical skills for product diversification and
            innovation
          o Lack of funds
          o Not coordinated with other actors to create strong linkages between
            tourism and other sectors; e.g. none have sound framework with the
            National Agricultural Advisory (NAADS) to promote agricultural products
            consumed in hotels and other establishments
          o Successful CBOs can have high impact on the local economy; e.g. KAFRED

    Tourists

          o Lack of information about community-based activities
          o Lack of information on product origin and poverty reduction opportunities


      4.2.1. SWOT analysis for the tourism sector in Uganda

The SWOT analysis of the tourism sector in Uganda is summarized in the table below.
Basically, Uganda owns unique cultural and natural resources, however, a low level of
services and management are weakening the commercial exploitation of these assets in a
sustainable manner. The first table below concentrates on the SWOT analysis of tourism
only. Then, we propose an in-depth evaluation of the crafts sector, which is of more
interest to ITC in the frame of this project.




                                                                                   41
                                    Figure 7: SWOT Analysis of Tourism in Uganda18




                        Strengths                                           Weaknesses
                                                                      - Poor state of Infrastructures
               - Unspoiled and unexplored natural
               resources                                              - Weak public-private partnership
                                                                      frameworks
               - Unique cultural and religious
               resources                                              - Absence of qualified skills
               - Good climate                                         - High costs and access to energy
                                                                      (Water, electrictiy, petrol, etc.)
               - Existing community-based initiatives
                                                                      - Poor production quality and diversity
               - Existing handicrafts skills and
               production                                             - Unreliable production and services
               - Existing tourism networks and                        - Weak tourism management and
               associations                                           regulation
                                                                      - Weak competitiveness (WTTC and
                                                                      world bank indexes)




                   Opportunities                                                 Threats
               - Growing demand for Africa
               - Increased intra-regional and
               international air services                             Fragility of biodiversity
               - The creation of the East African                     - Increasing effectiveness of
               Common Market                                          competitors
               - Prevailing peace and security in the                 - Instability of international tourism
               region vs. instability in the Maghreb
                                                                      - Weak image of African destinations
               region
               - Increased UN and donor recognition
               of the sector as key for poverty
               reduction




An analysis of strengths, weaknesses, opportunities and threats in Uganda revolves
around the issue of improving the linkages between all tourism stakeholders and
developing good policies and frameworks to manage (regulate, standardise, promote) the
tourism sector. However, good policies on their own are meaningless if there is no
capacity to implement the strategies that are designed to achieve them.

Presently Uganda has devoted many efforts and invested much in the preservation of its
biodiversity. A share of the entrance fees to national parks (20%) is thus transferred to
local districts, offering the opportunity for the local population to submit project
proposals. However, a lack of both skills and forward thinking impedes the

18
     See annex 9 for a detailed SWOT analysis table

                                                                                                                42
implementation of projects which are more likely to offer economic alternatives to these
populations. As a consequence, project proposals are often similar from one village to
another. They respond more to a recurrent problem (vermin) without proposing
innovative solutions that would help diversify livelihood.

Apart from a competitive high-end offer, Uganda tourism and tourism-related products
and services are disorganised, uncompetitive and often inappropriate on a world market
basis. A majority of tourism and tourism-related stakeholders are not aware of
international visitors’ expectations. The vision, and consequently the price, for the locals
is often reduced to the beauty of the adjacent natural resources; gorillas have a dramatic
influence on prices no matter what the quality of services or products is. Thus, the pricing
of products and services is often set on uncommon indicators which make customers
strongly unsatisfied. Although, UTB has planned to regulate the tourism sector using the
criteria for standardisation of hotels, restaurants, and other tourist accommodation
facilities of East Africa, the lack of central government support to this issue of utmost
importance considerably weakened the initiative.

In the middle of an improving political environment, Uganda also benefits from beautiful
landscapes in which the land is highly fertile. With a regular growth in visitor arrivals and
a better product differentiation (building a new image of Uganda), the local population –
when accompanied – will definitely gain benefit from a growing demand for their
products. The initiatives are numerous but technical skills and funds are a prerequisite to
the sustainability of these projects.

       4.2.2. SWOT analysis for the craft sector in Uganda


Uganda has a wide array of handicraft products such as basketry, mats, ceramics, beads,
pottery, hand textiles, woven products, toys, jewellery, bags, ornaments, leather products,
batiks and wood crafts, among others. These items are produced in almost all the districts
and regions of Uganda, using locally available raw materials, with limited product
differentiation.

Handicraft production in Uganda is cultural, traditional and predominately a cottage
industry, engaged in by youths of both gender (though largely by women), to supplement
household incomes. The tradition is to hand over craftsmanship and skills from
generation to generation. With time, tradition has waned, however, despite the fact that
the number of craftsmen has considerably decreased, master craftsmen can still be found.
In recent years, handicraft production has taken position as a major industry that has a
potential business opportunity for sustainable income generation. This has resulted in the
attraction of more artisans, traders and exporters.

However, because of the urge to earn quick money, artisans produce in fragmented
environments with no appreciation of market requirements, quality, design, standards
and systematic organisation of markets. Innovations, design and product adaptations are
limited, given the low skill capacities of the producers, and, as a result, the appreciation of
Ugandan handicrafts, especially by tourists, becomes insignificant.




                                                                                            43
According to the Uganda Handicrafts Export Strategy (2005), the development of the
sector is severely inhibited by the supply side (production) and marketing constraints,
including:

  Production

      Limited access to and inadequate supply system of raw materials
      Fragmented, unstructured and individualised production systems
      Low level equipment application
      Low production levels
      Nil or minimum access to capital
      Lack of specialisation
      Inconsistent product standardisation
      Low designs and quality
      Inadequate design skills
      Inadequate production, vocational and business development training
      Inadequate model incubator projects along organised production systems

Organisation and Marketing

      Lack of a vibrant National Exporters Association
      Insufficient market information and dissemination
      Lack of appreciation of market preferences and requirements
      Inadequate support for marketing and promotion
      Poor or no packaging
      Lack of organised district, regional or national handicraft exhibitions to facilitate
       district or regional specialisation
      Lack of sector supportive and adaptive policy
      Lack of cooperation and programme coordination among handicraft business
       support organisations

There are many organisations engaged in handicraft promotion activities though in a very
fragmented and disjointed manner. Such organisations include the Uganda Export
Promotion Board (UEPB), Uganda Women Entrepreneurs Association (UWEAL),
American Growth Opportunities Act Office (AGOA), Uganda Small Scale Industries
Association (USSIA), National Organisation of Women Associations in Uganda (NAWOU),
National Arts and Crafts Association of Uganda (NACAU), Private Sector Foundation of
Uganda (PSFU), Uganda Community Tourism Association (UCOTA), Sustainable Tourism
in the Albertine Rift project (USAID, STAR) and many others.




                                                                                         44
                          Figure 8: Specific SWOT Analysis for the crafts sector




                       Strengths                                              Weaknesses
         •Availability of abundant and unique local               •Unstructured and individualised
          raw materials, e.g. raffia, bark-cloth,                  production systems
          banana fibre, animal skin, etc.                         •Limited capitalisation and low
         •A wide range of traditional production                   investment
          knowledge derived from indigenous                       •Limited technical skills, capacity,
          knowledge                                                technology integration and innovation
         •Current and potential internal markets                  •Limited resources for production,
          based on tourism                                         distribution and marketing
         •Unique products rooted in the country’s                 •Disjointed and duplication of efforts by
          diverse culture                                          stakeholders in capacity building,
         •Availability of cluster production in                    research, training and products
          typical homesteads and traditional                      •Handicraft sector not mainstreamed into
          activities                                               national planning priorities




                    Opportunities                                                  Threats
         •An increasing flow of tourists who                      •Competition from countries like China,
          provide markets for products                             Kenya, Zimbabwe, Rwanda and Congo,
         •Tourist interest in watching artisans and                which produce cheap and good quality
          craftsmen at work                                        crafts
         •Increased coordination of marketing and
          industry participation
         •The creation of the East African
          Common Market
         •Increased UN and donor recognition of
          the sector as key for poverty reduction
          and income generation




   4.3.Tourism development plan

Tourism has not been developed as expected, despite the fact that the country has many
potential tourist attractions. The strength of tourism in Uganda is the unspoilt wilderness,
the gorillas, the rich culture and the special combination of nature and culture.

As indicated in the National Development Plan (2010), the identified constraints to the
performance of the tourism sector are:

  1. Inadequate public and private institutional capacity to initiate meaningful tourism
     development. The private sector on the other hand is fragmented, small and lacks
     sufficient public sector support.

                                                                                                            45
  2. Inadequate policy frameworks to conserve Uganda’s cultural heritage, which is
     presently threatened with extinction.
  3. Limited funding: tourism promotion is costly yet the sector experiences serious
     shortages in resource allocation to effectively compete with other tourist
     destinations.
  4. Lack of adequately skilled human resources particularly in tourism promotion,
     hotels and restaurants, tours and travel, leisure and hospitality.
  5. Negative perception of Uganda due to past insecurity; this has affected Uganda’s
     attractiveness as a secure tourist destination. In addition, the over-reliance on
     foreign tourists makes the sector highly vulnerable to external shocks.
  6. Inadequate physical infrastructure support: a network of good roads and
     availability of affordable air charters are essential for the comfort, safety and
     security of tourists. Some existing tourist attraction facilities are inaccessible due to
     the poor conditions or absence of the requisite transport infrastructure. The supply
     of water, communication facilities and electricity are equally necessary.
  7. Inadequate research and development of the tangible and intangible heritage.
  8. Narrow product diversity: the country’s touristic activities are largely based on
     wildlife, despite the existing potential in culture, community, faith-based
     conferences and business tourism.
  9. Inadequate research on emerging trends, markets and consumer surveys, as well as
     irregular statistical information required to inform decision makers, investors and
     tourists.

Despite a clear understanding of the existing constraints for the tourism sector to both
become competitive at an international level and to provide alternative sources of
livelihood in rural areas, the forecasts concerning the share of annual budget allocated to
tourism over the next five years limit dramatically the possibilities to observe
tremendous changes in this sector.
Table 14: Expenditure framework under the NDP 2010-2014




Source: NDP 2010




                                                                                           46
          4.4. Perception and satisfaction regarding Uganda’s touristic attractions and
               services

              4.4.1. Tour operators’ perception of tourist resources and attractions

     Only 15 tour operators agreed to answer partially or fully to the questionnaire. Based on
     the provided data, they have had slightly less than 20,000 customers for the year 2010.
     Difficulties were met with others in understanding the objectives of the research and its
     anonymous nature. Therefore, names of companies will not appear in this document in
     order to respect the agreement we have with them.

     Tour operators were asked about the market size of the different regions of Uganda
     (northern, southern, western, eastern and central) and the reasons for selling them or
     not. All interviewed tour operators sell the western region, which constitutes their main
     source of income (70%), far above all others.

                               Table 15: Market size of different regions for Uganda based TOs

                                                       Selling Package        Average
                                  Regions
                                                                             Market size
                                  Western                      100%             70%
                                  Eastern                       85%              4%
                                  Northern                      85%             10%
                                  Central                       85%              9%
                                  Southern                      79%              7%


     The reasons for not selling one or more regions of Uganda vary from one area to another.
     According to those who answered this question, only the eastern region strongly suffers
     from a lack of demand market. They consider it as probably linked with the lack of
     information about the area. The northern region particularly suffers from the lack of
     accessibility and poor road quality. To conclude, the lack of information and activities,
     associated to a low standard of quality, are the predominant factors highlighted by the
     tour operators.
                                   Table 16: Main reasons for not selling Uganda provinces
                                                                   Eastern      Northern         Central   Southern
                                                                   Region        Region          Region     Region
                            Do not know much about the area              2            1            1          2
             Very specific location - not a lot of demand for it         2            1
              No awareness or need for our customers to go               2            1
                                           No demand market              4            1
                                   Only sell specific packages           1            1            1          1
                    Expecting a better promotion from hotels                          1            1          1
Some of our packages go through this province, but there are
                                                                         1            1            2          1
  not enough “developed” activities that people can really do
There’s not enough demand to make it worth the effort for us             1            2
                          Lack of accessibility & road quality                        4
               Low standard of quality (hotels, restaurants…)                         1            1          1
                     Existence of negative issues with locals                         1


                                                                                                             47
Tour operators were then asked to give their opinion about the strengths and weaknesses
of each province (“no answer” and “did not know” were classified as “other”, and
represent the remaining percentage in the following table). With regards to their
answers, the provinces of Uganda have more strengths than weaknesses, which means
that all provinces have a real potential to attract international tourists. These answers
differ by province for some of the items. It should however be noted that only the western
province shows an important difference between its weaknesses and strengths (see table
52 in Annex 1).

The top weaknesses for each of the regions are by order of importance:

          Northern region: The cost/value for money, the means of transportation, the
           authentic way of life, the scenery;

          Eastern region: The range of existing activities, the cost/value for money;

          Western region: The cost/value for money, the means of transportation;

          Central region: The wildlife, the scenery;

          Southern region: The hotels and services, the cost/value for money, the means
           of transportation.

We note that the main weaknesses raised by tour operators are mostly linked with the
value/cost for money and the means of transportation to the destinations. While some
external items cannot be changed, opportunities to increase the competitiveness of the
regions of Uganda exist.

First of all, the majority of regions are not price-competitive. Most of the interviewed
tour operators considered that the value for money is among the main weaknesses. The
provinces should improve the level of services and offer more choices as well as more
information for visitors. With the exceptions of the western and central regions, where
most of the tourists go, hotels and services are rated low by an important number of tour
operators.

It was also observed that the wildlife is always considered as the most attractive tourism
asset, more attractive than local communities (see Table 51 in Annex 1). It is obvious that
tour operators mostly focus on wildlife as a main triggering factor for international
tourists visiting Uganda. This is a surprising conclusion when “wildlife” is finally difficult
to sell in most of the provinces.




                                                                                           48
                      Table 17: Difficulty to sell the main attractive factors by region

                                                          Difficulty to sell

                            Wildlife       Local communities         Local crafts     Local entertainment

Western region                25%                  60%                   40%                 83%
Eastern region               100%                  50%                  100%                 50%
Northern region               71%                  63%                   75%                 25%
Central region                75%                  40%                   40%                 40%
Southern region               29%                  25%                   50%                100%


The difficulty to sell some tourism assets can first be explained by the lack of either
supply or quality. Secondly, it is also possible that some categories of tourists are not
interested in local crafts or entertainment. With the exception of the southern region, and
probably due to the existence of several projects promoting the local communities such as
the “Batwa experience”, it seems that local communities are currently difficult to sell for
at least half of the tour operators in other regions.


       4.4.2. Visitor satisfaction with Uganda’s touristic attractions and services


Visitors were asked about the places they had visited and their experience or level of
satisfaction. Central Uganda (Kampala) is definitely the main region visited by tourists. It
could notably be explained by the high percentage of business tourists (51%) among the
visitors responding to the questionnaire. A Likert Scale of 1 to 5 was used to rate the level
of satisfaction by circuits or regions. The scale works as follows:

       1.        = Strongly unsatisfied
       2.        = Somewhat unsatisfied
       3.        = Undecided
       4.        = Somewhat satisfied
       5.        = Strongly satisfied

The level of satisfaction was rated the highest for the Northern circuit, including
Murchison Falls National Park (4.2), the Eastern region was rated the lowest (3.3) before
Central Uganda (3.7), and the Western circuit was rated 3.9. Therefore, only one region
benefits from a rating above 4..

The lack of in-country information on destinations was rated the lowest among the
different categories proposed to the visitors (when evaluating their level of satisfaction).
It confirms evidence and testimonies gathered during the fieldwork. The choice of
transportation options (3.5) and the value for money – tours/travel (3.5) are, similarly as
with the tour operators, among the lowest sources of satisfaction.




                                                                                                            49
                    Table 18: Level of satisfaction for touristic attractions and services

                                                                   Average level        Do not   Did not
                                                                         of             know      use
                                                                    satisfaction
                      Behaviour of local souvenir sellers                3.9            14.2%    17.8%
    Choice of different activities/things to do/attractions               3.8            7.6%    18.8%
                               Availability of local cuisine              3.8            5.8%     8.3%
            Value for money - restaurants/food choices                    3.8            4.0%     1.2%
                                                Tour guides               3.8            9.8%    36.8%
                       Value for money - local souvenirs                  3.8           11.8%    21.0%
                       Value for money - accommodation                    3.7            2.8%     7.1%
                           Value for money for transport                  3.7            5.0%    16.1%
                           Availability of local souvenirs                3.6            8.7%    19.5%
              Convenience when buying local souvenirs                     3.6            8.9%    20.2%
            Choice of transport options to destinations                   3.5            6.4%     7.2%
                           Value for money - tours/travel                 3.5            7.9%    28.9%
   In-country availability of information on destinations                 3.2            9.6%    22.2%



Interestingly, international visitors were rather satisfied with the behaviour of local
souvenir sellers (3.9) as well as with the price of local souvenirs (3.8), but less satisfied
with their availability (3.6) or with convenience when buying them (3.6). Nevertheless,
70% of the interviewees considered that the currently available shopping facilities met
their expectations. To conclude, it should be noted that none of the ratings was above
“four”, which seemed to indicate that the majority of international tourists were not
disposed to express their satisfaction.
                                  Table 19: Favourite activities in Uganda

                              Favourite activities in Uganda               %
                            Sightseeing                                   23.6
                            Game viewing                                  14.5
                            Gorilla tracking                              13.6
                            Bird watching                                 13.2
                            Other                                         11.8
                            Community based activities                     8.6
                            Mountaineering                                 7.7
                            White water rafting                            6.8



Tourists were also asked to provide their three main activities during their stay in
Uganda. Interestingly, visitors preferred sightseeing to other activities, including game
viewing or gorilla tracking. This information reflects that Uganda holds many wonders
just waiting to be discovered. Based on the comments from both the tour operators and
the visitors, the road conditions were however at odds with the needed comfort for enjoy
sightseeing.

Tourists were also given the opportunity to express their view on tourism services in
Uganda. Road conditions and traffic jams were the most popular issues cited as 35.9% of
respondents proposed improving the accessibility and quality of the roads. 10.7% of
tourists were not happy with accommodation and hotel conditions. They suggested
lowering the price for accommodation by constructing new facilities, or to improve the


                                                                                                           50
quality and conditions in the hostels and develop customer services. The question of
“availability of tourism information” was rated as an important issue by 7.7% of
respondents. They proposed developing websites, maps and improving tourism
information booths at entry/exit points and tourist information centres. 6.8% of
respondents were not satisfied with the quality and organisation of the tours. Better
trained guides, binoculars to see wildlife better, and white rafting expeditions were some
ways suggested to improve this service. Other improvements in Uganda’s tourism
industry could be made by developing cheaper and safer transport services (5.8%),
reducing corruption rates (3.9%), cleaning up the city (2.9%) and solving the problem of
inadequate power and water supplies (1.9%).


5. Uganda Tourism Value Chain

Tourism is generally understood as a service product based industry. The value chain
delivers a tourism product to the tourist as a consumer. However, tourism is quite
complex insofar that it has a double structure to it. People consume tourism products
from the global supply of holiday providers (i.e. buying a holiday to Uganda from a
tourism company). Then, when in destination, the second level of market supply comes
into play. Tourism consumers (or their tourism providers) buy and consume products
and services in the destination market place deriving from the multiple service and goods
based supply chains. It is in this second market that local economic impact is actually
generated. The primary market providers (tourism operators) are critical to generate
demand in the secondary market by virtue of their action, which is to channel consumers
to the destination. Each tourism product is therefore a packaging of sub-products from
multiple value chains.

A ‘pure’ value chain analysis looks at the end-to-end expense of a particular product
(from the overall package price paid in the source market, including the retailer profit
and overheads, air fares, travel insurance and other items unrelated to “in-country
expenses”).
Many value chain based studies focus on the high degree of leakage. It is now widely
viewed that the leakage is typically less relevant than the levels of linkages within a
country. It is in the nature of the industry that a high part of a package price goes
towards airfares / shipping fees etc., but this is of no concern to the destination country.
What concerns the governments, industry and people of a country is how much is spent
in the country, what stays in the country, and what benefits whom (i.e. distribution by
economic status, geography, ethnicity, gender, etc.). Therefore, this report deliberately
avoids the package price breakdown approach for the most part, and looks at expenditure
in country and the net benefits of this expenditure.




                                                                                         51
Table 20: Concept and structure of the tourism value chain

  Key:

                                                         Non-Tourism Sectors




   Tourists




     Direct
    Service
   Providers




    Support
  Institutions




Source: Mitchell and Lee (2007)

    5.1. The visitors


          5.1.1. Visitor demographics


As mentioned earlier in this report, an exit survey (airport and border checkpoints) was
undertaken in early October to gather information on the segmentation of international
tourists in Uganda. A total of 335 persons were randomly interviewed, providing a
statistically significant sample of the current tourist population.
                               Table 21: Nationality and origin of respondents

                                                       Nationality             Origin
                          AMERICA                          76                   58
                          KENYA                            68                   87
                          EUROPE                           49                   33
                          UNITED KINGDOM                   30                   21
                          TANZANIA                         23                   25
                          RWANDA                           20                   23
                          ASIA-PACIFIC                     15                    9
                          OTHER AFRICA                     13                    6
                          CONGO                            11                   11
                          SUDAN                             8                   12
                          MIDDLE EAST                       5                    2



Out of the 335 respondents, only 318 provided their nationality. The main nationality of
persons visiting Uganda was North American (60 American and 11 Canadian). However,
the main country of origin for the respondents was Kenya. Approximately 41% of
respondents came from neighbouring countries, namely the Democratic Republic of
Congo, Kenya, Rwanda, Sudan and the United Republic of Tanzania.


                                                                                        52
A crossed analysis of the country or region of origin with the main purpose of visit
allowed us to establish that visitors from neighbouring countries (Kenya, Tanzania,
Congo) mostly entered Uganda for business purposes. Visitors from Rwanda and
Southern Sudan did not provide all the information concerning their purpose of visit,
which prevented us from drawing conclusions on their characteristics.
Table 22: Main purpose for visiting Uganda by region of origin

                                                 Main purpose for visiting Uganda
                                                                              Educational
                              Business      Holiday     VFR     Volunteer       purpose     Other
                                                                               (student)
   UNITED KINGDOM                 45.5%      31.8%     13.6%          0.0%           4.5%    4.5%
   EUROPE                         42.1%      18.4%       5.3%         5.3%          10.5%   10.5%
   AMERICA                        40.0%      26.7%     15.0%         16.7%           0.0%    1.7%
   ASIA-PACIFIC                   66.7%      11.1%     11.1%          0.0%           0.0%    0.0%
   MIDDLE EAST                     0.0%      25.0%     50.0%          0.0%           0.0%    0.0%
   OTHER AFRICA                   33.3%        0.0%    16.7%          0.0%          33.3%    0.0%
   CONGO                          60.0%      10.0%     10.0%          0.0%           0.0%   20.0%
   KENYA                          71.3%        9.2%      8.0%         0.0%           4.6%    3.4%
   RWANDA                         20.8%      16.7%     33.3%          4.2%           0.0%   16.7%
   SUDAN                          26.7%        6.7%      6.7%         0.0%          20.0%   26.7%
   TANZANIA                       70.4%        3.7%    14.8%          0.0%           3.7%    3.7%
                    Total           51%         16%       13%            6%            6%      9%


It is also interesting to observe that a majority of visitors from Europe and America were
equally in Uganda for business purposes. It should be noted that within the month of
October, being fairly low season compared to months June-September which are high
season, the types of visitors surveyed did not particularly follow the pattern of all visitors
to Uganda.

Besides business travellers, family visits represented the main reason for visiting Uganda.
Studies and voluntary work were the second motives.
                                      Table 23: Specific purposes of visit

                               Specific purposes of visit                     %
                                       Family visit                          22.5
                            Study/Internship/Volunteer work                  15.8
                                       Round Trip                            12.5
                                      Game viewing                           9.2
                                        Gorillas                             8.3
                                          Other                              8.3
                                   Local communities                         4.2
                                     Bird watching                           4.2
                                    Spiritual holiday                        3.3
                                     Cultural holiday                        3.3
                                       Honeymoon                             2.5
                                         Adventure                           2.5
                                         Festivals                           1.7
                                  Eco-tourism holiday                        1.7
                                      Spa/wellness                           0.0



                                                                                                    53
      A majority of respondents were male (70%), although the ratio of males to females varied
      across the types of visitors. The share of male and female visitors was however more
      balanced among holiday takers (59% / 41%).
                                     Table 24: Age by country of origin

                                               Average             Male           Female
                  CONGO                          48.7              48.7            48.5
                  AMERICA                        44.8              44.4            45.3
                  EUROPE                         44.0              46.6            37.6
                  ASIA-PACIFIC                   41.4              45.2            30.0
                  UNITED KINGDOM                 40.1              41.5            35.5
                  OTHER AFRICA                   38.2              38.2
                  MIDDLE EAST                    38.0              43.0            23.0
                  SUDAN                          37.4              37.7            26.0
                  RWANDA                         35.4              35.3            35.5
                  TANZANIA                       33.4              34.8            33.1
                  KENYA                          35.3              36.0            33.2


      The mean age of visitors varied considerably across nationalities, gender, and according
      to the category of interviewees (see Table 56 in Annex 1). The average age of respondents
      was 43.1 years for international visitors and 36 years for regional visitors. In general,
      Congolese (48.7 years) visitors to Uganda were older than other visitors. In contrast,
      Kenyan visitors (35.3 years), who represented the majority of visitors, were on average
      the youngest.

      Female visitors tended to be younger than their male counterparts. With the exception of
      American and Congolese visitors, the majority of female visitors were under 40 years of
      age in all groups of nationalities. Volunteers, students and VFR (Visit Friends and
      Relatives) were more likely to be under the mean age.
                                 Table 25: Age bracket by country of origin

                      < 25      25-30       31-35         36-40           41-45    46-50   51-60        >60
UNITED KINGDOM         0.0%     17.6%        11.8%        11.8%           23.5%    23.5%   11.8%         0.0%
EUROPE                18.4%     10.5%         2.6%        10.5%            5.3%     7.9%   34.2%        10.5%
AMERICA                5.4%     10.7%        10.7%        16.1%            8.9%    12.5%   19.6%        16.1%
ASIA-PACIFIC           0.0%     12.5%        12.5%        25.0%           25.0%     0.0%   25.0%         0.0%
MIDDLE EAST           25.0%      0.0%        25.0%        25.0%            0.0%     0.0%    0.0%        25.0%
OTHER AFRICA           0.0%      0.0%        60.0%         0.0%           20.0%     0.0%   20.0%         0.0%
CONGO                  0.0%     22.2%        11.1%         0.0%           11.1%     0.0%   22.2%        33.3%
KENYA                  9.9%     29.6%        14.8%        14.8%           16.0%     6.2%    7.4%         1.2%
RWANDA                 0.0%     38.1%        23.8%        14.3%            4.8%     9.5%    4.8%         4.8%
SUDAN                  0.0%     38.5%         7.7%        23.1%            7.7%     7.7%    7.7%         7.7%
TANZANIA              18.2%     13.6%        27.3%        22.7%           13.6%     4.5%    0.0%         0.0%



      For all neighbouring nationalities, with the exception of the Congolese, the main age
      bracket was below the age of 35. In contrast, European and American visitors were more
      likely to be over the age of 50. Therefore, the majority of westerners (European and
      American) were not a public of adventurers.



                                                                                                   54
       5.1.2. Means of transportation and number of countries visited


A majority of respondents (70%) entered Uganda by air via Entebbe International Airport,
while the others entered by car or bus through one of the border checkpoints in Kenya,
Tanzania, Rwanda, Congo or Sudan.
                            Figure 9: Map of Uganda showing exit points




Source: UBOS 2010

The exit points slightly differed from the entry points.
                           Table 26: entry and exit points of interviewees

                                  Border            Entry      Exit
                                checkpoint          point      point
                              ENTEBBE               70%        73%
                              MALABA                 6%         1%
                              KATUNA                 6%         9%
                              BUSIA                  9%         10%
                              CYANIKA                1%         0%
                              MUTUKULA               5%         5%
                              LWAKHAKHA              0%         0%
                              NIMULE                 1%         2%
                              OTHER                  3%         1%




                                                                                     55
According to the survey, 41.9% of visitors to Uganda were on a multi-country trip,
travelling to an average of 2.4 countries (including Uganda). A majority combined a trip
to Kenya (64) and / or Tanzania (44). For those on a multi-country trip, their average
length of stay was longer in Tanzania (6.7) than in Kenya (4.3).

       5.1.3. Travel Party


A majority of visitors to Uganda travelled alone (62.7%) and came more often to Uganda
than group visitors did. Moreover, the frequency of visit was especially high in Uganda. It
could be explained by the high number of both business tourists and tourists visiting
friends and family.
                          Table 27: Travel party, frequency of visit and ALOS

                         Travel party                  Frequency                ALOS
                                                         of visit
              Alone                    62.7%               3.8                  5.9
              With friends             12.2%               3.2                  6.9
              Couple                    7.2%               2.7                  7.3
              Group tour                6.9%               2.6                  7.7
              With family               3.9%               2.9                  3.9
                        Total             100%                  3.5                    6.3



The average length of stay (ALOS) was particularly low for interviewees travelling with
their family. The table below details that most visitors from this category (travelling with
family) were from neighbouring countries, which could explain this trend.
                             Table 28: Country of origin and travel party

                          Frequency         ALOS                             Travel party
                                                         Alone       With       Couple         With    Group
                                                                    family                   friends    tour
UNITED KINGDOM                2.1            10.3        68%          0%          9%            9%       9%
EUROPE                        2.5             9.2        50%          0%         11%           16%     21%
AMERICA                       2.7             9.4        55%          5%         10%           10%     10%
ASIA-PACIFIC                  3.1             3.1        78%          0%         11%           11%       0%
MIDDLE EAST                   1.5            11.3        50%          0%          0%           25%       0%
OTHER AFRICA                  3.3             3.8       100%          0%          0%            0%       0%
CONGO                         5.4             4.5        40%          0%          0%           40%       0%
KENYA                         4.1             4.3        68%          3%          6%           13%       3%
RWANDA                        3.7             5.2        63%          8%          8%           13%       0%
SUDAN                         5.1             3.4        73%          7%          0%            7%       7%
TANZANIA                      4.4             4.6        81%          4%          7%            0%       7%
                 Total        3.5             6.3       62.7%        3.9%        7.2%        12.2%     6.9%



Visitors from the following neighbouring countries - Tanzania, Kenya, Sudan and Rwanda
- and some international visitors (United Kingdom) mostly travelled unaccompanied.
Westerners (European, American), and more particularly Congolese visitors, also
travelled with friends, or in a group tour. The frequency of visit was higher for the
neighbouring countries but the length of stay was not. Therefore, we observed an
opposite relationship between the frequency of visit and the ALOS when taking into


                                                                                                        56
account the distance from the country of origin to Uganda. The sample size of visitors
from Asia-Pacific (9) does not allow any conclusions to be made on this group of
nationalities.

From the data it was difficult to provide a breakdown of visitors using the common
classification of FIT (Free Independent Travellers) and GIT (Group Inclusive Tour).
Respondents who reported travelling with their friends sometimes belonged to large
groups, though they did not consider being part of a group-tour. Definitively here, visitors
travelling alone were more likely to not be considered as GIT (Group Inclusive Travel), i.e.,
not on a package tour.
                              Table 29: Travel party and package tour

                  Travel party          Are you on a              Number of
                                      package tour or               people
                                        prepaid trip?           travelling with
                                      No        Yes               respondent
                 Alone                198        10                     0
                 With friends          36        5                    1.3
                 Couple                21        3                    1.0
                 With family           13        0                    1.1
                 Group tour            13             10                  4.5


A breakdown of visitors could be made as follows:
      - Group inclusive - people who pre-pay and travel in a group on a pre-
         determined itinerary;
      - FIT pre-paid - small group (e.g. 4 friends) who have an itinerary which is tailor-
         made for them, but still pre-pay large elements (accommodation, some meals,
         some tours) to a travel agent in their home country;
      - FIT - book elements independently and pay on the ground for all services
         consumed.

The table above also details the average number of people travelling with respondents.
On average, people travelling with their family travelled with slightly less people (1.1)
than people travelling with friends did (1.3). The number of friends and family
accompanying respondents varied across regions and countries of origin, with no
discernable definitive patterns. As expected, visitors travelling on group-tours did so with
a larger number of people (4.5).

International visitors to Uganda for the holidays mostly travelled alone or independently
as a couple. Whatever the purpose of visit, the majority of respondents travelled alone.
                             Table 30: Travel party by purpose of visit

                   Business       Holiday       VFR        Volunteer        Educational   other
                                                                             purpose
                                                                             (student)
Alone                 122            15          24             7               12         20
With friends          15             8           6              4               0          4
Group tour             8             7           2              3               3          0
With family            3             4           2              0               1          3
Couple                 2             13           5             3               0          0


                                                                                                  57
   5.2. Accommodation and food

In the early days of the industry, the government spearheaded the development of hotels
with minimal private sector participation. However the privatisation and liberalisation of
the economy since 1987 have attracted private companies to invest in new hotels, resorts,
lodges and other tourist accommodations. The hotel and restaurant businesses’ output
grew from 6.5% to 10.7% between 2004 and 2008. In 2001, Uganda had about 60 hotels
with about 1789 rooms and 50 wildlife accommodation facilities, with a combined
capacity of 972 rooms. In 2009, 1138 accommodation establishments were registered in
Uganda (see figure below). Today the sector contributes about 4.3% to GDP and employs
about 7% (430,000) of the total non-farm workforce.
                 Figure 10: Number and types of businesses in the accommodation sector


                         Number of accommodation businesses (2009)
               10000                                                                600
                9000
                8000                                                                500
                7000                                                                400
                6000
                5000                                                                300
                4000
                3000                                                                200
                2000                                                                100
                1000
                   0                                                                0



                                                                            Rooms
                                                                            Establishments

                                           Source: UBOS 2010

According to the Uganda Bureau of Statistics and the Private Sector Foundation current
Business Register (2007), there is a total of 3,411 registered businesses in the category of
hotels and camping sites, as well as bars and restaurants in Uganda. The register is
restricted mainly to businesses employing 5 or more persons. The register indicates that
65% (2,228) of the enterprises in the sector are restaurants and bars, compared to only
35% (1,183) of hotels and camping sites. Among the enterprises in the hotel and
restaurant sub-sector, 180 enterprises employ fewer than 4 people, 2365 enterprises
employ 5-9 people, 647 employ 10-19 people, 186 employ 20-49 people and only 33
enterprises employ more than 50 people. A regional distribution of businesses in the
hotels and restaurants sector shows that close to 40% (1315) of the businesses are found
in Kampala, as shown in the table below:
                   Table 31: Distribution of hotels and restaurants by region in Uganda

                                     Kampala      Central    East     North      West        Total
      Hotels & camping sites         344          178        199      224        238         1183
      Bars and restaurants           971          397        343      175        342         2228
      Total                          1315         575        542      399        580         3411
       Source: Business Register Update 2006/07, (UBOS & PSFU).


                                                                                                     58
       In Kampala, 74% of the businesses are restaurants and bars, and only 26 % are hotels and
       camping sites. The western and northern regions each have 20% of the hotels and
       camping sites. Furthermore, a majority of businesses (77%) are owned by Sole
       Proprietors. Out of the 180 enterprises with fewer than 5 employees, women own about
       66% (119) of the enterprises in that sub-category, and the annual turn-over of most of
       these firms is less than UGX 50 million. Women also own 15% of enterprises that employ
       over 50 employees.
                                      Table 32: Employment in hotels and restaurants

                                                Businesses       Male        Female       Total      Average
           Hotels and camping sites             1183             7771        6,925        14,696     12
           Restaurants and bars                 2228             7383        10,737       18,100     8
           Total                                3,411            15,134      17,662       32,796     10
           Percentage                                            46.1        53.9
               Source: Business Register Update 2006/07, (UBOS & PSFU).


       According to the table above, the hotel and restaurant sub-sector employs more women
       (53.9%) than males (46.1%) and, on average, a hotel employs 12 people while a
       restaurant employs 8 people. In any given restaurant or hotel, one would expect at least
       10 employees.
       Table 33: Accommodation capacity for selected hotels in Uganda, occupancy rates and guest nights in
       2003/2005/2008

Year       Accommodation                Room occupancy                 Guest nights           Occupancy        Bed/room
              capacities                                                                        rates          occupancy
                                                                                                                  ratio
        # Rooms        # Bed       Room nights      Bed nights     Foreign     Domestic      Room       Bed
                       spaces         sold             sold
2003     534,117       788,614        251,990        284,857       136,724      148,139       44.6      33.1        1.13
2005     801,176       946,337        282,931        314,812       146,554      168,258       35.3      33.3        1.11
2008    1,255,175     1,656,089       377,241        475,366       229,437      245929        30.1      28.7        1.26



       The information in the table above was based respectively on 51, 72 and 72 hotels in
       2005, 2005 and 2008 – information compiled by the Uganda Bureau of Statistics. The
       table shows that the accommodation sector has been growing rapidly over the years.
       However, while the number of rooms available for sale has grown from about 534,000 in
       2005 to over 1,2055,000 in 2008, and as bed spaces have correspondingly increased,
       room occupancy has fallen from 44.6 % in 2005 to 30 % in 2008. Bed occupancy also fell
       from 33 % in 2005 to 28.7 % in 2008.

       These negative relationships between room, bed space growth and occupancy levels are
       indicative of a lack of information on the investment climate. Without statistically
       significant data on the sector but with a growing trend in visitor arrivals, investors can
       consider the Ugandan tourist sector as very healthy. However, Uganda is still receiving a
       low proportion of leisure tourists. We can however observe that the recent investments



                                                                                                               59
in the tourism sector are more associated with small tourism investors than linked with
one of the major international tourism brands.
Table 34: Contribution of hotels and restaurants subsector to Uganda’s GDP

                                                         2006       2007     2008    2009   2010
  Hotels & restaurants (GDP, billion shs)                818        954      1,149   1486   1,666
  Air transport (GDP, billion shs)                       125        166      210     203    217
  Hotels monthly earnings (‘000 shs)                                         212     275    283
  Tour operators (employment)                                                        3424
Source: UBOS, 2011; MTTI, 2009

In the table above, we may observe that the contribution of the hotels and restaurants
subsector to Uganda’s GDP has doubled from UGX 818 billion in 2006 to UGX 1666 billion
in 2010. Also the contribution of air transport has increased from UGX 125 billion to UGX
217 billion over the same period. Tour operators in Uganda employ approximately 3424
people.


    5.3.Excursions and guides

In a survey among tourism stakeholders, looking at the promotional means used in
marketing their enterprises, the results reveal that Internet was the most commonly used
mode of promotion. Out of 39 responses, 32 respondents (82%) ranked the Internet as
their number one mode of promotion. Personal selling (by word of mouth) ranked
number two, followed by brochures, trade fairs and exhibitions.

On average, each tour operator interviewed in 2008 by the Ministry of Tourism, Trade
and Industry was found to be employing about 16 people, although with an uneven
distribution among the various operators. Most of the guides were certificate holders
(42%) while those who had degrees and diplomas represented 23% and 33%
respectively. In 2008, the earnings from 47 tour operators amounted to UGX 31.12 billion.


    5.4.Transportation

Kampala, which accounts for 64% of the total transport businesses, has the highest
proportion of transport businesses in Uganda. This dominance is due to the fact that
Kampala is the main business centre of the country. The Eastern region has 18% of the
transport businesses, while the rest of the other regions have less than 10% each (UBOS,
2011). According to UBOS (2011), the transport sector employs close to 15,000 persons.
A majority of these employees (84%) are males and are mostly concentrated in the land
transport subsector. The Private Sector Foundation (2010) reports that the country has a
total of 10,965 km of roads, of which about 30% are paved. Most of these roads - paved or
not - have potholes. This limits easy access to tourism areas and causes delays due to
unnecessarily long travel times. The poor state of roads is the second leading
infrastructure constraint identified by private firms (PSFU, 2010).



                                                                                                60
The railway network, which could potentially serve as an alternative, has almost
collapsed and efforts to attract a new investor have not been successful since the Rift
Valley Railways (RVR) consortium failed.

The transport business is regulated by the Ministry of Transport and Works (MTW). The
Uganda Transport Licensing Board (TLB), a branch of the MTW, is responsible for
regulating the use of public transport vehicles, private omnibuses, goods vehicles and the
producer/sellers’ vehicles throughout Uganda. The Board is the only agency in Uganda
that grants routes for bus operations. It undertakes inspection and licensing of Public
Service Vehicles, conducts biannual public inquiries to consider applications for omnibus
operators (bus routes) and monitors bus services on routes to ensure compliance, among
other activities.

Although what is cited above are reported as being activities performed by the TLB, there
were no up to date reports from which secondary information could be obtained about
the transport sector. TLB claimed not to have the necessary resources (equipment and
staff) to appropriately accomplish its mission. Technical control was limited to the visual
inspection of vehicles and the number of vehicles, and their allocation to public transport
routes was decided without reference to transport planning studies.

The different public transport operators have different associations. These associations
control specific stages and routes, and collect dues from the vehicles that use the routes.
The associations have total control over the bus parks but pay annual subscriptions to the
city and town council authorities. Because of the need for more dues collections from
public transport vehicles, any potential candidate easily meets the technical and legal
conditions that are required to enter the transport business. For instance, to become a
bus operator, all that is required is a vehicle, no matter its condition and age. Because the
responsible government agencies are under-staffed and not equipped to carry out the
planning, regulation and monitoring functions, these associations set fares, allocate
routes and carry out self-enforcement on their operations.

According to the Uganda Taxi Drivers Association (UTODA) - the entity in charge of
regulating, monitoring and allocating routes to public taxis - there is a total of about
50,000 taxis in Uganda. Most of these vehicles are reconditioned, and ownership
varies/ranges from individuals to companies. There is freedom of entry and exit into this
business as long as one has a vehicle and has attained a Passenger Service Vehicle License
(PSV). Estimates with the leadership of UTODA indicated that these taxis employed up to
100,000 people directly as drivers and conductors and employed thousands of others
indirectly (all at different stages: mechanics, fuel pump attendants, traffic guides, UTODA
officers, etc.). This business was able to generate up to UGX 2,500,000,000 daily (for the
economy) and contributed greatly to other businesses such as fuel retailers facilitating
movement of labour force from places of residence to work.

The chairperson “Boda Boda” (motorcycle) Association revealed that there was a total of
more than 100,000 commercial motorcycles in Kampala. The distribution of these
motorcycles was as follows:



                                                                                          61
                                 No. of
   Kampala City
                     Stages      boda                            Challenges faced
     Division
                                bodas
Rubaga              250       30,500          Insecurity
                                              High interest rates when they need to borrow (10-15% per
                                               month from non-commercial banks)
                                              Ever increasing prices for fuel
Makindye            200       27,000          Insecurity
                                              Are being used by politicians
                                              No training centres for “boda boda” cyclists
Kawempe             204       20,000          Insecurity in the area for both “boda boda” riders and other
                                               people
                                              Vicious cycle of poverty which pushes “boda boda” drivers
                                               to borrow money from which they do not benefit.
                                              The cost of the permits is too high (e.g. licenses, psvs)
                                              They pay money for insurance but when they have
                                               accidents they are not compensated.
                                              Sensitization on lack of “boda boda” training (e.g. on HIV)
                                              Health security like ambulances, etc.
Kampala central     380       24,000          Parking is not organised
                                              They do not have helmets, driving permits or licenses, thus
                                               they offer disorderly services
                                              The costs of getting these requirements are expensive (e.g.
                                               insurance). The license costs UGX 195,000; almost as
                                               much as a car.
                                              No training school for the “boda bodas”
                                               Do not get immediate assistance in case of accidents
Total               1,034       101,500


    The contribution of “boda bodas” to the economy was noteworthy. This business directly
    employed over 100,000 people in Kampala city, most of whom were youths. Conservative
    estimates (assuming daily earning of UGX20,000) indicated that this sub-sector of
    transport contributed up to UGX 2,030,000,000 net income daily (US$ 780,000), which
    translated to UGX 50,750,000,000 (US$ 19.5 million) per month. “Boda boda” cyclists
    estimated daily fuel consumption at two litres per motorcycle, which would translate into
    a monthly fuel expenditure of UGX 38,570,000,000 (US$ 14.8 million). They also claimed
    to provide business to food sellers, mechanics, spare parts sellers and importers.

    With regard to bus services, the survey found a total of 15 bus companies that provided
    regional and international transport services. There were buses travelling to Kenya,
    Tanzania, Rwanda, Burundi, Sudan, the Democratic Republic of Congo and beyond.
    Foreigners owned more than 80% of these companies, mainly from within the region.
    Each bus carried an average of 66 passengers (per trip) and the fares varied by
    destination and season of year. Some of the bus companies offered executive services and
    others provided ordinary economy class services. Each bus company had a fixed schedule
    within which some had up to three shifts per day, while others had only one shift per day.
    International bus companies had an average of 3-5 stopover points on their journeys.



                                                                                                   62
The local bus companies were more than 50 in number and Ugandans owned nearly all of
these. Some companies owned up to fifty buses and some owned only one bus. They only
operated long routes, connecting Kampala to the different parts of the country. Due to
lack of stop-over points many would stop at fuel stations for passengers to relax – and
they often stopped at roadside markets to allow passengers to buy refreshments and
snacks. A few of the bus companies operated executive services and charged some extra
money; many of these services were available to night travellers. The booking system was
still manual, and it was not possible to book for a return journey. There were claims of
widespread ignorance of the fares among travellers as the charge often depended on the
passenger’s bargaining power.

For all the transport businesses described above, the peak season starts in November up
to early January. April is also a peak season. During these seasons transport fares often
double, as demand tends to be higher due to people travelling upcountry for the
Christmas and Easter celebrations. The rest of the months are reported as average
months.

   5.5. Crafts, visual arts and entertainment

As seen earlier, Uganda has a variety of handicraft products ranging from basketry, mats,
ceramics, beads, pottery, hand textiles, woven products, toys, to jewellery, bags,
ornaments, leather products, batiks and wood crafts, among others. These items are
produced in almost all the districts and regions of Uganda, using locally available raw
materials like papyrus, raffia, palm leaves, jute fibre and recycled materials like paper and
plastic straws. These items have limited product differentiation based on culture, history
and traditions. The sector is dominated by women, youths and the disabled, all selling
mainly to the country’s tourists.

The main market for Uganda’s handicraft products include the EU-25 gifts and decorative
articles under EBA (Every thing But Arms) - and the USA under AGOA (American Growth
Opportunities Act), both of whom offer preferential treatment for Uganda’s handicraft
products.

Currently most of the handicrafts are sold domestically to local buyers and tourists, with
a few being exported to the USA, Canada, Australia, Germany, Denmark, Italy, the UK and
Japan. Other existing markets for Uganda’s crafts are Ugandans in the Diaspora and
Kenyan traders who buy and blend Ugandan craft pieces and re-export them to Europe
and the USA.

HANDICRAFT MARKETS IN KAMPALA

Markets for handicrafts in Kampala include two major enclosures of Exposure Africa at
Buganda road and the National Theatre crafts market. These are places which are
commonly accessed by high-end tourists due to their proximity to the 5 star hotels in the
city.

There are 2 other weekly markets that bring different communities every Friday: one at
Makerere roundabout yard and another along 6th Street in the industrial area. These are
mainly wholesale markets from whom most retailers purchase their crafts for re-sale. A

                                                                                          63
good number of tourists, especially those in caravans and backpackers, have found these
types of craft markets favourable. In this category we also find the seasonal Railway
Parking Yard Market, which community producers utilise to exhibit their products
usually upfront to the festive seasons like Easter, Christmas and New Year’s Day.

Banana Boat is the only chain crafts store in Kampala with 3 outlets at Kisementi
Shopping Centre, Lugogo Mall and Garden City Shopping Mall. All Serena Hotel guests that
take home souvenirs and cannot find them in the hotel’s craft shop in the lobby are only
directed to these stores, basically because of their high quality products and their super
packaging capabilities. Every high-end tourist visits one of these stores while in Kampala.

The Uganda Manufacturer’s Association (UMA), in collaboration with the Private Sector
Foundation of Uganda (PSFU), The Uganda Women Entrepreneurs’ Association (UWEAL)
and the Uganda Investment Authority organises annual trade fairs. It is during this period,
usually in the month of October (to coincide with the independence celebrations) that
artisans, craft producers, design schools and schools of Art showcase their products. The
trade fair is accessible to the general public and especially to business people from the
COMESA and East African Region, 85% of whom carry back home craft products and
souvenirs.

More recently, communities around Kampala, especially those in the slum areas such as
the Acholi quarters in Kireka, Kinawataka, Namuwongo, Kisenyi and Katwe, each with a
population of over 3,000 people, have become the main producers of handicrafts from
recycled products such as paper and plastic straws. They are entering the market for
tourists and are becoming major sources of craft articles and souvenir producers.

There are other organised women and community groups that have leadership which
connects directly to the export market. Such groups include the National Association for
Women Organisations in Uganda (NAWOU), which organises items from different
communities, exports them on their behalf and later works out the financial logistics
required. These target the North American market. Uganda Crafts 2000 Ltd is another of
such organisations. It is a Fair Trade craft wholesaler and retailer which collaborates with
international organisations from Canada, Denmark and England in the handicrafts trade.

Over the past 2 years (2009-2011), hawkers and street sellers of handicrafts have
emerged especially along the heavy traffic routes such as Jinja, Wandegeya and Kampala
roads. These are able to sell a few souvenirs, batik art pieces and woodcrafts to both
locals and foreigners.


6. Definition of the poor

Looking at poverty distribution in Uganda, Robert et al. (2006) have explored a novel
approach in which they combine household survey data with a suite of environmental
variables that are either direct measures of key climatic variables, descriptor variables of
key ingredients of poverty-generating processes (such as agricultural production
systems) or proxies for constraints on the health and well-being of the human



                                                                                         64
populations. The International Fund for Agricultural Development (IFAD) for which the
authors were doing the poverty mapping has identified eight broad classes of poverty:


        1.   Material deprivation
        2.   Lack of assets
        3.   Isolation
        4.   Alienation
        5.   Dependence
        6.   Lack of decision-making power
        7.   Vulnerability to external shocks
        8.   Insecurity

Most commonly, poverty measurement is based on material deprivation that is generally
linked to the inability of incomes or expenditures to meet basic needs and nutritional
needs, as defined by a consumption-based poverty line. Using the full sample of 2005/06,
the UBOS estimated 31.1 % of Ugandans to be poor, corresponding to nearly 8.4 million
persons. The table below provides more detailed statistics, broken down by region and
rural-urban areas.

Table 35: Poverty statistics in the UNHS 2005/06




Source: UBOS 2010

While on a national level the population below the poverty line is 31.1%, the poverty
incidence is highest in the northern region (at 60.7%), followed by the eastern region (at
35.9%), then the western region (at 20.5%) and finally the central region (at 16.4%). The
high incidence of poverty in the north is attributed to the insurgence which disrupted
economic activities.

The P0 indicator is a “headcount”; the percentage of individuals estimated to be living in
households with real private consumption per adult equivalent below the absolute
poverty line for their rural or urban sub-region.

The P1 indicator is the “poverty gap”. This is the sum of the poverty line and the shortfall
in the private consumption per adult equivalent of individuals below the absolute poverty
line, divided by the absolute poverty line. One way to interpret the P1 is that it gives the
per capita cost of eradicating poverty as a percentage of the poverty line if money could
be targeted perfectly.



                                                                                         65
Consumption expenditure data (Consumption Per Adult Equivalent: CPAE) can also be
used to characterise chronic poverty. It shows that the consumption per adult equivalent
is inversely correlated to the level of poverty. In the poorest area of Uganda, the northern
rural region, the average consumption per adult equivalent is equal to 20,500 UGX per
month (US$ 7.26).

Table 36: Comparison of poverty estimates by region




Source: UBOS (2006)



7. Aggregated tourism expenditures and pro-poor income

From a yield perspective there are three main measures which help assess the
contribution that tourism makes to an economy:

     Total Economic Impact (TEI) – i.e. all the in-country spending from tourism.
     Local Economic Impact (LEI) – i.e. all the in-country spending from tourists staying
      in the country.
     Poverty Impact– money generated through tourism jobs and incomes which goes
      to the poor and near poor. In Uganda, the benefits that poor communities make
      from tourism can be mostly summarised as follows:
      - Direct benefits
              o 20% of park entrance fees are given to local district authorities. The
                 communities have to present a project proposal in order to get access to
                 these funds.
              o Community projects (10 micro-projects under the umbrella of the STAR
                 project)
              o Community tours
              o Employment

        -   Indirect benefits
               o Supply of fruits, vegetables, fish and meat to tourism stakeholders.
               o Supply of crafts and performances to tourism stakeholders.


The following figure provides a description of the different levels of impact, highlighting
how the tourist spending flows inside the economy.




                                                                                         66
                                                                            Figure 11: Impact concept for tourism




                              Source: PI (2010)



            Recent research work has stated that “with the exception of wages, most of the income
            generated through direct effects within the tourist economy goes to hotel and restaurant
            owners, namely local or international elites. By contrast, the income generated through
            indirect effects trickles down to the lower income layers of the economy. Since most of
            the industries that supply the tourism economy are non high-tech, and are labour
            intensive, the majority of backward linkages are forged by smaller unskilled producers”.19


            A simplified Tourism Value Chain


                                                                        Figure 12: Simplified Tourism Value Chain



     Accommodation                           Catering                              Souvenirs                                Transport                                  Trips and expeditions                         Other



                                 Hotels, Hostels, Campsites, safari                                                                        Urban/rural       Entrance fees
Hotels/Hostels/Campsites/Ba         lodges, Restaurants, Bars                                                 Interurban                                      to National
     ndas/safari lodges                                                 Hotels, Hostels, Campgrounds,                                                            parks                                             Taxes, tips,
                                                                       Souvenir Shops, Markets, shops,                                                                                  Agencies and              donations….
                                                                                  Craftsmen,                                                                                          foreign, national
                                                                                                                                                                                      and local people
                                                                                                               Bus, Taxi,
                                                                                                                Rentals                                        salaries,
                                                                                                                                                             utilities, etc.
                                Supplies, taxes, electricity, wages,
                                 maintenance+ Food and Drinks:                                                                             Mototaxi,
                                Wholsale dealers, Markets, Grocery                                                                      bicycle, rentals,
      Supplies, taxes,                                                                                                                       carts
     electricity, wages,           Stores, Supermarkets, Food
      maintenance...                        Production
                                                                                                                Taxes,
                                                                       Supplies, taxes, electricity, wages,   petroleum,
                                                                         maintenance+ manufactured             credit…                                                          Guides, Travel agencies, Tour
                                                                           goods and raw materials
                                                                                                                                                                                          operators
                                                                        (Craftsmen, Wholesale dealers)
                                                                                                                                 Taxes, petroleum, credit,
                                                                                                                                     maintenance…




                                                                                                                                                                                 Accommodation, transport,
                                                                                                                                                                               food, taxes, wages, electricity…




            19
                 Lejarraga and Walkenhorst (2006)

                                                                                                                                                                                                                                  67
The study of operating costs for all tourism stakeholders provides a coherent indicator in
order to understand where to intervene. For each of the operating costs, the likelihood to
impact the poor is different.

   7.1. Total and local economic impact of tourism on the Ugandan economy

In-country visitor expenditures
The visitor survey conducted in early October 2011 shows that accommodation is the
main category of expenditures (44%), followed by souvenirs (16%), meals and drinks
(15%), transport (12%), excursions (8%) and others (7%). In the “others” category are
included the expenditure in casinos, spas and nightlife. The high proportion of business
travellers, along with several testimonies, emphasises the existence of sexual tourism in
Uganda.

On average, tourists spend $ 855 per person per trip. The categories with the main
average of expenditure per person per trip are both visitors on holiday and those visiting
friends and relatives ($ 1082). Volunteers spend less than all the other categories with
$ 711 per person per trip. The main spenders per day are however those visiting friends
and family ($ 155) and the business travellers ($ 146).
               Table 37: In-country spending per person per day and per stay by purpose of visit

                 Purpose of travel                                    Expenditure            Expenditure         Average
                                                                      per person             per person       length of Stay
                                                                        per stay               per day
                                            Business                     $794                   $ 146              5.4
                                             Holiday                       $1082                $ 111              9.8
                                                      VFR                  $1082                $ 155              7.0
                                Volunteer                                  $711                  $ 87              8.2
             Educational purpose (student)                                  $887                $ 113              7.9
                                                 Average                    $855                $ 132              6.5



The total amount of visitor expenditure in Uganda ($ 778 million) is equal to the average
level of expenditure per person per day ($ 132), multiplied by the average length of stay
(6.5) and the number of tourists for the year 2010 (910,714).
                               Figure 13: Economic impact of tourism by supply chain



                                                 Economic impacts of tourism on Uganda
                                                             US$ 778 millions


 Accommodation        Restaurants                    Souvenirs                  Excursions        Transport         Others
   US$ 343 m          US$ 115 m                     US$ 115 m                   US$ 62 m          US$ 91 m          US$ 5 m
     (44%)              (15%)                         (16%)                        (8%)            (12%)             (7%)

                        including expenses for
                                                     including local products
                          local food products
                                                            US$ 37 m
                              US$ 35 m
                                                              (39%)
                                (75%)




                                                                                                                               68
    The high number of business tourists plays an important role in either reducing or
    increasing the overall size of some items in the distribution of expenditures. For example,
    excursions are not gone on by business tourists and are therefore among the smallest
    area of revenues in the value chain, at around $ 62 million per year.
                     Table 38: Distribution of expenditures by supply chain and purpose of visit

                                                 Meals and
                            Accommodation                        Transport       Excursion         Shopping    Other
                                                  Drinks
               Business           52%              15%               8%              0%              19%        4%
                 Holiday          52%              11%               6%             21%               9%        1%
Visit friends & relatives         31%              12%              21%              7%              14%       10%
            Volunteer             27%                18%            22%             18%              14%           1%
  Educational purpose             29%                13%             6%              6%              25%           5%
                Other             46%                26%            12%              5%               5%           1%



    It should be noted that 24% of all respondents underspent their budget during their time
    in Uganda. The main reasons for this under spending in souvenirs were: lack of variety
    (32% of respondents), time limitation (24%), low quality (20%), affordable prices (8 %),
    did not shop (4 %), were not interested in souvenirs (4%), acted according to budget
    (4 %) and were not available for shopping (4%).

    18% of tourists overspent their budget during their time in Uganda. 23.8% of them
    noticed that the prices for products were high, 19% were satisfied with the variety of
    products, 14.3% spent more money on things such as tours and antiquities, 9.5% of
    respondents enjoyed the process of shopping and being in Uganda, 4.7% acted according
    to their budget, 4.7% had currency exchange problems, 4.7% were not satisfied with the
    quality of products (while the same percentage of people were happy with it), 4.7% of
    respondents saw the strong value of the dollar as their main reason for overspending and
    4.7% of them tried to support poor people.

    The remaining 58% of tourists spent within their budget. 33.3% of them acted according
    to their budget, 33.3% enjoyed staying in Uganda and 33.3% were not interested in
    spending more.

    Local economic impact of in-country expenditures


        Local food products
    The analysis shows that about $ 35 million are used for the purchase of local foods by the
    accommodation and catering sectors. This represents 33% of economic return in Uganda.
    On the other hand, the value of imported food products stood at $ 7.6 million or 25% of
    the food consumed by accommodation and catering facilities, according to the interviews
    conducted among 28 hotels and 20 restaurants all around the country in order to see,
    through the breakdown of their operating costs, the local economic impact of these
    expenditures.

    Observing operating costs for tourism stakeholders enables us to understand how the
    money spreads into the economy. “Salaries” is the first expenditures category for the


                                                                                                              69
      accommodation and restaurant sectors. Indeed, this category is usually where the pro-
      poor impact of tourism is likely to be the highest.
                  Table 39: Breakdown of operating costs for the accommodation and restaurant sector

                          Categories of operating            Breakdown for          Breakdown for
                                     costs                  Accommodation            Restaurants
                         Salaries and wages                       40%                    19%
                         Utilities (alec., water…)                 4%                     4%
                         Hygiene and cosmetics                     3%                     2%
                         Food costs                                9%                    14%
                         Beverages costs                           4%                    17%
                         Rent (loan)                               2%                    17%
                         Sales and marketing                       0%                    19%
                         Tel & Internet                            1%                     2%
                         Maintenance                              23%                     2%
                         Transport for goods                       2%                     1%
                         Souvenirs                                 1%
                         Taxes, licenses                           1%
                         Other                                     1%                      2%



      A closer look into the origin of products, especially in the food sector, reveals that
      approximately 55% of food products were sourced locally (within 20 km). Out of US$ 35
      million spent by the hotel and restaurant sector on food products in 2010, US$ 19.2
      million went to local communities. Despite a few exceptions, it seems that all businesses
      follow the same trends which appear in their category (high-end, middle range, low-end).
      The most important categories in terms of value are cereals, vegetables, meat, fruit and
      fish. Their shares of food expenditures are as shown in the table below.
           Table 40: Percentage of both cost of various food items in total food products and locally sourced products
                                                   (accommodation facilities)

                                                                                                                         Processed
                     Meat                Fish          Cereals       Vegetables         Fruit       Condiments            food and
                                                                                                                            juices

 Product’s share
   of total food        19.7%           20.8%           22.5%           14.3%           11.7%           8.4%               2.7%
       costs
   % of locally
                         76%             73%             71%             82%             91%             60%               45%
sourced products
Value of imported
                     $1,428,183      $1,654,197      $1,975,963       $756,939        $317,081       $1,009,197          $435,290
    products



      The main sources of leakages for local communities, which were also identified during the
      fieldtrip, in terms of relative and absolute values, are respectively processed food and
      juices (65% of imported products) and cereals ($ 1.9 million per year). These leakages
      are mostly due to the non-existence of local production for these items. To explain the
      percentage of locally sourced products for the other items, it refers either to the non-
      existence of products at a local level (particularly in the northern region and more
      generally due to a lack of access to water) or the lack of confidence in the quality of
      products because of the use of chemical fertilisers in some districts.

                                                                                                                          70
    Concerning the meat and fish categories, information concerning the provenance of these
    items is limited. High-end businesses managers, who mostly claimed to buy these two
    product categories in the main supermarkets of Kampala, were not sure about their real
    provenance. Interviews with several supermarkets indicated that beef was solely bought
    from a local firm called Top Cuts, which in turn said that they bought their animals from
    farmers in different parts of Uganda. For pork, farmers said they directly supplied the
    supermarkets on a daily basis (they supply caucuses using the JIT method). Chicken was
    supplied by farmers from different parts of the country, though mainly from inside and
    around Kampala. Fish was bought directly from the fish processing factories in and
    around Kampala. They bought their fish from local people (fishermen and locals with
    ponds).

           Local handicraft products

    The local share of the souvenir sector profit is 39%. Out of 25 souvenir wholesalers and
    retailers, it appears that most of them have “wood carvings” and “clothing” as their main
    purchases – products with a high rate of import. The value of basketry in the purchases of
    souvenir sellers is the second lowest, which shows that all efforts to train communities in
    this segment for the last 10 years were not particularly economically fruitful.
    Table 41 : Handicraft and imported purchases level

                                                % of imported    % in purchases of      Opportunities / Value
                Categories
                                                  products      wholesalers/retailers   of imported products
Wood Carvings, sculptures                            60%               22.7%                 $ 12,845,124
Clothing                                             55%               17.2%                  $ 8,921,129
Art (paintings)                                       5%               12.0%                   $ 566,077
Jewellery                                            82%               10.4%                  $ 8,032,070
Antiques                                             96%                 9%                   $ 7,908,694
Textiles (silk, batik) & embroidery                  91%                 7%                   $ 6,214,439
Basketry, weaving                                     2%                5.6%                   $ 106,427
Copper / silver crafts                              100%                5.1%                  $ 4,791,177
Fashion accessories – handbags and belts             75%                4.8%                  $ 3,399,745
Fashion accessories scarves                          96%                3.5%                  $ 3,168,103
Local specialities & processed food                  89%                1.7%                  $ 1,447,109
Music instruments                                     1%                0.9%                    $ 8,869
                                    Total                39%                   100%                $ 57,408,963


           Local resources

    In Uganda, the guides and transporters are mostly locals, however the vehicles and the
    petrol are imported.

    Eight out of fifteen interviewed tour operators were 100% locally owned. The others
    were shared or foreign-owned.

        7.2. Pro-poor impact of tourism on Uganda economy


    The UNWTO (2004) has identified seven different ways in which spending associated
    with tourism can reach the poor:


                                                                                                       71
           1. Employment of the poor in tourism enterprises;
           2. Supply of goods and services in tourism enterprises by the poor or by
              enterprises employing the poor;
           3. Direct sales of goods and services to visitors by the poor (informal
              economy);
           4. Establishment and running of tourism enterprises by the poor (SMMEs or
              CB enterprises);
           5. Taxes or levies on tourism revenues or profits with proceeds benefiting the
              poor;
           6. Voluntary giving of resources (money, goods, time) by tourists and
              enterprises in ways which benefit the poor;
           7. Investment in infrastructures which provide livelihood benefits to the poor.

This report assesses how much of tourist expenditures reached the poor in 2010 and
attempts to see what insight this can bring to governments and donors to improve this as
part of a strategic intent to improve tourism yields. Some attention also needs to be given
to issues impacting those who are not getting benefits from the tourism sector. These
issues may include:
-   Inflation – price inflation for land and food are common negative impacts for local
    people, and may price them out of their homes.
-   Social disturbances – crowds of (noisy / rude) tourists causing a disturbance, litter,
    setting a bad example to the local young people with different cultural norms (e.g.
    drinking, smoking, promiscuity etc.).
-   Overloading of the carrying capacity – this may impact both tourism assets as well
    as infrastructure (roads, boats, planes, electricity supplies etc.).

Basically, the pro-poor impact of tourism can mostly be studied through the linkages
between the tourism stakeholders and the local producers, and by looking at pro-poor
employment. Concerning the latter, we proposed to apply an approach developed by
Conway for the IFC-MPDF (2007) to the total number of employees in the tourism sector.
It observes the poverty background of tourism workers while taking into account
qualitative and quantitative variables.

              Figure 14: Conway's approach for calculating the poverty profile of tourism staff

1. Interviewees (tourism workers) who moved to the destination too long ago to have an accurate
   recall of household income and / or so long ago that the income estimates would have to be
   adjusted for inflation were removed from the list;
2. The reported income (household income = tourism worker + other household members) was
   multiplied by 1.1 to obtain an estimate of household consumption. It was then possible to compare
   estimated consumption to the poverty line, rather than compare income to a consumption poverty
   line;
3. The results were divided by the number of people in the household to obtain an estimate of per
   capita consumption;
4. This consumption estimate was compared to the international consumption poverty line (US$
   1.25/person/day);

                                                                                                   72
5. To the count of poor households were added those who report having suffered from food shortage
   for the past year;
6. Any remaining cases for which we had neither a pc income estimate nor data on roof and wall
   material were finally removed from the list;
7. The number of poor households was divided by the number of total households left after non-valid
   households had been removed in steps (1) and (5) above.



All interviewed workers are split into two categories – poor and non-poor - and then we
look at the sum of incomes for each category in order to determine its share of the salary
bill. Doing so, we obtain a poverty profile by supply chain and a salary distribution by
supply chain and poverty profile (split of total tourism based wage incomes across
income groups). It is important to note that this methodology only represents the
Employee Pro-Poor Income Impact (EPII) of the tourist expenses or job-based income. In
order to obtain the full pro-poor impact, it is necessary to add the sales-based incomes by
poor local producers (tourism supplier pro-poor impact and direct seller pro-poor
impact). As we lacked the time needed in order to interview a representative sample of
local producers and farmers, we have used the average poverty rate of Uganda as a proxy
to calculate the indirect pro-poor impact of in-country spending.

       7.2.1. Pro-poor impact in the accommodation sector

The pro-poor impact of accommodation is considered here as the sum of the employee
pro-poor income and the pro-poor linkages between the sector and the local producers.
We first observe the pro-poor employee income impact, which consists in evaluating the
poverty profile of the sector’s workers. The average level of salary is around $ 50 per
month for low skilled salaries in the accommodation sector. 86% of interviewees had
food as a benefit in addition to their salary. Respectively 30%, 28% and 24% had
accommodation, transport and medical care too.

                 Table 42: Breakdown of interviewed workers and average monthly salary

                 # of
                                     Categories                     Monthly Salary
             interviews
                  18        Cleaning related services          UGX 143474          $51
                  14        Head of categories                 UGX 255357          $91
                  15        Reception                          UGX 132500          $47
                   4        Sales and marketing                UGX 360000          $128
                  41        Guest services                     UGX 147325          $53
                   2        Travel consultant                  UGX 650000          $232
                   3        Management                         UGX 383333          $137
                  7         Administration                     UGX 298333          $106
                  7         Transporters                       UGX 186111           $66


We observe that among the interviewed tourism workers in the accommodation sector,
73% have a poor background. Since the number of interviews for each category was not
sufficient, it was impossible to study the poverty profile by category. Making the
assumption that low-skilled jobs should however be more pro-poor, and looking at the
average monthly salary for each category, we can assume that a major share of salaries is
likely to go to the non-poor.

                                                                                                  73
                Table 43: Poverty profile and salary distribution in the accommodation sector

                                Poverty profile in the              Salary distribution in the
            Categories
                               accommodation sector                  accommodation sector
           Poor                         73%                                   69%
           Non-poor                     27%                                   31%


Looking at the employee pro-poor income impact for the accommodation sector, we can
confirm that a majority of tourism workers are from a poor background. Concretely,
27.5% of tourist expenditures in accommodation outside of Kampala went to workers
from a poor background for the year 2010 (EPII-Employee Pro-poor Income Impact).

The second round of impact would then include the pro-poor impact of the tourism
stakeholders’ expenditures. For the accommodation sector, the linkages with the local
producers are especially true for the food component, towards which 9% of expenditures
go. If we simply apply the average poverty rate in Ugandan rural areas as a proxy data
(25.9%), then 1.7% of tourist expenditures in the accommodation sector would indirectly
reach poor local farmers. Therefore, using the international indicator of US$ 1.25 per
person per day as a poverty threshold, an approximate of the total pro-poor impact of
tourist expenditures in the accommodation sector (including the multiplier effect) is
29.1%.

       7.2.2. Pro-poor impact in the souvenir sector

A similar approach can be conducted for all shares of tourist expenditures. However, the
evaluation of the pro-poor impact is more difficult for the souvenir sector. A majority of
souvenir stores are family-owned and the number of employees is therefore very low.
Knowing that tourists generally buy their souvenirs in Kampala (Exposure Africa,
National Theatre Market), the pro-poor impact of the souvenir sector is thus mostly on
the second round of expenditures when souvenir wholesalers and retailers purchase
items to local communities and producers. Outside of Kampala, tourists can either buy
their souvenirs at hotel shops or along the road. Considering that tourists mostly visit
national parks, we can decide to undertake an approach by region;

       -     Northern region: there are no facilities for local communities to currently
             display their souvenirs at Murchison Falls National Park. Some hotels offer
             local crafts but a majority of items are imported from neighbouring countries.
             The existing craft shops or street sellers are insignificant in terms business
             activities. The local producers mostly depend on traders to buy and sell their
             products.

       -     Western region: Fort Portal represents an important hub for tourists visiting
             Queen Elizabeth National Park and others. There are currently four souvenir
             shops in town but local communities are not all linked with the tourism
             market. Again, a majority of products, especially fabrics and sculptures are
             imported, but few organisations encourage the production and sales of locally
             made crafts. The Katunguru crafts area (with eight souvenir shops) is also a
             major stop over for tourists around this national park.

                                                                                                 74
      -     Southern region: in Buhoma (Bwindi National Park) the village counts almost
            fifteen souvenir shops, most of which display exactly the same crafts.
            Therefore, average incomes per month struggle to reach 200,000 Uganda
            shillings for each shop. In areas of Kabale and Lake Bunyonyi, village
            communities have organised themselves into craft cluster producers but they
            hardly have access to the hotels and resorts in their vicinity due to the lack of
            networking opportunities with the owners and proprietors. Their products
            also require a lot of product development, as they are rarely attractive to the
            potential buyers.

      -     Eastern region: Jinja town is the main conduit for souvenir sales in the region
            because of the proximity to the source of the Nile and the much desired water
            rafting and bungee along the Nile. Jinja has over 38 souvenir stalls along the
            main street, 15 stalls at the source of the Nile and 5 at Bujagali with many
            others spreading out along other streets in the town. The town being a major
            stop over en-route to Sipi falls, Elgon National Park, Tororo Rock and Soroti
            Hills in the further east, it becomes a focal point for souvenir sales. Much as
            some of the products here are imported, youths and the elderly on site make a
            good number of them, such as leather articles, beads, and tie/dye, as well as
            pottery items locally.

      -     Central region: this is where a majority of tourists purchase their souvenirs but
            also where the poverty rate is the lowest (see section 5.5). However, tourists
            on the western circuit usually stop en-route at the Equator stop over which has
            about 14 souvenir shops, and at Kinoni Craft Centre which has just 2 stalls.

Basically, employees from the souvenir sector in secondary destinations are likely to
follow the same trends as those working in the accommodation sector. The rate should be
higher when including the street sellers. We will however keep the same rate for the
Employee Pro-Poor Income Impact (79%). An approximate of the total pro-poor impact
of tourist expenditures in the accommodation sector (including the multiplier effect) is
10.4 %.

      7.2.3. Pro-poor impact of tourism in Uganda

The indicator chosen to evaluate the poverty profile of tourism workers was the
international poverty line of US$ 1.25 per person per day.

                             Table 44: Pro-poor Impact by supply chain

                               Employee             Tourism supplier
          Categories                                                     Pro-poor Impact
                            pro-poor Impact         pro-poor impact
   Accommodation                 27.4 %                  19.3 %              29.1 %
   Restaurant                    13.1 %                  24.9 %              16.5 %
   Shopping                       2.1 %                  10.1 %              10.4 %
   Transportation                 8.1 %                     -                   -
   Excursion                      5.2 %                     -                   -
   Total                         15.5 %                   2.5 %              17.9 %


                                                                                           75
The direct impact on poverty is 15.5 %, and rises to 17.9 % when its indirect impact is
taken into account - i.e. the second round of tourist expenditures within the local
economy. The method used in calculating the levels of poverty is absolute, in the sense
that it establishes a level of income per day per person, below which a person cannot
cover their basic needs.


8. Opportunities for pro-poor interventions

It is basically known where the traditional barriers to pro-poor tourism are, but there is a
need to prioritise interventions using the following criteria: the Pro-Poor Impact, the
level of feasibility and the level of Return On Investment (ROI).

                                   Figure 15: Traditional barriers to PPT


           Lack of tourist awareness about handicraft’s origin and inclusive tourism



                Low quality, design and presentation to match international tourist demand



                   Lack of supply capacities from local producers



                    High level of imported products and raw materials, leakages and imperfect competition


                   Lack of linkages between producers and local selling points (hotels, information centres,
                   etc.)


                Lack of market access (including road access) and access to finance



           Non-registered individuals and businesses


The combination of the fieldwork study and the evidence brought by the quantitative
survey offers a clear situation analysis (see figure 6) which helps both draw a list of
potential interventions and of the impact that these interventions could have on local
communities.

The existence of several UN agencies (ITC, UNDP, UNCTAD) willing to work on the
sustainable development of the tourism sector in Uganda encourages us to propose a
holistic approach in which each Agency can benefit from and complement the work of the
other.

The main identified axis for tourism and tourism-related interventions are:

        Communication and Marketing Plan:
           o Improve available information inside and outside the country
           o Improve tourism marketing and promotion strategies

                                                                                                               76
                        Branding and visibility
                        Public-private partnerships

        Products and services competitiveness (linkages of poor communities to
         tourism)
            o Improve quality and quantity of tourism and tourism-related services
               and products
            o Encourage market-oriented tourism business development:
                   Capacity building and training (including peer to peer training)
                   Responsible tourism product development and diversification,
                     reinforcement of tourism value chain linkages and clusters
                     development

        Tourism Management:
           o Improve tourism sector destination planning, development and
               management:
                  Encourage a decentralisation process for both the private and
                    public sectors
                  Improve data collection systems
                  Improve the tourism sector’s regulation and standardisation
                  Capacity building at all levels of government (central, regional,
                    district)
                  Infrastructure development
                  Improve destination attractiveness for investors (incentives to
                    private sector)


   8.1. Sustainable Tourism Sector Development

To increase the pro-poor impact of tourism, the first level of intervention aims to ensure
the sustainability of the sector at the three levels (economic, social and environmental). It
is expected that interventions will encourage more tourists to visit Uganda and especially
to participate in community-based activities. In-country and external communication
strategies are key factors to differentiate Uganda from its neighbouring countries. To
differentiate one destination from another it is necessary to develop a comparative
advantage. However, price competitiveness, and therefore the certainty that tourists get a
good value for their money, is critical.




                                                                                          77
                     Figure 16: Priorities for an inclusive tourism development in Uganda



   Communication and Marketing


     Access to reliable
       statistics and
      information for
                             Products and Services
     foreign investors
                             Competitiveness
                             Regulation of tourism
     Access to reliable
      information for
    visitors(inside and
                              and tourism related
                                   activities        Management and Planning
     outside Uganda)
                              Addressing quality
                                  insurance
                               Standardisation       Tourism attractiveness
                                                                                                   Acknowledgment of
                                                      for both tourists and   Human resources
                                                                                                    tourism as a main
                                                          private sector       development &
                                                                                                 source of local economic
                                                      (incentives, cultural   Decentralisation
    Image / branding of        Human resources                                                        development
                                                              mgt.)
      Uganda and its         and tourism products
          assets                 development




To both reach a high level of satisfaction and improve the number of international
leisure visitors to Uganda, the government needs to acknowledge the economic
importance of tourism towards massive investments in tourism and tourism-related
infrastructures. There is a need to accelerate the decentralisation process by giving
local authorities more capacities to respond to immediate needs. The building of
capacities of tourism and tourism-related government officials at both local and
national levels is a prerequisite to the decentralisation process.

Other axes of intervention - in which the government needs to be particularly active
and involved - concern the improvement of tourism products and services
competitiveness. The lack of regulation mechanisms added to the absence of a
standardisation system are both harmful to a sustainable development of tourism in
Uganda. There is additionally a need to build the capacities of local human resources
in order to reach international standards for most tourism businesses operating in
Uganda.

Both inside and outside of Uganda, the access to valuable information is limited.
Reliable information is essential for tourists when preparing their trip and for
investors when evaluating the investment opportunities and their possible financial
return.

A non-exhaustive list of interventions is offered in the table below, including the
possible outputs and impacts for each intervention individually.




                                                                                                                            78
      Table 45: Pre-identified interventions for sustainable tourism sector development
   Themes               Outcomes             Location         Context and Rationale                                     Outputs                                          Impacts
                                                           - Weak in-country and           - Development of a website including a classification of tourism
                                                           external access to              businesses and rates by location (identify and select a reliable
                   Improved access to                                                                                                                         Improvement of visitor
                                                           information for tourists,       web hosting service)
                      information for       Kampala /                                                                                                         satisfaction
                                                           traders and investors           - UTB reinforcement of capacities: training on marketing /
                   visitors, traders and     Uganda                                                                                                           Increase of arrivals
                                                           - Lack of available             information systems / website management
                         investors                                                                                                                            Increase of investments
                                                           information on prices and       - Assist UTB in collecting information on prices / services and
                                                           activities                      activities all around Uganda
Communication                                                                              Brand Uganda - Marketing of destination’s unique assets (birds,
and marketing                                              Uganda has not yet been able
                                                                                           communities: beyond wildlife)
                                                           to differentiate its assets                                                                        A new image of Uganda is
                       Improved and                        from neighbouring countries     - Workshop with TO and use of VCA results (tourist survey)         created
                    increased image of      Kampala /
                          Uganda             Uganda        Uganda has unique, non-         - Survey among domestic tourists (identify expectations of         Increase of arrivals
                      internationally                      exploited products and          domestic tourists)
                                                           comparative advantages                                                                             Increase of investments
                                                           (birds, the Nile, etc.)         – Possibility to organise a national competition to brand Uganda
                                                                                           (and therefore to encourage locals to discover their country)
                                                           Lack of activities outside      Develop and organise new activities for tourists (trekking,
                                                           game viewing                    mountain biking, hot springs, CBT, etc.)

                    Increased number        Bunyoni,       Low involvement of local        - Training of guides                                               Increased number of activities
                       and quality of      Kamonjora,      communities in tourism
                                                                                           - Capacity building of local communities / access to credit &      Increased number of tourism
                     leisure activities       etc.         economics
                                                                                           market                                                             beneficiaries
   Tourism                                                 Non-commercially and
                                                                                           - Support strategies to bring tourists to the products (improve    Increase visitor satisfaction
 products and                                              sustainably exploited natural
                                                                                           linkages between CBT’s activities and tour operators)
   services                                                and cultural resources
competitiveness                                            Absence of “Western             Improve in-country travelling experience
                                                           standard” stop-over areas       - New stop-over areas offering clean toilets, food and crafts      Quality improvement
                                              Kafu,
                     Development of          Equator       and long road trips between     Diversify and improve the quality of food products available at    Product development and
                     stop-over areas          point        destinations                    stop-over areas                                                    income generation
                                           (Kikorongo)     Low quality of products and     - Create linkages with local communities and producers             Poverty reduction
                                                           services                        Training of trainers in the accommodation and catering sectors
  Themes           Outcomes          Location     Context and Rationale                                       Outputs                                             Impacts
                                                Low level of services for the
                                                middle range and low-end         Support UTB in the finalisation of the tourism sector census (n° of
                                                tourism stakeholders             actors, n° of tourism employees, etc.) to communicate on the          Quality improvement
                 Regulation and                                                  importance of tourism for the national economy
               standardisation of    Uganda     Issues with pricing and                                                                                Better working environment
               the tourism sector               costing                          Support UTB in the finalisation of the implementation of a            and benefits for local
                                                                                 standardisation system (three levels: quality insurance team of       population
                                                Low benefits and salaries for    inspectors, grading, capacities of local authorities)
  Tourism                                                                                                                                              Increased visitor satisfaction
                                                local staff
management
and planning                                    Lack of responsiveness to
               Decentralisation of              local tourism issues by                                                                                Better management of tourist
                    tourism                     national government              Assist in transferring decision-making process at regional level      sites
                management for       Uganda     Lack of collaboration at local   Capacities building of local/regional administration and              Faster
                both public and                 level to market the              associations                                                          responses/reactions/solutions
                private sectors                 secondary destinations                                                                                 to local issues
                                                accordingly

                                                Heavy taxes and                                                                                        Growing supply and choices in
                                                administrative processes for                                                                           the middle range and low-end
                                                                                 Incentives to private sector (not staff – only owners)                segments, resulting in better
                   Increased                    middle range and low-end
                                                foreign-owned businesses         Assist in products development in secondary destinations              services through competition
                  destination
                                     Uganda
               attractiveness for               Dynamism and experience          Improve access to secondary destinations                              Increase number of visitors in
                   investors                    brought by foreign                                                                                     secondary destinations
                                                individuals in the middle-                                                                             Increased local economic
                                                range and low-end segments                                                                             impact




                                                                                                                                                                            80
   8.2. Sustainable tourism-related sectors development

To ensure a sustainable development of tourism in Uganda, as anywhere else, the
improvement and management of local tourism-related sectors’ products and services
helps to provide local communities with alternative sources of income, and therefore to
improve living standards and to decrease the risks of harassment towards international
visitors.

The opportunities for inter-sectorial linkages between tourism-related sectors and
tourism can be simplified into the same three layer approach (see figure below). Basically,
there is a need to strengthen the local capacities to offer and market adequate products
and services to the domestic and international markets:

        1. Improve supply quantity, quality and consistency, and enhance linkages
        between farmers producing fresh fruits & vegetables and processed food
        (including organic) with tourism businesses

        2. Increase supply capacity of local crafts, visual arts and entertainment in terms of
        quantity, quality, product variety and timeliness for the tourism market.
                        Figure 17: Priorities for a sustainable tourism-related sector development


   Communication and Marketing
   (Market Placement & Sales Opportunities)


                              Products and services competitiveness
        Consumer
      Awareness on
                              (Design Support, Innovation & Brand Creation)
    inclusive tourism


                               Human resources
                                 development       Management & Business
                                                   Development
                              Addressing quality
                                  insurance
     Access to local           Standardisation      Awareness of
                                                                   Understanding       Finance,
    products for both                                    the
                                                                     of products     Management      Regulation of
       tourists and                                environment &
                                                                    identification     and sales    the crafts sector
    traders /tourism                                biodiversity
                                   Products                          mechanisms      competencies
        businesses                                   standards
                                 development




Interventions are expected to happen at each level of both the supply chain and the
production process. Inside the production process, the training of capacities to reach
international standards is essential to fulfil a growing demand. This consists in training
and accompanying local communities in all of the steps of the production process, which
implies a strong understanding of the environmental impact of their activities and the
respect of Uganda’s biodiversity.
                                   Figure 18: Different steps of the production process




                                                              Marketing and      Purchase and
  Conception &
                            Production     Quality control     distribution        customer     Impact
     design
                                                                channels          reception




As an example, research has shown that community projects mostly concentrate their
efforts on a limited group of handmade products, with basket weaving as the main
category. However, the results from the study indicate that other opportunities exist in
the crafts sector.

                                Figure 19: Simplified value chain steps for the crafts sector



                               • Share of expenditure in souvenirs
                               • Amount and percentage of under spending by tourists
     Analysis of visitors      • Categories of products visitors would have bought if available
       expenditure




                               • Share of souvenirs in their operating costs
         Analysis              • Products’ purchase breakdown by category
    wholesalers/retailers
   expenditure (operating
           costs)




                               • Provenance of raw materials
                               • Evaluation of local capacities (business management, products
                                 quality, sustainability, etc.)
      Analysis of local
   producers production        • Looking at opportunities (new products, products
   process and operating
           costs
                                 improvement, packaging, etc.)




In fact, it was observed that 24% of all respondents underspent their budget during their
time spent in Uganda. The average level of underspent money varies from one category to
another, with regional traders ready to spend the most per head. The business market, as
the main source of visitors, represents a real opportunity for Uganda with two main
categories: the business conference market and the regional traders. The first one is more
interested in local/African products while the second one is rather looking for innovative
products with a Western design/appearance.




                                                                                                         82
                           Table 46: Average amount of underspending by purpose of visit

Categories                           % “Underspend”       How much they        Market size     Market size
                                                           were ready to       (ITC visitor   (UBOS visitor
                                                              spend             statistics)     statistics)
Western business visitors                   17.3%              $178             $4,940,855
                                                                                               $9,437,562
Regional traders                            24.4%              $176            $12,124,586
Holiday                                     21.8%               $83             $2,797,990     $2,651,488
Visit Friends & Relatives (VFR)             10.3%              $113             $2,542,345     $9,701,588
Volunteer                                    9.0%              $110             $2,031,310     $3,112,806
Educational purpose (student)                7.1%              $142              $666,095
Other                                        9.0%              $150             $1,779,611


   Two main markets stand out in this analysis: the business and the VFR markets. The
   amount of underspending for these markets varies with the choice of breakdown for the
   categories of visitors. Definitively, the business market, especially the regional traders,
   represents real opportunities for the local market. In average, business travellers were
   ready to spend an additional $ 177 per head in Uganda (representing between $ 9 and
   $ 17 million per year).

   Knowing that visitors mostly underspend because of a lack of variety, we have studied the
   sort of souvenirs they expected to find and the amount of money they would have been
   ready to spend for these items. These data were then crossed with the share of
   expenditure for each product’s category for the wholesalers. The percentage of imported
   products within each category gave us a clear understanding of the existing products and
   financial opportunities.

   Table 47: Opportunities in the crafts sector

                                                       Average share of                        Sales value of
                                                                               Value of
      What sort of souvenirs/crafts did you             expenditure for                       imported crafts
                                                                            souvenirs sales
                 expect to find?                           souvenir                            products per
                                                                               per year
                                                         wholesalers                                 year
   Wood carvings, sculptures                      34        22.70%            $ 21,408,540      $ 12,845,124
   Jewellery                                      24        10.40%            $ 9,795,208       $ 8,032,070
   Clothing                                       22        17.20%            $ 16,220,234      $ 8,921,129
   Basketry, weaving                              16        5.60%             $ 5,321,340         $ 106,427
   Music instruments                              14        0.90%               $ 886,890          $ 8,869
   Antiques                                        9          9%              $ 8,238,223       $ 7,908,694
   Bark clothes                                    9           -
   Copper / silver crafts                          8        5.10%             $ 4,791,177       $ 4,791,177
   Local specialities & processed food             8        1.70%             $ 1,625,965       $ 1,447,109
   Art (paintings)                                 6        12.00%            $ 11,321,535       $ 566,077
   Pottery                                         6           -
   Handbags and belts                              6        4.80%              $ 4,532,994      $ 3,399,745
   Other                                           5
   Fashion accessories/scarves                    4         3.50%              $ 3,300,107      $ 3,168,103
   Textiles (silk, batik) & embroidery            3           7%               $ 6,829,053      $ 6,214,439


   The results shown in the above table emphasise the necessity to look at other products
   than those (e.g. basketry) usually supported by NGOs and produced in most Ugandan
   communities over the last ten years. On the one hand, tourists are looking for other types


                                                                                                      83
     of products (wood carvings, jewellery, clothing), and on the other hand, the products that
     visitors expected to find are also those with the highest economic opportunities. The next
     step is therefore to validate these results with the support of all tourism stakeholders in
     order to ensure the feasibility of the interventions described below (table 51);
     interventions that would aim at increasing the local production of these items.

     A similar approach can be developed for the food sector, especially for the processed food
     category. It appears that the majority of hotels and restaurants have indicated that the
     products within this category were mostly imported (see below).

     Table 48: Percentage of locally purchased products and volume of imports

                                                              % local                                     % local
                                                                                            % local
                  % local       % local        % local         fresh         % local                    processed
                                                                                             fresh
   Hotel           meat          fish          cereals      vegetables     fresh fruits                  food and
                                                                                          condiments
 categories                                                 and tubers                                     juices
Less    than        95%           90%           100%            83%             83%          77%           100%
$20
$21 - $50           95%          100%           100%           100%             100%        100%          100%
$51 - $100          68%           48%            71%            80%             100%         62%          48%
$101 - $250         55%           23%             8%            80%             52%          70%          35%
> $251              74%           61%            66%            78%             77%          21%          30%
         Total      76%           73%            71%            82%             91%          60%          45%
 Sector size     $ 5,617,188   $ 5,912,431   $ 6,407,359    $ 4,068,440    $ 3,321,624    $ 2,395,430   $ 755,447
  Import or
                 $ 1,361,933   $ 1,577,463   $ 1,884,303     $ 721,826      $ 302,372      $ 962,383    $ 415,098
opportunities


     Evidence from the fieldwork has shown that jam, honey and fruit juices are mostly
     imported while the ingredients exist locally. The amount of imported products for the
     entire processed food categories reached $ 415,098 in 2010, offering spectacular
     opportunities for the vulnerable communities. Other opportunities need to be studied
     conjointly with the private sectors. Not all regions lack local products (meat, fish, etc.).

     A similar reasoning can be made for all promising interventions. Below is a non-
     exhaustive list of potential interventions for the development of tourism-related sectors.




                                                                                                           84
  Table 49: Pre-identified interventions for the sustainable development of tourism-related sectors
Themes                    Outcomes             Location          Context and Rationale                                   Outputs                                       Impacts
                                                                                                 Raising awareness activities towards tourists (international   Improvement of visitor
                                                                 Lack of knowledge about
                       Raised consumer                                                           and domestic)                                                  satisfaction
                                                                 purchase impact and
                    awareness on impact of         Uganda        product origin by tourists                                                                     Increased local
                                                                                                 Branding Ugandan products
                    purchases and spending                                                                                                                      economic impact
                                                                 High % of imported products     Access to market for local communities (linkages)
                                                                                                                                                                Poverty reduction
                                                                 Weak linkages between
                     Increased number of                                                         Creation of MOUs between local producers and tourism           Increased local
Communication                                                    tourism stakeholders and
                       linkages between                                                          stakeholders                                                   economic impact
and marketing                                      Uganda        local producers
                     tourism and tourism-                                                        Marketing local cuisine
                                                                 Low level of local production                                                                  Poverty alleviation
    (market          related stakeholders                                                        Capacity building for local producers (understanding the
                                                                 for some categories of
 placement and                                                                                   tourism life cycle, quality and other requirements)
                                                                 products
      sales
                                                                                                 New and suitable infrastructures and channels for selling
 opportunities)
                                                                                                 crafts:
                                                                 Lack of opportunities to                                                                       Increased visibility and
                                                  Murchison                                      - Create a boutique at the ferry (Murchison Fall NP)
                      Increased share of                         display local products to                                                                      sales of local products
                                                   Fall NP,                                      - Duplicate a similar concept as Igongo Cultural Centre at
                     Ugandan souvenirs in                        tourists / low market access
                                                  Kikorongo,                                     both the Equator point (Kikorongo) and Kafu (on the way to     Increased local
                     visitors’ expenditure                       High amount of imported
                                                   Kampala                                       MFNP from Kampala)                                             economic impact and
                                                                 crafts in markets and
                                                                                                 – Public/private sector partnerships                           poverty reduction
                                                                 souvenir shops
                                                                                                 - Support Exposure Africa in the settlement of a crafts hub
                                                                                                 (warehouse) in Kampala
                                                                 Lack of skills and capacities
                                                                                                 Training of trainers (design and innovation)                   Enhanced
                                                                 (innovation, empowerment)
                                                                                                 Refreshment of/Innovation in « original » Ugandan crafts,      competitiveness
                                                                 Low involvement of local
                                                                                                 using local crafting capacities – masks, basketry, paper       Increased number of
                                                                 communities in tourism
   Tourism            Increased linkages                                                         beads                                                          activities/products
                                                                 economics
 products and        between tourism and                                                         Support to National Competition on crafts, visual arts,        Increased number of
                                                   Uganda.       Low quality of products and
   services            tourism-related                                                           cuisine and entertainment with the final objective to          tourism beneficiaries
                                                                 services
competitiveness          stakeholders                                                            identify and evaluate both the needs and the capacities of     Product improvement
                                                                 Lack of financial and
                                                                                                 local communities                                              Improvement of health
                                                                 technical means
                                                                                                  Support and development of the Katwe community                and working
                                                                 Existence of local raw
                                                                                                 (packaging, shower, etc.)                                      conditions
                                                                 materials
   Themes                Outcomes             Location     Context and Rationale                                    Outputs                                    Impacts
                                                                                         Creation of innovative environmental/ethical/pro-poor
                                                                                         labels and packaging
                                                         Non-commercially and
                                                                                         - Capacity building (innovation, products development,
                                                         sustainably exploited natural
   Tourism                                                                               business development, peer to peer training for the use of     Quality improvement
                     Decreased impact of                 and cultural resources
 products and                                                                            natural raw materials and dyes such as the Nyabwina            Product development
                  locally produced items on   Uganda     ITC knowledge in ethical
   services                                                                              Women Group in Fort Portal)                                    and income generation
                       the environment                   fashion
competitiveness                                                                          - Assist in strategies to bring the products to the tourists   Poverty reduction
                                                         Growing international
                                                                                         - Develop pro-poor and ethical packaging with local
                                                         demand for ethical products
                                                                                         material (elephant paper) for various items including
                                                                                         souvenirs and processed food (honey, jam, salt)
                                                                                                                                                        Enhanced backward
                                                         Low level of services for the                                                                  linkages of the tourism
                                                                                         Create linkages with tours and markets                         sector to local clean
                                                         middle range and low-end
                                                         tourism-related                 Develop a catalogue of souvenirs and items for the business    and organic agriculture
                                                         stakeholders                    tourism sector (corporate and business gifts): market size:    producers & silk craft
                    Improved ability for                                                 171,500 business tourists in 2009.                             producers
                                                         Low level of linkages
                   product identification     Uganda                                     Develop agricultural products at local level (chicken farms,   Quality improvement
                                                         Issues with pricing and
                     and development                                                     fish ponds, organic vegetables, processed food: jam, honey,    Better working
                                                         costing
                                                                                         salt)                                                          environment and
 Management                                              Low diversity of souvenirs
                                                                                         Develop handmade products (masks, ethical fashion              benefits for local
 and business                                            Low benefits and salaries for                                                                  population
                                                                                         products such as bags, recycled items, etc.)
 development                                             local staff
                                                                                                                                                        Increased visitor
                                                                                                                                                        satisfaction
                                                         High incidence of poaching      Education about the central role of biodiversity in            Better management of
                                                         activities                      sustainability                                                 tourist sites and
                    Decreased impact of                                                                                                                 preservation of
                                                         Plans for oil extraction in     - Assist the UWA and government in raising awareness
                    human activities on       Uganda                                                                                                    biodiversity
                                                         Albert Rift region              activities on the central role of biodiversity.
                       biodiversity                                                                                                                     Better use of tourism
                                                         Major role of biodiversity in   - Support local communities in identifying opportunities
                                                                                                                                                        rent and improvement
                                                         sustainable development         and writing project proposals for fund raising (from 20% of
                                                                                                                                                        of livelihoods
                                                                                         park entrance fees)




                                                                                                                                                                             86
  Themes             Outcomes            Location     Context and Rationale                                 Outputs                 Impacts
                                                    Low level of tax collection                                              Better access to credit
                                                                                  Legalisation and registration of SMEs
                                                    from tourism                                                             for registered
Management     Tourism-related sectors              development/businesses        - Finance, management and sales training   companies or
and business    become regulated and     Uganda                                                                              individuals
development         standardised                    Better tourism management     - Assistance to registration
                                                    in return of an increase in                                              Increase of tourism
                                                                                  - Clusters creation and reinforcement
                                                    taxes                                                                    receipts




                                                                                                                                               87
   8.3. Holistic approach within a sustainable partnership for interventions


Three UN agencies, the International Trade Centre (ITC), the spell out (UNCTAD) and the
spell out (UNDP) agreed to share experience and knowledge for a sustainable tourism
development in Uganda.
                               Figure 20: UN agencies partnership




                                             ITC
                                      "Inclusive Tourism"




                                                        UNDP
                         UNCTAD                         "Support for
                                                      Development of
                         "Train for Trade"           Inclusive Markets
                                                        in Tourism"




The areas of intervention for each agency will depend on several criteria. To simplify how
these agencies will collaborate, a simple framework was presented to a representative
from the Ministry of Tourism during an SCTD meeting held in Geneva in October 2011.
The Ministry of Tourism is particularly focused on the development of incubation centres
in Uganda.

       -   Among others, UNDP could support the Ministry of Tourism in formulating a
           business plan, promotion strategies or in creating incentives to attract private
           investors;
       -   UNCTAD could build the capacities of government(al) officials at national and
           local levels to facilitate the development of public-private partnerships;
       -   ITC could support local communities in providing high-standard crafts
           products to the incubation centre.

The validation workshop will help to agree on how each agency is going to support the
development of inclusive markets in tourism.



   8.4. Summary of ITC interventions


Among all interventions highlighted above, some are particularly relevant to the ITC’s
mandate (especially in the tourism-related sector interventions). Below we describe the
different areas where the ITC is likely to intervene within the ITC logical framework.
          Table 50: ITC logical framework

           Intervention logic                           Indicators                      Means of verification        Assumptions

Impact:                                     1.1 Increased sales of locally               Independent mid-           Continued
                                                produced crafts                           term/final programme        growth of
1. Increase the income of current           1.2 Exports of craft products                 evaluation                  tourist arrivals
   producers and vulnerable local           1.3 Increase in productivity and             Annual reports             Support from
   communities                                  resource efficiency                      Case studies                private and
2. Enhanced competitiveness and             1.4 Increase in jobs and                     Survey and feedback         public
   world market integration by                  incomes of rural producers                                            stakeholders
                                                                                          data
   sustainable development                      generated from the sales of              Statistical information
                                                crafts                                    (UN, WB etc.)
                                            1.5 Enhance           biodiversity
                                                conservation

Outcome 1: Enhance skills, production       Increased value        of     locally       - Customer satisfaction     - The project
and sales mechanisms                        produced crafts                               survey                      follows a
                                                                                        - Amount of products          holistic
                                            Increased     access     to    local          bought by high-end          approach
                                            products                                      shops in Kampala          - Sustainable
                                                                                                                      practices and
                                            Quantity and value of craft
                                                                                                                      better
                                            items sold to tourists through
                                                                                                                      environmental
                                            different channels
                                                                                                                      management

Output 1.1: Product development and
diversification from raw materials to
packaging (including pricing and
costing): jams, honey, salt

Output 1.2: Upgrading quality and
production of (selected) commercially
viable products (ex: peer to peer
training for the replacement of imported
raw materials and learning on natural
dyes)

Output 1.3: Training on sustainability
and business development (including
business plans) for women association
groups and community based projects

Output 1.4: Assistance to registration
and fund raising (incl. project proposal
writing)

Output 1.5: Assistance in setting up
(spaces/)areas to sell food, processed
food and souvenirs

Outcome       2:   Enhance      backward    Minimum rate of local products          -     Sector value     chain    Cooperative
linkages                                    and/or content in souvenir                    analysis                  private sector
                                            shops.

                                            Decrease in leakages



                                                                                                                         89
Output 2.1: Capacity building to
increase production and to better
respond to the needs of sellers/market

Output 2.2: Develop a corporate and
business pro-poor product catalogue
(folders, bags, etc.) for the business
tourism sector in Kampala

Output 2.3: Support a national
competition on crafts, visual arts,
entertainment and cuisine (Ketwu
Festival)

Output 2.4: Agreements are signed
between the private sector and local
producers




         Conclusion

         As noted earlier in this document, this opportunity study was originally designed to
         identify suitable project interventions through which ITC’s technical expertise could
         make a pro-poor impact within a project timeframe of three to five years. The
         involvement of two other UN agencies (UNDP and UNCTAD), both in favour of a
         sustainable development of the tourism sector in Uganda, has encouraged ITC to broaden
         the scope of the opportunity study, which initially only focused on enabling artisans that
         work as micro producers along with Ugandan artists to reach tourists.

         The study included both qualitative and quantitative methodologies looking at the flow of
         visitor expenditures into the local economy, how it benefits local communities and where
         opportunities exist to increase these benefits exponentially. Amongst the main
         conclusions from this study, we have observed the need for a strong leadership to be
         taken by the Ministry of Tourism, but also for the Government of Uganda to acknowledge
         the role that tourism can play in improving peoples’ livelihoods. It is subsequently
         essential that the Ministry of Tourism takes conjointly with the development agencies the
         lead in identifying the priorities for the tourism sector.

         For the Ministry of Tourism to take the lead role in sustainable tourism development in
         Uganda, it is perceived as essential that capacities be built at all stages of the intervention
         and management processes. An improvement of tourism benefits towards local
         communities also means a proper engagement of both local communities and tourism
         businesses in working for each other. Although the study has identified a number of risk
         factors regarding the projects’ success (see SWOT analysis), a number of strategies exist
         in order to avoid any kind of impediment. Among others, peer to peer education
         strategies are a sensible one. However, it is absolutely necessary to readdress the stream
         of priorities using evidence drawn from the research. Interventions must follow a


                                                                                                     90
strategic approach paying a particular attention to market segments, substitution to
importation, existing capacities, etc.

The next step following the distribution of this report is to undertake a validation
workshop aiming at defining strategic interventions for the tourism industry to better
benefit local communities. A long list of evidence-based objectives and interventions will
be presented to all tourism stakeholders (government: national and local, private sector,
international organisations, local communities, etc.) to determine their costs, feasibility,
impact and return on investment.

It is then recommended that each stakeholder involved voluntarily or not in either a
project or an intervention ensures to participate in a direction that corresponds
simultaneously to the government’s and the project’s objectives.




                                                                                         91
                                                             ANNEXES
                                               ANNEX 1: Additional tables
                                             Table 51: Main attracting factors by region

                                                                Wildlife       Local               Local           Local           Other
                                                                            communities            crafts      entertainment
    Western Region                 Most attractive                14                0                0                 0              0
                               Second most attractive              0             11                  1                 1              0
    Eastern Region                 Most attractive                 6                2                0                 0              0
                               Second most attractive              0                5                0                 1              0
    Northern Region                Most attractive                 9                1                0                 0              0
                               Second most attractive              0                7                1                 2              0
     Central Region                Most attractive                 4                2                1                 1              1
                               Second most attractive              0                4                1                 2              0
    Southern Region                Most attractive                 9                1                1                 0              0
                               Second most attractive              1                7                0                 0              1

         Table 52: Weaknesses and strengths of each Ugandan region

                                                                               Regions
                                  Western                Eastern               Northern                  Central              Southern
                               Weakness   Strength   Weakness    Strength   Weakness    Strength    Weakness   Strength    Weakness   Strength

   Cost / value for money        20%       40%         27%         27%        40%        27%          13%        40%         33%          27%
        Destination appeal        0%       67%          7%         40%         7%        60%           0%        40%          0%          60%
 Existing products appeal         0%       53%         20%         20%        13%        47%           7%        40%          7%          47%
                Availability      0%       47%          7%         33%         0%        27%           0%        13%          0%          20%
Range of existing activities      0%       53%         33%         27%         7%        47%          20%        27%         13%          40%
      Hotels and services        13%       40%         20%         27%        27%        33%           7%        40%         40%          20%
    Geographical location        13%       40%         20%         33%        20%        40%           0%        40%         13%          33%
  Means of transportation        20%       33%         20%         33%        40%        27%          13%        40%         33%          20%
                    Wildlife      0%       67%         20%         20%         0%        67%          40%        13%          7%          53%
     Authentic way of life       20%       33%          7%         40%        13%        33%           7%        33%         20%          27%
                   Scenery       20%       33%          7%         47%        13%        40%          27%        33%          0%          53%
        Adventure tourism         0%       60%          7%         53%        20%        27%          20%        20%          7%          33%
          Online bookings         7%       67%         13%         13%         7%        27%           0%        33%          7%          27%
                      Total       9%       49%         16%         32%        16%        38%          12%        32%         14%          35%




                                                                                                                                92
                           Table 53: Categories of hotels and restaurants where international tourists stay

                             Categories of                               Categories of
                            accommodation                                 restaurants
                               Less than $20              18%              Less than $5            18%
                                   $21 - $50              23%                  $5 - $10            31%
                                  $51 - $100              19%                 $10 - $20            30%
                                  $101-$250               21%                     > $20            14%
                                      > $251              11%              Do not know             7%
                                Do not know               8%

           Table 54: Suggestions from tour operators to encourage tourism benefits for local communities
                                                                          Western      Eastern     Northern    Central     Southern
                                                                          Region       Region       Region     Region       Region

                            Information dissemination and marketing          7            6           5            6             6
                                           Tour product development          5            4           1            5             2
                                                     Branding strategy       3            3           2            4             3
                                         Increase safety and security        2            4           8            3             3
                   Provide and stimulate infrastructure development          5            5           4            4             3
                                     Increase spending opportunities         2            2           0            0             2
                                              Improve product quality        1            2           2            2             3
                                             Improve services quality        1            5           2            2             3
   Encourage awareness by the community of natural & cultural assets         1            0           3            2             1
          Enhance management and stewardship of natural resources            0            0           1            0             1
                  Skills enhancement (guides training, languages,…)          4            3           1            4             3
                             Building capacities of local communities        1            0           0            1             0
                                                Foster empowerment           0            0           0            0             0
                                                  Other suggestions:         0            0           0            0             0


           Table 55: Main reasons and specific purposes to visit Uganda

                                                                           Main reasons for visiting Uganda
                                                                         Educational       Visiting
       Specific purpose                    Business       Holiday          purpose        Friend or       Volunteer      Other       Total
                                                                          (student)       Relatives
Round Trip                                     4             7                3                0               1           4          21
Festivals                                      0             1                1                0               0           0          2
Family visit                                   1             6               20                0               0           1          28
Honeymoon                                      1             2                0                1               0           0          5
Spiritual holiday                              4             0                3                0               1           0          8
Local communities                              1             2                1                0               0           2          6
Spa/wellness                                   0             0                0                0               0           0          0
Cultural holiday                               0             4                0                0               0           0          4
Game viewing                                   2             4                2                3               1           1          13
Eco-tourism holiday                            0             2                0                0               0           0          2
Study/Internship/Volunteer work                1             4                0                7               7           1          20
Gorillas                                       0             8                0                0               0           2          10
Adventure                                      0             1                1                0               0           1          3
Bird watching                                  0             1                2                0               0           2          5
Others                                         2             2                1                2               0           5          13
                                Total         16            44               34               13              10          19




                                                                                                                           93
                                    Table 56: Mean age by category

                                                                         Educational
                  Business        Holiday       VFR       Volunteer       purpose              Other
                                                                          (student)
      Male           41.5           41.8        34.4         35.3             29.2             45.3
      Female         38.0           37.4        32.7         33.1             28.2             46.5


           Table 57: Average expenditure for accommodation per night by country of residence

                        Less                                                                           Do not
                                    $21 - $50      $51 - $100        $101-$250       > $251
                      than $20                                                                         know
UNITED KINGDOM           0%            19%             19%             31%            19%              13%
EUROPE                   9%            0%              34%             31%            9%               17%
AMERICA                 11%            15%             25%             21%            11%              17%
ASIA-PACIFIC            14%            14%             14%             43%            14%               0%
MIDDLE EAST             67%            0%               0%             33%            0%                0%
OTHER AFRICA            33%            50%              0%              0%            17%               0%
CONGO                   43%            57%              0%              0%            0%                0%
KENYA                   16%            31%             17%             20%            14%               2%
RWANDA                  35%            18%             18%             18%            12%               0%
SUDAN                   13%            38%             13%             13%            0%               25%
TANZANIA                33%            50%              0%             11%            6%                0%




                                                                                                         94
ANNEX 2: Visitor arrivals by country of usual residence (2005 – 2009)




                                                                        95
 ANNEX 3: Objectives, strategies and interventions objective for the tourism
             sector - National Development Plan (2010-2014)


Objective 1 - Develop and review the policy and the legal and regulatory framework
for the sector

       Strategy 1: Review the tourism policies and plans

Intervention Description
     i)      Review the Tourism Policy.
     ii)     Review the Tourism Master Plan.
     iii)    Review the Uganda Wildlife Policy.
     iv)     Formulate a Museums and Monuments Policy.


     Strategy 2: Update relevant legal and regulatory framework

Intervention Description
     i)      Review the National Wildlife Act.
     ii)     Enact the Uganda Wildlife Education Centre (UWEC) Act.
     iii)    Review the Museums and Monuments Act.
     iv)     Develop and implement the wildlife sub-sector regulations (fire arms, sport hunting, farming,
             ranching, ecotourism, scientific and educational use and extractive utilisation) for the
             protected areas.
     v)      Domesticate CITES.
     vi)     Review Uganda Wildlife Training Institute (UWTI) Act.
     vii)    Review Hotel and Tourism Training Institute (HTTI) Act.



Objective 2 - Increase the contribution of tourism to GDP and employment.

     Strategy 1: Operationalise the Tourism Development Levy and Fund.

Intervention Description
     i)      Develop and disseminate guidelines for the collection of the levy.
     ii)     Establish structures and mechanisms for levy collection. iii) Develop and make operational a
             framework for the Tourism Development Fund.

     Strategy 2: Develop marketing tools packaging Uganda as the preferred tourism
     destination
.
Intervention Description
       i)    Review the National Tourism Marketing Strategy.
       ii)   Enhance marketing tools.


     Strategy 3: Develop and implement the Meetings, Incentives, Conferences and
     Events (MICE) strategy

Intervention Description

                                                                                                        96
      i) Establish a functional MICE bureau/centre.
      ii) Develop a MICE marketing strategy.
      iii) Build capacity of the MICE industry through training and market support.


     Strategy 4: Strengthen the tourism and wildlife information system, including the
     development of the Tourism Satellite Account (TSA)

Intervention Description
      i)     Develop a tourism management information system.
      ii)    Develop the Uganda Tourism Satellite Accounts (TSA).
      iii)   Undertake international niche market surveys and other data collection activities.
      iv)    Strengthen the animal wildlife database.
      v)     Develop and implement guidelines on wildlife trade and enterprises.
      vi)    Strengthen the museums, monuments and antiquities database.


     Strategy 5: Secure international and domestic source markets for tourism

Intervention Description
      i)     Strengthen presence in existing tourism source markets.
      ii)    Identify and nurture new tourism segments.


     Strategy 6: Diversify tourism products.

Intervention Description
      i)     Implement four (4) zonal tourism plans and produce zonal plans for four (4) other ecological
             zones.
      ii)    Habituate and avail new gorilla, chimpanzee and monkey groups for tourism.
      iii)   Re-introduce chimpanzees and rhinos into wildlife.
      iv)    Develop the souvenir, arts and crafts industry through the support of arts and crafts groups
             with necessary equipment and training.
      v)     Develop cultural centres through provision of concept and infrastructure support to cultural
             groups and companies.
      vi)    Develop water based tourism resources through provision of concept and infrastructure
             support to water based tourism resources.
      vii)   Promote other new tourism products such as butterfly viewing, caving, bird watching, canopy
             walk and wilderness camping.


     Strategy 7: Regulate tourism products development

Intervention Description
      i) Develop and implement quality inspection and licensing framework.
      ii) Undertake the monitoring and evaluation of the sector’s activities.
      iii) Monitor and regulate tourism in mining, hydropower, oil and gas, and wildlife conservation
           areas.


     Strategy 8: Support development of tourism enterprises

Intervention Description
      i)     Research and package new tourism enterprise opportunities.
      ii)    Enhance capacity of tourism sector SMEs, including putting into place a seed capitalisation
             fund and information centres for SMEs in tourism.


                                                                                                      97
      iii) Support community based tourism enterprises around wildlife protected areas.


     Strategy 9: Develop tourism human resources

Intervention Description
      i)   Review the tourism and wildlife manpower training curricula, including upgrading the quality
           of the tourism and wildlife training tools.
      ii) Enhance capacity of tourism and wildlife tertiary institutions through staff in-service training
           in areas of tourism development, wildlife, museums, culture, arts and craft enterprises.
      iii) Strengthen the Uganda Hotel and Tourism Training Institute.

     Strategy 10: Develop tourism support infrastructure

Intervention Description
      i)      Develop and implement a framework to facilitate development of convenient tourist stop-
              overs along major highways and tourist circuits.
      ii)     Construct a tourism house to accommodate tourism sector institutions.
      iii)    Identify and develop critical transport networks leading to protected areas and other tourist
              sites.
      iv)     Construct ranger out posts in Queen Elizabeth National Park (QENP), Murchison Falls National
              Park (MFCA), Bwindi and Mugahinga Conservation Area (BMCA) and Rwenzori National Park
              (RNP).
      v)      Upgrade/renovate campsites, signage, information/interpretation centres, gates, walk ways
              and game viewing tracks in key wildlife areas.
      vi)     Construct/Build Museums at Kabale and Hoima and finalise plans for Soroti and Jinja, and
              support renovation of key cultural and religious sites.
      vii)    Re-design and develop the Jinja source of the Nile tourist site.
      viii)   Procure and title prime land to support construction of tourist accommodation facilities, and
              produce ready for implementation architectural design works for model tourism
              developments.
      ix)     Upgrade mountain climbing and rescue facilities in Rwenzori, Elgon, Muhabura and Kadam.
              This will include putting in place trails, rest points, accommodation facilities, and safety and
              rescue services.
      x)      Establish a tourist circuit on Lake Victoria (botanical gardens, Lutembe Beach, Ngamba Island,
              UWEC). This will include the development of two landing sites, a migratory bird observatory
              at Lutembe Beach, a/the UWEC floating restaurant and the acquisition of three boats.
      xi)     Upgrade Uganda Wildlife Education Centre (UWEC) by constructing an education and
              information complex, increasing the animal exhibits and recreational facilities and stone
              paving the trail and road network.
      xii)    Establish satellite Wildlife Education Centres for the four (4) regions of Uganda.
      xiii)   Construct a dining hall, a dormitory, 10 staff houses and a museum block at the Uganda
              Wildlife Training Institute (UWTI) - and retool the Institute.
      xiv)    Construct an extension of the National Museum to expand its operations and modernise its
              interpretation facilities by establishing ICT/database aided interpretation equipment and
              tools.
      xv)     Establish interpretation centres at 10 cultural and archaeological sites.
      xvi)    Revive the Uganda Institute of Ecology (UIE).


     Strategy 11: Develop strong public and private sector institutional linkages

Intervention Description
      i)      Establish and support tourism and wildlife associations.
      ii)     Support district commercial and environment offices to handle wildlife conservation, museum


                                                                                                           98
            and monument matters.
       iii) Support the development of tourism private sector apex body.

     Strategy 12: Undertake research to support the development of tourism, wildlife
     resources and cultural heritage

Intervention Description
       i)     Create a wildlife resources data bank for Uganda.
       ii)    Conduct tourism specific studies on trends, inventory and problem analysis to enrich the
              database.


     Strategy 13: Develop a public-private partnership (PPP) framework for the
     management of tourism, wildlife and cultural heritage attractions

Intervention Description
       i)     Register and train private wildlife management entrepreneurs countrywide.
       ii)    Support tourism development in local governments.


     Strategy 14: Improve human-wildlife relationships

Intervention Description
       i)     Formulate national guidelines for wildlife veterinary interventions.
       ii)    Resettle and/or compensate people residing in key tourism and wildlife conservation areas.
              These include: Majelli community in Ajai, Benetcommunity in Elgon and Mbwa Tract in
              Bwindi.
       iii)   Negotiate and acquire land for migration corridors in Aswa Lolim.
       iv)    Carry out evaluations on the existing human-wildlife conflict mitigation measures with a view
              to improve them.
       v)     Implement problem animal deterrent and scare measures (trenches, walls, thunder flashes,
              crocodile barriers, pepper and live fence) to reduce incidents of human-animal conflict.
       vi)    Carry out electric fencing of 118 km boundaries of Lake Mburo to address the problems of
              animals around the park as a pilot project.
       vii)   Carry out electric fencing of 100 km part of Queen Elizabeth National park.


     Strategy 15: Effective participation in international decision making

Intervention Description
       i)     Clear accumulated subscriptions to WTO and other international bodies.
       ii)    Support private sector participation and advocacy in regional and international meetings.

     Strategy 16: Enhance security and safety for tourists and tourism resources

Intervention Description
     i)       Develop and implement a national safety and security plan for tourists and tourism resources.
     ii)      Strengthen law enforcement in wildlife conservation areas to guarantee the security of
              tourists and wildlife resources.




                                                                                                          99
    ANNEX 4: AREAS IN WHICH THE OPPORTUNITY STUDY WAS UNDERTAKEN


                             Figure 21: Survey itinerary




                          Source: www.skyviewofafrica.com

   KAMPALA: selected hotels, tour companies, airport and bus terminals together
    with craft markets, including Exposure Africa, the National Theatre Market,
    Banana Boat and Ndere Cultural Centre.

   KAFU LOCAL COMMUNITY STOP-OVER, KAMPALA-GULU HIGHWAY: focus
    group discussion with market vendors and their leaders.

   PACKWACH: Anyayo Hotel, Global Village Hotel, Albertine Conservation and
    Tourism Association, Packwach Rural Environmental Agro Forestry, Pacer Village
    Black Smiths Community, Bero Pamungu Community Based Organization, Bero
    Pamungu Drama and Farmers Group.

   MURCHISION FALLS NATIONAL PARK: Boomu women’s group community
    tourism, Red Chili Hideaway Camp, Paraa Lodge, Mubako Community Integrated
    Association, Uganda Wildlife Authority Office.

   FORT PORTAL AND RWENZORI AREA: Kyaninga Lodge, Kyaninga Community
    Group, Nyabwina Women and Cultural Group, Nubian-Njara Muslim Women
    Catering and Hiring Services Group, Whispering Gardens Camping Centre, Kbarole
    Tourism Association and Kabarole Tours and Travel.


                                                                              100
   QUEEN ELIZABETH NATIONAL PARK: Kikorongo Women Community; Simba
    Safari Lodge, Katwe Salt Lake Community, Katwe Tourism Information Centre,
    Katunguru Highway Crafts Centre, Kyambura Community Lodge and Kingfisher
    Lodge.

   BWINDI NATIONAL PARK: Buhooma Community Camp Ground, Batwa Cultural
    Centre Crafts Shop and Booking Office, Batwa Development Program and
    Volcanoes Safari Lodge.

   KABALE-LAKE BUNYONYI AREA: Nyambugo Women Group, Bufumuka Village
    Community and Birds Nest Tourist Hotel.

   OTHER GOVERNMENTAL AND NON-GOVERNMENTAL AGENCIES VISITED:
    Uganda Tourism Board, Uganda Export Promotion Board, USAID-Sustainable
    Tourism in the Albertine Rift (STAR), Uganda Community Tourism Association
    (UCOTA) and Ministry of Trade (MOT).




                                                                           101
                     Annex 5 – Uganda: cultural and religious sites

Uganda is a country of diversity irrespective of its size. It is blessed with a wide range of
cultures and traditions, with warm welcoming people of over 30 different indigenous
languages and 70 different dialects. The country has diversity of art, music and
handicrafts, which differentiate the cultural groups including the Bantu-speaking
people (including Buganda, Busoga, Bunyoro, Ankole etc) and the Nilotics (include
Acholi, Lango, Japadhola, Alur etc),

Uganda’s cultural diversity can be seen through colourful traditions, dances, ceremonies,
history and lifestyle of the people. There is a lot of respect attached to dressing in public.
Cultural attire is put on during traditional functions while each tribe has their specific
cultural wear. All Ugandan tribes have identity with their cultural background with a
leader to whom they oblige loyalty once they gather before him.

Religion

Christianity is Uganda’s dominant religion and it incorporates the Roman Catholics,
Anglicans, Pentecostals and Orthodox. The other religions include Islam and the Baha’i
faith.

There are several religious sites in Uganda which could be of interest to travellers like the
Kibuli mosque on Kibuli Hill, Rubaga Cathedral On Rubaga Hill, Namirembe Cathedral on
Namirembe Hill, The Baha’i Temple, Hindu Temple and the Colonel Gadaffi Mosque.

Bahai Temple: It is located on Kikaaya Hill 6km from Kampala Gayaza road.
This is the only temple for worship of its own in Africa. It has its unique norms as
compared to other religious temples and its architecture is very unique. Its compound is
superb with a view of Kampala city. It is a place only known for prayers and meditation.
There are 8 houses of worship in the world and Bahai temple is the mother temple of
Bahai in Africa. It is also called ‘MashriquI-Adhkar’, the Persian translation of the dawning
place of the praise of God.

Hindu Temple: It is close to Nakasero market, this sandstone building was made without
the use of a single nail, and is adorned with ornaments and symbols, it lights up with
thousands of fairy lights during the night, Diwali and other Indian religious festivals. It is
commonly known for the Indians who are Hindustanis.

Uganda Martyrs’ Shrine: The site is located in Namugongo off Jinja road. It is a religious
place where in 1886 more than 20 newly converted Christians were burnt alive following
the command of Kabaka Mwanga II after refusing to renounce the white man's religion.
The majority of the martyrs were Kabaka's workers, and were sent to death for his fear of
losing the throne.

St.Paul's Namirembe Cathedral: The church has been in existence since 1892, however
other churches have been built on top of Namirembe hill. The church provides a
spectacular view of Kampala and was constructed with instructions from Kabaka Daudi.
The oldest and centrally located Diocese in Uganda, Namirembe, plays an outstanding
role in gauging the life and spirit of the whole church in general as far as Uganda is
concerned. Namirembe is the oldest, among the 29 Diocese of the Anglican church of the
province of Uganda.



                                                                                          102
St. Mary's Cathedral Rubaga: This is a ravishing church which graces the hill top of
Rubaga. Previously it was a site for the royal palace of Kabaka Mutesa. It was constructed
between 1914 and 1925 with the help of the Catholics’ donations from the Missionary
churches abroad. Built at the beginning of the century, the magnificent St. Mary’s Catholic
Cathedral stands on Rubaga Hill, overlooking the city. The church has been a key player in
construction on numerous schools of colonial brick style e.g. Namilyango, Kisubi,
Namagunga, Buddo and Gayaza.

Kibuli Mosque: It is surrounded by the serenity of the palm trees, the structure is
at the top of Kibuli Hill and is the centre of the Islamic faith in Uganda.

Old Kampala Mosque: This is also referred to as Gadafi Mosque because the money that
funded its construction was from the former and disposed President of Libya Col Gadafi.
It is also a Muslim mosque and is magnificently located on the hill of Old Kampala.

Historical and cultural sites

Uganda Museum: It is Located on Kiira Road in Kampala City. It is a unique collection of
ethnological exhibits covering hunting, agriculture, war, religion, witchcraft and natural
history, as well as a great collection of traditional musical instruments from all over the
continent. The building also houses the Uganda Society and their library with a wide
range of books on Uganda's history and culture.

National theatre: It is located on De Winton Road in the heart of Kampala City.
The National Theatre is the home of a number of drama and dance troupes, and
frequently stages new productions. The Majority of visiting artists perform here.

Kasubi Tombs: This is the traditional burial tombs for Buganda Kings. The tourism site is
located on Hoima road after Nakulabye round about. For hundreds of years until March
2010, it was a magnificent huge dome-like structure that housed the remains of the four
former Buganda Kings that is King Mutesa I, Mwanga II, Daudi Chwa II, and Edward
Mutesa II. One of UNESCO’s most cherished sites in Africa, the tombs were constructed in
a traditional fashion with thatch poles and reeds that made up the roof. Until it vanished
in an inferno last year, the structure housed a variety of artefacts that belonged to the
kings. The site is looked after by the descendants of the kings' wives who live in the huts
that belonged to their relatives. It is now under reconstruction.

Naggalabi Buddo Coronation site: This is a site that enables visitors to discover
Buganda. It is located on Masaka road near the school of King's College Buddo. This
panoramic hill top at Naggalabi Buddo is the historic heart of Buganda Kingdom. It was at
this place that the Buganda Kingdom began or came into existence during the time of
Bemba. It is at this place that all the kings of the Buganda Kingdom were and are still
crowned. The site also has the Buganda house where the king has to live for about 7 days
after coronation so as to fulfill cultural rituals.

Kabaka's Lake: This is found in the city suburb of Ndeeba between Ring Road and
Nabunya Road. It is a man-made lake that was dug out on the orders of Kabaka Mwanga
in the 1880s as an 'escape corridor' to Lake Victoria. It is the largest excavated lake in
Africa.

Kabaka's palace (the Lubiri): The palace is located on Kabakanjagala Road on Mengo
hill. It consists of two large palaces connected by a straight road. When walking from

                                                                                       103
Bulange which is a home to Mengo offices, there is a round about with a straight road in
the middle of it which is for Kabaka's use ONLY, as the local superstition says he must not
turn a corner on this route to any where. The Kabaka Palace consists of the Kabaka House
commonly Known as the Twekobe House.


Wamala Tombs: Just like the Kasubi Tombs, the Wamala Tombs are located on Hoima
road near Nakulabye round about. The place was set on a hill top in beautiful
surroundings. Wamala King's Tombs are the sacred burial place of Kabaka Suuna II who
was a powerful ruler, with a fearsome reputation for punishment. His death heralded a
golden age by bringing Kabaka Mutesa I to the throne.




                                                                                       104
                                          Annex 6 – List of international organisations involved in sustainable tourism development

                                                                                                                                             Type of activity                        Potential areas
                                  Project                                                                                                                                           to be completed
 Organization/                                   Implementing                                                               Improving    Developing      Creating     Hospitality    by ITC project
                                   Value
                       Date                                            Beneficiaries         Objectives and Activities      policy and     tourism        supply       training
  Project Name                                     partners                                                                 regulatory    sector and    capacity of
                                  (in US$)                                                                                 environment      project    communities
                                                                                                                                         formulation

                                              Ministry of Tourism,   - Key ministry     - Review and/or design of
                                                                                                                               NR           NR             NR            NR
United Nations                                Uganda Tourism           staff;             selected national policies and
Development                                   Board, Ministry of     - Selected           regulations in the tourism
Programme                                     Finance Planning and     district local     sector.
                                                                                                                              WR            WR             WR            WR         - Support to the
(UNDP)              ONGOING                   Economic                 government
                                              Development              officials                                                                                                    decentralisation
                                              (MFPED);                                                                                                                              process (Public
Improving                                                                                                                      SR            SR            SR             SR
                                                                                                                                                                                    and private
policies and
                    2011 -2014   1,25 M       Local Government                                                                                                                      sector)
regulations to
support                                                                                                                        CR            CR            CR            CR
                                                                                                                                                                                    - Creation of
development of                                                                                                                                                                      regional Tourism
markets in          (3 years)                                                                                                                                                       associations
Tourism                                                                                                                                                                             (hotels, tour
                                                                                                                               ER            ER            ER             ER        operators, etc.)



UNDP                ONGOING                   Ministry of Tourism,   Local poor         - Development of tourism
                                              Uganda Tourism         communities          markets,                            NR            NR             NR            NR
                                              Association, Tour                         - Participation of the poor and
                                 1,25 M       Operator                                    local communities in the
Support for         2011 -                    Organization, Hotel                         tourism sector as                                                                         - Interventions
Development of      2014                      Owner Association,                          entrepreneurs, employees and                                                              based on ITC’s
Inclusive Markets                             Uganda Wildlife                             consumers,                          WR            WR             WR            WR         opportunity
in Tourism                                    Authority, Uganda                         - Creation of market linkages                                                               study results
         (3 years)               Tourism Board (UTB)                       - Development and promotion of                          - Coordinate in
                                                                             new niche products that are                           order that UNDP
                                                                                                               SR   SR   SR   SR
                                                                             also pro-poor,                                        project engages
                                                                           - Building the capacity of key                          in activities that
                                                                             tourism support institutions                          ensure
                                                                             and associations.                                     externalities to
                                                                           - Technical support and advice      CR   CR   CR   CR   ITC project
                                                                             for mentoring the linkages,
                                                                           - Develop innovative and viable
                                                                             tourism products and services,
                                                                           - Provide specialized business
                                                                             development services to
                                                                             selected enterprises              ER   ER   ER   ER
                                                                           - Sectors not yet chosen


                                 Ministry of Tourism;    Ministry of        Strengthen capacities for                              Areas of
                                                                                                               NR   NR   NR   NR
                                 Tourism Institutions,   Tourism, local     sustainable tourism                                    collaboration are
                                 Local communities       authorities,       development in Uganda:                                 under discussion
                                                         private sector,
                                                                           - Adaptation of UNCTAD's            WR   WR   WR   WR
                                                         local
                                                         communities         pedagogical material on
                                                                             sustainable tourism to the
                                                                             Ugandan national and local        SR   SR   SR   SR
         PLANNED
                                                                             contexts
                     US$ 600,0                                             - Strengthening of national and
UNCTAD                                                                       local capacities on sustainable   CR   CR   CR   CR
                     00
         2012                                                                tourism issues
         onwards                                                           - Strengthening of national and
                                                                             local capacities on sustainable
                                                                             tourism-related project
                                                                             planning
                                                                           - Development of a national and     ER   ER   ER   ER
                                                                             local training and facilitation
                                                                             capacity in the field of
                                                                             sustainable tourism
                                                                           - Rolling out of training and




                                                                                                                                        106
                                                                                            facilitation activities in national
                                                                                            / local languages at the national
                                                                                            and local level
                                             Ministry of Tourism     - Tourism           - Enhance the capacity of DCOs                               - Provide inclusive
                                                                                                                                  NR   NR   NR   NR
                                                                       Training             deliver commercial and                                      tourism
                                                                       Institute Jinga      business services more                                      hospitality
                                                                     - Hotel school         efficiently to increase incomes                             training manuals
                   PLANNED                                                                                                        WR   WR   WR   WR
                                                                       students             of SME entrepreneurs
Ministry of                    US$ 3.1 M                                                 - Addressing the shortage of
Tourism                                                                                     skilled manpower in the
                                                                                                                                  SR   SR   SR   SR
                               (US$ 2.9M                                                    hospitality industry
                   (3 years)                                                             - Revamping both the physical
                               EIF,
                               US$ 250,0                                                    and human resource base of
District                                                                                                                          CR   CR   CR   CR
                               00 in kind)                                                  HTTI-TSP(Tourism Training
Commercial         Submitted                                                                Institute Jinja Tourism Support
Services Support   to EIF in                                                                Programme). Technical
                   July 2011                                                                assistance towards the institute
                                                                                            to enable it develop long term
                                                                                                                                  ER   ER   ER   ER
                                                                                            capacity to perform its
                                                                                            functions so as to improve on
                                                                                            the quality of services provided
                                                                                            by the industry.
                                             AED, The George          Albertine Rift,      Strengthen sustainable tourism                              - New phase to
                                             Washington               parks                in support of biodiversity                                  start in 2012
                                             University, US Forest                         conservation in the Albertine          NR   NR   NR   NR    with project
USAID              ONGOING                   Service, AWF, IGCP,                           Rift region.                                                area’s extension
                                             JGI, FFI, UCOTA, NU,                                                                                      to all Uganda
STAR project                                 WCS, UWA, UWEC,                             - Renew and upgrade the
                                             MTTI, CTPH, WCU,                              Albertine Rift tourism product
                   2009-2011                 WWF, UTA, AUTO,                               through market-driven product
                                             UHOA, TAG                                     development opportunities;             WR   WR   WR   WR
                                                                                         - Increase awareness and
                                                                                           demand for Ugandan tourism




                                                                                                                                                            107
                                                                                      products;
                                                                                    - Create linkages between
                                                                                      tourism, natural resource           SR   SR   SR   SR
                                                                                      stewardship and biodiversity
                                                                                      conservation;
                                                                                    - Establish and foster business-
                                                                                      to-business linkages and
                                                                                      investment;                         CR   CR   CR   CR
                                                                                    - Improve local capacity through
                                                                                      training while enhancing the
                                                                                      quality of local tourism
                                                                                      offerings and artisan products;
                                                                                    - Connect small enterprises and
                                                                                      community-based
                                                                                      entrepreneurs in Uganda with
                                                                                      the global market place;
                                                                                    - Monitor, and where possible,
                                                                                                                          ER   ER   ER   ER
                                                                                      mitigate the social, cultural,
                                                                                      and environmental impacts of
                                                                                      tourism development;
                                                                                    - Strengthen national and local
                                                                                      government, civil society, as
                                                                                      well as private sector capacity
                                                                                      to develop and manage tourism
                                                                                      offerings in a sustainable way.
                             Global        Ministry of Tourism,   National          - Establish effective institutional                       -
                                                                                                                          NR   NR   NR   NR
                COMPLETED    Environme     Wildlife and           Commission for      capacity within the wildlife and
                             nt Facility   Antiquities            Antiquities and     tourism sectors,
                             (GEf)                                Museums,          - Program development and             WR   WR   WR   WR
                                           (UWA)                  Ministry of         implementation,
World Bank      1998 –       2M                                   Tourism, Wildlife - Secure the vital natural
                2008
PAMSU Project                                                     and Antiquities,    resource base.                      SR   SR   SR   SR
                                                                  Public
                                                                  institutions
                             Internatio
                (10 years)                                        (Hotel Tourism
                             nal                                                                                          CR   CR   CR   CR
                                                                  Training
                             Developm                                                 Master plan prepared for four
                                                                  Institute) and




                                                                                                                                                  108
                          ent                                 private sector    districts in the Western region
                          Associatio                          training
                          n (IDA)                             institutions
                          12,4 M                                                                                   ER   ER   ER   ER
                                                                                Project focused mostly in and
                                                                                around protected areas



                                       World Bank, United     Local            - Sustainable growth and            NR   NR   NR   NR   Program closed
                                       States Agency for      communities,       development of the tourism                            due to a lack of
              COMPLETED                International                             sector,                           WR   WR   WR   WR   political
EU                                     Development            public and       - Create economic and financial                         leadership from
                                       (USAID), GTZ/KFW,      private sector     benefits to stakeholders in the                       the Ministry of
                          European                                                                                 SR   SR   SR   SR
Uganda                                 UK Department for      actors             tourism sector.                                       tourism
                          Developm
Sustainable   2002-2007                International
                          ent fund                                                                                 CR   CR   CR   CR
Tourism                                Development (DfID)
Development               (EDF)
                                       and non-
Programme                              governmental
              (5 years)
                                       organisations (NGOs)                                                        ER   ER   ER   ER




                                                                                                                                           109
              Annex 7 – Non-exhaustive list of national organisations involved in sustainable tourism development

                                                                                                                                 Type of activity
                   Foundation
                                                                                                             Improving the   Developing    Creating supply   Hospitality
     NGOS                            Partners          Beneficiaries        Aim of the organization
                                                                                                               policy and    the tourism     capacity of      trainings
                      (Date)                                                                                   regulatory       sector      communities
                                                                                                              environment                     projects

                                                      50 member-       - Sustainable development of
The Uganda
                                                      groups             local communities through
Community
                   July 1998                          countrywide        small-scale tourism and
Tourism
                                                                         handcraft enterprises
Association
(UCOTA)
The community                                         Ugandan          - Fully participating and
based tourism                                         communities        benefiting of Ugandan
                   1998
initiative                                                               communities in tourism in their
(COBATI)                                                                 communities

Exposure Africa                 Uganda Small Scale    Handicraft       - Cluster marketing for crafts
                   1998         industries            producers          products (basketry, textiles,
                                association (USSIA)                      sculptures and woodcarvings)

National Theatre                                      Handicraft       - Selling handicrafts from crafts
                   1993                               producers          villages (batiks, textiles and
                                                                         traditional bead work)

Ndere/UDTA                      Uganda                Handicraft       - Promote handicraft production,
                                Development           producers        - a platform for marketing
                                Theatre Association                      Uganda’s cultural products,
                                (UDTA)                                 - a cultural conduit for annual
                                                                         festivals
                                                                       - a hub for Art of fashion so as to
                                                                         create a unique Uganda Brand.
Uganda women       1987         Uganda investment     Women            - Promote women business
Entreprenuers                   Authority, UEPB,      entrepreneurs      owners to create wealth




                                                                                                                                                                           110
Association                USSIA               countrywide       - Carry out research
(UWEAL)                                        with branches     - Encourage and facilitate
                                               in 8 districts      training of women
                                                                 - Provide forum for women
                                                                   business owners
National            1992   UWEAL, UIA, UEPB,   Handicraft        - to promote a coordinated
Association   of           UTB, UWA            producers and       network of women
women                                          women. With         organisations for the efficient
organisations in                               offices in 5        use of resources
Uganda                                         districts         - Lobbying and advocacy for
(NAWOU)                                                            women’s interests
                                                                 - Marketing support
                                                                 - Microfinance for women
                                                                 - Women resource centre
Uganda      Small   1979   UWEAL, Makerere     Craftsmen and     - To enhance the industrial
Scale Industries           University,         Artisans            development of small scale
Association                EXPOSURE AFRICA,    nationally.         industries in the country right
(USSSIA)                   NAWOU, JUAKHALI,    With offices in     from the grass root level.
                           UMA, PSFU, UEPB     25 districts.
Innovations         2007   Sida, Makerere      Firms and         - Facilitate and enhance
systems       and          University, PSFU,   Farms in East       innovativeness
cluster                    UIA                 Africa e.g. bee   - Facilitate and enhance
programme                                      keeping             competition and cooperation
                                               cluster, dairy      with clusters
                                               cluster,          - To nurture a competitive mind-
                                               basketry, Fruit     set amongst cluster members
                                               and vegetable
                                               processing
                                               cluster etc.




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                            Annex 8 – List of contacts


Steven Mukibi: Wildplaces Africa / the Uganda safari co: steven@safariuganda.com

Resty K. N. Lwanga (National Arts and crafts association of Uganda):
rklwanga@yahoo.com

Ismael Sekandi: Uganda Hotel Owners’ Association (UHOA)

Bruno Sserunkuuma – Makerere Univeristy: brunosse@yahoo.com

Muhwezi Onesimus USAID Star: onesimus@star-uganda.org

Abiaz Rwamwiri USAID Star: abraz@star-uganda.com

Bonifence Byawuwhama AUTO: kitanda@infocom.co.ug
                                Annex 9 – Detailed SWOT analysis

Strengths                                            Weaknesses
 Plenty of unspoiled and unexplored natural          The poor state of Uganda’s roads is the biggest
    resources (e.g. half of the world’s mountain       challenge faced by tourists (22%)
    gorilla population, over 1060 bird species,       Insufficient accommodation in the parks,
    high density of primates, tree climbing            limited choice of accommodation facilities,
    lions, source of the Nile, white water rafting     low standards and poor services
    sites, Lake Victoria, snow-capped Rwenzori        Unprofessional conduct from staff and lack of
    mountains, dense tropical forests, etc.            skilled human resources associated with weak
 Unique cultural and religious resources              vocational training schools
    (e.g. Namugongo Martyrs Shrine, Bahai             Lack of tourism related capacity – particularly
    Temple, Kibwetere Inferno site, Traditional        at community level - including low community
    Kingdoms coronation sites and palaces,             and government awareness of tourism
    Kasubi Tombs, Balonyo Site, the Uganda             benefits and needs
    Museum, Nyero Rock Paintings, etc)                Weak and inconsistent branding in key
 Closeness to the heart of Africa                     markets, also poor pricing
 Good climate                                        Lack of variety in tours
 Diversified tourism offer in terms of hotel         Training of guides takes a long time
    range (high end to low end guesthouses)           Lack of supply /quality from handicraft
    and attractions (cultural, historical, natural     products
    tourism sites)                                    Lack of market research/weak statistical base
 Low employment rigidity                              / Lack of information about the region
 Ease of sourcing some local raw material            Weak associations at provincial level (hotels
    inputs                                             and TOs)
 Ease of sourcing local component inputs               Lack of coordination between stakeholders
 Large experience in the local market                   and weak public-private partnership
 Existing local tour operator, hotel and                frameworks
    restaurant associations                             Many products are purchased in Kampala
 Existing handicrafts skills and production             instead of locally (fresh produce, meats)
 Existing pro poor tourism initiatives in the          Limited private sector involvement in
    country (e.g. STAR Project)                          destination marketing
 Good roads/trails for mountain biking                 Historically low level of promotions and funds
 Villages with typical homesteads and                   for the sector
    traditional activities                              Weak country credit rating
 Tourism is highlighted as a major industry            Weak rating on corruption perception
    of focus by the incoming new NRM                    Relatively expensive products
    government, according to their manifesto            High site lease costs for industrial land
 Tourism is highly ranked in the NDP                   High electricity usage charge
    thereby giving the sector priority and              High water costs
    attention at national level                         Difficult to organise marketing and customer
 Location (border with Kenya, Rwanda and                support at a national level
    DRC)- Easy access                                   Many different handicraft groups in Uganda
 The untapped tourism potential of Uganda               proposing similar products
                                                       Absence of hotel grading and regular
                                                         inspections to enhance accommodation and
                                                         hotel standards
                                                        Inadequate public and private institutional


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                                                       capacity to initiate meaningful tourism
                                                       development. The private sector is
                                                       fragmented, small and lacks sufficient public
                                                       sector support
                                                     Inadequate policy frameworks to conserve
                                                       Uganda’s cultural heritage which is presently
                                                       threatened with extinction
                                                     Failure to deliver satisfactory experience and
                                                       value for money
                                                     Inadequate policy frameworks
                                                     Over reliance on foreign tourists makes the
                                                       sector highly vulnerable to external shocks
                                                     Negative perception of Uganda due to past
                                                       insecurity and leadership
Opportunities                                       Threats
 Uganda is becoming a famous bird                   Rainy season influences (low visitation)
   watching destination                                number of visits
 Tourist interest in watching artisans at           Fragile biodiversity
   work                                              Unstable global and local oil prices
 Growing iconic status of natural and               Terrorist or security incidents as major
   cultural heritage attractions (quite a              deterrent to travel
   number in Uganda)                                 Increasing effectiveness of competitors
 Increased intra-regional and international         Adverse publicity for Africa
   air services (particularly low cost carriers);
 Increased coordination of marketing and
   industry participation
 The creation of the East African Common
   Market
 Emergence of a social networking portal on
   the worldwide web
 Increased Internet marketing activities
 Prevailing peace and security in the region
   vs. instability in the Maghreb region
 Increased UN and donor recognition of the
   sector as key for poverty reduction
 Growing tourism market segments




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