Uganda Travel & Tourism Sector Contributed about 9% of Country’s GDP in 2011, Finds Tinetirc

02 Aug 2012 • by Natalie Aster

Travel and tourism is an important sector for the Ugandan economy, contributing close to 9% of the country’s GDP in 2011. The sector’s contribution to the country’s employment increased from 6.5% in 2007 to 7.8% in 2011. The total number of tourists visiting the country increased, recording a CAGR of 15.68% during the review period. Africa was the major source for inbound tourist arrivals in 2011, accounting for 72.2% while Europe accounted for 12.5% and Asia-Pacific accounted for 6.3% in the same year. Kenya was the major source country, accounting for 30.6% of the total inbound tourists visiting the country, followed by Rwanda with an 18.7% share. Leisure was the main purpose of travel for tourists visiting Uganda.

According to the report “Travel and Tourism in Uganda: Key Trends and Opportunities to 2016” by Timetric, Ugandans undertaking tourism trips within the country increased at a CAGR of 2.2% during the review period. Increasing domestic tourist volume is the result of promotional campaigns by the Uganda Tourism Board. Promotional activities coupled with increasing mean household income in the country are expected to drive the domestic tourism sector to grow at a CAGR of 4.25% over the forecast period.

In the past, the tourist industry in the country has been under threat owing to recession and lack of funding. The tourist industry suffered a decline of 4.4% in inbound tourist volume in 2009 due to the global economic slowdown. However, the industry bounced back in 2010 with a growth of 17.3% in inbound tourist traffic. The growing trend continues with a substantial increase in the number of tourists visiting the country in 2011. The growth is in the backdrop of a terrorist attack in July 2010. The security measures put into place by the government to establish a peaceful environment in the country have helped the tourist industry to a great extent.

Report Details:

Travel and Tourism in Uganda: Key Trends and Opportunities to 2016
Published: July, 2012
Pages: 79
Price: US$ 500,00

Domestic tourist volume is less in Uganda when compared to Rwanda, Kenya and other East African countries. The number of Ugandans undertaking domestic tourism trips is small, owing to high accommodation rates and low mean household income. As a result, the Uganda Tourism Board announced several plans to boost domestic tourism in the country. Among the plans, tourism promoters in the country offered tourism packages with lower fees to encourage Ugandans to undertake tourism trips. As a consequence of these promotional activities, the domestic tourist volume in the country increased by 5.2% in 2010 and 3.4% in 2011.

More information can be found in the report “Travel and Tourism in Uganda: Key Trends and Opportunities to 2016” by Timetric.

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