KAMPALA – Muhereza Kyamutetera, a renowned Ugandan journalist and tourism practitioner, has been appointed Chief Executive Officer (CEO) of the Uganda Tourism Association (UTA). UTA serves as the umbrella organization for tourism trade associations in Uganda, aiming to build a professional, competitive, thriving, and inclusive tourism sector.
In his acceptance statement, Kyamutetera acknowledged the industry’s critical juncture, highlighting the need for urgent action. Despite a 48.5% growth in international tourist receipts in 2023, reaching USD 1.025 billion from USD 692 million in 2022, Uganda still lags behind its regional counterparts – Kenya, Tanzania, and Rwanda – in recovering its pre-COVID-19 visitor numbers.
The tourism sector’s contribution to Uganda’s GDP stood at USD 2.8 billion (5.5%) in 2023, which is USD 300 million less than the USD 3.1 billion recorded in 2019. This decline underscores the sector’s struggles to regain momentum.
Kyamutetera identified suboptimal government investment as a primary factor hindering the sector’s growth. The National Development Plan III (NDP III) allocated UGX 2.049 trillion for the sector from 2020/21 to 2023/24, but only UGX 826.5 billion (40%) was released. In the 2023/24 financial year, UGX 260.599 billion was approved, with UGX 258.675 billion actually released.
The sector faces significant funding gaps, limiting its potential. The lack of access to affordable medium-to-long-term funding exacerbates this challenge. Consequently, the tourism sector has the highest Non-Performing Loans to Gross Loans Ratio of 12.1% as of May 2024, according to the Bank of Uganda.
Despite these challenges, Kyamutetera remains optimistic. He expressed gratitude for the government’s continued investment in supporting sectors like roads and electricity, which indirectly benefits tourism.
The government has renewed its focus on tourism, recognizing its potential as a key driver of growth in the medium to long term. Uganda aims to increase sector earnings from USD 1 billion to USD 5 billion by 2028. However, Kyamutetera emphasized the need for a radical shift in policy and investment to achieve this ambitious target.
As CEO of UTA, Kyamutetera is poised to leverage his professional experience and passion for Destination Uganda. He will serve as a vital bridge between the private sector, government, and development partners, working collaboratively to:
- Increase tourism volumes and revenues.
- Enhance the quality of tourism experiences.
- Improve household incomes through tourism enterprises.
Under Kyamutetera’s leadership, UTA is committed to addressing the sector’s challenges and unlocking its full potential, contributing to Uganda’s economic growth and development.
