President Yoweri Kaguta Museveni has sounded a call to action, urging for a reconsideration of hotel taxes in Uganda. The President's plea is rooted in his conviction that tourism should be treated as an export sector, rather than being taxed like domestic consumer services.
During a meeting with the Uganda Tourism Association (UTA) at State House Entebbe, Museveni emphasized the pivotal role hotels play in the tourism industry, likening them to the backbone of the sector. He advocated for favorable policies, including access to affordable financing through institutions like the Uganda Development Bank (UDB).
Museveni's commitment to promoting tourism as a strategic export industry is evident in his pledge to address key policy bottlenecks raised by UTA. These include taxation, access to finance, and infrastructure development.
The President also welcomed UTA's proposal for structured support, which includes annual funding to strengthen the association's Secretariat. He committed to reviewing their recommendations, demonstrating his willingness to collaborate with stakeholders to drive tourism growth.
This development is particularly significant, given Uganda's tourism sector's impressive growth. The sector earned USD 1.52 billion in 2023, with international tourist arrivals reaching 1.37 million. Domestic visits to national parks also surged by 15.7%.
As Uganda strives to increase its tourism receipts to USD 4 billion by 2030, Museveni's call for a taxation policy review is a step in the right direction. By treating tourism as an export sector, Uganda can unlock its full potential, creating jobs, stimulating economic growth, and showcasing its natural beauty to the world.

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