With a substantial funding gap, stakeholders are warning that the drastic cuts will derail Uganda’s target of growing tourism into the country’s top foreign exchange earner.
The government's budget projection for 2025–2026 stands at Shs 57.4 trillion, which is Shs14.7 trillion less than the current budget of Shs72.1 trillion, reflecting a general budget cut across sectors.
The tourism sector is among the affected key areas, with its Shs 311 billion budget for tourism development slashed to Shs175.98 billion, representing a Shs135 billion decrease.
This allocation falls far short of the Shs 464 billion sector indicative figure under the National Development Plan IV (NDP IV)—leaving a Shs 288 billion funding gap.
Stakeholders Protest Budget Cuts
Amos Wekesa, CEO of Great Lakes Safaris, says this drastic reduction will severely hinder the government's goal of boosting tourism foreign exchange earnings to USD 50 billion by 2040.
"We say tourism and agriculture are our key areas of focus, but then cut the budget—it’s a joke. Countries like Tanzania are investing heavily in the sector and earning from it. If we can't invest in the sector, I don't see our tourism growing," Wekesa said.
He adds that the government needs to prioritise marketing funding or risk watching the sector collapse.
"We are buying vehicles, wasting money on other ministries instead of investing in promoting this country. Money should be put into marketing—if we invest in this sector, this country will not need any other sector for growth," Wekesa told Nile Post.
The Uganda Tourism Board (UTB), responsible for marketing Uganda globally, is also raising concerns over the financial shortfall.
Simplicious Gessa, the Public Relations Head at UTB, says if targets are not backed up by corresponding resources, they will have to realign priorities and lower expectations.
"We should enable the tourism sector to have the corresponding finances to meet the target. If not, we shall realign priorities and put resources where the impact is.
But we shall also have to reduce expectations because you can't achieve where you don't invest," Gessa told Nile Post.
UTB currently receives about Shs 17 billion, with only Shs five billion allocated for marketing Destination Uganda. Gessa revealed that UTB is engaging the government to secure sufficient resources to implement tourism development projects.
Minister Butime Warned of Negative Impact
In January this year, Tom Butime, the Minister of Tourism, protested the tourism budget cuts, arguing that they would negatively affect earnings.
Butime emphasised the need to improve roads, ICT, electricity, and other essential amenities at tourist sites to enhance the overall visitor experience, ensuring that Uganda remains an accessible and standardised tourism destination.
Despite being a private-sector-driven industry, tourism requires substantial government support to thrive.
As discussions continue, the industry awaits clarity on how the government plans to bridge the Shs 288 billion funding gap while keeping Uganda on track to becoming a top African tourism destination.