Uganda Tourism Board Criticized for Failing to Establish Tourism Development Fund
A recent audit report has revealed that the Uganda Tourism Board (UTB) has failed to establish the legally mandated Tourism Development Fund, raising serious concerns about the financial management and future growth of the country’s tourism sector. The fund, as outlined in the Uganda Tourism Act, Cap 82, was intended to serve as the central repository for all of UTB’s income and finances, playing a crucial role in mobilizing resources for tourism development.
According to Sections 20 (1) and (2) of the Act, UTB is required to establish the fund in a bank approved by the Minister of Tourism. However, the audit found that no tangible steps had been taken to create the fund, despite its importance for investing in tourism infrastructure and supporting the sector’s growth. This failure has been attributed to managerial negligence, which the report notes undermines UTB’s ability to effectively manage its finances and deliver on its mandate.
The absence of the fund is particularly concerning given the critical role tourism plays in Uganda’s economy. The sector is a key pillar in the country’s ATMs (Agro-industrialisation, Tourism, Mineral Beneficiation, and Science, Technology, and Innovation) strategy, which aims to drive tenfold economic growth over the next 15 years. Without the fund, Uganda risks missing out on opportunities to develop its tourism potential and attract international visitors.
Despite this omission, UTB management has explained that the Ministry of Tourism is currently revising the Tourism Legal Framework, which includes plans to incorporate the Tourism Development Fund into the new legislation. However, the audit report argues that this revision process should not delay the establishment of the fund, as it is already required under existing law.
The audit recommends that the Accounting Officer, in consultation with relevant stakeholders, take urgent steps to establish the fund. This action is deemed essential for ensuring the sustainable growth of Uganda’s tourism industry. The fund would enable UTB to mobilize resources effectively, invest in critical infrastructure, and position Uganda as a competitive destination in the global tourism market.
The delay in setting up the fund represents a significant risk to the sector, particularly as Uganda seeks to capitalize on its rich natural and cultural heritage to attract more visitors. For African travel agents and stakeholders, this development highlights the need for stronger financial management and accountability within Uganda’s tourism sector to unlock its full potential.
Moving forward, the establishment of the Tourism Development Fund will be a critical step in ensuring that Uganda’s tourism industry can thrive and contribute meaningfully to the country’s economic growth.
