More Tourists in 2008, though a decline is evident in 2009

By Baluku Geoffrey,

Kampala, Uganda

A total of 844,000 foreigners visited Uganda in 2008, representing a 32% increase over 2007. As a key contributor to Uganda’s GDP tourism accounted for 3.7% of the total. Despite this increase, it is clear that Uganda’s tourism industry is now facing difficult times as a result of the financial melt down.

The tourism industry is especially vulnerable to financial slow downs with consumers spending less on travel products and experiences in the short and medium terms. Expenditure on accommodation and Gorilla Permits, Uganda’s trump card has decreased drastically as visitors choose more affordable safari options.

There was growing optimism that Uganda would soon achieve the 1 million foreign visitor mark by 2012. However, with the current economic melt down experienced globally and domestically, the effect on Uganda’s tourism industry is likely to be worse.

The unstable fuel costs and fluctuating dollar rate means that long-haul tourism is on the decline, particularly for middle income tourists. This has already had an effect on Uganda’s tourism industry.

As long haul travel becomes increasingly unaffordable, the integration of the East African region is now paramount for the region to achieve its tourism targets. However, reasonable controls such as some degree of protection for the Ugandan tour operators should be taken into consideration as we go into the final stages of the East African re integration.

The drop in visitors from all major source markets including UK and USA is now evident. According to research firm Trip Advisor, 58% of UK consumers are likely to or have already been influenced by the economic down town when it comes to choosing a holiday this year.

Tour operators in Uganda must now guard, at all costs, against pricing itself out of the global market as this destination now competes, on affordability levels, with Kenya, Tanzania and Rwanda.

With the deepening of the global financial crisis and economic slowdown, there is a rise of new challenges ranging from safari cancellations to souring inflation rates now believed to have settled at 14.8%.

These challenges thus call for a cash injection so as to help in facilitating tourism research, marketing and work force issues for the better of Uganda’s Tourism industry.

Uganda: Tourism Sector Requires More Funding

By Baluku Geoffrey
Kampala, Uganda

Tourism has become one of the worlds fastest growing industries and hence forth an economic catalyst bringing earnings to countries in form of foreign exchange. The tourism industry continues to enjoy above average results and has for the past few years recorded sustained growth as high lighted in the United Nations World Tourism Organization (UNWTO) report "Tourism Highlights 2007".

In Uganda, tourism contributes nearly 26% of the country's total export earnings and also provides vital employment for people with a wide range of skills as well as the unskilled. Take for instance the hospitality sub sector alone employs country wide an estimated 59,000 people with the related transport sector accounting for another 18,000 jobs.

In as much as the above statistics have made government identify the tourism industry as one of its key priority economic sectors, there is little to show from its input. From Hon. Suruma's proposed budget for financial years 2008 / 2009, it is evident that government continues to deliberately under fund tourism.

The tourism sector brought in US$449 into the economy of Uganda last year (2007). However, from the sector allocations proposed by the finance minister, a meager 5% was allocated to the tourism, trade and Industry ministry. It is vital for government to stop paying lip service and put some meat on the skeleton.

Efforts must be made to increase funding to the sector if Uganda is to remain relevant in the tourist trade. Government seems to be behaving like a herdsman that keeps milking his cows with out feeding them.

What would you expect from such a cow? It is surely not enough for government to say so much about tourism and the economy's growth without making something tangible for it to prosper in real terms. 

Tourism as we all know operates in a market economy and it's subject to international forces. New destinations emerge and others decline because they are under cut on prices or become un fashionable. 

From a survey carried out through some of the trade fairs across the United States, Europe and South Africa, it was noted that Uganda was largely a blank page. If we are to put Uganda on the world map, then there is need to strengthen Tourism Uganda (formerly Uganda Tourist Board). Tourism Uganda (UTB) was created in 1994 by statute to operate as the government's tourism marketing arm.

Despite the continued under funding, the board is charged with the promotion of Uganda in the domestic and international arena. The tourism product is an amalgam of accommodation, tourist attractions, entertainment, catering and transport. The passing of the tourism bill and governments proposal to increase development spending by allocating about 1.1 trillion (about US$687.5 million) to the roads sector are all welcome moves that will go a long way in improving the tourism product.

However, this alone will not ease the problem of funding to the sector. Government should treat UTB (Tourism Uganda) as a baby who crawls before he or she walks. There is also need to improve further / strengthen the relationship between the private and public sector. Take for instance the membership of the Association of Uganda Tour Operators (AUTO) have in the past few years been the biggest marketers of our country's tourism resources. This association recently elected a vibrant new board to steer its interests for the next two years. 

All the association needs is waivers in the areas of tax such as zero rate on VAT plus incentives in monetary terms so as to enable the members cut on marketing costs. Supporting UTB and AUTO will surely be an important leverage not only to winching Uganda out of poverty but also lead to the growth of the tourism industry. If funding is increased, the tour operators will then find it easy to attend international trade fairs that are considered the biggest one stop marketing points of tourism around the world. 

Among the big travel shows are WTM in London, ITB in Germany, JATA in Japan, COTTM in China, INDABA in Durban South Africa, FITUR, some in Spain, USA and of recent the ever growing KARIBU fair in Tanzania. Regionally our neighbors that include Tanzania, Kenya and of recent Rwanda have increased funding to their tourism sectors which is evident from not only the publicity they are getting but also the increased number of tourists to their countries.

Thus if Uganda is to become or remain competitive, then there is surely need for government not only to increase funding but should also consider zero rating VAT on tour operator services as this will enable us compete favourably.

Tourism: Time to re brand Uganda

By Geoffrey Baluku

Kampala – Uganda

IN 2007, almost 642,000 tourists visited Uganda compared to 540,000 in 2006. This number is considered the highest Uganda has ever experienced and thus represents an increase of almost 19% over the year before.

Tourism brought $449m into the economy in 2007 compared to $375m in 2006. It is presumed that over all each visitor to Uganda spends about $750 per visit thus the tourism industry’s contribution to the GDP has increased from 1.98% in 2006 to 2.33 % in 2007.

This is an indication that the tourism industry is not only continuing to grow but is also now recognized at the highest level for its significant impact on the Ugandan economy albeit the under-funding.

It is common knowledge that every visitor to Uganda who has a good experience in the country will attract five more to visit. But every visitor who gets a bad experience will discourage 10 people from visiting the country. Thus to attract visitors and keep them coming back, Uganda’s tourism industry must live to its reputation of variety and value as enshrined in its slogan, “The Pearl of Africa”.

The tourism product is more or less a dream. Thus the capability of tourism businesses to deliver what they promise and in a bid to satisfy customer expectations depends upon sound management practices. These can be achieved if we built on our brand name and collectively owned it.

At the moment Uganda has an uncoordinated and fragmented brand identity. Some are now referring to Uganda as “Africa’s friendliest Country” others “Gifted by Nature” while others refer to Uganda as” The Pearl of Africa" which to most of us still stands out from the new coined slogans.

We cannot say that we exclusively own brands such as “Gifted by Nature” or “Africa’s friendliest Country”.

Several countries the world over are friendly and gifted by nature. And in any case this brand “Gifted by Nature” leaves us at risk of losing our most treasured cultures as opposed to a brand name like “The Pearl of Africa” which is all-embracing.

At one of the stakeholders’ meetings called by the Ministry of Tourism to enlighten us on the importance of embracing MICE, the former state minister for tourism Hon. Jovino Akaki, asked if our country should be marketed as “The Pearl of Africa” or “Gifted by Nature”. Which is which? To answer the above, those who came preferred “Gifted by Nature” made one mistake!

They did not do an audit of the brand “The Pearl of Africa”, thus leading to the current confusion. Those who coined the slogan “Gifted by Nature”, did they also plan to change the national anthem? When you listen to the national anthem, the writer must have had “Pearl of Africa” at the back of his mind.

Marketers’ know that a good brand will surely project Uganda’s strengths while recognizing its weaknesses. I strongly feel that re-branding to our original slogan “The Pearl of Africa” will enable us re-position ourselves well on the international market.

However, this will necessitate the government to lead the way in the re-branding process. We all know that media organizations world over can not create a good brand for our country. They always seem to be more interested in “bad news” such as civil strife and disasters. If Ugandans can recall; late last year we hosted the Commonwealth Heads of Government Meeting (CHOGM). The presence of top media organizations was an opportunity for our country to be known globally.

However, when the top media houses (Sky News, CNN) and many others reached here, they headed north and east and started covering the floods and lifestyles of the people in the internally displaced people’s camps! If my memory serves me well, Al Jazeera is one of the few that briefly showcased the CHOGM event.

Focused marketers/planners would have “forced” or given free offers to these top media houses to visit our marvelous nationals parks and cultural sites. To my dismay, the organizers were busy dining with them instead of exploiting the opportunities at hand.

There were good organizing committees having lots of money to spend without prioritizing the expenses. For political mileage, yes CHOGM was a success. But I have reservations to the overall benefit of the event to the tourism industry in Uganda.

In light of the above, there is need for the government of Uganda to re-invest in its brand as well as management and promotion of that brand. Government will need to create a public-private sector partnership if this is to be achieved.

Tour operators, hoteliers, and other small and medium scale tourism enterprises must be involved as this will enable everyone to own the brand thereby naturally promoting it.

What we are having at the moment is those few that are for “Gifted by Nature” while the majority still believe the best brand is “The Pearl of Africa”. We will also need to do more than re-branding if we are to capture the international market.

Any serious government will have to reconsider having a national carrier. Look at successful tourist destinations in Africa. Airline brands complement national brands. For instance Kenya is supplemented by the ‘pride of Africa’ inscribed on all Kenya airways flights; Air Tanzania, ‘the wings of Kilimanjaro’ to mention but a few.

However, now that the tourism bill was passed by parliament and due to be enacted into law, we need to start by restructuring UTB (now re- branded as Tourism Uganda).

As the marketing organ for Uganda’s tourism; emphasis should be on creating/ strengthening the research department. More so, realizing that we are now in a “global village” with the internet as the main mode of communication and marketing; there is need to employ few but well paid staff that not only have knowledge in global tourism trends but also some training/ knowledge in information technology.

This industry is now more of website-based thus marketing through this mode is the most ideal option.

As we reposition ourselves, we also need to ask some questions:

* Which markets are we organizing ourselves to win?

* How do we target them?

* Where will the guests /tourists stay when they visit our national parks?

My focus for now will be on the last question. Most of our national parks are now exclusively operated by a few individuals with lodges. Matters are even made worse by the management agreements Uganda Wildlife Authority has signed with these ‘investors’.

Agreements for exclusivity have been signed covering not only big chunks of the park land but also stretching over periods of over 20 years! If we are to all benefit from our resources, there needs to be equitable use of these resources.

The Government not only needs to increase funding to Tourism Uganda (Formerly UTB) but it should also strengthen the boards’ research department as this will help us understand visitor needs, perceptions as well as obstacles as we plan to market.