UGANDA TOURISM NOT READY FOR EAST AFRICAN COMMON MARKET

By Baluku Geoffrey

Kampala, Uganda

Uganda by common consent of travelers continues to be one of the most beautiful countries in the world. The country not only has a great diversity and profusion of wildlife species but has also had 23 years of dramatic tourism growth. It is not only home to the highest number of mountain gorillas but has also been voted the number one birding destination in Africa.

The tourism sector is however faced with a number of challenges ranging from high cost of finance and constrained access to credit to inadequate opportunities to support technological transfer and low bargaining and lobbying capacity. This is yet to be compounded with a new challenge of the planned common market for the five East African countries.

Tourism in Uganda is known to be built on the natural and cultural resources which are usually the few assets owned by the poor. With the integration of East Africa and planned common market, the poor especially those in tourism related enterprises may end up being pushed out of business. The Ugandan market will for instance be flooded with Kenya and Tanzanian products such as crafts which will in way over shadow our own.

There is an Asian saying that goes, “Tourism is like a fire, you can cook your food with it or it can burn your house down”. It is clear that Uganda has not yet reached the level of Kenya and Tanzania.

Considering the limited facilities characterized by monopolies in Ugandan National parks, opening up the tourism sector to the East African common market may worsen the already fragile industry. Assuming many companies with a strong financial base such as Somak entered the Ugandan market, they would eventually control the entire tour operation business which would make conflict inevitable.

Government should handle the planned process of a common market in phases. This can be done in consultation with the tourism industry players. What is happening at the moment is that industry players have been left at the periphery of the whole negotiation process.

Irrespective of the capitalistic ideas, there is need for an element of “protectionism” for the Ugandan industry players. There is also need for standardization of tourism products and the fast implementation of the Tourism Act prior to opening up to the East African Common market.

Locals need to be empowered so that they are able to compete with counter parts in Kenya, Tanzania, Rwanda and Burundi. If this is not done, then conflict will always arise.

Economic Recession, Competition hits Kenya's Tourism

By Trek East Africa Safaris Correspondent

NAIROBI, KENYA

Fluctuating fuel prices coupled with post election chaos and competition affected Kenya's rankings in 2008.

The Managing Director Kenya Wildlife Service (KWS) Mr. Julius Kipngetich warned last Tuesday that the country’s key source markets were under severe attack from key competitors. He said that there was need for the government to defend Kenya's existing markets at this particular time of the global recession.

Kipngetich further said that, “Kenya's forays into China and other countries should hold because these markets are also under serious attack by several competitors, especially Tanzania.

Details of Kenya’s performance at the just concluded ITB exhibition held in Berlin, Germany remained scanty; Kipngetich said he would brief the media in the coming days.

Najib Balala, the Tourism minister who led the ITB delegation said most prospective tourists were still skeptical of the country’s security given the negative media reports in light of the return of the ‘Mungiki Sect’ ritual killings.

However, the Chairperson of the Kenya Tourism Federation Ms. Lucy Karume, revealed that Kenya’s four biggest markets USA, UK, Italy and Germany accounted for 38% of the revenue earned from Tourism, which equaled to all the other 23 destinations. This she said, "shows why Kenya's source markets cannot be replaced by numbers from the emerging markets”.

Different tourism players in Kenya have proposed that government comes up with a stimulus package for the airline industry and also improve on the product pricing.

Kipngetich also noted the need for the re-capitalization of the Kenya Tourism Development Corporation (KTDC) that could be used to finance the construction of new lodges in the country since according to him banks do not lend money to tourism investments that usually have long term pay back periods.

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 targets 1million tourists by 2012

By Paul Tentena

UGANDA Tourism Board (UTB) has set a target of a million tourists by 2012, according to a top official.

William Byaruhanga, the board chairman, explained last week that this would be achieved by expanding the scope of products provided, and entice tourists to stay longer with attractive packages.

“We shall maximally tap our potential in the sector in terms of investment and arrivals,” Byaruhanga stated.

Byaruhanga said Uganda received 642,000 tourists last year but noted the need to improve the country’s presence and marketing initiatives across the globe.

“We intend to expand our activities within Europe and also target new markets like the US and Asia this year. The Ugandan stand design shall be consistently improved to be competitive at different exhibitions as we benchmark best practices internationally,” he stressed.

On the country’s staggering image abroad, Byaruhanga observed: “Branding and positioning takes a while regardless of our past history and it requires consistency and sufficient funding.
“International marketing requires huge sums of money to change our past image in the source markets and we shall get there with good marketing strategies.

“Every country has its history that is what distinguishes us as people. Germany gets millions of visitors annually regardless of Hitler’s activities in the past.”

Commenting on the issue of the “Gifted by Nature” brand and the “Pearl of Africa” tagline preferred by the private sector, Byaruhanga said “A brand is a perception or mindset. Therefore, the two brands can be pushed and used to compliment each other instead of cannibalising each other.

“Both brands have not been fully tested to come out with clear conclusions about usage mileage.

“However ‘Gifted by Nature’ stretches beyond tourism to other sectors like trade. A branding strategy has been finalised and is set to be rolled out, finances being a factor.

“Consultations have been ongoing to solve the differences of the two brands.”

Byaruhanga said Uganda will host four regional domestic tourism exhibitions in Uganda given the credit crunch in Europe, which is the major market.
“We shall also design family, corporate and individual packages that are affordable and attractive to our people.

“It should be noted that tourism is the fastest growing sector world wide at 8% and indeed in Uganda as well. Tourism has a perfect trickle down effect and can be key in fighting poverty hence the need to prioritise it.”