Despite the increase in absolute terms, tourism still receives a relatively small portion of the national budget
By Chowoo Willy
Kampala, Uganda – The Government of Uganda has allocated Shs 430 billion in the 2025/26 national budget to revamp the country’s tourism sector, signalling renewed commitment to transforming the industry into a leading driver of economic growth.
The budget sees the allocation to the tourism sector increase from UGX 289.6 billion in FY2024/25 to UGX 430 billion in FY2025/26, marking a UGX 140.4 billion rise (48.5%). This increment is significantly higher than the UGX 39.9 billion increase recorded in FY2024/25 over the UGX 248.7 billion allocated in FY2023/24.
This sharp rise, announced by Finance Minister Matia Kasaija during his budget speech on June 12, 2025, at Kololo Independence Grounds, signals renewed government commitment to revitalizing tourism as a core pillar of Uganda’s economic transformation. Matia said that the investment is aimed at enhancing infrastructure in key tourism destinations, improving hospitality standards, and promoting Uganda as a premier global and regional destination.
“Tourism earnings have grown by 13.1% to USD 1.52 billion in the 12 months to March 2025. This impressive growth is attributed to the sustainable peace, increased competitiveness of Uganda’s tourism industry, and Government investment in strategic tourism infrastructure, including Uganda Airlines,” Kasaija stated
Despite the increase in absolute terms, tourism still receives a relatively small portion of the national budget. In FY2025/26, its UGX 430 billion allocation accounts for only 0.59% of the total UGX 72.4 trillion national budget. Yet the sector’s economic weight is far greater: in 2024, tourism directly contributed 3.2% to Uganda’s Gross Domestic Product (GDP), and its total impact—including indirect and induced effects—was estimated at 6.6% of GDP.
This contrast between budgetary priority and economic contribution highlights the sector’s untapped potential and suggests room for deeper public investment.
Tourist arrivals also rose by 7.7% to 1.37 million in 2024, up from 1.27 million the previous year. Domestic tourism surged too, with national parks registering a 15.7% increase in Ugandan visitors, reaching 244,843 people. International campaigns under the “Explore Uganda” and “Uniquely Ours” themes spurred growing interest from high-value markets such as the UK, Canada, and the USA.
The government registered significant achievements in tourism infrastructure during the year. These included the maintenance of 1,300 km of roads and trails in protected areas, expansion of electric fencing in Murchison Falls and Queen Elizabeth national parks, and construction of 3,521 metres of climbing ladders and boardwalks on the Rwenzori Mountains to improve safety and accessibility.
Additionally, Uganda advanced on heritage tourism infrastructure such as the completion of the Kikorongo Equator Monument in Kasese, upgrades to the Uganda Museum and Namugongo Martyrs’ Shrines, and the near-completion of the Karamoja Museum.
MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism has also gained momentum, with Uganda now ranked 7th in Africa, thanks in part to the new world-class convention facility at Munyonyo.
Beyond direct investments, an additional Shs 2.2 trillion was earmarked for supportive infrastructure—such as tourism roads, ICT installations in tourism zones, AFCON 2027 facilities, and strengthened security in tourist hotspots.
Looking ahead, the government plans to focus on five key areas: branding and marketing Uganda as a tourism and investment destination; improving infrastructure in tourism sites; constructing refreshment centres and highway sanitation facilities; enforcing hospitality standards and training; and developing health tourism through specialized health facilities
As Uganda looks to diversify its economy and promote sustainable job creation, tourism continues to stand out as a strategic sector for economic transformation.
