DECODING UGANDA'S FY2025/26 NATIONAL BUDGET AND ITS IMPACT ON THE TOURISM ECONOMY.

Hon. Matia Kasaija, the Minister of Finance of Uganda, presenting the 2025/26 National Budget Speech at Kololo Independence Ground on Thursday June 12th 2025.

The recently unveiled Uganda National Budget for the Financial Year 2025/26 presents a critical roadmap to economic growth under the theme “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.” Among the key economic sectors poised to benefit is tourism—a sector that, though deeply impacted by past global shocks, is now on a solid recovery path.

According to the Budget Speech delivered by Finance Minister Matia Kasaija on June 12, 2025, at Kololo Independence Ground, Uganda has registered commendable progress in the tourism sector in FY2024/25. It promises even greater gains for FY2025/26. The budget speech highlights targeted interventions and substantial allocations geared toward revitalizing and expanding Uganda’s tourism footprint.

Tourism Sector Performance in FY2024/25

Uganda’s tourism economy has shown a strong rebound:

• Tourist arrivals rose by 7.7%, reaching 1.37 million visitors in 2024, up from 1.27 million in 2023.

• Tourism earnings increased by a significant 26%, reaching USD 1.28 billion, up from USD 1.02 billion the previous year.

This rebound is attributed to:

• Improved security and stability in tourist areas.

• Government investment in tourism infrastructure.

• Strategic marketing campaigns under the “Explore Uganda—The Pearl of Africa” destination brand identity and targeting high-value source markets, including the United Kingdom, Canada, and the USA.

• A 33% increase in tourist interest from the UK, 19% from Canada, and 5% from the USA.

There was also a 15.7% increase in domestic tourism to national parks, recording 244,843 local visitors in 2024.

Strategic Investments in FY2025/26

Budget Allocation

The Government has allocated:

• UGX 430 billion directly for tourism development.

• An additional UGX 2.2 trillion in cross-sectoral investments supporting tourism indirectly, such as road upgrades in tourism corridors, ICT infrastructure, and security in tourism zones.

Key Focus Areas

1. Branding and Marketing Uganda as a Global Destination

   • Scaling up “Explore Uganda—The Pearl of Africa” campaigns.

   • Promoting Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism – Uganda now ranks 7th in Africa for MICE tourism, thanks in part to the new world-class convention centre at Speke Resort Munyonyo.

2. Infrastructure Development at Key Tourism Sites

   • Continued work on the Source of the Nile pier, trail maintenance in protected areas, and infrastructure at Namugongo Martyrs’ Shrine, the Rwenzori Mountains, and the Karamoja Museum.

3. Tourism Amenities and Standards

   • Construction of refreshment centres and highway sanitation facilities to improve the tourist experience.

   • Enforcement of hospitality standards and capacity-building for tourism professionals.

4. Promotion of Health Tourism

   • Investment in specialised health facilities to cater to health tourists, especially from the East African region and beyond.

Potential Impacts on the Tourism Economy

1. Economic Diversification and Job Creation

The budget's focus on expanding the tourism value chain—especially through health tourism and MICE—signals an intent to diversify tourism offerings. This diversification is likely to:

• Create jobs across accommodation, logistics, event planning, and health sectors, among others in the tourism value chain.

• Stimulate auxiliary businesses such as artisanal crafts, transport services, and food production.

2. Enhanced Infrastructure

The planned upgrades to physical and digital infrastructure directly enhance tourist mobility and experience. Improved roads, internet access in national parks, and better sanitation will increase Uganda’s competitiveness in the regional tourism market.

3. Improved Global Positioning

Aggressive international marketing coupled with investments in high-end convention and wellness tourism facilities positions Uganda not just as an adventure destination but also as a premier business and health travel hub. This could shift Uganda’s tourism profile from budget-focused to a higher-value model.

4. Sustainability Considerations

However, tourism’s expansion must be matched with sustainable environmental management. With increased footfall to sensitive ecosystems like Bwindi Impenetrable Forest and Queen Elizabeth National Park, Uganda risks degradation of biodiversity unless park capacity and conservation budgets are concurrently scaled.

5. Public-Private Synergy

The budget encourages private sector engagement, but the operationalisation of this promise—particularly in concessioning, local business inclusion, and investment facilitation—remains to be fully tested. Efficient implementation and anti-corruption safeguards are essential to prevent resource wastage.

A Golden Opportunity with Guardrails Needed

Uganda’s FY2025/26 budget positions tourism as a high-potential growth sector capable of catalysing broad-based development. The Shs 430 billion direct investment, supplemented by cross-sectoral support, is a strong signal of intent to transform Uganda into a more diversified and premium destination.

But the success of this strategy hinges on two pillars including consistent implementation and sustainability. If the Government, private sector, and communities work in synergy, Uganda could see tourism earnings push toward the USD 2 billion mark by 2026, further solidifying its role as a pillar of Uganda’s monetized economy.