National Tourism Sector Development Plan 2015/2016-2019/2020

1.0 Strategic Overview........................................................................................................ 7

1.1 Tourism Sector Vision Statement ................................................................................. 7 1.2 Mission of the Ministry of Tourism, Wildlife and Antiquities ..................................... 7 1.3 Mandate of the Ministry of Tourism, Wildlife and Antiquities .................................... 7

1.4 Legal Framework .......................................................................................................... 8

2.0 Situation Analysis ......................................................................................................... 9

2.1 Tourism Contribution to GDP ...................................................................................... 9

2.2 Tourism contribution to local economies ................................................................... 10

2.3 Uganda Tourism Demand side competitiveness ......................................................... 12

2.4 Competitiveness of tourism investment incentives..................................................... 15 2.5 Summary of challenges and binding constraints for the tourism sector ..................... 18

3.0 Strategic objectives ..................................................................................................... 21

4.0 Implementation Framework ........................................................................................ 23

5.0 Monitoring and Evaluation Framework ...................................................................... 23

6.0 Projected Investment and Plan Financing Mechanism ............................................... 25

6.1 Basis of expenditure/investment projections .............................................................. 25

6.2 Basis of income/revenue projections to the Sector ..................................................... 26

6.3 Projected Financing Gap 2015/16 – 2019/20.............................................................. 27

6.4 Plan Financing Mechanisms ....................................................................................... 29

6.5 Summary of Total Investment Costs Annualised (US$)............................................. 30

7.0 Critical Success Factors .............................................................................................. 30 Bibliography ........................................................................................................................... 32 Appendix 1: Strategic Actions and Expected Outcomes ........................................................ 34 Appendix3: The Tourism Sector Development Work Plan and Budget................................. 56 Appendix 4: Monitoring and Evaluation Framework ............................................................. 57 a) Marketing and Promotion ........................................................................................... 57 b) Human Resources Development ................................................................................. 63 c) Tourism Management and Regulation ........................................................................ 66 d) Logical Framework: Natural and Cultural Heritage Conservation........................... 69 iii e) Tourism Product Development ................................................................................... 71 Appendix 5: The Core Markets of Focus for Uganda............................................................. 75 Appendix 6: Cascading Model forTraining of Trainers ......................................................... 79 Appendix 7: List of selected stakeholders consulted .............................................................. 80 Appendix 8: Tourism forecasts (arrivals and receipts) ........................................................... 84 Appendix 9: The Celes International Consulting Team ......................................................... 84 iv List of Acronyms 4WD Four Wheel Drive AUTO Association of Uganda Tour Operators AWPs Annual Work Plans B&B Bed and Breakfast CAA Civil Aviation Authority CBOs Community Based Organisations CNDPF Comprehensive National Development Planning Framework DRC Democratic Republic of Congo EAC East African Community EIA Environmental Impact Assessment FDI Foreign Direct Investment GDP Gross Domestic Product HRD Human Resource Department IBA Important Bird Area ICTs Information and Communication Technologies IT Information Technology LGDPs Local Government Development Plans M&E Monitoring and Evaluation MDAs Ministries, Departments and Agencies MFPED Ministry of Finance, Planning and Economic Development MICE Meetings, Incentives, Conventions and Exhibitions MoIA Ministry of Internal Affairs MoLG Ministry of Local Government MTWA Ministry of Tourism, Wildlife and Antiquities NCHE National Council for Higher Education NDPs National Development Plans NEMA National Environment Management Authority NFA National Forestry Authority NGO Non-government Organisation NPA National Planning Authority OPM Office of the Prime Minister PAs Protected Areas SIPs Sector Investment Plans SMEs Small and Medium Size Enterprises TOTs Trainers of Trainers TSDP Tourism Sector Development Plan TUGATA The Uganda Air Travel Agents Association UBOS Uganda Bureau of Statistics UGX Uganda Shilling UHOA Uganda Hotel Owners Association UIA Uganda Investment Authority UICTHP Uganda Institute of Certified Tourism and Hospitality Professionals UK United Kingdom UMA Uganda Manufacturers Association UNAA Ugandan North American Association UNWTO United Nations World Tourism Organisation USA United States of America USAGA Uganda Safari Guides Association USDs United States Dollars v UTA Uganda Tourism Association WHS World Heritage Site WTM World Travel Market vi

1.0 Strategic Overview The Government of Uganda in 2007 approved the Comprehensive National Development Planning Framework (CNDPF), which provides for the development of a 30 year Vision to be implemented through: Three (3) 10 year plans; six (6) 5 year National Development Plans (NDPs); Sector Investment Plans (SIPs); Local Government Development Plans (LGDPs); Annual Work Plans (AWPs) and budgets. To operationalize this planning framework, Government formulated the Uganda Vision 2040 in 2013 to provide a development path and direction in transforming Uganda from a peasant society into a modern and prosperous country targeting to attain a competitive upper middle income status by 2040.This vision is conceptualized around strengthening the fundamentals of the economy to harness the abundant opportunities around the country. Tourism is one of those core sectors that are currently grossly underexploited yet with potential to lead Uganda’s attainment of Vision 2040. This industry is highlighted as one of the key opportunities that are expected to play a major role in the economy and to be a major contributor to GDP by 2040. The tourism sector has therefore to be well planned, developed and monitored. The Tourism Sector Development Plan is built around the aspirations of National Development Plan II. The plan is consistent with the tourism master plan (2014/15 – 2024/25) by generating specific interventions and budgeted projects that lie on the critical path of tourism development over the period 2015/16 – 2019/20. The plan focuses on five core areas that were identified in the issues paper. These areas are marketing and promotion, human resource development, product development, natural and cultural resource conservation, and tourism management and regulation. There are detailed projects for each of the five core priority areas with detailed work plans and M&E frameworks.

1.1 Tourism Sector Vision Statement The vision of the tourism sector is sustainable tourism, wildlife and cultural heritage contributing to the transformation of the Ugandan society from a peasant to a modern and prosperous one.

1.2 Mission of the Ministry of Tourism, Wildlife and Antiquities The mission of the ministry is to develop and promote tourism, conserve and preserve natural resources and cultural heritage for accelerated economic growth and social transformation.

1.3 Mandate of the Ministry of Tourism, Wildlife and Antiquities The Government though the Ministry of Tourism, Wildlife and Antiquities (MTWA) has a mandate to provide leadership for the total industry as an economic force in the nation by promoting the tourism, wildlife and heritage resources of Uganda into highly competitive and preferred tourist destination with accelerated sector contribution to the national economy. 7

1.4 Legal Framework In executing its mandate, the ministry is guided and regulated by a number of policies, laws, regulations and guidelines. Notable of these are; Constitution of the Republic of Uganda (1995), Tourism policy (2014), Tourism Act (2008), Uganda Wildlife Act (2000), Historical Monuments Act (1967) as well as the Universities and other Tertiary Institutions Act (2001). All these policies and Acts mandate the Ministry of Tourism, Wildlife and Antiquities (MTWA) in conjunction with the sector Agencies to set policy, oversee, monitor and coordinate the tourism sector development. Specifically the Government’s roles are to: (i) formulate medium to long-term tourism policy, plan for tourism development, and regulate tourism activities through legislation, licensing and classification; (ii) monitor performance on quality, safety and targets; (iii) facilitate tourism development by providing the infrastructure, economic, regulatory, fiscal and political environment that encourages investment and orderly growth; and (iv) ensure adequate funding for the marketing of Uganda as an attractive tourist destination. The tourism sector is guided and supervised by at least seven Government institutions that work closely with a number of private sector institutions spread across the country. The mainstream government institutions in charge of tourism are: Ministry of Tourism, Wildlife and Antiquities, Uganda Tourism Board (UTB), and Uganda Wildlife Authority (UWA. Other government institutions that support tourism are the Uganda Investment Authority (UIA) – for investment promotion, Ministry of Education and Sports (MOES) – for tourism-related training, Ministry of Works and Civil Aviation Authority - for Airline development and regulation, Ministry of Health, Ministry of Works and UNRA - for Tourism Roads. At the local government level, all district governments are mandated to offer front-end service delivery in all sectors including tourism, however the sector continues to lack effective representation within the local government structures. Guiding Sector Policy The Tourism Development is guided by the National Tourism Policy 2014 whose objective is to ensure the delivery of a step-change in the development and functioning of the tourism industry, in order to realize Uganda’s great but unexploited potential as a major tourist destination. The Policy emphasizes that by 2024, Uganda should offer a broad and enticing range of tourism products and activities, based on its wealth of natural assets and its rich cultural heritage. The tourism sector should have evolved into a major and sustainable source of revenue and employment across the country, thereby making a substantial contribution towards overall social and economic development. In order to reinforce the aspirations of the tourism policy, the tourism development master plan (2014-2024) identifies the following as 10-year development objectives for tourism in Uganda: i. To develop and diversify the tourism products and services ii. To develop tourism infrastructure and facilities iii. To promote and market the destination in national, regional and international markets iv. To develop human resource and institutional capacity for the tourism sector v. To enhance regulation, coordination and management of the tourism sector vi. To promote community involvement and enterprise development in the tourism economy vii. Promote safety and security of tourists and tourism assets viii. Promote local, regional and global partnerships for tourism development ix. Promoting conservation of natural and cultural heritage resources 8

2.0 Situation Analysis

2.1 Tourism Contribution to GDP Uganda Vision 2040 identifies tourism as one of the opportunities that should be harnessed to propel Uganda to a middle-income status. Uganda’s inbound visitor numbers have almost constantly grown over the past 20 years to reach 1.206 million visitors in 2013 (7.9% of GDP). Figure 1: International visitor arrivals to Uganda (2002-2013) 1400 250 1200 200 Volume of Change Arrivals ('000) 1000 150 800 100 600 50 400 - 200 -50 0 -100 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Tourism Issues Paper, 2014 However, after three years of a strong contribution to Gross Domestic Product (GDP) growth (2009- 2011), tourism currently follows a sudden and worrisome period of stagnation both in arrivals (a 0.8% increase between 2012 and 2013) and in its contribution to GDP (Figure 2). While incidences of Marburg and Ebola in the Western Uganda and the economic meltdown in the source market countries were identified as responsible for this decline, the numerous recent accolades received by Uganda (Best destination 2012, Kidepo Valley as one of top 10 national parks in Africa, etc.) did not help to mitigate the consequences of the adverse health and world economic environment although tourism growth was sustained in several of Ugandan neighbouring and competitor countries over the same period (e.g. Tanzania, Rwanda). Figure 2: Contribution of tourism in the balance of payments (2002-2012) $ 1,400 70% Contribution of tourism to the $ 1,200 60% Share of Travel year on year increase in 50% GDP growth $ 1,000 40% Tourist Expenditures $ 800 (US$ millions) 30% GDP growth $ 600 Hotels and Rest. (US$ 20% millions) $ 400 10% $ 200 Travel and BoP 0% approach (US$ millions) $- -10% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Tourism Issues Paper, 2014 9 The contribution of tourism to the balance of payments, shows a consistent positive trend for the last 10 years and is indicative of the hotel and Restaurant revenues being higher than international tourist expenditure. This can either be explained by an increase in domestic tourism or an increase in the number of Ugandans going to restaurants and attending conferences in hotels. It also illustrates a two-fold increase in revenues from one of the key segments of the Uganda tourism sector namely the Hotel & Restaurant sub-sector over the past 8 years. The travel sector is Uganda’s largest services export industry, having contributed US$ 1003 million to Uganda’s total export earnings in 2012. According to the Ministry of Tourism, Wildlife and Antiquities, the total impact of the travel and tourism industry went up to US$ 1,830 million in 2012 (8.8% of GDP and 11% of the services sector). Hotels and restaurants, as defined in the National Account, are making an increasing contribution to GDP growth and also represent a significantly large proportion of the services sector. The data for the year 2009 shows that the hotel and restaurant sector has been more resilient during the financial crisis than the services sector in general. Until 2012, Uganda has experienced a sustained growth in the balance of travel with its average contribution to GDP growth for the last three years at almost 50%, with a peak of 60.5% for the year 2010 (figure 2).

2.2 Tourism contribution to local economies Tourism presents economic opportunities for regional and remote communities to diversify their livelihoods, generate higher standards of living and create jobs. Table 1: Number of tourism businesses and employees Number of Number of establishments people Accommodation and food (2011) 64,602 154,167 employed Hotel and camping sites 3,876 29,635 Restaurants & Mobile Food 36,413 79,572 Events and other food service 24,313 44,960 Recreation and Personal (2011) 41,766 80,893 Transport (land + air transport) (2011) 445 Tour Operators (registered) (2013) 113 975 Travel agencies (registered) (2013) 82 Tour guides (registered) (2013) 325 Community-based enterprises (UCOTA) 2,901 (2013) Total 239,261 Source: MTWA and UBOS, 2014 Direct employment in tourism in Uganda reached 191,500 employees in 2014 corresponding to 2.8% of total employment in Uganda. However, cross-aggregate information from several sources about employees in the tourism sector, excluding the transport sub- sector indicates a significant difference with the WTTC figure (+25%). The difference stems from the issue of the definition of the tourism industry that still impedes the evaluation of the sector’s impact. It is important to note that tourism benefits close to 3000 people working in community-based enterprises mostly located in the vicinity of national parks which is likely to have a strong impact in terms of poverty reduction. Currently, a major proportion of leisure tourism expenditures in Uganda is generated in the regions where national parks are located. The case of Bwindi Impenetrable Forest where Gorilla permits cost $ 600 received more than half of these expenditures (51%)1. Although Queen Elizabeth National Park has been 1UWA is planning to raise the price of Gorilla permits to $600 as from January 2015. 10 the most visited national park for more than ten years now, Murchison Falls National Park became the main attraction for international leisure visitors in 2013 with 70,798 visitors (UBOS, 2014). Figure 3: Visitor expenditures to national parks Source: Tourism Issues Paper, 2014 The progressive improvement of living conditions, and the emergence of a Ugandan middle class, also represents an enormous potential market with numerous opportunities for the regions. The recent survey on domestic tourism in Uganda (2013) shows that this segment constitutes a significant portion of the tourism sector in the local economy. Tourism stimulates the production of goods and services in a wide range of sectors and sub-sectors representing a value chain, e.g. construction, furniture and fittings, agriculture, fisheries, food growing, processing and light manufacturing, healthy water, education, handicrafts, as well as transport, telecommunications and financial services. Within only the following three crafts sectors - wood carving, textiles and clothing, and jewellery - a minimum of 1489 Ugandan youths and women were recorded as being suppliers of products to the tourism sector (ITC, 2011). Tourism-based industries including hotels and restaurants, and transport and communication, contributed 7.3% and 7.9 % respectively of employment (Mwaura & Ssekitoleko, 2011). By 2011, a total of 15,565 persons were employed in the accommodation sub-sector across the country - excluding accommodation establishments in Kampala and Wakiso districts (MTWA, 2012) - and 14.6 % of total employment (630,830 jobs). The tourism sector contributed 14 % of the total registered businesses in the country (UBOS, 2011) and this presented the sector as second largest after trade (61%). The number of enterprises in the sector increased by 214% in the last decade (UBOS, 2011).For some regions, including national park areas, Fort Portal, Entebbe and Kampala tourism forms a relatively large share of their regional economy. 11

2.3 Uganda Tourism Demand side competitiveness For the last 10 years, with an average growth of 16.8% of international arrivals per year (2003-2013), Uganda has successfully begun to capture a very small part of the global tourism growth and flow of international visitors. While the dramatic drop in arrivals of leisure visitors (-49%) for the year 2011 does not seem to be relevant (the number of visits by non-resident foreigners/visitors increased during the same period), leisure visitors however only account for an average of only 15-16% of all international arrivals to Uganda. Figure 4: Visitors arrivals by category 1400 1200 Numbers of visitors ('000) 1000 Others 800 VFR 600 Business visitors 400 Leisure visitors 200 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: UBOS The VFR segment (Visit Friends and Relatives) remains the largest market in the country with 44% of international arrivals in 2013. Africa accounts for 78% of arrivals to Uganda (of which 68% are from neighbouring countries). This is why the majority of the non-resident arrivals use road transport as a mode of travel. The number of non- resident arrivals by road increased from 535,000 to 783,000 during the period 2009-20132.Looking at the market segments and especially the leisure markets, the European (9%) and the American (6%) markets which are two of the highest spending markets accounted for less than one fifth of all international visitor arrivals in 2013 (figure 4). Furthermore, over 40% of tourists visiting Uganda also visit other African countries on the same trip mainly Kenya (20%), Tanzania (12%), and Rwanda (10%)3. About 20% of all leisure tourists are package tourists. The competitiveness analysis4 of the Ugandan Tourism Industry however shows that the reversal in growth trend for the highest spending markets cannot be explained by the economic meltdown in the source market countries. Although Uganda was competitive in some markets (Africa, Americas and Middle East) until 2010, its absorption of these markets was lower than that of its neighbouring countries (table 2). 2 Migration and Tourism Statistics 2012-2013, UBOS 3 Economic and statistic analysis of Tourism in Uganda, World Bank 4The measurement of competitiveness adopted here is drawn from the work of Khao-Sard and Unthong (2005). 12 Table 2: Market share for Uganda in key source markets (2008-2012) Outbound markets Countries of destination Year Trend for Rwanda Kenya Tanzania Zimbabwe Uganda Uganda 2008 1.33 0.18 0.77 1.41 1.18 Maintaining Africa 2010 1.33 0.28 0.81 1.41 1.16 market 2012 1.39 0.37 0.72 1.38 1.24 share 2008 0.83 1.32 2.04 0.39 1.14 Losing Americas 2010 0.84 1.38 1.53 0.52 1.17 market 2012 0.46 1.79 1.35 0.46 0.83 share East Asia and the 2008 0.25 2.20 0.99 0.77 0.42 Lagging 2010 0.29 1.92 1.05 0.72 0.57 opportunity Pacific 2012 0.31 1.33 1.68 0.84 0.77 2008 0.30 2.78 1.31 0.23 0.51 Losing Europe 2010 0.34 2.46 1.32 0.24 0.51 market 2012 0.31 2.14 1.56 0.32 0.46 share 2008 1.03 2.98 0.12 2.64 Losing Middle East 2010 0.92 2.61 0.18 3.36 market 2012 0.11 2.86 1.16 0.04 0.39 share 2008 2.42 2.32 0.22 1.90 Losing South Asia 2010 2.56 2.90 0.21 1.89 market 2012 0.34 2.54 1.34 0.03 0.50 share Source: Tourism Issues Paper, 2014 Additionally, table 25 indicates that Kenya and Tanzania have shown market growth in the key leisure markets (Americas, Europe and Oceania) but Uganda’s market absorption rates have been declining for the same markets. Uganda’s index of competitiveness in the major markets shows a negative trend from 2008 to 2012. This trend is illustrated in the figure below where the annual increase of leisure tourists to Uganda is the lowest in comparison to Tanzania and Kenya. For the European market alone, this loss6 represents about US$ 50 million per year. Figure 5: Comparison of Leisure visitors (Kenya, Tanzania, and Uganda: 2001-2012) 500.0 400.0 Kenya - Year on year Number of visitors ('000) 300.0 increase (Leisure) 200.0 Tanzania - Year on year 100.0 increase (Leisure)

0.0 Uganda - Year on year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 increase (Leisure) -100.0 -200.0 -300.0 -400.0 Source: UNWTO DATA, 2013 The slow progress in the share of leisure visitors to national parks corroborates the findings of the competitiveness analysis, highlighting market share decline in the region. Such a trend reflects the low 5The direction of change in the ratio over the years 2010-2012 and the changes in the absorption rate of the host markets has been examined. The change in the general trend here is defined as the change in the number of outbound visitors from that particular market to competing destinations. 6 The loss is calculated using the difference between the CAR and 1 for the European market. 13 impact of recent marketing strategies. The current low number of commercial flights to national parks, due to low bed capacity, has tended to force visitors to travel by road, making trips time-consuming and less enjoyable. According to Aerolink, an airline serving regional airfields in Uganda, bed capacity is a challenge in Kihihi, Kisoro and Kidepo, which are the destinations that offer a different product as compared to the rest of East Africa. Plans for regular regional flights between Entebbe and the Albertine Rift (in the western part of Uganda) are highly desirable (World Bank, 2012), “yet having an international airport in the Albertine Rift would further reduce travel times and therefore make Uganda more competitive”. Table 3: Visitors to National Parks (2005-2013) Visitors (citizens and foreigners) 2005 2006 2007 2008 2009 2010 2011 2012 2013 to national parks (000s) 213.95 129.000 110.092 126.553 134.486 151.818 190.112 207.994 182.189 0 Non-resident foreigners 32% 42% 42% 39% 40% 39% 39% 45% 47% Resident foreigners 9% 11% 10% 10% 9% 7% 7% 9% 8% Resident citizens - EA 13% 15% 19% 18% 20% 21% 21% 24% 24% Students 26% 22% 22% 28% 28% 30% 30% 21% 20% Others 20% 11% 7% 5% 3% 3% 3% 1% 1% Source: Tourism Issues Paper, 2014 The commercial exploitation of the Ugandan national parks is far lower than that of its major competitors. The average number of visitors to Uganda’s NPs per day per square kilometre only represents 7.7% and 8.9% compared to South Africa and Kenya. In other words, South Africa and Kenya receive ten times more visitors per day per square kilometre in their national parks than Uganda. Figure 6:Commercial exploitation of NPA per sq km (2010) 12 0.180 Number of visitors per day per km sq Millions 0.160 10 0.140 8 0.120 0.100 6 Number of visitors to NPA 0.080 4 0.060 surface (ha) 0.040 2

0.020 Visitors per day (km sq) 0 0.000 Source: Tourism Issues Paper, 2014 If the low rate of visitors per day per square kilometre to national parks represents a comparative advantage for Uganda, the country has opportunity to maximise its carrying capacity in the national parks. 14 Despite gorilla tourism being the single most important asset over which Uganda has an absolute comparative advantage over Kenya and Tanzania, 39,744 gorilla permits remained unsold for the years 2007-2013. This missed opportunity represents a substantial loss of US$ 19.8 million for the period 2007- 20137. The additional lost tourist expenditures, which would have been made if these permits had been sold, amounts to nearly US$ 60 million dollars over the same period. Besides, the opportunities that other National Park Areas (NPA) offer to the Ugandan economy are not yet being fully harnessed. In order to improve equitable resource distribution, a share of the entrance fees to national parks (20%) is transferred to local districts through, offering the local population opportunity to submit project proposals. However, limited skills and planning at local district level impede the implementation of projects that would offer better economic and employment alternatives to the local population. Table 4: Revenue from national park entrance fees shared with communities 2007 2008 2009 2010 2011 Revenue shared with UGX UGX UGX UGX UGX 1,089,195,275 communities 1,046,514,710 $ 406,372 411,462,162 $ 159,775 494,184,190 $ 191,897 264,971,125 $ 102,891 $ 422,945 Approximate available revenue (20%) of NP $ 2,258,188 $ 2,334,623 $ 2,584,448 $ 3,113,213 $ 3,413,799 entrance fees Used amount 18.0% 6.8% 7.4% 3.3% 12.4% Consequently, only 8.7% of available revenue was used for the years 2007-2011, representing more than $ 12.4 million of unutilised money originally intended to benefit local communities (table 4).

2.4 Competitiveness of tourism investment incentives According to the Uganda Bureau of Economic, Energy and Business Affairs, “strong economic growth, open markets, and abundant natural resources provide good opportunities for knowledgeable investors in Uganda, though significant challenges such as poor infrastructure, high energy and production costs, and corruption can make Uganda a difficult investment climate”. In 2001, the government created the Uganda Investment Authority (UIA) to assist foreign and domestic investors. Uganda’s potential for larger amounts of FDI in tourism is however still hampered by weak infrastructure, insufficient electricity and high energy costs, and the lack of a skilled workforce. Numerous policies and programmes aimed at improving competitiveness have been implemented over the last fifteen years (CICS II, 2011-2025) including investment incentives offered to investors accompanied with reforms to ease business transactions. A “Business in Development Network Guide to Uganda” is available on the Internet. In a bid to improve Foreign Direct Investment, there is need to ensure better maintenance of the UIA’s Internet Website. Uganda’s fiscal incentive package for both domestic and foreign investors provides generous capital recovery terms, particularly for medium- and long-term investors whose projects entail significant plant and machinery costs and involve significant training. In Kampala, 50 percent of capital allowances for plant and machinery are deductible from a company's income on a one-time basis; elsewhere in Uganda, 75 percent of those capital allowances are deductible. 100 percent of training costs are deductible on a one-time basis. A range of annual VAT deferments, deductions, exemptions and depreciation allowances also exist, resulting in investors often paying no tax at all in the first year of their investment, and usually 7Considering that a permit costs US$ 500. 15 paying substantially less than the 30 percent corporate tax rate in the subsequent years of their investment. The Government also provides a 10-year tax holiday for investors engaged in export-oriented production and, if the investment is located more than 25 kilometres away from Kampala, for agro-processing investors. The efficiency of the economic incentives can be measured against a set of indicators such as the number of international hotel chains operating in Uganda. The most represented international chains in all four countries are Serena Hotels (19 establishments) and PROTEA (6 establishments), both majorly operating in Southern and Eastern Africa. Kenya has the highest number of rooms by international hotel chains while Tanzania leads in the number of establishments because it has several small high-standard tented camps and lodges located in the Tanzanian Natural Parks. The Ugandan international chain hotels are almost all located in the city of Kampala (and one is at the airport of Entebbe). This limits Ugandan employees’ ability to acquire world class hospitality skills. Table 5: International hotel chains operating in Uganda and neighbouring competitors Number Number of Average number of Countries of rooms rooms/establishment hotels Kenya 14 1118 79,9 Rwanda 2 178 89,0 Tanzania 18 438 25,8 Uganda 7 665 95,0 Source: Tourism Issues Paper, 2014 Corruption, tax and business start-up emerge as the top three business environment constraints to competitiveness according to the CICS stakeholders. However some of the improvement made, in particular include the removal of exclusivity rights for National Parks’ concessions that were a big impediment to investments and competition (only 11 FDIs, registered in the tourism sector in both 2009 and 2010 when exclusion zones were still applicable). UWA is working on reducing the buffer zone for the Marasa Holdings (Mweya, Paraa and Chobe lodges) to a smaller area. In 2010, 31 tourism investments were approved, of which 19 were foreign-owned, creating 2,310 jobs. Those investments accounted for 5.1% of all investment made in Uganda and constitute an important increase compared with 2009. In 2014, eight tourism demonstration projects are under development by the MTWA to include Kampala Tourism Circuit, Kampala Exhibition and Conference Complex, Lutoboka Beach Development, Source of the Nile, Nile Adventure Trail, Murchison falls visitors facilities, park visitors centres and Fort portal tourism hubs8. Table 6: Regional competitiveness indicators (average lending rate / cost of energy9) Kenya Rwanda Tanzania Uganda 2013 Average lending rate (% per annum) 17,1 16,3 13,6 23,7 2012 Average lending rate (% per n/a 17,5 15,46 26,31 8 Constraints faced by tourism investors in Uganda (2014), Uganda Invest 9 Uganda’s electricity network reaches only 14.64% of the population in 2014, 4% more than in 2010 (energypedia.info) 16 annum) Source: CIA World Fact Book It is also particularly difficult to start a business in Uganda because the average lending rate is the highest of all the EAC partner states, with an average interest rate of over 20% per year. For the tourism sector, the main impediments to investment and growth include (PSFU, 2010):  An inadequate and uncompetitive infrastructure (rail, roads, waterways, air);  Limited supply, reliability, and high cost of power;  An increasing skills gap and low labour productivity;  Limited access to affordable finance, the narrow scope of long-term financing, legal and regulatory barriers;  A narrow tax base that imposes an immense burden on compliant tax payers and;  Local private sector limitations to participating in public procurement markets. Additionally, Entebbe Airport charges are higher compared to the neighbouring airports of Kenya and Tanzania. According to the PSFU, this factor is undoubtedly one of the main reasons for the low volume of air traffic at Entebbe. Table 7: Airport charges for Uganda, Kenya and Tanzania in 2014 2014 - Airport Landing Example A320 - Charge/user (US$/ton) 73 tons (US$) ($US) ENTEBBE (CAA) 6 443 60 DAR ES SALAAM (TAA) 5 365 40 JOMO KENYATTA – NAIROBI (KAA) 3 219 20 (2010) Source: National aviation authorities of Kenya, Tanzania and Uganda 17

2.5 Summary of challenges and binding constraints for the tourism sector Area Issues, challenges & constraints Tourism marketing and promotion  Uganda’s performance in the leisure and holiday segment from key markets in America and Europe is declining while that of regional players is rising. The majority of tourists (over 75%) are residents of East Africa who do not visit the protected areas and other tourist attraction sites.  Weak market segmentation and targeted destination marketing for both domestic and inbound markets. Efforts to promote domestic tourism are still ad hoc, without a comprehensive strategy.  Limited market research is being done.  Majority of local Tour operators lack liability insurance which is critical in securing transactions with the outbound tour operators in the source markets  Uganda’s brand is not well established and positioned in the desired markets. The brand is weak and barely recognised  Inadequate supply of promotional materials at local governments and other MDAs resulting in very limited awareness of the potential that lies in tourism.  The online marketing strategy for the tourism sector is still weak.  Absence of a national crisis management strategy  Lean marketing team at UTB, limited in skill depth and human capital Tourism product development  Uganda receives 10 times fewer tourists per square kilometre in the protected areas compared to its major competitors in the region.  Wildlife stocks in most of the PAs are declining due to poaching, climate change effects, human-wildlife conflicts, massive invasion of alien species like Lantana which are not palatable to many wildlife species and does not provide conducive habitat for prey prone species.  The product range is very narrow largely concentrated on wildlife. Uganda’s cultural and historical heritage resources are in a latent state while others are being destroyed.  Tourism on Uganda’s large water bodies together with diverse avian life is still underdeveloped. This also applies to Uganda’s entertainment sector.  Uganda’s product is delivered by fragmented service providers who are inefficient and ineffective which ultimately makes the product expensive.  Limited government support for investment in the sector as there are no incentives for people interested in developing specific products  There are no realistic work plans and budgets for tourism product development at the local government level  The sector remains highly centralized, based in Kampala, limiting information sharing to other regions to facilitate opportunity recognition and product development  There is lack of a tourism investment fund specific for regions Tourism human resource  Low level of tourism skills throughout the national tourism value chain, at managerial, technical, operational and in key 18 development supporting functions both in government and private sector.  There is limited knowledge of existing inventory of skills by value chain nodes as well as the skills requirements for each value chain actor in the industry.  The tourism sector is dominated by SMEs and family owned businesses employing unskilled family members at low pay thus compromising quality visitor experiences.  There is weak capacity in terms of instructional infrastructure, training manpower and the human capital of the trainers in the available tourism training institutions.  Working conditions are in general poor leading to high labor turn over in the sector.  There is limited investment in skills development of existing workforce in the private sector  Tourism education and training are fragmented across a multiplicity of stakeholders (Ministry of Tourism, Wildlife and antiquities, Ministry of Education and Sports, Ministry of Gender, Labour and Social Development, National Council of Higher Education, Uganda Tourism Board, Education and Training institutions, Tourism Industry Employers). Tourism management and regulation Tourism financing  There is gross underfunding of the tourism sector’s core activities compared to the major competing countries as well as the sector’s contribution to GDP. As a result of meagre government funding of the sector: o There is very minimal marketing of the destination o Tourism product development is limited o There is weak human capital development o Conservation efforts are undermined o The private sector has no access to affordable credit or subsidized financing, and thus is uncompetitive  The tourism levy which was established by the Tourism Act 2008 has not been implemented. Tourism statistics  There is absence of reliable, consistent and appropriate statistical information on the tourism sector in Uganda: o Limited data on the tourism markets which the country is targeting; o Lack of statistical significance of existing information and problems in data quality; o Inadequate detailed and robust information on the economic impacts of tourism; o Limited and unreliable information on tourism and tourism-related businesses; o Limited research studies in the sector  Weak enforcement of the regulation with regards to data provision by the tourism service providers Quality assurance  Weak enforcement of the regulations on quality of facilities in the sector.  Inadequate capacity, human and financial to enforce implementation of quality standards in the sector  Coordination for implementation of quality standards among the different stakeholders is inadequate  There is limited awareness on the quality guidelines and standards by both the public and private sectors. Coordination, governance and  Tourism management and development is not yet adequately decentralized to the regions. leadership  Tourism management responsibilities are dispersed across many government departments and agencies, leading to overlaps, 19 underutilisation of resources, and inefficiencies.  Tourism resource management and prioritization at district level is influenced by the district councillors, who are not sensitive to tourism needs due to limited awareness and knowledge of tourism  District Commercial officers are inadequately facilitated to undertake tourism development activities Infrastructure development  Poor road access to and between some of the key tourist sites  Shortage of affordable quality accommodation capacity in and around National Parks  Inadequate supply of energy, water, ICT in key tourism sites  Lack of well-maintained airstrips close to the main National Parks  Lack of tourist stopover facilities  Single international air access route to destination Uganda (Entebbe) which is a risk to a flourishing industry Private sector development  There is inadequate private sector institutional and human resource capacity to initiate significant tourism development.  The private sector is fragmented and weak to effectively harness the available tourism potential  The tourism private sector, like in other sectors, is still bedevilled by limited access to affordable credit financing for investment.  Investors in the tourism sector lack adequate technical guidance on investment guidelines for facilities 20

3.0 Strategic objectives The objectives to be achieved under this TSDP are outlined per area of strategic priority: Priority Area One: Tourism marketing and promotion Over the next five years, Uganda’s main marketing objective will focus on core international, regional and domestic markets; and improving destination experience. The main focus will be on leisure and business segments, two markets that are most important to Uganda but where the country has consistently lost market share to the regional competitors. Leisure and business segments involve active choices that can be influenced through marketing, and have a higher economic impact on the economy. The core markets are Europe (UK and Germany) and North America (USA and Canada) because these markets generate the biggest volume of leisure and business tourists to Uganda. The East African region generates more than half of the tourists to Uganda, and segmenting it to target the leisure travellers also remains a priority for Uganda. Finally, the domestic market is a core segment which is growing exponentially and has ability to sustain the sector when there are contractions in the international and regional markets. See appendix 5 for detail on the chosen markets of focus. Uganda should move to consolidate its position in the core markets. The core marketing objectives are to:  Undertake targeted marketing in the core markets and attain annual growth of 10% in arrivals of leisure and business tourists by 2019/20 in these markets.  Develop the domestic market in Uganda by promoting events, festivals, day trips and weekend breaks.  Promote and attain a 15% annual increase in regional leisure and MICE travellers to Uganda’s key attraction sites and facilities by 2019/20. Priority Area Two: Tourism Human Resource Development The diversity of tourism activities is indicative of the range of knowledge, skills, and attributes needed by tourism workers and employees of tourism-related industries, professions, and government agencies. The workforce and human resource development for the tourism industry is placed at the centre of this TSDP because competitiveness comes through the people who deliver the tourist services and products. Tourism education and training shall not be built on the basis of a consultative model only but more on an engaged and participative stakeholder model, involving multi-ministry, industry associations, the private sector and international donor agencies. The approach will ensure partnership engagement in all facets of tourism education - policy, planning, resourcing, design and delivery - in order to meet industry and societal needs. There is also an urgent need to up-skill the officials in the various government agencies and institutions and to fulfil vacant posts. The core human resource development objectives are to:  Streamline tourism and hospitality training in Uganda to ensure an improvement in technical training contents and delivery.  Enhance the capacity and skills of in-service personnel in the tourism and hospitality industry  Increase demand for tourism-related job opportunities by highly skilled individuals Page 21 of 85 Priority Area Three: Natural and Cultural Resource Conservation Tourism development in Uganda can only be sustainable to the extent that the natural, historical and cultural heritage resources are conserved. These resources form the bedrock for the sector development and thus must be protected. However, given the current pressures from population growth, alternative economic activities, illicit trade, global warming and other exogenous factors, these resources are significantly affected. Over the next five years, effort will be made to ensure that ongoing efforts to conserve these resources are strengthened, building on partnerships, synergies and strategic alliances with key players. The two main objectives for natural and cultural resource conservation are to:  Strengthen the boundaries of protected areas and improve stakeholder engagement to reduce poaching, encroachment and environmental degradation in PAs  Enhance Uganda’s cultural heritage conservation and improve its contribution to tourism Priority Area Four: Tourism Management and Regulation The tourism sector is multifaceted involving a number of actors that play different roles. This diversity calls for effective coordination, management and regulation in order to attain sustainability. Since there is a common vision for the sector, there is need for government, private sector and civil society associations to pay attention for regionalization of the sector development, establishment of an efficient tourism information management system, enforcement of quality standards, development of private sector capacity to become competitive, development of appropriate infrastructure and finding sustainable funding mechanisms for the sector. These are among others, the core areas of focus in this tourism sector development plan and the specific objectives are to:  Improve tourism sector coordination and management  Develop a sustainable tourism development information management system  Improve tourism and hospitality service delivery for industry competitiveness  Improve tourism infrastructure (roads, air access, electricity, stopovers, water, internet [fiber cables and Wi-Fi blankets], and signage)  Implement a sustainable source of funding for the tourism sector. Priority Area Five: Tourism Product Development Products are the very basis for the existence of tourism and it is recognized that Uganda has a lot of potential for improvement, and development of new tourism products. A tourism product is typically an amalgam of many tourist experiences but in this plan, a product is limited to the things visitors to Uganda can see and do. The objectives of product development are to:  Upgrade and redevelop two existing tourism products to enhance tourist experience and economic impact  Develop two new tourism products to enhance tourist experience and economic impact Page 22 of 85

4.0 Implementation Framework The implementation of this sector development plan will be through the existing institutional structures. The overall responsibility for its successful implementation rests with the Ministry of Tourism, Wildlife and Antiquities which provides oversight supervision, policy development and coordination of the sector. The different components of the plan fall within the specific and general mandates of the departments within the ministry as well as the affiliated agencies. Also the various core stakeholders at national and regional levels have been involved in the development of this plan, and should continuously be engaged to play their role in the plan. The agencies, departments and other major stakeholders have been consulted at every stage of developing this plan. Accordingly, activities that fall within the mandate of a given agency will be their direct responsibility; all marketing activities proposed in this plan are to be led by the Uganda Tourism Board, natural resource conservation by UWA and UWEC among others. To effectively implement this plan, the Ministry will work through its top management committee which brings together all the accounting officers of the various departments and agencies under the ministry. The committee will be charged with ensuring that each actor plays their respective role, and this will be done through regular discussion of progress reports and work plans. Each of these actors will be required to develop a strategic plan and annual work plans that are in line with this plan. The annual budgets and activities of the agencies and departments will be tagged to this plan as a prerequisite for inclusion in the ministerial policy statements and budget for the sector. Furthermore, civil society organisations and donor agencies that are to implement projects in the sector will all align their activities with this plan. The Tourism Master Plan Coordination Committee will provide technical oversight and advisory roles to the stakeholders and the top management committee. To ensure that tourism development cascades to the regions, regional tourism development offices will be established to coordinate tourism development at the local level. These offices will work with all the tourism stakeholders including local governments and clusters to ensure that the sector is well represented in the local government plans and activities of the clusters. These offices will provide the channel through which this plan will reach the grassroots. It will also be important to build strong public-private partnerships because government alone cannot make every investment proposed in this plan. The investments which generate revenue will be left to the private sector and government role will focus on creating a conducive investment and operational environment for the investors. It is therefore important to strengthen the existing tourism associations to become a strong and equal partners in the implementation of the Plan.

5.0 Monitoring and Evaluation Framework The overall responsibility for monitoring the implementation of this plan rests with the Ministry of Tourism, Wildlife and Antiquities. To effectively monitor the implementation of activities, a participatory Page 23 of 85 approach involving all key stakeholders will be adopted. The three major fora to be utilized are: the Top Management Committee at the Ministry of Tourism; the Tourism Sector Working Group; and Regional Tourism Sector Working Group through the tourism clusters. A dedicated budget will be established to facilitate these fora. Top Management Committee at the Ministry of Tourism, Wildlife and Antiquities This Committee already exists at the Ministry of Tourism and is composed of heads of the Ministry and its departments, agencies and a representative of the private sector. The Committee is chaired by the Minister of Tourism, Wildlife and Antiquities. The forum will receive, review and approve annual budgets of the MDAs before they are sent to parliament. Once compliance of the MDA annual work plans to this TSDP is attained, a Certificate of Compliance will be issued. The Committee will meet monthly to receive and assess performance monthly reports of the MDAs in regard to the TSDP and their annual work plans. The Top Management Committee will receive, review and approve all tourism related development projects that are funded by the various development partners. Such projects should always indicate relevancy to the overall five year sector development plan before they are approved for implementation in Uganda. Tourism Sector Working Group A tourism sector working group has been re-established by the Ministry of Tourism bringing together all the major sector stakeholders to review the performance of the sector and identify emerging issues on a regular basis. This forum will be chaired by the Permanent Secretary MTWA, and members will include senior representatives of all government departments (including local government) involved in tourism development, regulation and training and related areas. Membership will also include key sector stakeholders from line ministries; the private sector and the development partners. These stakeholders will meet on a quarterly basis to review performance of this TSDP. Therefore, the office of the Permanent Secretary will establish direct communication channels with the actors to facilitate information sharing with the stakeholders. To the extent possible, social media platforms such as Facebook, Twitter and What’sApp should be taken advantage of. Regional Tourism Sector Working Groups Owing to inadequate presence of tourism in the regions, five regional tourism development offices will be established during the life of this plan. These offices will mobilize local communities to engage into tourism through use of the tourism development clusters which will bring together all actors from the entire sector value chain; representatives of local governments; and other stakeholders (faith-based, cultural, etc). Therefore, it will be important for the tourism development office to organize quarterly meetings where all these stakeholders meet to discuss progress in implementation of this plan in the region. The office will be empowered to deal with some issues at the local level, but for others of a significant nature, reference will be made to the relevant national office (ministry, UWA, UTB, UWEC, HTTI, etc). This office will be a channel through which information moves up to the top management forum and to the responsible actors. Progress reporting, reviews and communication results Page 24 of 85 The Top Management Committee will report quarterly to the office of the Prime Minister on key expenditures, actions, outputs and progress towards outcomes envisioned in this TSDP. Furthermore, the Ministry of Tourism will compile an annual performance report outlining its performance, the challenges and proposed mitigation measures in relation to this TSDP. This annual performance report will be submitted to the Office of the Prime Minister. The National Planning Authority will provide technical guidance on the structure and frame of the annual report. Mid-term Evaluation A mid-term review of the TSDP will be conducted in 2017/18 financial year to assess performance against the objectives and key outputs. The evaluation will be led by the National Planning Authority, and will make recommendations required to achieve the targets and objectives. Final Evaluation A final evaluation of this TSDP will be conducted in the last quarter of the planning period. The purpose of this evaluation will be to assess the overall effectiveness of the TSDP against its objectives as well as the objectives of the NDPII. This evaluation will highlight among the many issues important lessons learnt from implementing the plan as well as recommendations for the next planning phase for the sector. Logical Framework The primary tool to be used in the monitoring of the implementation of each of the five core priorities of this Plan is a logical framework. This tool will help to establish a logical hierarchy of means by which objectives will be attained; identify potential risks; establish how outputs and outcomes are best monitored and evaluated; present a summary of each priority intervention. The monitoring and evaluation framework to be used for this plan is in appendix 4.

6.0 Projected Investment and Plan Financing Mechanism

6.1 Basis of expenditure/investment projections Projections for investment expenditure over the planned period was based on a number of factors namely; approved work plans and cost assessments by sector departments and agencies; discussions with accounting officers and technical staff of the MDAs; benchmarking with similar projects in the EAC and elsewhere; estimates from supplier proformas and quotations; discussions with existing investors in the sector and other private sector; anticipated sequencing of investment interventions over the planned period; and lastly provision for inflation and exchange rate variations over the plan period. Sector agencies and departments provided already approved (by Parliament) work plans with cost estimates of a number of projects and activities to be implemented during the period 2015/16 – 2019/20. Other cost estimates were approved by the Boards of the respective agencies in both their work plans and strategic plans. Approved cost assessments were received from MTWA, UTB, UWA, the Museum department as well as UIA that formed a basis for a number of projections in this plan. Discussions were also held with accounting officers and relevant technical staff of the ministry and its agencies. The cost information generated was further reinforced by soliciting cost estimates from private sector firms and government agencies dealing in provision of related services, works and goods. For specialized projects and activities Page 25 of 85 such as cultural centres/villages and protected areas fencing, cost estimates were obtained by benchmarking with similar projects in the EAC and elsewhere. Similarly, discussions were held with existing investors and the Uganda Tourism Think Tank to establish the cost of specific types of investments in and around attraction sites. With regard to the spread of costs over the plan period, the major determinant was the anticipated sequencing of investment interventions based on existing work plans and detailed discussions with MDAs. Lastly, based on macroeconomic targets and assumptions in the Budget Framework paper for 2013/14 – 2017/18 which projects both annual headline and core inflation to remain at an annual average of about 7% during the period, and due to the need to take care of the foreign exchange risk component associated with this plan, all cost projections were accordingly adjusted by a factor of 8% from 2015/16.

6.2 Basis of income/revenue projections to the Sector Given that the Government of Uganda is the major contributor to investment in tourism development and that majority of the interventions still require significant public sector input, revenue estimates to finance the investments contained in this plan were based on the previous approved development expenditure budgets for 2012/13, 2013/14 and 2014/15 together with Medium Term Expenditure Framework (MTEF) development expenditure projections for 2015/16 – 2017/18. In addition to GoU development expenditure allocation, external financing projections in the MTEF projections up to 2018/19 have been used to estimate available public sector financing to support investment activities in the sector. Approved and projected MTEF Development Expenditure (billion shillings) Approved Approved Approved Projected Projected Projected Projected Projected Institution 2012/13 2013/14 2014/15 2015/16 FY 2016/17 2017/18 2018/19 2019/20 Ministry of Tourism Wildlife and 2.2 3.0 3.5 8.8 8.8 9.6 Antiquities 13.6 19.4 Uganda Wildlife Authority 9.0 10.0 22.0 3.0 5.0 6.0 7.6 9.5 Uganda Tourism Board 0.0 0.0 0.5 0.6 1.0 1.0 1.3 1.7 Uganda Wildlife Education 0.7 0.7 0.5 0.5 0.4 0.3 Centre 0.3 0.2 Hotel and Tourism Training 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Institute Uganda Wildlife Training 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Institute Total GoU Development 11.9 13.6 26.6 12.9 15.2 16.9 22.8 30.8 Expenditure External financing 3.091 0.724 0.000 0.000 0.000 0.000 0.000 Total Available public sector financing 11.9 16.691 27.324 12.9 15.2 16.9 22.8 30.8 Source: Budget Framework Paper, 2013/14 – 2017/18 and Forecasts for 2018/19 – 2019/20 The MTEF projections of development allocation available to the sector MDAs show an overall increase in trend from 2015/16-2019/20 of an annual average of 19.7%. However, the largest proportion of this is for MTWA and UWA responsible for policy and sector supervision and coordination as well as conservation respectively with the other agencies responsible for marketing and product development, and human resource development projected to get almost no development allocation between 2015/16 – Page 26 of 85 2019/20. The MTEF projections also show no external financing expected for the sector during the same period. With regard to private sector financing of planned interventions, a PPP approach where the private sector contributes to planned activities and investment is expected mainly in human resource development (HRD), product development, tourism marketing and promotion and cultural heritage conservation. In addition, for areas where significant FDI is expected to implement relevant activities but where initial public expenditure is required to develop master plans, no provision has been made for private sector investment in the current estimates.

6.3 Projected Financing Gap 2015/16 – 2019/20 According to the Budget Framework Paper for the period 2013/14 – 2017/18, external resources in the medium term for tourism, trade and industry are USD 3.2 million in 2014/15,USD 1.43 million in 2015/16 while the period 2016/17 to 2018/19 has no committed support. Overall, this expenditure represents less than 0.33% of the overall external resource support to all sectors. The overview of sector expenditure according to MTEF budget projections for development (excluding recurrent expenditure) is as follows: Projected financing gap for the Tourism Sector Development Plan (UGX billion) 2015/16 2016/17 2017/18 2018/19 2019/20 Projected GoU allocation to the Sector 12.9 15.2 16.9 22.8 30.8 Projected external financing 27 27 21 0 0 Total projected public sector financing 39.9 42.2 37.9 22.8 30.8 TSDP Public sector investment requirement 47.1 83.2 77.6 54.9 45.7 Public Sector Financing Gap 7.2 41 39.7 32.1 14.9 Based on the current MTEF estimates which are projected to the year 2019/20, the total financing gap of this plan is UGX134.9 billion. The financing gap is projected at UGX7.2 billion in 2015/16, UGX41 billion in 2016/17, UGX39.7billion in 2017/18, UGX32.1 billion in 2018/19 and UGX14.9billion in 2019/20. The above relate to public sector investment projections and exclude private sector investment interventions required to realise the plan objectives by 2019/20. The private sector investment interventions expected in tourism marketing and promotion, tourism human resource development, tourism product development, tourism management and regulation will be financed from private capital sources or through support from development partners. Total private sector investment required to achieve plan objectives is summarized in the table below: Page 27 of 85 Projected private sector investment 2015/16 – 2019/20 Priority Area 2015/16 2016/17 2017/18 2018/19 2019/20 Total Tourism Marketing And Promotion 839,741 956,920 1,119,010 1,208,531 1,305,213 5,429,416 Tourism Human Resource Development 89,900 147,092 238,859 329,648 356,020 1,161,519 Tourism Management and Regulation 200,000 216,000 233,280 251,942 272,098 1,173,320 Tourism Product Development - 5,141,347 10,522,654 5,652,867 50,000 21,366,868 Grand Total (US$) 1,129,641 6,461,359 12,113,804 7,442,988 1,983,331 29,131,124 Grand Total (UGX) 3,388,923,600 19,384,078,488 36,341,411,687 22,328,964,622 5,949,993,515 87,393,371,912 Page 28 of 85

6.4 Plan Financing Mechanisms In discussing the plan financing mechanisms it is important first and foremost to recognize the tourism sector’s direct contribution to Uganda’s economy as projected by the UNWTO. Based on the income contribution from leisure and business visitors alone which is expected to grow from US$466 billion in 2014 to US$876 billion in 2020, and a total income contribution of US$3.4 billion over the plan period, the sector is expected to be a major contributor to GDP, foreign exchange, employment growth, government revenue as well as poverty reduction. The sector is therefore expected to generate a higher rate of return on investment with planned investments undertaken to grow Leisure and MICE tourism which are the main focus of the plan. It is therefore imperative that GoU allocation to development expenditure within the MTEF is increased substantially as a significant first step to finance the Tourism Sector Development Plan because of the sector’s current and projected contribution to the economy. Therefore, in order to effectively finance planned investments in the sector, and because of the short time available, the MTEF ceiling for 2015/16 needs to be increased by UGX3.66billion and the same amount be raised through external financing as preparations are made to implement the tourism development levy in 2016/17. It will be necessary to raise an additional UGX3.15billion in 2016/17 and UGX0.425 billion in 2017/18 from external financing sources to supplement GoU allocations. As shown in the table below, additional MTEF allocations are expected to continue and end in 2017/18. The main source of financing the plan is expected to be the Tourism Development Levy which should be implemented in 2016/17 and will cover 100% financing of the public sector investment expenditure by 2019/20. Proposed Plan Financing Mechanism (UGX billion) 2015/16 2016/17 2017/18 2018/19 2019/20 Projected GoU allocation to the Sector 12.9 15.2 16.9 22.8 30.8 Projected external financing 27 27 21 0 0 Total projected public sector financing 39.9 42.2 37.9 22.8 30.8 TSDP Public sector investment requirement 47.1 83.2 77.6 54.9 45.7 Public Sector Financing Gap 7.2 41 39.7 32.1 14.9 Proposed MTEF adjustment (additional GoU 3.6 9.35 9.35 0.68 -18.09 allocation) Proposed external financing mobilization 3.6 3.15 0.425 0.00 0.00 Revenue contribution from Tourism Development 0 28.5 29.925 31.42 32.99 Levy (TDL)

6.5 Summary of Total Investment Costs Annualised (US$) Activity 2015/16 2016/17 2017/18 2018/19 2019/20 Total Public Sector Investment Marketing and promotion 3,590,563 3,911,728 3,675,770 3,915,832 4,229,098 19,322,991 Human Resource Development 4,230,100 4,479,308 4,282,773 136,914 147,868 13,276,963 Tourism Management and 416,667 9,351,950 8,761,296 6,102,692 809,307 25,441,912 Regulation Natural and cultural heritage 5,031,325 5,474,097 5,178,688 5,419,823 5,683,017 26,786,951 conservation Product Development 1,000,000 2,008,333 1,621,333 1,048,320 2,976,667 8,654,654 Sub-Total 14,268,654 25,225,416 23,519,860 16,623,581 13,845,957 93,483,470 Monitoring and supervision (10%) 1,426,865 2,522,542 2,351,986 1,662,358 1,384,596 9,348,347 Total Public Sector Investment 15,695,520 27,747,958 25,871,846 18,285,940 15,230,553 102,831,817 Private Sector Investment Marketing and promotion 839,741 956,920 1,119,010 1,208,531 1,305,213 5,429,416 Human Resource Development 89,900 147,092 238,859 329,648 356,020 1,161,519 Tourism Management and 200,000 216,000 233,280 251,942 272,098 1,173,320 Regulation Product Development - 5,141,347 10,522,654 5,652,867 50,000 21,366,868 Total Private Sector Investment 1,129,641 6,461,359 12,113,804 7,442,988 1,983,331 29,131,124 Grand Total (US$) 11,655,161 29,039,317 33,585,650 25,728,928 17,213,884 117,222,941 Grand Total (UGX) 34,965,483,000 87,117,951,000 100,756,950,000 77,186,784,000 51,641,652,000 351,668,823,000 Note: US$1 costs UGX3,000 The detailed budget with budgeting assumptions is in appendix 3.

7.0 Critical Success Factors The success for implementation of this plan will depend on the following critical factors:  Strong top management commitment in all the core MDAs (MTWA, UTB, UWA, HTTI, UWEC, UWTI) and the private sector. This commitment will translate into realignment of activities to this plan, resource allocation and therefore its follow-up and implementation. Page 30 of 85  Strengthening the Top Management Coordination Committee to take charge and oversee the implementation of this Sector Development Plan.  Sufficient resources, financial, human and others necessary to achieve the objectives set out in this plan. Although the expected impact of this plan is significant, the financial resources it requires annually are estimated at less than 4% of the overall contribution of the tourism sector to Uganda’s GDP.  Strong political will and commitment to transparency, accountability and results. This will be reflected in budgetary allocations to the sector as well as support for tourism development across all levels of Uganda’s political spectrum. Page 31 of 85 Bibliography Association of Uganda Tour Operators. (2014). Proposal to Government of Uganda for Provision of Credit Line to Purchase Professional Tour Vehicles . Kampala: AUTO. Civil Aviation Authority of Uganda (2012) Aeronautical charges schedule effective January 2012 Enterprise Uganda. (2012). Capacity assessment of selected tourism support institutions in Uganda. Kampala: UNDP. Government of Uganda (2010) Uganda vision 2040: A transformed Ugandan society from a peasant to a modern and prosperous country within 30 years IFC (2010) Kenya’s tourism: polishing the jewel. Finance and private sector development - Africa Region. IFC (2012) Doing Business 2013 – Economy profile Uganda Integrated Framework for Trade-related Technical Assistance to least developed countries (2006), Uganda Diagnostic Trade Integration Study, volume 1&2. Kamuntu E. (2011) Press Briefing on Foreign Direct Investment projected to increase in 2011 Kaosa-ard M. and Unthong A. (2005), Tourism competitiveness in the Greater Mekong Sub- region, Prepared for EuroCHRIE conference, Paris, France. Mariki S., Hassan S., Maganga S., Modest R. Salehe F. (2011) Wildlife based domestic tourism in Tanzania: Experiences from Northern Tourist circuit, Ethiopian journal of environmental studies and management. Vol. 4 N. 4, 62-73. Ministry of Finance, Planning and Economic Development (2012), Report on Uganda business licensing reforms vol. 1. Ministry of Tourism, Trade and Industry. (n.d.). Strategic Investment Plan 2009/10 -2013/14. Kampala. Ministry of Tourism, Wildlife and Antiquities. (2014). 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Retrieved October 7, 2014, from wwf.panda.org: http://wwf.panda.org/who_we_are/wwf_offices/uganda/problems_uganda/ Page 33 of 85

Appendix 1: Strategic Actions and Expected Outcomes Marketing Strategies, Activities and Expected Outcomes Objective Strategy Activities Expected outcome To undertake targeted  Engage reputable PR or  Advertise, select and recruit PR/advertising agencies in the UK, marketing in the core markets Advertising agencies to Germany, USA and China and attain annual growth of represent Uganda on  Improve access to liability insurance cover among local tour 10% in arrivals of leisure and fulltime basis in the operators to be able to provide confidence in the outbound tour business tourists by 2019/20 in identified core markets. operators and clients these markets.  Actively participate in tourism trade fairs, with technical support  Annual growth of  Undertake systematic from the PR/advertising agencies, also focusing on pre-fair 10% in arrivals of market research in activities such as road shows, media presentations, etc leisure and business international markets to  Develop a Uganda Tourism Brand and undertake brand tourists by 2019/20 gain deeper understanding management. from the UK, of the key variables such  Engage and promote Uganda’s tourism among the diaspora Germany, USA, as demographics, through among other activities organizing and celebrating the Canada and South motivations, tastes and Pearl of Africa days in various cities across the source markets Africa. preferences, travel  Set up a Marketing Advisory Committee to monitor, advise and patterns, buying patterns, coordinate marketing activities of UTB, bearing in mind regional  A fully up to date and expenditure patterns to representation, key actors and their roles in the sector functional tourism form the basis for market  Organize FAM trips inviting the most influential journalists and portal for Uganda segmentation and PR firm the tour operators that are most likely to feature Uganda in their engagement portfolio of packages, and targeting high impact  Improved service operators/journalists with clear terms of engagement standards in the  Complete the development of the Uganda Tourism Portal with all tourism sector relevant links and regularly updated.  Develop marketing collaterals (in English, Germany, Chinese,  Fully developed Russian, French and Latin), a Sales Manual and a Media Kit and niche tourism distribute these widely to selected travel stakeholders. products with fair  Undertake regular market research in key source markets. regional  Strengthen partnership with faith-based institutions to promote representation faith-based tourism Constitute a crisis  Develop a robust crisis management strategy and implement it  Improved Ugandan management team and  Facilitate training from UNWTO on crisis management, taking image even in the empower it to undertake crisis advantage of Uganda’s membership to the organization and wake of emerging management activities to standard training approaches used by UNWTO. crises defined by counteract negative publicity. number of tourist  cancellations. To develop the domestic  Undertake an aggressive  Develop guidelines for creation of tourism clusters and provide market in Uganda by media campaign; take key both technical and financial support for establishment of tourism promoting events, festivals, role in organizing events, clusters in the regions Increase in volume of day trips and weekend breaks. festivals and domestic  Develop and implement a calendar of Events and Festivals. domestic tourists to tourism products.  Undertake advertising using web-based platforms (social media, protected areas, events, websites and blogs) but also tourism promotions prior to major festivals and marine  Build capacity of UTB events in local media (TV, radio, newspapers and magazines) as activities directly marketing team to well as outdoor advertising. attributable to UTB undertake marketing  Organise an annual international tourism trade fair in Uganda. efforts activities, and establish at  Organise domestic FAM trips with the media to encourage least five regional tourism coverage in the electronic media and articles in the published Fully functional and development offices (east, press. active regional tourism north, central, west and  Set up desks or stalls at events that the targeted domestic market clusters developed and southwest) for information segments attend to distribute information and promote events and supported by UTB collection, dissemination, packages. quality assurance, cluster  Undertake school outreach programs in each of the regions of development, product Uganda to create awareness on the importance of tourism, and development and trigger formation of school tourism clubs and school tourism trips. marketing  Initiate tourism marketing partnerships with local corporate enterprises to promote the tourism potential of Uganda  Promote investment in mid-range B&B accommodation in Protected areas Promote and attain a 15% Strengthen the EAC tourism  Undertake promotion of events and festivals of a regional nature, 15% annual increase in annual increase in regional development partnership working with stakeholders that already organize these festivals regional leisure and leisure and MICE travellers to initiatives, and aggressively  Create a MICE Bureau in Uganda MICE travellers to Uganda’s key attraction sites promote Uganda in the region  Participate in regional tourism trade fairs Uganda’s key attraction and facilities by 2019/20. as a viable destination for sites and facilities leisure and MICE visitors. Page 35 of 85 Human Resource Development Strategies, Activities and Expected Outcomes Objective Strategy Activities Expected outcome Streamline tourism and Harmonise tourism and Improved certification hospitality training in Uganda hospitality training curriculum  Collect, review and improve/harmonise training contents of system, management and in the tertiary training tourism and hospitality training curriculums of all recognised control institutions training institutions at certificate, diploma and degree levels. Appropriate tourism  Create the Uganda Institute of Certified Tourism and Hospitality Certify on-job/learning by curriculums Professionals to certify curriculums and practitioners; standardize doing based trainings and harmonise training; ensure quality assurance; and enforce Increased number and professional ethics Strengthen HTTI quality of accredited  Create on-the-job training modules certified to national tourism trainings accreditation standards Upgraded HTTI able to  Upgrade the training facilities and institutional capacity of HTTI produce manpower that meets the industry needs  Undertake a Training needs assessment in the private sector, Enhance the capacity and Use a cascading model to taking a value chain approach 80 operational TOTs skills of in-service personnel create a pool of TOTs, and  Create a critical mass of TOTs to run the tailor-made trainings, in the tourism and hospitality develop tailor-made training coordinated by HTTI Increased quality of industry courses for the tourism private services and products  Deliver on-job trainings to the stakeholders to address the sector. identified training needs Improved capacity of  Facilitation of internships of students from training institutions government officials  Undertake an HR audit in the ministries, departments and agencies  Undertake “upskilling” of the workforce of both the MoTWA and Acceleration of the National Council for Higher Education (NCHE) to enforce programs’ compulsory accreditation and compliance to training standards. implementation Increase demand for tourism- Up skilling of the staff in the Enhanced interest in related job opportunities by tourism public sector,  Support long-serving incentive scheme in the sector on PPP tourism job opportunities highly skilled individuals including local governments arrangement as part of the Pearl of Africa tourism day celebrations  Run a national career awareness drive to enhance the interest in tourism Increased awareness in Enhance public awareness and  Generate market exposure for “real” Ugandan Structures (Travel the value of cultural and encourage participation in magazine, websites, etc.) natural heritage tourism industry Overcome the reservations Increased number of towards tourism employment “pro-tourism activities, by addressing (mis- events and publications” )perceptions and social/cultural reservations. Natural and Cultural Heritage Conservation Strategies, Activities and Expected Outcomes Objective Strategy Activities Expected outcome Strengthen the boundaries of  Secure the integrity of the  Fence off (electric and live fences) two of the  Human wildlife protected areas and improve protected areas boundaries most affected protected areas to control problem conflicts reduced and stakeholder engagement to reduce  Improve livelihoods of local animals (QENP and MFNP). protected areas’ poaching, encroachment and communities  Plant boundary marking trees (preferably boundaries secured environmental degradation in PAs  Address human-wildlife Eucalyptus) separating PAs and community areas  Conservation conflicts to mark PA boundaries in areas where fencing is enterprises managed  Restore and maintain not possible or too costly. by local people healthy Ecosystems  Redirect utilization of the 20% to directly fund increased activities in the enterprises that mitigate human  Improved capacities of wildlife conflicts local communities to  Build the capacity of local communities through access source of forming CBOs to better receive and manage funding and to funding responsibly cope with  Facilitate and build capacity of communities to a changing start and manage conservation enterprises linked environment to tourism and other high value crops that mitigate  Endorsed policies and human-wildlife conflicts (e.g tea, pepper, sub-decrees aiming to apiculture, etc) help mitigating  Engage with, and build capacity of local human-wildlife governments to protect and conserve historical conflicts and cultural heritage resources within their  Increased concern on jurisdictions. community’s  Finalize amendment of Wildlife Act and enact participation in policies that are fair to allow for community wildlife preservation Page 37 of 85 compensation in case of  Fair Community  Manage Areas within protected areas that are compensation covered by invasive/ exotic species arrangements rolled  Reduce wildlife disease prevalence and contain out epidemics in all PAs  -Invasive species in  Contain illegal activities in all wildlife areas Pas eliminated  Minimize negative impacts of oil and gas, hydro  Increase in species power, mining, tourism facilities. population due to  Initiate joint efforts to offer veterinary support reduction in illegal outside the PAs. activities and  Undertake Research and Ecological Monitoring in mortalities protected areas  Availability of timely,  Finalise amendment of Wildlife Act and enact sufficient and updated policies that are fair to allow for community wildlife and ecosystem compensation in case of loss of life and property data in Uganda  Undertake rolling out and implementation of the  Fully operational cashless smart card system in the protected areas. cashless system at protected areas entry points.  Profile and map existing and potential cultural and A detailed report and historical heritage resources in Uganda map of existing and  Engage with, and build capacity of local governments potential cultural and historical to protect and conserve historical and cultural heritage heritage resources in Uganda. resources within their jurisdictions for socio-economic purposes.  Historical and cultural Safeguarding historical and heritage resources in cultural heritage through districts identified and tourism protected Objective 2: Enhance Uganda’s Modern Uganda National cultural heritage conservation and  Undertake modernization of the National Museum in Museum improve its contribution to Kampala tourism  Establish 3 Regional Museums (Mbarara, Fort Portal Increased conservation of and Arua) cultural resources in the Page 38 of 85 regional museums Improved cultural heritage  Develop 8 Heritage Sites in in Eastern, Central, sites on the tentative list of Western and Northern Uganda regions, and have them UNESCO world heritage gazetted as UNESCO world heritage sites. sites Page 39 of 85 Tourism Management and Regulation Strategies, Activities and Expected Outcomes Objective Strategy Activities Expected outcome Improve tourism sector Adopt the best option for  Undertake a feasibility study on the options for managing Improved utilization coordination and management coordinating and managing the and coordinating the tourism MDAs of tourism sector tourism sector  Implement the recommendations of the tourism sector resources coordination and management feasibility study. Regionalize tourism Establish at least five regional  Engage concerned stakeholders to provide office space for 5 established development, promotion and tourism development offices (east, establishment of the regional tourism offices regional tourism management north, central, west and southwest)  Furnishing and equipping regional tourism development development offices for information collection offices. dissemination, quality assurance,  Support quarterly regional tourism forums coordinated by cluster development, product the regional tourism offices and the tourism the clusters. development and marketing Establish a sustainable tourism Partner with reputable research  Set up a tourism observatory at the reputable research Tourism information development observatory for institutions to build capacity and institution to collect and disseminate tourism information updated and regular, reliable and consistent undertake demand driven tourism on a regular basis. disseminated on a tourism data collection, analysis, research studies  Build the capacity of tourism stakeholders to capture and regular basis and dissemination to stakeholders manage tourism related data.  Develop a sustainability plan for the tourism observatory  Conduct quarterly surveys to collect data for three years to establish a reliable database to act as a building block for future national tourism data collection and management. Improve tourism and hospitality 1. Strengthen quality assurance  Undertake classification, certification and licensing of Pro-active private service delivery for industry and standards for tourism tourism facilities and operators along the entire value sector umbrella competitiveness facilities chain association able to  Undertake training of one additional cohort of 50 build capacity of its assessors members  Undertake awareness and sensitization campaigns for 2. Strengthen the private sector standards and certification to enhance compliance Improved capacity umbrella association by partly  Build capacity in local authorities to enforce quality to evaluate and to supporting to implement its assurance reach high quality strategic plan  Facilitate formation and development of tourism standards clusters.  Facilitate the setting up of a fully-fledged UTA Improved working conditions in secretariat to handle all technical and administrative tourism and tourism activities of the association to be able to implement its related activities strategic plan  Facilitate the setting up of a fully-fledged UTA secretariat to handle all technical and administrative activities of the association to be able to implement its strategic plan Improve tourism infrastructure Lobby and advocate for  Liaise with relevant MDAs to prioritise/include tourism Improved access to (roads, air access, electricity, infrastructure development in roads, and provide tourism support infrastructure in key tourism attractions stopovers, water, internet [fiber sector, ensuring that the line tourism zones and facilities cables and Wi-Fi blankets], and MDAs prioritise tourism  Undertake feasibility study for reintroduction of the signage) infrastructure in their plans and Uganda airlines carrier activities  Establish fiber cables; Wifi infrastructure (e.g. fiber cables and wifi blankets) in strategic tourist areas Work on the roads and airstrips  Resurface and maintain four airstrips at Pakuba, Chobe, within the protected areas Kidepo, Kasese.  Install security screening machines at airstrips to enhance security of travelers. Implement a sustainable source of Adopt the recommendations of the  Undertake tourism levy implementation by the Uganda Increased financial funding for the tourism sector. feasibility study on the Revenue Authority to generate estimated US$9.5 million resources for introduction of the tourism per year in additional revenue for the sector in 2016/17. sustainable development levy in Uganda  Secure a credit line to avail low cost financing to the development of tourism private sector to facilitate acquisition of specialized tourism in Uganda tourist transport vehicles. Enhanced ability to meet budget requirements of the sector MDAs Page 41 of 85

Appendix 2: Detailed Product Descriptions Product one: Upgrading and Redeveloping the Source of the Nile Product Name Upgrade and redevelop the Source of the Nile site into a world-class visitor attraction Product description To effectively cover the Source of the Nile and its environs, the project proposes that the Source of the Nile development area is extended from the Jinja Wildlife Sanctuary area to include present Njeru Town Council, the area between the River Nile and the Kayunga and Bujagali roads up to the Itanda Falls and with supportive investments around Jinja Municipality Objectives of the product To re-design and develop the Jinja source of the Nile into a modern attraction site with potential to spur employment, foreign exchange earnings and local area investment. To use the developed source of the Nile to direct tourist traffic further east by igniting development of new cultural, natural and historical heritage products. Benefit to the tourists/expected tourist experience Redeveloping the source of the Nile will provide a visitor with more activities, experiences and attractions to enjoy thereby justifying the visit, referrals and instilling a sense of value for money. The proposed redevelopment will enhance conservation of the site and thus ensure enjoyment of the site to future visitors. Sustainability of the product Stakeholder capacity to manage the site should be built right from the start through active involvement and participation in planning, development, management of the site, and revenue sharing. Proper dialogue mechanisms and regulations for site management should be designed and enforced to ensure that all actors are bound to promote conservation of the site. The overall policy direction and support of the Ministry of Tourism, Wildlife and Antiquities should lay the ground for utilizing the site on a going concern basis. A wide array of activities and experiences will increase visitor stay and expenditure, thus generating revenue to all concerned stakeholders in the value chain. Required activities to develop the product  Develop a physical development Master plan for the Source of the Nile  Prepare bankable project profiles for the different investment projects at the Source of the Nile  Construct a modern information and interpretation center with adequate and well maintained public utilities  Improve informational and directional signage to the Source of the Nile  Build partnerships with the private sector to upgrade and set up quality restaurant and catering facilities at the site  Create a reliable pool of divers and tour guides to provide rescue and quality tour guiding services at the Source of the Nile. Stakeholder roles Ministry of Tourism, Wildlife and Antiquities  Provide policy oversight and supervision for all developments at the site  Undertake the feasibility study and development of the physical plan for the source of the Nile development  Coordination of site development activities, including participating in the evaluation and monitoring of developers at the site  Undertake lobbying and advocacy activities at the highest political level in the country Uganda Tourism Board  Lead development of the various products at the site  Marketing and promotion of the source of the Nile and Eastern Uganda tourism products in general.  Enforcement of quality assurance standards for all operators and facilities at the site  Provide awareness campaigns, local capacity building and development of the Busoga Tourism Cluster to harness the benefits accruing from the tourism industry Ministry of Environment  Provide access to the land reserves on the banks of the River to allow for sustainable tourism development  Jointly work with other stakeholders to develop guidelines for sustainable use of the marine and natural resources on the Nile and its catchment areas  Enforce adherence to environmental requirements at the source of Nile Private Sector Tourism Associations  Mobilize members to promote, market and sell the newly developed tourism products at the source of the Nile and beyond Page 43 of 85  Undertake investments business enterprises  Liaise with the UTB and other actors to undertake training of the private sector members to adopt best business practices and ensure effective service delivery  Work closely with government to enforce standards and regulation of activities at the source of the Nile Local governments  Provide land for establishment of common interest facilities, as well as investment zones  Mobilise and support the local people to fully participate in tourism in the area as operators, employees, investors, etc  Provide technical and facilitative support to the other actors to fully monitor, supervise and enforce standards for developers and operators at the site  Other line institutions Construct and renovate the necessary infrastructure to improve access to the Source of the Nile Promotion and marketing of the product  Produce marketing and promotional collaterals and distribute these widely to stakeholders  Produce videos and documentation of the attractions and activities at the site, including operating a full tourism database accessible to visitors and all stakeholders in the sector  Embrace the Source of the Nile into all the marketing activities of Uganda.  Deliver excellent services to spur word of mouth promotion and promotion Expected benefits  Thousands of jobs at local and national level  Widespread income opportunities across the entire value chain of the product  Environmental and cultural heritage conservation  Increased income to both local and national level governments in form of taxes  High potential for both rural and urban poverty alleviation  Support for development of auxiliary services and sectors such as Page 44 of 85 healthcare, banking, insurance, agriculture, construction, manufacturing, trade and commerce, etc Page 45 of 85 Product Two: Develop, Brand and Promote the Rwenzori Mountains Product name Develop, brand and promote the Rwenzori Mountains as an attractive tourism product Product description Rwenzori Mountains (Mountains of the Moon) is a global biodiversity hotspot, providing key ecosystem services- carbon storage, forest resources and water supply. It is the largest mountain range in Africa (120km long /65Km wide) with an altitude range of 1600m to 5109m above Sea Level making it the highest Mountain in Uganda and third in Africa. The highest point (Magharita peak) stands at 5109 meters above sea level. Other Rwenzori ranges with peaks of great significance include; Speke (4890m), Baker (4843m), Gess (4715m), Emin (4797m), Luigi de Savio (4627m) and Alexandria (5,083m). These mountain ranges are unique for they are not volcanic but do rise directly from the rift valley floor. The mountain, gazzeted as a national park is home to diverse vegetation (over 994 recorded plant species); diverse fauna (African elephants, Chimpanzees, Red fronted duikers, Rock hyrax, Rwenzori Leopard, Tree squirrels, over 217 recorded bird species- 17 of which are endemic to the park). The fauna and flora richness, scenic beauty, Glacier lakes, rivers and waterfalls, diverse rock types and snow-capped peaks give the park a unique geographical heritage and biodiversity importance which enabled its declaration into a World Heritage Site (WHS) and an Important Bird Area (IBA). In addition, the Rwenzori Landscape is well endowed with diverse local cultures and traditions. Objectives of the product Develop, brand and position Rwenzori Mountains as a viable product with potential to generate visitor traffic and engender local-economic development. Benefit to the tourists/expected tourist Developing the full potential of the Rwenzori Mountains will provide a visitor with more activities, experience experiences and attractions to enjoy in Uganda. It will break the monotony on consuming only savannah-based and primate related products. Sustainability of the product  The product will be sustainable to the extent the actors deliver an excellent service and competitive prices. This will require adequate capacity building, sensitization and active involvement of all major stakeholders.  Partnerships are critical to effective service delivery, and the product should be aggressively marketed by both the government and other stakeholders. Required activities to develop the product  Establish and renovate key infrastructure particularly: by the tourism sector and other line o Renovating the Fort Portal - Kasese Road sectors o Renovating and upgrading the Kasese airstrip to ease air access to Rwenzori o Upgrading/tarmacking the17 kms of the road to the Rwenzori park gate to ease access. o Upgrading/tarmacking the road connecting Kasenda crater lakes to Rwimi for easy linking to Fort Portal-Kasese Road  In partnership with the private sector (for market access and investment), undertake development Page 46 of 85 of tourism products in the mountains: o Central Circuit Mountaineering Experience, a 7 day trek from Nyakalengija, Kasese District to the Margharita Peak. Improve quality of accommodation, sanitary conditions, tourist standard infrastructure, communication systems, rescue services, guide professionalism, congestion in the huts and governance system. Also fix the bridges on the trail (John Maate; Bujuku- 3 bridges; Mubuku upper – 2 bridges; Mubuku near Kicuucu – 2 bridges; and Mahoma -1bridge. o Western Circuit Mountaineering Experience, a trail already piloted by UWA and RRGEA starting from Katebwa in Kabarole District to Margarita peak. Undertake development of tourist infrastructure (water supply, accommodation units, toilet facilities, zip lining routes etc); trail mapping and development; market linkages to tour operators and accommodation facilities; rescue services and facilities; and modern communication systems o Rwenzori Cultural Heritage trail, a proposed product taking a visitor through historical, cultural sites and monuments related or linked to Rwenzururu Kingdom. The sites to constitute the trail include; the Rwenzuru palace, Bulemba where the first king was buried; Ntandi and Katebwa cultural site in Nyikigumba; King’s burial and coronation sites and palaces in the mountains. The Kyaribakytumba cultural and Kiwa heritage hot springs could all be part of this heritage trail. Establish tourist infrastructure (visitor information centre, craft centers and toilet facilities, etc.); support skills development (e.g. guides in product interpretation, guiding skills, presentation etc); improve visitor management; support the Kingdom to develop an attractive website to sell the product and to take lead role in trail development. Also support a Private- Community Partnership arrangement for development and management of some sites e.g. the Hot springs area into a modern recreation center in Kasese. o The Karangura Trekking Experience, a well-developed trekking route to Portal Peak from Kabarole side of the Rwenzoris. The trail offers a good view of the Tooro plains, DRC, and Margharita peak. Set up tourist infrastructure (visitor information center, craft center at start point of the trail; toilet facilities, etc.); undertake skills development (e.g. training guides in product interpretation, guiding skills, presentation etc.); improve visitor management; facilitate trail development, profiling/ packaging and mapping. o The Bularo Recreation Route, a one day route within the existing central circuit, starting from Mihonge gate. Key attractions along the trail include; diversity of bird species, a number of hot springs, lakes and cultural sites. It is a viable route for tourist activities like birding, water based tourism (boating, fishing etc) on lakes especially on Lake Page 47 of 85 Mahoma, canopy walk as well as cultural tourism.  Construct accommodation facilities at the foothills of the mountain, in Kasese and Fort portal towns to accommodate the expected increased visitor traffic.  Undertake capacity building for the local communities, including entrepreneurs and local governments to be able to deliver high quality services to tourists.  Engage into partnerships with good quality local health facilities to provide technical services during emergencies/accidents and provide training to all staff in charge of leading clients into the mountains. Organise exposure/FAM visits to Kilimanjaro, Tanzania for the affected stakeholders for lessons on how to develop the Rwenzori Mountains.  Strengthen the security infrastructure in the mountains  Develop a strategic plan for development of a regional tourism City (Fort Portal)  Encourage/promote private sector investment in a spa/hotel and other wellness facilities around the proposed sites  Develop a Cable car system in the mountain  Develop rescue infrastructure and set up safety equipment Stakeholder roles Uganda Tourism Board  Aggressive marketing and promotion of the various products in the Rwenzori Mountains  Awareness campaigns in the communities about tourism and how the community especially the youth can benefit.  Oversee quality assurance among operators and facilities around the Rwenzori Mountains Uganda Wildlife Authority  Continued conservation of the Rwenzori Mountains  Mobilisation and building of conservation capacity for local communities  Provision of security to the tourists  Provision of concessions for investment in facilities such as accommodation in the mountains  Maintenance of trails and roads within the park  Promotion of the Rwenzori alongside other protected areas in Uganda  Oversee quality assurance among service providers in the park Development/conservation organisations  Provide both technical and financial support to plan and put in place necessary tourist infrastructure  Facilitate capacity building to local communities to fully participate in tourism activities  Support initial marketing efforts  Build market linkages between the local communities and other actors in the industry Page 48 of 85 Ministry of Tourism, wildlife and antiquities  Support infrastructure development  Undertake advocacy and lobbying of major stakeholders to prioritise the development of the Rwenzori Mountains  Undertake the necessary major studies, and facilitate the development of a grand tourism development plan for the Rwenzori Mountains Private sector  Undertake investment in the product services through either private ventures, concessions or private-community-public partnerships  Undertake marketing of the Rwenzori as a tourism product in general through incorporating it in itineraries Community Tourism Associations  Organize and train communities to offer side products along the trails  Capacity building in form of business skills training so that tourism products are managed better. Other line institutions  Construct and renovate the necessary infrastructure to improve access to Rwenzori Mountain National Park Promotion and marketing of the product The product(s) should be integrated within the broader national tourism marketing strategies by UTB, focusing on clear segments and targets that consume such products. Overall however, marketing should be a collective responsibility of all actors involved in the product. Expected benefits  Greater potential for generating thousands of jobs for the youth and women in the region through direct employment, backward and forward linkages.  Potential for generation of foreign exchange as well as incomes for investors, local people and thus poverty alleviation  Conservation of the rich cultural and biodiversity resources of the mountains Page 49 of 85 Page 50 of 85 Product Three: Support Establishment of four cultural centres (Masindi, Gulu, Mbale and Kabale) Product name Northern Uganda Cultural Centre Product description The cultural centres will provide an ambience of lively and dynamic sights, surrounded by small grass thatched roof cottages, making the places into attractive multiple centres. At the centres there will be art exhibitions, traditional dances, cultural days/nights, drama performances, cultural storytelling and poems, performances for different tribes and cultures, presentations on how to make traditional Ugandan handicrafts, arts and crafts workshops (painting, photography, sculpture and carving, creative arts, performing arts). Objectives of the product Promote the tangible and intangible heritage of Uganda and Uganda contemporary arts, culture, and its many expressions. Build a hallmark (branding) of the regions positioning their products and services in different markets. Benefit to the tourists/expected tourist experience The cultural centres will provide a unique Ugandan (Northern, Eastern and Western) cultural experience, which will involve Food, dances, crafts, history and tribes. Sustainability of the product Product development will take a participative approach, involving all key stakeholders, especially local communities, local authorities, the private sector and destination management organisations. Required activities to develop the product  Avail at least 10 acres of land for the cultural centres by the respective local governments  Construct required facilities at each centre namely; a Boma (live performance facility), a handicraft exhibition facility, traditional cultural huts, demontration area (for ancient activities), 6 accommodation huts and a local food restaurant. Additionally, the centre will have parking space as well as restrooms.. Each cultural village will cost a projected US$271,250  Collect cultural items (using a PPP model)  Undertake capacity building of stakeholder to manage the centres  Marketing and branding of the centres Stakeholder roles Tourism Clusters Page 51 of 85  Undertake items’ collections, planning, and administration of the cultural centres in conjuction with local governments  Promote the cultural centres throughout their activities MTWA/Museum  Support physical planning processes  Aid and guide items collection  Facilitate capacity development Local government  Facilitate Land acquisition  Oversee initial management UTB  Facilitate entire Product development  Integrate the product in Marketing strategy  Promote and brand the product along with already developed products in the regions  Facilitate identification of potential local investors in the centres  USAGA  Support Guides training Promotion and marketing of the product UTB National and international marketing Campaigns. Expected benefits  Direct revenue to the local communities that will sell different services and products  Increase tourist flow to the regions will benefit the Hotel and Restaurant sub-sector  The biggest benefits of heritage tourism are diversification of local economies and the preservation of a community's unique character and identity. Page 52 of 85 Development of Lake Victoria Tourism Circuit Product name Development of Lake Victoria Tourism Circuit Product description Lake Victoria is the largest freshwater lake in Africa, with a surface area of about 68,800 sq. km shared between Kenya (6%), Uganda (45%) and Tanzania (49%). The catchment area of the lake covers 180,959 km2 and 15.9% of this is in Uganda. The lake has both intrinsic and tangible values that include rich biodiversity and its fragile ecosystems among others. Biodiversity combined with the scenic beauty is one of the important contributors to increased tourist arrivals in the country and the investment in the hospitality industry. The Circuit will start from the Uganda Wildlife Education Centre (UWEC) linking to the immediate surrounding attractions (Botanical garden, Lutembe Ramsar site, Mabamba Ramsar site, the airport, and equator) through to Ngamba Island, the numerous scenic islands in the lake up to Jinja, connecting to neighboring countries. Objectives of the product Establish Lake Victoria Tourism circuit to enhance tourism activities and experiences around Entebbe for both domestic and regional visitors. Benefit to the tourists/expected tourist experience The circuit will compliment and broaden the visitor experience by offering a wide array of well planned, packaged and developed products. The product will be appealing to various segments among the domestic and regional tourists. Sustainability of the product Most of the land and attractions in the area are owned by the Buganda Kingdom, different religious institutions and private developers with very little owned by government. Therefore, to succeed all these stakeholders must be involved from the start and must have buy-in which will be a stepping stone for sustainable partnerships, cooperation and harmonized development. The market is readily available, all the supply side stakeholders need to do is to develop the product and government should be supportive throughout the whole process, from planning, development, sensitization, capacity building to marketing and promotion. Required activities to develop the product • Develop a tourism development master plan, Entebbe - Jinja Lake Victoria Tourism circuit. • Develop bankable projects along the Entebbe-Jinja Lake Victoria Tourism circuit which may include but not limited to: Page 53 of 85 o A leisure cruise Boat that adheres to the required industry (international) standards o A floating restaurant with luxurious accommodation and conference facilities. o Key infrastructure such as access roads, signage, information boards, a boat pier with sizeable capacity, walking boards, bird observatory towers at Lutembe Ramsar site o An information centre at Lutembe Ramsar site o Boat trails at Lutembe Ramsar site • Undertake undertake investment promotion of the Entebbe-Jinja Lake Victoria tourism circuit Undertake development of the enhanced circuit by investing into and marketing of the various potential products. These products include:  Stakeholder roles Ministry of Tourism, Wildlife and Antiquities/UWEC  Leading mobilization and sensitization of landlords, local communities, local governments and other actors about the tourism potential of the circuit  Undertake the feasibility study for the proposed circuit  Support development of the circuit development master plan  Support infrastructure development linking the sites  Provide policy oversight and supervision for all developments at the site  Coordination of site development activities, including participating in the evaluation and monitoring of developers at the site  Undertake lobbying and advocacy activities at the highest political level in the country Uganda Tourism Board  Lead development of the various products at the site  Marketing and promotion of the circuit  Enforcement of quality assurance standards for all operators and facilities at the site  Provide awareness campaigns, local capacity building and Page 54 of 85 development of the Buganda Tourism Cluster to harness the benefits accruing from the tourism industry Ministry of Environment/landlords  Undertake development of products on their land and/or provide land for such development  Jointly work with other stakeholders to develop guidelines for sustainable use of the marine and natural resources on the lake and its catchment areas  Enforce adherence to environmental requirements Private Sector Tourism Associations  Mobilize members to promote, market and sell the newly developed tourism products on the circuit  Liaise with the UTB and other actors to undertake training of the private sector members in the area to adopt best business practices and ensure effective service delivery  Work closely with government to enforce standards and regulation of activities on the circuit Local governments  Provide land for establishment of common interest facilities, as well as investment zones  Mobilise and support the local people to fully participate in tourism in the area as operators, employees, investors, etc  Provide technical and facilitative support to the other actors to fully monitor, supervise and enforce standards for developers and operators in the area Promotion and marketing of the product Marketing of this product will be a primary responsibility for Uganda Tourism Board. Expected benefits  Increased government revenue, local and central  Promotion of investment and thus spurring local level development  Employment opportunities for local people and Ugandans as a whole  Environmental conservation Page 55 of 85 Appendix3: The Tourism Sector Development Work Plan and Budget Refer to excel Sheet Page 56 of 85

Appendix 4: Monitoring and Evaluation Framework a) Marketing and Promotion Objectively verifiable indicators Sources and means of Overall of achievement verification Risks/Assumptions Responsibility Sufficient funding of  559,000 inbound leisure and marketing activities in business tourists in 2015/16; core markets  617,000 in 2016/17; Improvement in Objective 1: To undertake targeted marketing in  677,000 in 2017/18; service delivery at the the core markets and attain annual growth of  746,000 in 2018/19; Annual statistical local level to spur UTB 10% in arrivals of leisure and business tourists by  818, 000 in 2019/20. reports word of mouth 2019/20 in these markets. marketing US$ 876 million from inbound leisure and business tourists in 10% annual growth in 2020 leisure and business travellers to Uganda Engagement of PR firms based on clear terms of reference 4 PR firms hired to represent Contracts signed with Advertise, select and recruit PR/advertising Uganda in the core markets (UK, advertising firms UTB agencies in the UK, Germany, USA and China Ability to provide Germany, USA and China). adequate facilitative support to the PR firms by UTB Improve access to liability insurance cover among Contracts with Availability of sound 50% of registered local tour local tour operators to be able to provide insurance firms in business management companies with acceptable liability UTB confidence in the outbound tour operators and source markets or their practices among local insurance cover clients agencies locally business operators  6 fairs per year in core markets Reports on outcomes Adequate preparations Actively participate in tourism trade fairs, with from 2015/16 – 2016/17 and outputs of trade for the trade fairs UTB technical support from the PR/advertising agencies,  8 fairs per year in core markets fairs also focusing on pre-fair activities such as road from 2017/18 – 2019/20. Strong private sector UTA shows, media presentations, etc  6 Pearl of Africa Dinners in Reports on visitor with adequate Objectively verifiable indicators Sources and means of Overall of achievement verification Risks/Assumptions Responsibility core markets from 2015/16 – arrivals from core capacity to conclude 2016/17. source markets deals with outbound  8 Pearl of Africa dinners in operators core markets per year from 2017/18 – 2019/20.  One visitor survey to define Availability of funds Uganda Tourism Brand MOTWA/UTB Develop a Uganda Tourism Brand and undertake  Sample of final Ugandan Reports Sourcing of adept brand management. tourism brand professionals to  Involvement of key tourism undertake the exercise industry associations  At least 240 Ugandans abroad attend Pearl of Africa dinners Media reports Engage and promote Uganda’s tourism among the per year. diaspora through among other activities organizing # of Uganda days celebrated abroad Availability of funds Statistical reports UTB and celebrating the Pearl of Africa days in various # of Ugandans abroad visiting cities across the source markets Ugandan attractions Performance reports # of tourism investments made by Ugandans in diaspora Set up a Marketing Advisory Committee to All major Existence of marketing advisory Minutes of meetings monitor, advise and coordinate marketing activities stakeholders are committee regularly working with Reports of committee UTB of UTB, bearing in mind regional representation, represented, including UTB deliberations key actors and their roles in the sector those in the regions  2 FAM trips organised per Copies of stories on year, each involving 10 Uganda’s tourism in Organize FAM trips inviting the most influential influential tourism personalities major travel/open Adequate sourcing of journalists and the tour operators that are most  10 stories written about media in core source influential travel likely to feature Uganda in their portfolio of Uganda in core source markets markets journalists/media UTB packages, and targeting high impact as a direct result of FAM trips houses, insurance operators/journalists with clear terms of  Number of insurance firms in Comments about firms and organisation engagement source markets partnering with Uganda in major travel of the FAM trips local insurance firms to provide blogs policies for travellers. Page 58 of 85 Objectively verifiable indicators Sources and means of Overall of achievement verification Risks/Assumptions Responsibility Sourcing of the right Complete the development of the Uganda Tourism An up to date and functional portal developer Uganda Tourism Portal Portal with all relevant links and regularly updated. Uganda Tourism Portal, featuring UTB link online in at least 6 international languages Availability of content for the portal Develop marketing collaterals (in English,  60,000 sales manual/media kits Reports Germany, Chinese, Russian, French and Latin), a developed and printed in 6 Copies of collaterals & Availability of funds UTB Sales Manual and a Media Kit and distribute these international languages media kit widely to selected travel stakeholders. Adequate use of  1 market study in Europe in modern ICT Undertake regular market research in key source 2016/17 markets.  1 market study in North Reports UTB Availability of funds America in 2016/17 and skills to undertake market intelligence Sufficient goodwill 4 MOUs signed with faith-based Strengthen partnership with faith-based institutions from faith-based institutions with clear roles and Copies of MOUs UTB to promote faith-based tourism institutions to support responsibilities tourism initiatives Adequate  Copy of Uganda crisis Develop a robust crisis management strategy and coordination with management strategy Performance reports implement it stakeholders MTWA/UTB  Existence of crisis management Press releases committee Availability of funds Facilitate training from UNWTO on crisis 2 trainings received on crisis management, taking advantage of Uganda’s management for the crisis Training report MTWA membership to the organization and standard management committee training approaches used by UNWTO.  20% increase in domestic Surveys on sources of Objective 2: To develop the domestic market in tourists to attraction sites per information Uganda by promoting events, festivals, day trips UTB year directly attributable to and weekend breaks. UTB marketing activities Statistical reports Page 59 of 85 Objectively verifiable indicators Sources and means of Overall of achievement verification Risks/Assumptions Responsibility  5 domestic tourism events organised annually by the five regional clusters Political support in the Specific office 5 functional regional clusters creation of tourism addresses of tourism Develop guidelines for creation of tourism clusters created in the regions clusters clusters in the regions and provide both technical and financial support UTB for establishment of tourism clusters in the regions At least 10 trainings provided to Effective leadership to Reports tourism clusters, 2 per cluster create internal cohesion Active involvement Reports and participation of A printed calendar of tourism Develop and implement a calendar of Events and tourism clusters and events annually Festivals. Media stories (print & other stakeholders UTB/MTWA electronic) Availability of funds Copies of adverts in the media #of adverts played on TV, radio, newspapers and magazines Copies of articles on Undertake advertising using web-based platforms Availability of blogs and social media (social media, websites and blogs) but also tourism 12 blog articles written about dedicated personnel outlets promotions prior to major events in local media domestic tourism per year, one per committed to the UTB (TV, radio, newspapers and magazines) as well as month functioning of the Media reports outdoor advertising. web-based platforms 5 functional tourism social media Dedicated web-based outlets operational in 2015/16 platforms for domestic tourism An annual tourism trade fair in Active involvement Organise an annual international tourism trade fair Media reports Uganda with at least 40% of and engagement of in Uganda. Post-fair evaluation UTB exhibitors coming from outside key stakeholders reports Uganda Page 60 of 85 Objectively verifiable indicators Sources and means of Overall of achievement verification Risks/Assumptions Responsibility Availability of funds 4 FAM trips organised per year Adequate sourcing of Copies of stories on influential travel Organise domestic FAM trips with the media to Uganda’s tourism in At least 8 media stories/reports journalists/media encourage coverage in the electronic media and major travel/open UTB about Uganda’s tourism as a direct houses and articles in the published press. media in Uganda result of FAM trips organisation of the FAM trips Set up desks or stalls at events that the targeted 5 major local events attended per domestic market segments attend to distribute year for distribution of promotional Reports UTB information and promote events and packages. materials. Availability of funds Undertake school outreach programs in each of the 100 schools visited per year regions of Uganda to create awareness on the country-wide, and 100 tourism Copies of clips of such Regular follow-up and UTB/MTWA/UTA importance of tourism, and trigger formation of clubs formed and supported in talk shows coordination of school school tourism clubs and school tourism trips. these schools. outreach program at MTWA Presentation of Initiate tourism marketing partnerships with local Copies of MOUs 10 MOUs signed and implemented corporate entity corporate enterprises to promote the tourism with major corporate firms in valence, and a clear UTB potential of Uganda Reports on Uganda by 2019/20 brand identity to performance of MOUs promote Availability of Promote investment in mid-range B&B 12 midrange safari lodges built in 6 Physical visits to adequate effective accommodation in Protected areas Protected areas established facilities demand to sustain the investments Objective 3: To promote and attain a 15% annual 15% annual increase regional increase in regional leisure and MICE travellers leisure and business tourists at Statistical reports UTB to Uganda’s key attraction sites and facilities by Uganda’s key tourist attractions & 2019/20. accommodation facilities Undertake promotion of events and festivals of a 4 regional tourism events Reports regional nature, working with stakeholders that participated into per year UTB already organize these festivals Create a MICE Bureau in Uganda Functional MICE Bureau in Reports Sufficient cooperation UTB Page 61 of 85 Objectively verifiable indicators Sources and means of Overall of achievement verification Risks/Assumptions Responsibility Uganda Physical inspection of of private sector facility 4 regional tourism trade fairs Reports Availability of funds Participate in regional tourism trade fairs attended by UTB and the tourism UTB private sector Media stories Page 62 of 85 b) Human Resources Development Objectively verifiable indicators Sources and means of Risks and Overall of achievement verification Assumptions Responsibility Performance of Objective 1: Streamline tourism and hospitality Annual reports Contractors is poor training in Uganda with inadequate inputs At least 50 collected training contents / curriculums from 23 institutions at three levels: certificate level, diploma level and degree level (undergraduate) Collect, review and improve/harmonise training Performance of contents of tourism and hospitality training Contractors is poor UICTHP At least 50 reviewed training Report curriculums of all recognised training institutions with inadequate MOTWA contents / curriculums with a focus at certificate, diploma and degree levels. program management Experts on top 15 diplomas and certificates inputs indicated p77 of MOTWA report (2014) At least 50 improved training contents / curriculums Availability of funds Create the Uganda Institute of Certified Tourism MOTWA and Hospitality Professionals to certify curriculums Adequate support of Certificate of and practitioners; standardize and harmonise Registration of the UICTHP the Institute from Tourism Alumni registration training; ensure quality assurance; and enforce stakeholders, associations professional ethics including existing professionals. Sourcing of the right Create on-the-job training modules certified to One module created for each of the Copies of modules personnel to develop MOTWA national accreditation standards 8 tourism value chain nodes the modules Upgrade the training facilities and institutional Modern training facilities and well Implementation of Reports MOTWA capacity of HTTI trained personnel at HTTI project on time Page 63 of 85 Objective 2: Enhance the capacity and skills of in-service personnel in the tourism and hospitality industry Performance of Undertake a Training needs assessment in the Achieved assessment including a Contractors is good MOTWA Report private sector, taking a value chain approach strategy for TOT with adequate UICTHP competencies Availability of funds HTTI Create a critical mass of TOTs to run the tailor- 50 TOTs trained, 10 for each Training Reports Proper coordination of UICTHP made trainings, coordinated by HTTI regional cluster. the intervention by MOTWA HTTI 400 workers trained per year Deliver on-job trainings to the stakeholders to Master Trainers starting 2017/18 Training Reports Ardent cooperation of address the identified training needs UICTHP private sector Facilitation of internships of students from training 1500 interns trained in the sector Reports UTA institutions per year Contractors is good Undertake an HR audit in the ministries, Experts 50 qualitative interviewees HR Audit report with adequate departments and agencies MOTWA competencies Undertake “upskilling” of the workforce of both Low Staff turn-over in 10 organised trainings in each of 8 HTTI the MoTWA and the National Council for Higher Trainings minutes / private and public main nodes of the tourism value MOTWA Education (NCHE) to enforce compulsory reports sectors chain UICTHP accreditation and compliance to training standards. Objective 3: Increase demand for tourism- related job opportunities by highly skilled individuals Report / Statistics on Support long-serving incentive scheme in the Introduction of long-serving Ardent cooperation of employment sector on PPP arrangement as part of the Pearl of incentive private sector MOTWA characteristics in Africa tourism day celebrations tourism  1 national tourism essay Strong HRD capacity Run a national career awareness drive to enhance MOTWA Annual MOTWA competition per year in Tourism Ministry the interest in tourism Tourism statistics UTB  12 publications per year of report UWA individual profile of tourism Political support for Page 64 of 85 employees in newspapers the intervention  At least 12 school visits per year by Tourism minister  2000 printed visitor’s expectations booklet Travel magazines, Generate market exposure for “real” Ugandan Strong HRD capacity UTB At least 5 publications per year websites, Structures (Travel magazine, websites, etc.) in Tourism Ministry MOTWA newspapers… Page 65 of 85 c) Tourism Management and Regulation Objectively verifiable indicators of Sources and means of Risks and Overall achievement verification Assumptions Responsibility Objective 1: Improve tourism sector coordination and management Undertake a feasibility study on the options Feasibility report with recommendation for managing and coordinating the tourism on best way to manage and coordinate Feasibility study report MTWA MDAs tourism in Uganda Stakeholder Implement the recommendations of the 2 consensus building workshops and 1 commitment Annual Reports MTWA, UWA, tourism sector coordination and management retreat for accounting officers in UTB, UWEC, feasibility study. 2016/17 5 fully functional regional tourism development offices Objective 2: Establish at least five regional tourism development offices (east, north, At least 5 regional tourism clusters central, west and southwest) for information formed collection dissemination, quality assurance, cluster development, product development 1 tourism sensitisation campaigns and marketing undertaken per year Engage concerned stakeholders to provide Office space for regional tourism MOUs Cooperation of the office space for establishment of the regional development office secured at local Physical inspection UTB/MTWA local governments tourism offices government administration premises reports 5 regional tourism development offices Furnishing and equipping regional tourism fully equipped and furnished Physical inspection Availability of development offices. reports funding 5 fully functional regional offices MTWA/Clusters Support quarterly regional tourism forums Stakeholder 15quarterly regional tourism forums per coordinated by the regional tourism offices Reports commitment year and the tourism the clusters. Objective 3: Establish a sustainable tourism Reports development observatory for regular, reliable Functional Uganda tourism observatory Availability of Copies of collaterals & UTB and consistent tourism data collection, in a reputable research institution funding media kit analysis, and dissemination to stakeholders Set up a tourism observatory at the reputable Reputable institution engaged to MOU Availability of MTWA Page 66 of 85 Objectively verifiable indicators of Sources and means of Risks and Overall achievement verification Assumptions Responsibility research institution to collect and disseminate accommodate tourism observatory funding tourism information on a regular basis. Build the capacity of tourism stakeholders to 160 stakeholders from different Training reports capture and manage tourism related data. institutions trained in data management Develop a sustainability plan for the tourism Sustainability plan developed in year 3 observatory of the plan Conduct quarterly surveys to collect data for Datasets three years to establish a reliable database to act as a building block for future national Tourism statistical tourism data collection and management. reports MTWA/research 1 exit survey conducted per year Availability of Institution Set up a tourism observatory at the reputable 1 domestic tourism study conducted per funding research institution to undertake and year Survey reports disseminate on a regular basis tourism 1 supply side study conducted per year information 1 tourism impact study conducted every two years Objective 4: Improve tourism and hospitality service delivery for industry competitiveness Undertake classification, certification and 90% tourism facilities licensed per year Performance reports licensing of tourism facilities and operators 50% tourism facilities quality assured along the entire value chain per year Undertake training of one additional cohort of 50 quality assurance assessors trained Training reports 50 assessors UTB A functional standards and quality Undertake awareness and sensitization assurance grievance mechanism Awareness and campaigns for standards and certification to established sensitization reports enhance compliance 1 awareness and sensitisation campaign undertaken per year per region Build capacity in local authorities to enforce Performance reports 10 local government officers trained per quality assurance UTB/MoLG region per year for two years Training reports Page 67 of 85 Objectively verifiable indicators of Sources and means of Risks and Overall achievement verification Assumptions Responsibility Facilitate formation and development of 5 tourism clusters formed and supported Availability of Reports UTB tourism clusters. country-wide funding A well-coordinated tourism private Availability of Facilitate the setting up of a fully-fledged sector in Uganda funding Physical address of UTA secretariat to handle all technical and UTA secretariat administrative activities of the association to Fully functional UTA secretariat MTWA/UTB be able to implement its strategic plan Performance reports Wider membership of UTA Objective 5: Improve tourism infrastructure (roads, air access, electricity, stopovers, water, internet [fiber cables and Wi-Fi blankets], and signage) 80% of tourism roads in need of Continued Liaise with relevant MDAs to Physical roads improvement successfully lobbied and prioritisation of prioritise/include tourism roads, and provide constructed worked upon infrastructure MTWA tourism support infrastructure in key tourism development by zones government Undertake feasibility study for reintroduction Feasibility report on revival of national Adequate political Feasibility Report MTWA of the Uganda airlines carrier carrier support Establish fiber cables; Wifi infrastructure (e.g. 100% of major tourist sites connected to fiber cables and wifi blankets) in strategic Reports NITA functional ICT infrastructure tourist areas Resurface and maintain four airstrips at Adequate funding 4 airstrips resurfaced and maintained in Reports Pakuba, Chobe, Kidepo, Kasese. UWA/CAA protected areas Physical airstrips Install security screening machines at airstrips At least 4 security screening machines Reports UWA/CAA to enhance security of travelers. installed at airstrips Objective 6: Implement a sustainable source of funding for the tourism sector. Undertake tourism levy implementation by Additional US$9.5 million to the Levy receipts Political and private UTB/URA/MoFPED the Uganda Revenue Authority to generate tourism sector per year sector support for levy Page 68 of 85 Objectively verifiable indicators of Sources and means of Risks and Overall achievement verification Assumptions Responsibility estimated US$9.5 million per year in Levy implementation additional revenue for the sector in 2016/17. reports Effective utilisation of levy proceeds Proper tax business planning Secure a credit line to avail low cost financing to the tourism private sector to facilitate US$15 million provided as credit facility Proper management Reports MTWA acquisition of specialized tourist transport for private sector in tourism of the credit facility vehicles. d) Logical Framework: Natural and Cultural Heritage Conservation Objectively verifiable Sources and means of Risks and Overall Responsibility Natural and cultural heritage conservation indicators of achievement verification Assumptions Objective Objective 1: Strengthen the boundaries of protected areas and improve stakeholder engagement to reduce poaching, encroachment and environmental degradation in PAs Fence off (electric and live fences) two of the most UWA, MTWA, Ministry affected protected areas to control problem animals 420 km of a 3.3 meter high Availability of of Finance and support (QENP and MFNP). electric fence constructed Project progress and funds to facilitate agencies around MFNP and QENP completion reports the process Plant boundary marking trees (preferably UWA, NEMA, NFA, Eucalyptus) separating PAs and community areas Communities and to mark PA boundaries in areas where fencing is 100,000 trees to be planted Availability of Conservation NGOs not possible or too costly. each year around PAs Reports funds and seedlings Redirect utilization of the 20% to directly fund UWA, MTWA, activities in the enterprises that mitigate human Reports Parliament wildlife conflicts At least 10 enterprises set by Community Availability of revenue sharing funds acknowledgments funds Build the capacity of local communities through At least 10 CBOs formed Reports Availability of UWA,MTWA,UCOTA, Page 69 of 85 forming CBOs to better receive and manage and trainings conducted per Community funds and willing UTA and support agencies funding year per protected area acknowledgments communities Facilitate and build capacity of communities to UWA,MTWA,UCOTA, start and manage conservation enterprises linked to UTA and support agencies tourism and other high value crops that mitigate End of task Reports Availability of human-wildlife conflicts (e.g tea, pepper, funds and apiculture, etc) 10 trainings conducted Community willingness of per year per protected area acknowledgments communities Engage with, and build capacity of local MTWA governments to protect and conserve historical and cultural heritage resources within their Availability of jurisdictions. 10 LGs trained per year Training reports funds Finalize amendment of Wildlife Act and enact Willingness of UWA, MTWA and policies that are fair to allow for community An amended Wildlife Act actors to finalize Parliament compensation in case of adopted A new Wildlife Act the process Manage Areas within protected areas that are 50% of invasive species in Availability of UWA, Research covered by invasive/ exotic species each affected PA managed by funds Institutions/UWEC 2019/20 Reports Effectiveness of UWA, Research Reduce wildlife disease prevalence and contain applied methods Institutions/UWEC epidemics in all PAs 50% of diseases in affected PAs effectively managed Reports Availability of UWA funds Contain illegal activities in all wildlife areas 50% reduction in illicit trade, Stakeholder poaching and PA commitment encroachment by 2019/20 Reports 100% compliance with EIA UWA, NEMA, MTWA, Minimize negative impacts of oil and gas, hydro recommendations for the Ministry of Minerals and power, mining, tourism facilities. investments in the respective Natural Resources sectors by 2019/20 Reports Initiate joint efforts to offer veterinary support UWA, NAADS outside the PAs. Page 70 of 85 Undertake Research and Ecological Monitoring in UWA, Research protected areas 2 research and monitoring Research and Availability of Institutions studies successfully monitoring reports funds conducted Undertake rolling out and implementation of the Cashless system fully Timely UWA cashless smart card system in the protected areas. functional at all entry points Reports implementation of of wildlife protected areas Physical inspections intervention Objective 2: Enhance Uganda’s cultural heritage conservation and improve its contribution to tourism Modernize the National Museum in Kampala A significantly improved MTWA national museum in Kampala Establish 3 Regional Museums (Mbarara, Fort 3 regional museums Portal and Arua) established Develop 8 Heritage Sites in in Eastern, Central, 8 heritage sites developed and Western and Northern Uganda regions, and have submitted to UNESCO for Physical inspection them gazetted as UNESCO world heritage sites. inclusion on tentative list of Availability of world heritage sites Reports funds e) Tourism Product Development Objectively verifiable Sources and means of Risks and Overall indicators of achievement verification Assumptions Responsibility Objective 1: Upgrade and redevelop two existing tourism products to enhance tourist experience and economic impact Product 1: Upgrade and redevelop the Source of the Nile site into a world-class visitor attraction Feasibility study on list of Availability of Develop a physical development Master plan for the Feasibility report commercially viable products funds Source of the Nile MTWA/UTB for development at the source Copy of Master plan of the Nile Adequate effective Page 71 of 85 Objectively verifiable Sources and means of Risks and Overall indicators of achievement verification Assumptions Responsibility demand Physical master plan for development of the Source of the Nile 15 investment project profiles Prepare bankable project profiles for the different Copies of investment developed for opportunities at investment projects at the Source of the Nile profiles the Source of the Nile Undertake investment in development of products - the Reports Uganda Railway Heritage Route; Cultural Village; Bird At 5 new products developed Watching on the Source and Lake Victoria islands; and at the Source of the Nile Visitor comments upgrading marine and land-based recreation. Reports Construct a modern information and interpretation center A functional visitor Jinja with adequate and well maintained public utilities information centre at the Physical structure Municipality Source of the Nile Visitor comments Improve informational and directional signage to the Signage at the source of the Jinja Physical signposts Source of the Nile Nile Municipality A modern restaurant and Build partnerships with the private sector to upgrade and Effective marketing catering facility at the Source set up quality restaurant and catering facilities at the site Statistical reports to ensure adequate UTB of the Nile and also at Itanda tourists Falls Create a reliable pool of divers and tour guides to provide 30 divers and 30 tour guides rescue and quality tour guiding services at the Source of the Training reports trained and equipped at the MTWA Nile. Source of the Nile Product 2: Develop, brand and promote the Rwenzori Mountains 5 well developed trails with Improve Rwenzori Mountain Trails - Central Circuit; functional bridges, board Western Circuit; Rwenzori Cultural Heritage trail; walks and ladders, resting and Karangura Trail and Bularo trail viewing points as well as information centres. Page 72 of 85 Objectively verifiable Sources and means of Risks and Overall indicators of achievement verification Assumptions Responsibility 1 midrange accommodation of 15 rooms established in the Adequate marketing Construction of budget accommodation facilities on Mountains Reports of the Rwenzori to UTB Mahoma trail 6 tents and camps renovated generate demand and improved A functional cable car in the Physical inspections Availability of Develop a Cable car system in the mountain MTWA/UWA Rwenzori mountains Reports funds Ambulance, a rescue Install rescue and safety equipment and facilities in the helicopter and helipad, and Physical inspections Availability of UWA Rwenzori Mountain National Park communication systems Reports funds established in the Mountains Availability of Construct a monument at Margareta Peak Monument at Margareta Peak Physical inspections UWA funds Develop a Master Plan for development of a Tourism City Master plan for a tourism city Fort Portal Copy of the plan Adequate funding in Fort Portal in Fort portal Municipality Objective 2: Develop two new tourism products to enhance tourist experience and economic impact Product 1: Develop four cultural centres/villages (Gulu, Kabale, Hoima and Mbale) 4 cultural centres constructed Physical inspections and fully operational with a Reports live performance facility, a handicraft exhibition facility, traditional cultural huts, demontration area (for Construct the cultural village/centre and all other associated MTWA/Local ancient activities), 6 Adequate funding facilities using the ppp model governments accommodation huts and a local food restaurant. 20% of pro-poor impact of cultural centres on local communities Page 73 of 85 Objectively verifiable Sources and means of Risks and Overall indicators of achievement verification Assumptions Responsibility At least 50 staff trained to Reports Undertake capacity building of staff to man the cultural manage and work at the MTWA/Local Adequate funding village including guides cultural centres governments Marketing and branding including website development Fully functional website for Reports Local Adequate funding and FAM trips each cultural centre Google search governments Product 2: Development of Lake Victoria Tourism Circuit Tourism development master Copy of the master Develop a tourism development master plan, Entebbe - plan for Entebbe - Jinja Lake plan MTWA/UWEC/ Adequate funding Jinja Lake Victoria Tourism circuit. Victoria Tourism circuit KCCA developed 10 bankable project profiles Copies of project Develop bankable projects along the Entebbe-Jinja Lake developed for investment in profiles Adequate funding MTWA/UIA Victoria Tourism circuit the circuit 10 medium-size to large scale Physical inspections Availability of land Undertake investment on the Entebbe-Jinja Lake Victoria investments developed on the Private sector tourism circuit circuit Cooperation of key landlords 12 B&B lodges in six Reports Adequate demand protected areas Physical inspections for the services Product 3: Undertake investment in mid-range B&B MTWA/UWA/U accommodation in Protected areas Availability of TB/UIA concessions in prime areas Page 74 of 85

Appendix 5: The Core Markets of Focus for Uganda Tourist arrivals % change 2009 2010 2011 2012 2013 since 2009 Austria 897 20,304 13,820 2,132 1,724 92.2 Belgium 2,787 3,629 5,156 5,094 5,050 81.2 Czechoslovakia 425 371 483 383 536 26.1 Denmark' 3,000 3,145 4,159 3,890 3,426 14.2 Finland 730 577 513 642 490 -32.9 France 3,467 3,893 4,437 4,938 4,594 32.5 Germany 6,778 8,650 8,960 11,701 11,070 63.3 Ireland 1,820 2,143 1,663 2,414 1,694 -6.9 Italy 4,567 5,505 5,335 6,732 7,128 56.1 Netherlands 6,017 7,651 8,380 8,275 7,510 24.8 Norway 2,827 2,874 1,877 2,705 2,543 -10.0 Sweden 3,734 4,464 4,308 5,866 5,670 51.8 Switzerland 1,723 2,076 1,056 2,362 2,896 68.1 United Kingdom 35,716 39,171 77,702 42,508 43,009 20.4 Yugoslavia 28 117 13 26 24 -14.3 Canada 6,999 8,353 8,550 10,186 9,729 39.0 USA 37,971 45,856 47,869 55,912 56,766 49.5 China 4,629 5,692 6,971 8,645 10,792 133.1 India 12,946 16,747 19,419 24,849 28,647 121.3 Australia 4,087 4,870 4,827 7,165 7,842 91.9 Russia 613 733 4,535 4,250 3,542 477.8 Total 141,761 186,821 230,033 210,675 214,682 UBOS, 2014 Core Markets of Focus Looking at the trend of tourists to Uganda over the last five years , it is clear that the Russian market has registered the biggest growth rate (477.8%), followed by the Chinese (133.3%), Indian (121.3%), Australian (91.9%) and the Austrian (92.2%) markets. In relative terms therefore, these markets represent an opportunity for Uganda because they are growing rapidly without any government investment in these markets. This means that with proper promotion and marketing, there is potential for further growth in these markets. In absolute terms however, the UK and USA contribute almost half of all the inbound tourists to Uganda and growth in these markets has been only 20% and 50% respectively over the last five years. This small growth, compared to the fast growing segments above, represents a marketing gap (opportunity) because these countries still rank among world’s top tourism spenders. In the next five years Uganda needs to consolidate its position in the following core markets: UK, USA, Germany: These markets are worthy of investment because they rank among the top world tourism spenders; already visit Uganda and their product preferences match the products offered by Uganda. Thus positioning the unique tourism products represents a strong competitive strength for Uganda in these markets. Uganda should particularly attract wealthier experienced international travelers, between the ages of 40 and 60 whose children (if any) have left home. They typically look for natural beauty and authentic cultural experiences which Uganda is abundantly endowed with. They prefer independent or small group travel, and look for luxury and comfort as part of their experience. Uganda should also attract the adventurous segment made up of younger singles or couples between the ages of 25 and 40 and generally do not have children. These are often young urban professionals earning higher incomes, and already have considerable travel experience. Their desired experience often centers on nature, culture and adventure, aspects that Uganda is well endowed with. While also concerned with issues of safety and comfort, these consumers are driven more by the emotional appeal of a destination and its diversity. Thus with effective marketing, this segment can be attracted to Uganda. However, note should be made that while outbound tourism numbers from Germany remain consistent, the German economy has relatively suffered from the economic pressures of the Eurozone and exchange rate fluctuations. This is evidenced in functional drivers of travel such as affordability, proximity, allowable holiday time and ease of travel playing a greater role in decision making. This has in turn resulted in more Germans choosing short haul destinations (e.g. Italy, Spain) at the expense of long haul destinations like Uganda. Within this market Uganda can make meaningful strides on three key segments: the backpackers ( students who want to travel/explore the world; they follow the backpacker trail and want to meet other youth travellers; have long length of stay; participate in many activities; and adopt independent travel style); the outdoor enthusiasts (individuals above 30 years who are active independent travellers attracted to Uganda’s nature/landscapes; they seek to broaden their minds, learn and explore new things); and the organised tours (individuals above 30 years shoes travel is typically holiday and are high spenders). The UK was hit hard by the Global Financial Crisis and the bad publicity made by the Uganda Anti- homosexuality Act (2014). While there are signs of improvement, recovery continues to be slow. This slower-than-expected economic recovery, the weak British Pound and the high UK Air Passenger Duty are continuing to severely affect long haul travel. Uganda annually receives about 40,000 arrivals, making the UK market second only to USA for visitor numbers, however it is unlikely Uganda will see significant growth in visitor arrivals again until the UK economy begins to grow and the currency strengthens. Active boomers, backpackers and business travellers should be the primary segments of focus in this market. The desire for travel from the US remains strong with outbound travel reaching just under 60 million in 2011. Although high by international standards, this equates to only one fifth of the US population. In recent years, international travellers from the US have become more elusive due to the recession, the H1N1 virus and safety concerns. These factors have caused Americans to travel domestically or nearby in neighboring North American countries (including the Caribbean). For Uganda the US is a top priority market because it is not the largest single source of inbound visitors but the US travellers characteristically spend strongly per night. There are four groups that should be of focus for Uganda: young adventurers (22-35 years, very active, experienced travellers); independent explorers (45-65 year couples, established outdoor enthusiasts, seeking to broaden their minds and connect with people); organised tours (above 65 years, packaged travellers that need to feel safe/comfortable, and want to learn and explore new things while having fun); and business travellers (conferences, NGOS, faith-based and businessmen). The countries above also have large populations of people of Ugandan descent settled there. For instance, according to the Ugandan North American Association (UNAA), there are 120,000 people of Ugandan descent in the USA and Canada. A 2006 survey in the UK explains that the number of people Page 76 of 85 of Ugandan ancestry living in the UK are between 180,000 and 350,000, 85% of which live in the London area, and if the descendants of the Ugandan Asian that were expelled by Idi Amin are included, the figure could be as high as 750,00010. These people have personal links with Uganda depending on when they emigrated. First generation emigrants will return to the mother country mainly to visit friends and relatives and will most likely be accommodated in their homes. They will generally enjoy the same products as their hosts and act like domestic tourists but often with a greater budget to spend on leisure and entertainment. Second and third generation overseas Ugandans will be interested in experiencing as much of the country as they can, based on stories they have heard from their parents, grandparents and relatives and will want to see all the attractions (including the prime products), especially those that relate to their ancestry. The Diaspora is generally fairly easy to reach as they often have associations, newspapers and community facilities and events that can be excellent distribution channels to disseminate information on Uganda, offer packages to visit Uganda and organize functions that involve association members. Russia, China, Australia, and India China is currently the world leader in outbound tourism expenditure and this market has grown by over 368% since 200511. There are millions of Chinese travellers all around the world looking for iconic attractions, business opportunities, culture and holiday, and in 2013 about 10,000 visited Uganda without any marketing in this source market. China and India are Uganda’s largest trading partners and promoting the country both for business and leisure tourism in these two countries represents a strong business opportunity. Besides, Uganda enjoys strong historical ties with India, and promoting the business segment in this market would particularly be a good opportunity. High disposable incomes and a willingness to spend on luxury brands and big-ticket items like holidays, as well as an increasingly global mind-set, are driving outbound travel from India. The UNWTO predicts that India will account for 50 million outbound tourists by 2020. With over 28 million passport holders in the country who are potential travellers, the source market for outbound travel is wide and complex because of its size and variety. India’s real GDP growth is forecast to average 6.4 per cent a year for 2012-30, making India the fastest-growing large economy in the world during the period. China's continued economic strength and growing middle-class has generated double digit growth in Chinese visitor arrivals to Uganda in recent years. Chinese tourists overtook Germans as the world’s biggest-spending travellers in 2013. International trips by Chinese tourists have reached 83 million annually, up from 10 million in 2000, however only 10 per cent of these trips were to long-haul destinations. The focus should be on actively targeting high value visitors and encouraging them to stay longer and spend more to maximize the value from, and leverage, the arrival growth Uganda is experiencing from China. Uganda will however need to address value issues through ensuring delivery of quality services that meet the standards and expectations of the Chinese consumers. Furthermore, Australia has a very strong tourism culture and currently 7,800 Australians visit Uganda largely for leisure (55%) and spend more than the other countries per trip (US$2700 compared to US$2200 for Europe and America). Globally, Australia ranks among the top 15 outbound tourism spenders and this market has grown tremendously since 2005. The strategy should be to target higher value visitors through a focus on special interest areas such as gorillas, adventure, wildlife, hiking/walking and cycling. The focus should be on Young Adventurers (18-29 years, active, social and seeking adventure); Independent Professionals (Early 30s, seeking break from work and busy lives. High disposable income and enjoy luxury) and Silver Surfers (active older couples, high disposable income, crave for new experiences). 10 International Organisation for Migration (2006) Uganda Mapping Exercise, London 11 UNWTO (2014) World Top Tourism Spenders Page 77 of 85 The Regional Market There are two priority segments within the regional market. The first major segment includes European, Asian and American visitors to the neighboring Kenya, Tanzania and Rwanda who seek to track gorillas and other primates, undertake white water rafting, mountain climbing and who seek to see the source of the Nile, the Namugongo Martyrs shrine and many other attractions non-existent in the neighboring countries. The second priority segment are the middle class citizens who are estimated at over 29 million within the EAC region12. Such a market represents a strong opportunity for Uganda to invest into. Among these people are expatriates with a good disposable income but short on what to do and where to do it from. The diversity of the Ugandan culture, events, festivals, vibrant night life and the adventure tourism opportunities are the hooks that can be used to convince this market to choose Uganda. The Domestic Market A recent domestic tourism study by UNDP (2013) reveals that most of the domestic tourists are working class in the private sector (62%) either as employees (34%) or as entrepreneurs (28%). Their net monthly income is often above the national average monthly income. Most of the tourists are young adults, with 71% of them below the age of 30 and single. They travel mostly for purposes of leisure and recreation, business, VFR and education. Domestic tourists spend an average of UGX10,000-50,000 per trip. Most of them prefer beach activities such as swimming, beach games, eating fish, enjoying music and resting in tree sheds with a cool landward breeze. Thus, beaches both in Ssese Islands and on Lake Victoria Shores represent a key hub for domestic tourism in Uganda. These visitors also prefer activities such as going out for a meal; going for entertainment in cinema halls, live concerts and theatres; adventure and wildlife viewing. The centrality of the domestic market segment is its ability to sustain the industry during low seasons, and when foreign tourists cannot be relied upon especially during difficult times such as financial crises, terror attacks, and disease outbreaks. Within the domestic tourism segment, Uganda should target foreign residents working with missions, NGOs and other organizations; the top 10% of the educated affluent Ugandans; students from primary to University; and the business community largely composed of people with low formal education. 12 http://www.theeastafrican.co.ke/news/-/2558/1167238/-/view/printVersion/-/lo5kug/-/index.html Page 78 of 85

Appendix 6: Cascading Model forTraining of Trainers The Hotel Training Initiative will attempt to meet the demand of skilled labour for hotels in Uganda. The HTI should facilitate the increase of skilled persons in the hospitality industry. It consists in providing a number of “training of trainers” courses following a cascading model. The program should cooperate with a reputable hospitality Training institute in the field of hotel management. The program should identify highly experienced Ugandan candidates, having already worked in foreign countries, with qualifications to attend a Training of Trainers course in order to become Master Instructors for the HTI Component:  Front Office  Food and Beverage Service  Food and Beverage Production  Housekeeping After the completion of a 8 months instructor course both in HTTI and in the main high- end hotels in Kampala (during low-season), the master instructors will be offered a two years contract to belong to a Mobile Training Unit with the aim to improve competencies of management team in hotels all over Uganda. Upon completion of the training, participants should be:  Able to independently plan, prepare and conduct training for a group of learners, following the curriculum and materials of the above mentioned Management Institution  Able to select appropriate training methods for a given learning objective  Able to plan, prepare and conduct all training sessions in English  Able to recognize new trends in vocational training and participate in curriculum reviews Partnerships will then be established with the Uganda Hotels Owners Association to provide free accommodation and meals to the Mobile Training Unit as a compensation for the training costs. Support to the Uganda National Bureau of Standards can complement these efforts by supporting the development of skills standards and a credible system of skills testing and certification. Page 79 of 85

Appendix 7: List of selected stakeholders consulted S/N Stakeholder Institution Focal person engaged Contact 1. Ministry of Tourism, Wildlife and Hon. Maria Mutagamba Antiquities 2. Ministry of Tourism, Wildlife and Amb. Patrick Mugoya, Permanent Secretary Antiquities 3. Uganda Tourism Association Herbert Byaruhanga, President 0777912938 4. Association of Uganda Tour Operators Gary Seagul, Board Member 5. Uganda Safari Guides Association Herbert Byaruhanga, Chairperson 0777912938 6. Civil Aviation Authority Mr. Tom Davis Wasswa Head of Marketing 0752433663 7. Representative of regional airlines Mr. Chris Winyi 8. Uganda Wildlife Authority Mr. Stephen Masaba, Tourism and Business 0754741708 development 9. Ministry of Foreign Affairs Mr. Elly Kamuhangye 10. Uganda Tourism Think Tank Mr. Geoffrey Baluku 0752975961 11. Turkish Airlines Mr. Gonza, Marketing Manager 12. Eagle Air Mr. Tony Rubombora, MD 13. East African Business Council Executive Chairman 14. Aerolink Mr. Njoroge, Country Manager Uganda 15. Ministry of Finance, Planning and Principal economist (tourism desk) Economic Development 16. Ministry of Tourism, Wildlife and Mrs. Grace M. Aulo, Director Tourism Antiquities 17. Ministry of Tourism, Wildlife and Mr. Rosemary Kobutagi Antiquities 18. Ministry of local government Mr. James Ogwang, Senior Economist, LGFC 19. National Information Technology James Saaka, ED Authority 20. Ministry of Transport and Works Head of UNRA 21. Uganda Tourism Board Mr. Steven Asiimwe, CEO Mr. John Sempebwa, Deputy CEO 22. Uganda Hotel Owner’s Association Sylvia Ntabaazi, Executive Secretary 23. Ruboni Community, Kasese Bwabu Thembo Samuel bwabusamuel@gmail.com 24. Queen Elizabeth Tour Guide Muzamilu K. Bisanga muzamilu@gmail.com 25. KAFRED Tinka John tinkabigodi@gmail.com 26. Kabarole Tours Richard Tooro rtooro@yahoo.com 27. Rwenzori Ranges Guides And Esctorts Byaruhanga Masereka Israel Rrgea1@gmail.com Association 28. D.C.O Bundibugyo Musinguzi John johnmusinguzi@gmail.com 29. Rwenzori Mountaineering Services Baluku Stanley Stanbal2002@yahoo.com rwenzorims@yahoo.co.uk 30. Warden Tourist/Semuliki National Park Aggrey Oundo aggreyoundo@yahoo.com 31. DID Kabarole Mugume Kabango mugumekabango@yahoo.com 32. UWA-RMNP, Warden Tourism Gangiriba Robinah robinahg@yahoo.co.uk 33. National Planning Authority Nokrach Chris chrisnokrach@npa.ug 34. Kabarole District Local Government Busobozi Baker Williams.beckg@gmail.com 35. Ministry Of Tourism, Wildlife & Alex Asiimwe, PPA alexjessey@tourism.go.ug Antiquities 36. District commercial Officer Kapchorwa Musoke Musobo mmwoko@yahoo.com 0750551029/0782906612 37. Environmental Officer KDLG Ojangole .O. Silvester ojangulesilvester@gmail.com 0784791495/0750966397 38. Bishop James Hannington Memorial site Rev Canon Thomas Mwandha mwandhathomas20@gmail.com Kyando 0788844940 39. Jinja Municipal Council Tourism Simon Kaita 0782198219 Development Office 40. Busoga Tourism Initiative Mbooli Edwin 0755803899 41. Mbale DLG Wiin Wepukhuhu willywepukhuhu@yahoo.com 0772464802 42. NPA Aaron Warikhe 0774693701 Page 81 of 85 43. DCO/SOROTI Ogunia Benjamin 0772372964 44. DEO/SOROTI Adutn Goerge 0772682954 45. DCO/KUMI Olpot Thomas 0782404990 46. DFO/KUMI DLG Okalang Emmanuel 0704132016 47. GREHTA Edward Mashade 0702882437 48. GREHTA Abbas Wetaaka 0772469415 49. TORORO DLG.DEO Gongo John 0752626817 50. TORORO ALTER DCO Otia Charles 0781827738 51. Investor Qhelauie Wilischat Steru.wywisl.grippe 52. Numiga GMBH Weltgang Nikschat 53. Coordinator Eastern Tourism Forum Aidah Wentungu 0772626714 54. Sipi falls Community Tour Guiding Office Cherotwo Winnex 0703126424 55. Bududa DLG Musamali Michael 0773904582 56. Bududa DLG Wabusani Steven 078286214… 57. NPA Aaron Werikhe 0774693761 58. Kabale University/ Kigezi Tourism Cluster Ampumuza Christine 0782578752 59. Uganda Tourism Information Center, Seith Byarugaba 0772661854 Kabale 60. Nkuringo Community Conservation Kanyamunyu Fidelis 0772987576 Development Association 61. Ankole Tourism Cluster Kyokunda Deborah 0779344839 62. Kisoro District Tourism Officer Munezero Richard 0772932010 63. Senior Warden, Tourism , Bwindi Geoffrey Twinomuhangi 0782319756 Impenetrable National Park 64. Uganda Safari Guides Association, Kabale KamusiimeLilian 0777408098 Regional Representative. 65. Kabale District Commercial Officer Bakibayo Charles 0750000199 66. NPA NPA eongora@npa.ug 67. Rift Valley Resort Rift Valley Resort 0752522351 68. Masindi DLG,DCO Masindi DLG,DCO Kasofre2yahoo.com 0772559136 69. Gulu DLG (DCO) GULU DLG (DCO) Okumubina2gmail.com 70. Pacafod-Emin Pasha Coordinator Nebbi Pacafod-Emin Pasha Coordinator Nebbi piwangn@yahoo.co.uk Page 82 of 85 0782483536 71. State House Twesigye Robert 0772333666 72. Makerere University Business School Otengei Samson 0782454208 73. Association of Uganda Tour Operators Gloria Tumwesigye 0752868686 74. Kampala Capital City Authority Ronald Mubiru 0794661418 75. Bunyoro Tourism Initiative Apollo John Rwamparo 0779520866 76. CICS/Ministry of Finance, Planning and Atuhaire Obed 0701456699 Economic Development 77. Tourism Police ASP Komuhangi janekomuhangi@yahoo.com 78. Uganda Revenue Authority Opolot Patrick pfopolot@ura.go.ug 79. Uganda Investment Authority Nasur L. Modester 0781424160 80. National Planning Authority Othieno odoi 81. Ministry of Tourism, Wildlife and Lyazi Vivian Antiquities 82. Ministry of Tourism, Wildlife and Okiror Steven Fred Antiquities 83. Ministry of Tourism, Wildlife and Ojok Denis Rodney Antiquities 84. WWF Richard Mwesigwa 85. Ministry of Tourism, Wildlife and Tashobya Richard Wanzaarwa Antiquities 86. Ministry of Tourism, Wildlife and Robert Baluku Antiquities 87. Ministry of Tourism, Wildlife and Candia Leone Antiquities 88. Uganda Wildlife Authority Mr. Engena 89. UNDP Mr. Wilson Kwamya, Leader Growth and Poverty Reduction 90. UNDP Mr. Nicholas Burunde 91. UTB Jackie Kuteesa Page 83 of 85

Appendix 8: Tourism forecasts (arrivals and receipts) Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 467 538 642 842 806 946 1151 1197 1206 1270 1335 1397 1455 1510 1561 1609 Tourist Arrivals (‘000) 467 538 642 842 806 946 1151 1197 1206 1328 1418 1508 1598 1688 1779 1869 International Receipts (million USD) 354 377 448 589 572 662 805 834 979 975 1,044 1,113 1,182 1,251 1,320 1,388 9 30 140 144 126 149 76 224 188 198 217 237 257 276 296 315 Leisure visitors ('000) 9 30 140 144 126 149 76 224 188 219 238 258 277 297 317 336 Yearly receipts (million USD) 11 36 170 174 153 180 92 271 228 265 288 312 336 360 383 407 31 72 110 163 167 184 160 210 296 268 295 322 348 375 401 428 Business visitors ('000) 31 72 110 163 167 184 160 210 296 288 314 341 367 394 421 447 Yearly receipts (million USD) 27 63 96 142 145 160 139 183 258 251 274 297 320 343 366 390

Appendix 9: The Celes International Consulting Team Expert Title Celestine Katongole Team Leader Geoffrey Bakunda, PhD Sector diagnostic and investment planning Specialist Thomas Frederic, PhD Tourism Economist and development planning specialist Wilber M. Ahebwa, PhD Tourism Development Specialist Cuthbert Baguma Tourism Management, Marketing and Standards Specialist Montgomery Ogwang Public sector Finance and M&E specialist Arthur Mugisha, PhD Tourism Management and Conservation specialist Page 84 of 85 Page 85 of 85