Uganda’s hospitality industry a catalyst in shaping Kampala’s skyline

OPINION

By Irene Birungi Mugisha

For a while now since the opening up of the economy, the hospitality and entertainment industry have recovered faster, complimented by government’s strategy of re[1]purposing resources to programmes with higher multiplier effects or higher returns and also paid arrears to core service providers.

This is a stimulus of liquidity within the economy, increasing disposable income which translates into spend.

As such the hospitality industry well defined as a major service industry which includes hotels, restaurants and bars, continue to boost the growth of night life which is the night economy, but also contribute to the changing new skyline of Kampala city and its entire suburbs.

Construction of new hotels in the city and mushrooming restaurants in the upscale suburbs is testament to the prevailing peace and stability.

The ever-changing skyline of Kampala is dotted with magnificent architectural structures housing international hotel brands, a vote of confidence for Uganda as a favourable business environment.

These two enablers, facilitated by the current government under the NRM party are core to national development through an open self-sustaining economy.

President Yoweri Museveni emphasises the need to support private sector and this is one of the NRM 10-point programme, in order to increase Uganda’s foreign exchange wallet, through different strategies such as resource capacity planning to improve customer experience in the hospitality industry and government institutions on the matter of promoting tourism and the leisure industry.

Uganda boasts of having the best and favourable climate, therefore, the Government prioritising infrastructure is a key enabler of supporting growth and sustainability of the hospitality industry.

According to Hon. Daudi Migereko the chairperson of Uganda Tourism Board (UTB), Uganda is projected be among the 10 fastest growing destinations for leisure, travel and spending during the period 2020 to 2026.

The Leisure industry (recreation, entertainment, sports and tourism – REST) thrives on available infrastructure that is accommodation, recreation facilities and technology. Uganda might not be there yet, but what we have is promising. Recently, I made a random choice (as most Ugandans do) for an early dinner with my husband.

We opted for the newly opened eye-catching hotel in the city — Four Points by Sheraton, opened to the public recently. We were amazed by the traffic at the hotel and wondered how fast word had gone out. Most of the guests at the high-end hotel were Ugandans, an indicator of the vibrancy in the sector and available disposable income within the population.

The vibrancy of the night economy which is more often spoken about by the Permanent Secretary and Secretary to the Treasury (PSST), Dr Ramathan Ggoobi and the Minister of Finance, Matia Kasaija, plays a crucial role in capitalising formal and informal sector.

Ggoobi recently said that the true rationale of life is happiness with three ingredients: freedom of choice, (freedom to choose anything), secondly, self-esteem and the third being income (money). With these three things, one is happy.

President Yoweri Museveni always emphasises the need for an open economy. He is often acting as our PR or Uganda’s ambassador to attract FDI. This in turn is a gospel on creating jobs and boosting other economic activities such as agriculture in terms of food supplies. The real estate, an off-taker of our own raw materials to produce cement and other construction materials etc plus the industry’s support of service industry like aviation and technology.

The President’s mission has always advocated for an open economy that allows key sectors to thrive by attracting investors to this market and make use of the available opportunities.

This investment adds value to Uganda’s economy in so many ways, first land is procured, buildings are built, jobs are created, revenue is collected by government thus liquidity in the economy is guaranteed and the bonus is the beautification of Kampala’s skyline by attracting core franchise names that are opening in Kampala soon.

According to Ministry of Tourism, it is said that the tourism and hospitality sector accounts for around 667,000 staff, with 90% employed in the hospitality sector; the sector contributes to about 6.7% of the total national employment.

According to the World Bank, there is need for an all-round intervention to grow the tourism sector which earns Uganda approximately $1.6b per annum.

The goal of the hospitality industry is to provide customers with an enjoyable experience. Whether that enjoyment comes from eating a good meal, relaxing in a luxurious spa, or getting a good night’s rest away from home, making sure each individual guest is taken care of is paramount. The hospitality industry, therefore, supports local economies and communities, especially those neighbouring our national parks, game reserves and tourist sites, driving the social and economic transformation of our people.

The private sector in the hospitality industry plays a key role as investors in the industry both on the accommodation front and entertainment, thus meeting both the needs of the domestic and international leisure and tourism categories of people and also plays as a major employer as it encompasses an extensive variety of the service industry that includes food and beverage services, tourism and hotels.

The writer is the PS/Admin for The President and the Coordinator of Presidential CEO Forum irenebirungimugisha@gmail.com