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Minister of State for Tourism Martin Mugarra has rejected the proposal in the Alcoholic Drinks Control Bill 2023, limiting the time within which alcohol should be sold, warning that any such move would be detrimental to Uganda’s tourism industry.

“Some of the regulatory regimes stipulated in the Bill may negatively affect the tourism sector, clause 14(3) which regulates the time of sale of alcoholic drinks is potentially detrimental to some of the tourism products including the night economy. The Bill also seeks to introduce a host of licences and taxes including; trading licences, signpost licences, billboard licences, occupational and health licences, medical examination fees, advertising fees, alternation licences, restaurant licences, bar licences, liquor licences, events and entertainment licence, will stifle the businesses in the industry if passed in its current form,” said Mugarra.

The Minister made the remarks while appearing before Parliament’s Joint Committee of Tourism and Health on March 7, 2024, which is currently scrutinising proposals made in the Alcoholic Drinks Control Bill 2023 that was tabled by Sarah Opendi, the Tororo Woman District Representative.

Minister Mugarra also cited a proposal in clause 5(7) (a) that stipulates that the business premises involved in the sale, manufacture and distribution of alcoholic drinks are considered suitable if they are not within 400 meters of a school, health unit, residential area or place of worship, or not situated at a fuel station, wondering if the mover of the Bill factored in the current poor physical planning in Uganda. 

“The Bill is silent on tourism accommodation facilities. This Bill may present a complex implementation challenge given that our towns are poorly planned and most of these premises have approvals from different ministries, departments and agencies and local governments,” added Mugarra.

He defended his argument noting that the tourism & hospitality industry in Uganda before the COVID-19 pandemic earned Uganda US$1.6Bn (sh5.6 trillion) making the sector a major player in the country’s economy.

Buhweju County MP, Francis Mwijukye asked Mugarra to clarify if the Ministry of Tourism is against the Alcoholic Drinks Control Bill, and explain why he feels the Bill isn't instrumental and poses a grave threat to the economy of the country.

“The Minister is interested in guarding the interests of the tourists, the local business community and the economy. Since tourism brings a lot of money to this country, I realise that the Minister is against the Bill. Do you support this Bill or do you think it is redundant? It is anti-tourism, it is anti-development, it is anti-economy, and therefore it should be discarded and sent to the dust bin?” asked Mwijukye.

“It isn’t true that we are for or against the Bill per se, the Bill has many sections, it has the regulation of the manufacture and sale. Where we have issues is the consumption bit and that is why we are saying, that the only clause that speaks to the alcohol policy and about consumption appears in clause 23 therefore, we feel that this Bill doesn’t necessarily address the consumption problem of alcohol and it is very important for the Committee as you process this Bill, that you do a proper assessment of the impact of this Bill, on the employment & revenues,” the Minister replied.

Sandra Adong, an economist says that sectors that contribute a high percentage to the country's revenue are very vital to the growth and development of Uganda and passing bills that suffocate them is economic suicide.

"The tourism sector brings in foreign revenue that supports the country's economy, and Uganda isn't ready to lose a vital contributor to its economy," said Adong.

This follows the lapse of the 20 days, Parliament added to the Health and Trade Committee, to consider the Alcoholic Drinks Control Bill 2023, in order to allow more stakeholders that would be affected by the Bill to submit their proposals.

The Bill proposes restrictions on the sale of alcohol and sanctions for offenders but has faced stiff opposition from alcohol manufacturers and owners of bar businesses.