Following continued unexpected business patterns with in Uganda’s tourism industry, stake holders with in the industry have taken it to the government to provide a backup support so as to maintain the sector afloat regardless of the unhealthy forces within the economy.
Earlier this month, the tourism industry stake holders met with the finance minister Hon. Matia Kasaija to present their appeals to the government. Atop of their appeals was the major down playing factor that the industry was being faced with numerous cancellations of hotel reservations and bookings. The low turnover coupled with extreme difficulty to meet loan commitments, salaries and other business overheads in the trying times of the global COVID_19 pandemic.
In a letter addressed to the finance minister from the tourism sector, the industry suggested a pardon on VAT subscription to the finance industry for at least one year and differing of corporate tax payment 2019 to the end of 2020 rather than the earlier suggested mid financial year as a way to enable the tourism industry use cash flows to pay operating expenses.
The Tourism Industry also asked for a renunciation of Pay As You Earn (PAYE) tax for at least a year explaining that such would allow them to keep up with thousands of jobs during the tough time and recovery period.
More so, they wanted the government through the Bank of Uganda to intervene and put in place mitigating measures such as reducing the interest rates on loans or extending loan payment periods for hoteliers, tour operators and other key industry players. There was also a suggestion from the Tourism ministry asking the government to at least reduce on Hotels’ electricity bills by 40%.
According to the Chair lady Uganda Hotel Owner’s Association, Mrs. Susan Muhwezi, she believes that if at all the suggested recommendations are accepted, it will enable the industry to stay afloat, reduce the number of jobs lost and keep the tourism industry alive as it struggles through the crisis.
The CEO Uganda Tourism Board miss Lilly Ajarova commented that engagements with the ministry of finance for an urgent stimulus package for tourism are still on.
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