Tourism is an important economic activity because it directly brings in foreign exchange to Uganda. It is estimated that about $450m in are added to national income through tourism as tourists come in and spent a lot of money in form of accommodation, transport and entrance fees payable in game parks like Murchison falls, hotel bookings in Sheraton, Mweya safari lodge, Sarova hence foreign exchange, which is used to develop roads, hospitals & schools. In 1991, more than US$ 20m was obtained from tourism and more than $30m was earned in 1993. In 1995, total receipts from tourism were $90.1 million. Currently it contributes approximately 25% to GDP.
Tourism has generated employment opportunities to many Ugandans in different categories. It is estimated that the industry employs over 70,000 people either directly or indirectly in Hotels like Speke resort hotel, lodges, game rangers and tour guides, game parks like Rwenzori Game Park, transporters like tour and travels, and those who carry the luggage of mountain climbers on Rwenzori and Muhauvra mounts and those in top offices in UWA and UTB. The tourism industry provides employment opportunities to many people in Hotels like Speke resort hotel, lodges, game rangers and tour guides game parks like Rwenzori Game Park, transporters etc. These employees are paid income to improve on their standards of living.
The tourism industry has helped in diversifying the Ugandan economy which has been predominantly on agricultural country which is an unpredictable sector usually hit by low prices on the world market or climatic and biotic hazards. For instance Rwenzori, L. Mburo and Kidepo national parks provide side income to tourist guides who double as farmers and pastoralists at the same time. Therefore the government earns from tourism, agriculture and manufacturing industry.
Tourism has stimulated the growth of local art and handcraft industry where foreign visitors buy large amounts of local handcraft items like wood curvings, textile weavings, backcloth painting, drums, clay curving, etc. In Jinja, Kampala and Entebbe Wood curvings, art pieces, baskets, mats, and grass hats are crafted and sold at the source of the Nile, Bujagali falls; along Buganda road, National Threate and Entebbe wildlife centre respectively.
The industry has helped much in facilitating the conservation and maintenance of the wildlife reserves as it is the biggest tourist attraction. This has been possible by the entry fees paid by the visitors to view the wildlife in different game parks, game reserves and at the Wildlife centre at Entebbe is used to buy meat and other animal feeds in the park or wild life centre.
It has promoted urbanisation / the growth of urban centres especially in areas where there are tourist attractions and sites e.g. Jinja town is near source of Nile and Bujagali falls, Kampala is near Namugongo shrines, Fort Lugard and Uganda Museum, Entebbe is near several beaches like Lido and Lutembe and Entebbe wildlife, Kaabong is near Kidepo valley N.P, Kayabwe along Masaka road and Kakorongo in Queen Elizabeth Park are near Equator.
The tourism industry has helped in training of necessary skilled manpower especially in the field related to tourism e.g. tour guides, Linguistics, receptionists, guards, managers, game rangers in Rwenzori and Murchison falls national parks as well as in hotels such as Serena, Sheraton, etc. Tourism courses have been introduced at Makerere University and Jinja tourism institute.
Major transport facilities like Kampala to Entebbe road, Kampala to Jinja road, etc have been renovated and rehabilitated as they lead to major tourist centres like Entebbe wildlife centre and source of Nile, Bujagali falls, etc. Hotels and lodges have been updated to reach the international standard for better services to tourists like White horse in Kabale, Crested Crane in Jinja, Mweya Safari lodge in Kasese, Grand Imperial and Serena in Kampala, etc all as result of tourism.
Tourism has promoted research and education among students of higher institutions of learning like universities and various secondary schools. Students research on animal behavior and botany from national parks and game reserves like students of Institute of ecology located at Mwea in Queen Elizabeth national park and those of Makerere University use Kibale forest reserve and Bwindi for research purposes.
Tourism has put to use the land that could otherwise be left idle and unutilized. Such area include those that receive low and un reliable rainfall, those areas with infertile soils and those infested with tsetse flies e.g. Kidepo, Murchison falls and lake Mburo areas were inhabitable but have been put into economic use by gazatting them as national parks.
National parks and game reserves have helped in the protection, preservation and conservation of the environment and Eco-system generally like forests which are not tempered with because they reduce soil erosion, landslides on mountain slopes and climatic changes. The gazatted forests such as Mabira and Semliki have also protected the water catchment areas since forests owe origins of some rivers such as R. Musamya and R. Semliki respectively. Chimpanzees and mount Gorillas are conserved in Mgahinga and Bwindi national parks.
Tourism in Uganda in particular has created friendship among the nations from which the tourists come from which has later attracted foreign aid and grants necessary for economic developments. Most of the non-governmental organisations such as DANIDA from Denmark came after touring the country and witnessing the low level of economic development in that they are now here to assist the country in constructing schools, hospitals and many others.
Tourism has maintained the wildlife reserves in that the entry fees paid by visitors to view the wildlife in the game parks, game reserves and at the Wildlife centre at Entebbe is used to buy meat and other animal feeds in the park or wild life centre.
Tourism has promoted the agricultural sector through offering market to the agricultural goods especially food stuffs which is consumed in hotels such as Mweya Safari lodge in Kasese, Grand Imperial and Serena in Kampala, etc. The industrial sector has also been boomed by tourism through increased demand for the industrial products, photographs and other industrial related goods for example photo films and papers from Fotogenix limited in Kampala and Mosquito nets and Curtains from Quality Chemicals at Luzira.
Tourism has offered Uganda as a country a good image as well as international recognition as tourists inform others about what Uganda can offer as a way of advertising her natural resource endowments like petroleum deposits along the Western Rift valley of Uganda, etc.
Tourism has promoted the growth and development of the filming and photography industry. In Mgahinga, Bwindi, Rwenzori and Kazinga channel game parks, the conserved endangered animal species such as chimpanzees, gorillas, Elephants, Lions, Cheetahs, Buffaloes and birds like crested cranes and parrots are photographed for magazines and filmed for commercial purposes.
Tourism has helped in the preservation and conservation of African culture and traditional customs which act as tourist attractions e.g. circumcision among the Bagisu, traditional dances of Baganda and Banyoro, coronations of kingdom kings and burial ceremonies. In the Uganda museum at Kampala, a variety of ancient cultural norms and pieces such as dress code, cosmetics are conserved for viewing by both local and foreign tourists. This helps transmitting the local culture to the next generation and abroad.
Tourism played a role in balancing the economic development in the country. Since all corners of Uganda have tourist assets e.g. in the West Nile and North, there is Albert Nile, Fort Baker, Aswa river, etc, in the North East, there is Kidepo National Game Park, in the East, there is Pian-Upe, Bakora corridor, Sipi falls, etc in the West, there is Semliki National Park, Mt. Rwenzori game reserve and in the south west, there is Mufumbiro Mountains, Bwindi forests, etc. Such a balanced distribution of economic assets has led to a more relatively equal income distribution, which enable the country to develop as a whole.
