By Michael Kanaabi Dollar
Julius Kakeeto the Managing Director and CEO PostBank Uganda has urged fellow top Executives in the Banking Industry and other related financial sector players to partner with Entrepreneurs and investors in the tourism sector to unlock it’s full potential.
While giving opening remarks for the final day of the annual Uganda Bankers Association Conference 2022, Kakeeto emphasized the need for more synergies and partnerships between the public sector, the banking industry and private players in the tourism industry in order for the sector to achieve it’s full potential.
“ With a good strategic plan for the industry already put together by Uganda Tourism Board for years 2021-2025, private sector players in the sector require adequate and timely financing structured competitively to meet their needs and grow the industry progressively” Kakeeto said.
With statistics showing that 90% of hotels which are key facilities for the growth and survival of the sector are in private hands 75% of which have indigenous owners, any additional financing to the industry will be a big boost to local investors and will generate a sizeable trickle down effect to other service providers, employees and dependent families too.
As of 2021, Kakeeto also the Uganda Bankers Association Vice Chairman notes that over 435 billion had been lent out by banks to the tourism sector excluding property development, a figure he suggests should go much higher with the full re-opening of the economy considering the big earnings potential the tourism industry has. The tourism industry pulled in over 1.6 Billion US Dollars to the National economy prior to the lockdowns in 2019 showing the potentially huge returns credit to the sector can generate.
Uganda Tourism Board Chairman Hon. Daudi Migereko emphasized the importance of tourism to the economy and directing credit to it having contributed up to 7.7% of GDP to the Ugandan economy pre-lockdown in 2019 while speaking to guests at the conference.
In addition Migereko commended Post Bank Uganda for financing investment in the Tourism sector when other banks and financial institutions were still skeptical urging other banks to follow suit given the immense potential the sector has with projections by the World Tourism and Travel Council showing the sector in Africa alone will grow by about 27.7% in 2022.
Stephen Assimwe the Private Sector Foundation Executive Director and former CEO of UTB noted that the tourism sector offers some of the best returns for investors and bankers given some tourists spend up to $7000 USD in a week while here.
“With tourists spending over 300$ a day per square metre of space on accommodation in top hotels which is much higher than the average rent in the city, banks should look no further when it comes to which sector to lend” he says.
Assimwe added that government needs to increase it’s direct expenditure on tourism significantly to have impact especially in international markets.
Email:michaelkanaabi@gmail.com
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