Tourism Economic Impact Analysis

Comprehensive analysis of Uganda's tourism sector economic contribution, including GDP impact, employment generation, foreign exchange earnings, and regional economic distribution.

$10.5B

GDP Contribution 2024

165K

Direct Jobs Created

$2.5B

Foreign Exchange

22.3%

Revenue Growth

Tourism Economic Impact Dashboard

Executive Summary

Uganda's tourism sector has demonstrated remarkable resilience and growth, contributing significantly to the national economy through direct GDP contribution, employment generation, and foreign exchange earnings.

The 2024 analysis reveals that tourism contributes $10.5 billion to Uganda's GDP, representing approximately 12.8% of the total economic output. This marks a substantial 22.3% increase from the previous year, highlighting the sector's robust recovery and expansion trajectory.

The sector directly employs over 165,000 people across various subsectors, with indirect employment reaching an estimated 450,000 individuals. Foreign exchange earnings from tourism reached $2.5 billion in 2024, making it one of Uganda's top foreign currency earners alongside coffee and other agricultural exports.

Key Highlights

  • 22.3% revenue growth in 2024
  • 165,000 direct jobs created
  • $2.5B foreign exchange earnings
  • 12.8% of total GDP
  • All regions benefiting

GDP Contribution Analysis

Tourism GDP Growth Trajectory

The tourism sector's contribution to Uganda's GDP has shown consistent growth over the past five years, with particularly strong performance in 2024. The sector recovered from the 2020-2021 challenges and has exceeded pre-pandemic levels.

GDP Contribution Breakdown (2024)
Direct Contribution
$6.8B
8.3% of total GDP
Indirect Contribution
$3.7B
4.5% of total GDP
Tourism GDP Contribution
Accommodation Sector
$2.8B

26.7% of tourism GDP

Food & Beverage
$2.1B

20.0% of tourism GDP

Transportation
$1.9B

18.1% of tourism GDP

Employment Impact Analysis

Tourism Employment Generation

The tourism sector is a significant employer in Uganda, providing both direct and indirect employment opportunities across various skill levels and regions. The sector's employment impact extends beyond traditional tourism businesses to include suppliers, service providers, and related industries.

165,000

Direct Employment

450,000

Total Employment

15.2%

Employment Growth

8.5%

Of Total Employment

Tourism Employment Impact
Employment by Tourism Subsector
Hotels & Lodging 45,000 jobs
Food & Beverage 38,000 jobs
Tour Operations 32,000 jobs
Transportation 28,000 jobs
Retail & Crafts 22,000 jobs

Foreign Exchange Earnings

Tourism Foreign Exchange Performance

Tourism is one of Uganda's leading foreign exchange earners, contributing significantly to the country's balance of payments. The sector's foreign exchange earnings have shown consistent growth, with 2024 marking a record year.

2024 Foreign Exchange Highlights
  • $2.5 billion total earnings
  • 18.5% increase from 2023
  • 2nd largest forex earner
  • 15.8% of total forex earnings
Tourism Revenue Growth
Monthly Foreign Exchange Earnings Comparison
Month 2023 (Million USD) 2024 (Million USD) Growth (%)
January120145+20.8%
February135160+18.5%
March180210+16.7%
April165195+18.2%
May145175+20.7%
June190225+18.4%

Regional Economic Distribution

Tourism Revenue by Region

Tourism revenue is distributed across Uganda's regions, with each area contributing based on its unique attractions and tourism infrastructure. The Central region leads due to Kampala's position as the main entry point and business hub.

Central Region
Kampala, Entebbe, Jinja
35%
$3.7B
Western Region
Bwindi, Queen Elizabeth NP
28%
$2.9B
Eastern Region
Mount Elgon, Sipi Falls
15%
$1.6B
Southwest Region
Lake Bunyonyi, Mgahinga
14%
$1.5B
Northern Region
Murchison Falls NP
8%
$0.8B
Regional Market Analysis

Economic Multiplier Effects

Tourism Economic Multipliers

Tourism's economic impact extends beyond direct spending through multiplier effects that benefit the broader economy. Every dollar spent by tourists generates additional economic activity through supply chains and induced spending.

Direct Impact Multiplier 1.0
Indirect Impact Multiplier 0.54
Induced Impact Multiplier 0.32
Total Economic Multiplier 1.86

Sectoral Linkages

Tourism creates strong linkages with other economic sectors, generating demand for goods and services across the economy.

Agriculture & Food Production
85%
Construction & Infrastructure
72%
Manufacturing
68%
Financial Services
65%
Telecommunications
58%

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