Assessment of Tourism Impact on Uganda’s Economic Welfare (1995-2019)

Arnold Bugonga¹, Dennis Mahebe^2, and Israel Mugezi¹

¹Department of Production Trade and Tourism Planning, National Planning Authority, Clement Hill Road Plot 17B

²Department of Local Government Development Planning, National Planning Authority, Clement Hill Road Plot 17B

Cite this paper:
Arnold Bugonga, Dennis Mahebe and Israel Mugezi. Assessment of Tourism Impact on Uganda’s Economic Welfare (1995-2019). Journal of Finance and Economics. 2022; 10(1):7-12. doi: 10.12691/jfe-10-1-2

Abstract

The study used quarterly secondary time series data obtained from World Bank to assess the impact of tourism on economic welfare in Uganda for the period 1995 to 2019. Results from Vector Error Correction Model (VECM) show that international tourism receipts on average contribute USD 55.2 to Uganda’s Gross Domestic Product Per Capita (economic welfare) per quarter, higher than the Gross Domestic Savings contribution of USD 46.1 and imports contribution of about USD 50.1. Therefore, to maximise the impact of tourism on Uganda’s economic welfare, government should implement the proposed policy actions like setting up modern centers of excellence for training, improving accommodation in upcountry hotels and lodges, digitalizing data collection in the sector and setting up a tourism relief fund backed by an insurance scheme.

Keywords:
economic welfare gross domestic product gross domestic savings inbound arrivals tourism

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