Uganda Offers Tax Holidays to Boost High-End Tourism Investment

The Ugandan government is rolling out a new incentive program, offering a tax holiday to attract substantial investments in high-end hotels and ultra-luxury tourism facilities. This initiative is part of a broader strategy to revitalize and expand the country’s tourism industry.

Finance Minister Henry Musasizi detailed the plan during the presentation of the National Budget for the 2026/27 financial year. Foreign investors must commit a minimum of $10 million (approximately Shs37.7 billion) to qualify, while their Ugandan counterparts need to invest at least $5 million (around Shs18.8 billion).

This move comes as the tourism sector shows strong signs of recovery post-COVID-19. Tourism receipts reached $1.86 billion in 2025, a notable increase from pre-pandemic figures and a significant rebound from the $562 million recorded in 2020. The sector is a key source of foreign exchange and employment for Uganda.

To further support the industry, the government has allocated Shs567.32 billion for the tourism sector in the upcoming fiscal year. Key areas of focus include marketing Uganda as a prime destination, developing critical tourism infrastructure such as sanitation facilities and hospitality training centers, and enhancing conservation efforts.

Investments are also being channelled into improving visitor experiences at various sites, including the Rwenzori Central Circuit Trail and Kitagata Hot Springs, and boosting regional connectivity through the maintenance of aerodromes and the development of Kidepo International Airport. The “Explore Uganda, the Pearl of Africa” branding campaign, alongside participation in international tourism exhibitions and leveraging global events like AFCON 2025, is also part of the marketing push.

Source: https://www.monitor.co.ug/uganda/news/national/tourism-govt-announces-tax-holiday-for-big-hotel-investors-5493220