Uganda Offers Tax Holiday to Boost Ultra-Luxury Tourism Investment

The Ugandan government is rolling out a significant incentive package, including a tax holiday, to draw investment into its burgeoning tourism sector, with a particular focus on high-end hospitality.

This initiative, announced by the Minister of Finance, Planning and Economic Development, Henry Musasizi, during the presentation of the National Budget 2026/26, is designed to stimulate large-scale tourism projects.

Foreign investors undertaking projects valued at a minimum of $10 million (approximately UGX 37 billion) will be eligible for the tax exemption. Similarly, domestic investors can qualify if they commit at least $5 million (approximately UGX 18.5 billion) to these ventures.

Minister Musasizi highlighted the growing interest in Uganda’s investment landscape, noting that Kampala-based startups attracted about $30 million in 2025, a substantial increase from the $4 million recorded the previous year. This indicates a positive trend in investor confidence.

The tourism sector has demonstrated remarkable resilience and recovery post-Covid-19. Tourism receipts climbed to $1.86 billion in 2025, up from $1.4 billion in 2024, surpassing pre-pandemic figures and reinforcing its status as a key foreign exchange earner and job creator.

Furthermore, the government has earmarked Shillings 567.32 billion for tourism development. This allocation is part of the broader ATMS (Agro-industrialisation, Tourism Development, Mineral Development and Science Technology and Innovation) strategy, which is pivotal to achieving the nation’s Tenfold Economic Growth Strategy aiming for a GDP of $500 billion by 2040.

Source: https://ugandainvest.go.ug/incentives-for-investors-in-the-tourism-sector-in-uganda