ABN - The government of Uganda is finalising agreements to have taxes on hotels reduced or eliminated, in a bid to increase tourism figures.
Ephraim Kamuntu, Uganda’s Minister of Tourism, said: "Many hotels in the country have failed to improve their services to international standards because of the tax burden on them.
“As a government, we have finished reviewing the demands for hotel owners and we are ready to revoke taxes so that they could expand their businesses to attract more tourists."
The East African country aims to increase annual tourism figures to 4 million by 2020, up from the current 1.3 million annual visitors to Uganda.
Tourism accounts for 9% of Uganda’s total GDP, however Kamuntu expects this figure to rise if hotel taxes are scrapped as it would attract greater business investment, which would improve hotel services, resulting in higher tourist numbers.
“Tourism is one of the fastest growing sectors in the world and this means that we must prioritise it as a country," added Kamuntu.