Analysis of the contribution of the tourism sector to the economic growth of Uganda
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All over the world, different countries have seen tourism as a vital component to promote economic growth, reduce poverty and improve food security. The sector has several characteristics that highlight it as a driver for economic growth like; it’s representation of an opportunity for economic diversification. The overall statistics from the World Travel and Tourism Council database show that on average the tourism sector contributes 10.3% to total GDP globally and 7.3% to the Ugandan economy. Tourism thrives on natural endowments that set it apart from other destinations around Africa with 10 National Parks, 10 Wildlife Sanctuaries, 506 Central forest reserves, 12 Wildlife reserves. These are distributed among abundant wildlife, culture, landscape and water bodies. The Tourism sector data was analysed using Stata software package and this was done at univariate, bivariate and multivariate level. At Univariate level the researcher summarized (descriptive statistics) individual variables, trend determination of the Employment variable as well as forecasting future values of jobs created. At Bivariate level the researcher did a correlation analysis of each variable against the other. And finally, in the Multivariate Analysis Linear regression model with Contribution to GDP as my dependent variable and Employment, Internal T&T Consumption, Capital Investment and Investment in the sector the independent variables were used. The recommendations put forward are that the government of Uganda should allocate more funds from the National budget towards the Tourism sector. The study was done only on the Tourism Sector. However, more research should be done on other sectors of the country to establish the overall performance basing on different sectors under the study. The government of Uganda should put more emphasis on Intensive marketing both within the country and also in the external markets like Europe, America among others. This aims to improve the numbers of foreign tourist arrivals. The government should develop policies that support Travel companies and hotels that are engaged in the Tourism business to have more access to credit services. This encourages and promotes more investments. The researcher also recommends a more in-depth study on the effect of other variables in Tourism on the Economic Growth of Uganda.