Business 23 August 2026 Daily Monitor (Uganda)
Funding Gaps Hamper Kasese Hotel Growth Amidst Rising Tourism
Kasese's burgeoning tourism sector faces a significant hurdle as numerous hotel projects remain unfinished due to funding constraints, potentially limiting the district's capacity to accommodate an influx of visitors and capitalize on growing tourism. Source: https://www.monitor.co.ug/uganda/news/national/funding-constraints-stall-hotel-projects-in-kasese-as-tourism-grows-5568930
Kasese district, experiencing a notable upswing in tourism, is struggling with a critical shortage of hotel accommodation. Several planned hotel developments have stalled, primarily because investors are finding it difficult to secure the necessary funding to complete construction.
Charles Mugisa, the chairperson of the Kasese Investors’ Forum, highlighted this challenge, stating that while projects have commenced, the lack of timely financial resources is delaying their completion. This situation arises at a time when the Uganda Tourism Board (UTB) is encouraging investors to upgrade facilities to international standards to attract higher-spending tourists.
UTB CEO Juliana Kagwa emphasized the need to not only increase visitor numbers but also to enhance their spending and encourage repeat visits. “Our job is to make sure every visitor who comes to Uganda leaves more of their spend here, and comes back to spend again,” Kagwa remarked. She urged investors to prepare “bankable projects” in anticipation of increased high-value tourism, questioning Kasese’s readiness to host such visitors given the current state of its accommodation.
Nationally, the Ministry of Tourism, Wildlife and Antiquities aims to significantly expand hotel capacity from approximately 10,000 to nearly 39,000 rooms by 2040, as part of a strategy to achieve $5 billion in annual tourism revenue. However, investors in Kasese point to additional obstacles beyond funding, including poor transport infrastructure, limited airport capacity, and inadequate amenities, which collectively deter tourism investment.
Despite these challenges, Kasese is gaining international recognition, partly due to events like the Tusker Lite Mt Rwenzori Marathon. Tourism officials are urging stakeholders to leverage such events to foster long-term economic benefits and encourage tourists to extend their stays, thereby maximizing local spending and transforming the region’s potential into lasting economic growth.