Uganda wants to double its tourism revenues, raise annual visitor arrivals to 1.9 million by 2026, and grow the sector’s contribution to GDP to 10% by 2040. But beneath these ambitions lies a paradox that threatens the very foundation of the country’s global tourism competitiveness: the majority of Uganda’s hotels remain ungraded, and some of the very players meant to benefit from the sector’s growth are resisting the standards designed to make it credible.
According to the Uganda Tourism Board (UTB), only 126 of Uganda’s 2,600 gradable hotels have been officially classified, less than 5% of the market. This low compliance raises a fundamental question: can Uganda truly market itself as a world-class destination when the quality of its accommodation is largely uncertified?
The Grading Deadlock
UTB’s Quality Assurance Manager, Samora Matchel Ssemakula, insists the grading exercise is not a simple checklist, but a rigorous, structured process. “Grading is a marketing tool that must stand up to scrutiny,” he says. “Once grading is done, results must be gazetted, published in newspapers, and approved by the Minister and the UTB Board.” He explains that stars expire every two years, requiring continuous reassessment, a process that naturally makes progress slower than the public expects.
The problem, however, is not only pace. It’s power. “UTB sanctions hotels primarily on licensing, which is mandatory for operation. Grading, while important, is not mandatory; hence, penalties are not attached to it,” Ssemakula admits.
That admission strikes at the core of the problem: UTB has the mandate but not the enforcement muscle to compel compliance. In effect, Uganda’s tourism regulator can bark but not bite, a “barking dog” in a sector that thrives on self-regulation and goodwill.
Resistance and Rationalisation
For years, the Uganda Hotel Owners Association (UHOA), representing the very businesses UTB seeks to grade, has been accused of shielding non-compliant members. But its Executive Director, Jean Byamugisha, rejects the idea that hoteliers are simply defiant. “I wouldn’t say our members are refusing grading,” she insists. “Rather, many are struggling to meet the requirements due to financial and structural challenges”.
Byamugisha cites three main barriers: “limited awareness about the value and benefits of grading,” the “cost of compliance,” and “the feeling that the process offers little incentive.” She notes that many hotels, especially SMEs, are still recovering from the COVID-19 downturn, making upgrades and compliance fees difficult to sustain.
Still, she acknowledges that the resistance has consequences: “Marketing Uganda, with only around 20% of hotels graded, poses significant risks. It can undermine tourist confidence, harm the country’s reputation for quality and reliability, and limit opportunities in high-value segments like MICE tourism.” It’s a rare admission from the industry’s top voice that Uganda’s failure to enforce standards risks eroding its brand at a time when regional rivals like Kenya, Tanzania, and Rwanda are already miles ahead in structured hospitality systems.
A House Divided
At the heart of the stalemate is a misalignment of incentives. UTB views grading as a national marketing imperative; hotel owners see it as a cost centre. UHOA argues for a “phased and supportive approach,” one that includes “awareness campaigns, subsidised grading costs, and clear benefits for compliance.”
Byamugisha concedes that UHOA also bears part of the blame: “As the umbrella body for hoteliers, we do take responsibility for the slow progress in grading. We recognise that we could have done more in terms of sensitisation, continuous follow-up, and helping members understand the long-term value.” She says UHOA’s Memorandum of Understanding (MoU) with UTB focuses on joint campaigns and incentives to make grading attractive. UTB, on its part, is choosing persuasion over punishment.
Ssemakula says partnerships with UHOA and sensitisation efforts are “helping shift attitudes and build cooperation.” But without legal teeth, persuasion can only go so far. As one senior hotelier privately admits, “Until grading becomes a condition for licensing, many will simply not bother.”
Marketing an Ungraded Destination
Ironically, while grading remains mired in inertia, UTB’s marketing machinery is in full swing. Francis Nyende, UTB’s Marketing Manager, is on a mission to rebrand Uganda as “the premier destination in Africa, a place that feels like home, only wilder, warmer, and more alive.”
Ugandan enterprises urged to explore regional oil and gas opportunitiesHis strategy is built on expanding international visibility, diversifying tourism products beyond gorillas, and strengthening the “Explore Uganda” brand through storytelling and partnerships with private-sector giants like MTN and Nile Breweries. “
We are targeting to increase inbound arrivals from 1.37 million in 2024 to 1.9 million by 2026,” Nyende says. “Beyond just getting visitors here, we want them to stay longer and spend more.”
But these ambitions depend heavily on service quality and infrastructure, both of which hinge on credible grading systems. Without consistent standards, even the most compelling marketing narrative risks being undermined by inconsistent guest experiences. As Nyende himself concedes, “Tourism is always evolving. There’s still a lot of work to be done to enhance what we already have.”
A Regulatory Paradox
UTB’s dual role, including marketer and regulator, adds complexity. On one hand, it must charm the world with the “Pearl of Africa” brand; on the other, it must police the very industry it depends on for success. This tension often dilutes its authority.
“UTB enforces licensing strictly,” says Ssemakula, “but grading is voluntary.” In a sector driven by private ownership and political influence, the regulator must tread carefully to maintain goodwill, a balancing act that often leaves enforcement toothless.
Byamugisha confirms that while UHOA supports grading “in principle,” it resists heavy-handed enforcement: “We support a balanced approach. While we prioritise education, guidance, and incentives, down the road, we are open to collaborating on appropriate enforcement measures, ensuring fairness while protecting Uganda’s tourism standards.”
In other words, the stick remains hypothetical.
The Cost of Delay
The stakes are high. Uganda’s ambitions to grow high-value tourism, especially the lucrative MICE segment, require a minimum of three-star hotels. Yet most of its facilities remain unclassified.
The result is a credibility gap: Uganda sells the promise of world-class experiences without verifiable proof of quality. As Byamugisha warns, “Marketing Uganda with only 20% of hotels graded can harm the country’s reputation for quality and reliability.” And for Ssemakula, the danger is even big: “Without grading, Uganda risks damaging its reputation as a competitive destination.
Many international buyers require a minimum of three-star hotels. Lack of credible grading undermines service quality assurance and the overall tourism brand.”
Barking or Biting?
Uganda’s tourism story is one of aspiration caught in regulation’s slow lane. UTB’s marketing machine projects optimism and ambition, but its regulatory function remains constrained by weak enforcement powers and industry resistance.
Until grading becomes mandatory or meaningfully incentivised, Uganda will continue to promote “The Pearl of Africa” with a dulled polish. In a destination built on image, perception, and experience, credibility is the currency. And for now, that credibility remains undergraded.
