The opening of the Kampala Marriott Hotel in Nsambya has added another international name to Uganda’s growing hospitality industry.
The hotel, which was officially opened by President Yoweri Museveni last week, is part of a wider expansion that has seen global hotel brands increase their presence in Uganda. Hilton is expected to open in the country, while French hospitality group Accor is also pursuing projects.
For Uganda, the arrival of these brands is more than a change to Kampala’s skyline. It reflects growing confidence in the country’s tourism, business and conference market.
But it also raises an important question: Why are international hotel companies betting on Uganda now, and does the country have enough visitors and infrastructure to fill the rooms being built?
The answer lies in a combination of recovering tourism, growing business travel, international conferences, government incentives and expectations of stronger economic growth.
Uganda’s tourism industry has recovered strongly from the disruption caused by Covid-19.
International arrivals in 2025 surpassed 1.6 million, while tourism earnings have risen to between $1.6 billion (about Shs6 trillion) and $1.7 billion (about Shs6.3 trillion). The government now sees tourism as one of the sectors that can help drive economic transformation.
Under the Agro-industrialisation, Tourism Development, Mineral Development, Science, Technology and Innovation (ATMS) strategy, tourism is expected to grow faster than several other parts of the economy.
Officials have described tourism as a sector with the potential to grow two-and-a-half times faster than other key sectors. The longer-term ambition is even bigger.
Under Vision 2040, Uganda projects tourism foreign exchange earnings of at least $12 billion a year.
International hotel companies are therefore not only looking at the number of tourists Uganda receives today. They are looking at the market the country could become.
‘Uganda’s tourism sector continues to demonstrate strong momentum, supported by growing visitor demand, investment and infrastructure development,’ Mr Johan Cronjé, Marriott International’s regional vice president for Sub-Saharan Africa, told Business Outlook.
He added that, as Uganda’s tourism and business sectors evolve, there is increasing demand for hospitality experiences that cater for different types of travellers.
The MICE opportunity
Uganda has thousands of hotels, but the issue is not simply the number of buildings with beds. According to figures from the Uganda Registration Services Bureau (URSB), there are more than 6,000 registered hotels in the country, with about 1,200 in Kampala.
Uganda Tourism Board (UTB) figures, however, put the number of hotels registered with the board at about 3,500, offering more than 10,000 beds. The figures vary because the institutions have different registration systems and classifications.
What matters for international hotel brands is the quality and type of accommodation available. A traveller coming to Kampala for an international conference, business meeting or diplomatic engagement may not simply be looking for a room.
They may need reliable internet, conference facilities, international food standards, secure transport, business services and predictable service. This is where international brands have an advantage.
They bring established standards, global reservation systems, loyalty programmes and a reputation that can be important to international travellers and conference organisers.
One of the biggest opportunities for Uganda is the Meetings, Incentives, Conferences and Exhibitions (MICE) market.
In recent years, Kampala has hosted several major international gatherings, including the Non-Aligned Movement Summit, the G77+China Summit and the Conference of Speakers and Presiding Officers.
These events brought large numbers of foreign delegates to Uganda and allowed the country to promote its tourism attractions and hospitality services.
For the UTB, such meetings are important because conference visitors can become leisure tourists or return for other events. But hosting a major conference requires more than a conference hall.
Delegates need hotel rooms, restaurants, transport, reliable communication networks and entertainment. International organisations also want accommodation that meets standards familiar to their officials and staff.
The hotel expansion is therefore part of a larger MICE strategy. The challenge for Uganda is to turn occasional high-profile meetings into a regular stream of international conferences and corporate events. If that happens, hotels could benefit from demand throughout the year rather than relying mainly on holiday seasons.
Beyond Afcon 2027
The 2027 Africa Cup of Nations (Afcon) finals provides another immediate reason for Uganda to improve accommodation. Uganda will co-host the tournament with Kenya and Tanzania.
The competition is expected to bring teams, officials, fans, media and other visitors to the region. That will increase demand for accommodation, particularly in cities and regions hosting matches or serving as bases for teams and visitors.
The tournament also exposes one of Uganda’s weaknesses. Much of the country’s high-end hotel investment is concentrated in Kampala, yet tourism attractions and sporting activities are spread across different parts of the country.
If Uganda is to benefit fully from Afcon and its wider tourism potential, investment must also reach areas outside the capital. This means better hotels in regional cities, improved roads, reliable electricity and water, stronger domestic air links and better connections to tourism attractions.
Afcon can therefore act as a catalyst, experts say, but it should not be the main reason for building hotels. The tournament will last for only a few weeks. Hotel investments are expected to operate for decades. The bigger bet is on Uganda’s long-term tourism and business growth.
The government has been offering incentives to make Uganda more attractive to hotel developers. According to the Uganda Investment Authority (UIA), qualifying hotel investors can access incentives including zero import duty on hotel equipment and machinery, VAT exemptions for certain hotel investments outside central urban areas and income tax holidays of up to 10 years for qualifying investments.
Foreign investors committing at least $10 million (about Shs37.5 billion) can qualify for tax holidays, while the threshold for qualifying domestic investors is considerably lower. Such incentives are intended to reduce the cost of setting up large investments and encourage more capital into the hospitality sector.
Finance Minister Henry Musasizi described the Marriott investment as a vote of confidence in Uganda, noting that ‘establishing such an investment in Uganda shows a vote of confidence in Uganda.’
Yet investors still face challenges. The Marriott opening also showed that attracting investment does not mean the hospitality industry has no problems.
Mr Ponsiano Ngabirano, the Ugandan businessman behind the development, used last week’s ceremony to ask the government to address some of the industry’s concerns.
‘As Uganda Hotels Association, we are requesting [the] government to look at the high taxes affecting the hotel industry,’ he said.
Mr Ngabirano also called for more hospitality training facilities to ensure the industry has enough skilled workers.
The concerns point to a wider challenge. Building a luxury hotel is one thing. Operating it competitively is another. Hotels face costs related to taxes, electricity, water, imported equipment, financing, land, transport and staff. They also compete for trained workers.
As more international brands enter Uganda, demand for experienced managers, chefs, front-office staff, housekeepers and other hospitality professionals is likely to increase. This could create better employment opportunities for Ugandans, but it could also expose weaknesses in the country’s hospitality training system.
Local ownership
The Marriott development also illustrates an important feature of Uganda’s hotel expansion. The arrival of an international brand does not necessarily mean the international company owns the entire property. Ugandan investors can develop or own hotels while partnering with global companies that provide the brand, management systems, marketing networks and international standards.
President Museveni praised the transformation, describing Mr Ngabirano’s journey as an example of the shift from importing goods to building local businesses. This model could become increasingly important as Uganda seeks to attract more international hotel brands.
Local capital can finance development while global brands bring access to international customers. For Uganda, the benefit is potentially greater domestic participation in a sector that also attracts foreign expertise.
There is, however, a danger of putting the cart before the horse. Uganda can build five-star hotels, but hotels cannot by themselves create a thriving tourism industry.
Tourists still need to get to the country easily and move around once they arrive. The country’s airports need to expand and improve.
Domestic air transport needs to become more reliable and affordable. Roads to tourism destinations need improvement, while water transport can open up additional tourism routes.
Electricity, water and telecommunications infrastructure are also essential. This is particularly important if Uganda wants to spread tourism investment beyond Kampala.
A luxury hotel in a regional tourism destination cannot perform well if reaching the destination is difficult or if the surrounding infrastructure does not support the experience expected by international visitors.
That is ultimately the biggest test facing Uganda’s hotel expansion. More hotels can create competition, which may improve service and give visitors more choice. International brands can also raise standards across the sector as local operators respond to new competition.
But an increase in room supply must be matched by an increase in demand. That demand can come from tourists, conference delegates, business travellers, diplomats, expatriates and domestic travellers.
Experts say that, as such, Uganda needs to market its tourism attractions while expanding the infrastructure that allows visitors to reach them.
The country also needs to develop more tourism products so visitors stay longer and spend more. This is important because the government’s goal is not simply to increase arrivals. It wants to increase tourism earnings.