Sunday, June 30, 2019

UTB must explore all avenues

Pen to paper. UTB CEO Lilly Ajarova (C) signs
Pen to paper. UTB CEO Lilly Ajarova (C) signs the MoU with FUFA to promote tourism. PHOTO BY JOHN BATANUDDE 
By Amos Wekesa
Tourism is the commercial organisation and operation of holidays and visits to places of interest. A tourist is a person or individual that leaves place A for place B and spends more than 24 hours but
less than a year and shouldn’t have a job in place B.
Uganda’s tourism is clearly looking up and could be doing better by now but the unpredictable environment poses as a challenge. Uganda is not a mature market for tourism. So how does a country become a mature market? When the world invests in your country, that creates maturity and a mature market. I will not dwell on the political predictable environment for today because it is a discussion for another day and yet very critical as well for growth.
I have told you before that Kenya has 68 international chains of hotels and 20 more chains are setting up shop and will have fully fledged operations by 2021 while Uganda has a number less. When a clear challenge crops up, the owners of those investments who mainly are foreign stand in the gap to defend Kenya because of commercial interests. The world operates purely on interests not emotions.
I have also told you before that Jomo Kenyatta International Airport has about 115 scheduled flights while Entebbe has a paltry 32 scheduled flights.
Those departures represent commercial interests and those behind those interests will be at the forefront to defend Kenya in the face of challenges. There are, for example far much more gun challenges in the US than Uganda will probably ever experience. It is again commercial interests that have been built over years. How can we as Uganda fight to create a mature market?
Uganda can create a commercial think tank with specific focus on growth and that includes positioning the country on the world market. The think tanks should be composed of people with relevant experience. I have found out that many countries out there clearly lobby in that direction and most of those are already very mature destinations. Another group would focus on lobbying the international chains of hotels to set up shop in Uganda and I can assure you that if we have say 50 chains invested here, they will fight to protect the image of Uganda for business purposes.
Serena group for example is called a regional chain because it operates only in this region. Have you ever asked yourself how many tomatoes are consumed daily by the Serenas? What about onions? Watermelons? Eggs? Now imagine we had 200 Serenas? What would the maths be like? Who will grow? The suppliers are beneficiaries of the marketing efforts of the same business. Of course I spent a lot of time over the years explaining to people why we all should support the formation of Uganda Airlines. Everybody was excited about the purchases of the planes but it is clear that we don’t have a business approach to do business. The few government people I have tried to speak to seem to be waiting for the President to make all the decisions, which is wrong.
The fact is that Uganda Airlines will never, mark my words, never fly to all the destinations Ugandans go to and that is the reason we need to focus on the source of markets of spenders within and outside Africa. Uganda Airlines can grow by strategically working hand in hand with tourism and agriculture ministries.
Kenya for example has more than 500,000 individuals with ability to spend more than $2,000 each in Uganda.
Uganda Airlines, working with Uganda Tourism Board (UTB), must lay strategies of marketing tourism potential to Kenyans.
We give Kenyans very affordable tickets and target them to spend some cash here.
When it comes to agriculture, we need to study the external markets such as the Arab world. Once the market has been found, Uganda Airlines can then offer a subsided transport to our farmers to export to that market.
The airline earns the cargo fees and Ugandans earn from selling mangoes, oranges to a market that can afford to pay higher prices. Here we should study Ethiopians airliness model.
I am also surprised that some of the planes have arrived and no one knows where exactly they will be flying to when they fly.
The writer is an investment expert
— amos@greatlakessafaris.com

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