This fund was intended to serve as the central repository for all of the Board's income and finances, a crucial component for investing in the tourism sector's development.

A recent audit has revealed that the Uganda Tourism Board (UTB) has failed to establish the legally required Tourism Development Fund, raising concerns about the sector's financial management and future growth.

The fund, essential for mobilizing resources, remains nonexistent despite clear mandates in the Uganda Tourism Act, Cap 82.

According to Sections 20 (1) and (2) of the Act, UTB is legally obligated to establish the fund in a bank approved by the Minister of Tourism.

This fund was intended to serve as the central repository for all of the Board's income and finances, a crucial component for investing in the tourism sector's development.

However, the audit found that no tangible steps had been taken to create the fund.

The audit report attributes this failure to managerial negligence, noting that it undermines UTB's ability to manage its finances effectively and support the tourism sector's growth.

Despite this omission, UTB management explained that the Ministry of Tourism is currently revising the Tourism Legal Framework, which includes plans to incorporate the Tourism Fund within the new legislation.

However, the audit suggests that the revision process should not prevent the establishment of the fund as required by the existing law.

Given the importance of this fund for tourism development, the audit recommends that the Accounting Officer, in consultation with relevant stakeholders, urgently take steps to establish the fund.

This action is deemed essential for ensuring the sustainable growth of Uganda's tourism industry.

The delay in setting up the fund represents a significant risk to the sector, particularly since tourism is a key pillar in Uganda's tenfold growth strategy under the ATMs (Agro-industrialisation, Tourism, Mineral Beneficiation, and Science, Technology, and Innovation) plan for the next 15 years.