Safaris in Uganda are facing unstable conditions due to the applicable VAT that is discouraging many tourists to come to Uganda. This has greatly affected many tour operators especially from Hong Kong and German who have decided to cut off Uganda as a destination Product.
The introduction of Vat on Hotels mainly has greatly to low numbers of tourist who book safaris to Uganda. This is due to increased hotel costs which cannot be reduced by the tour operators, because they are complaining about the low profits that the get from the safaris that they carry out.
The increase in VAT on the bookings has greatly impacted many tour operators since they have decided to get out of business and do other businesses which are profit orientated. This has greatly affected safaris to Uganda since the tourism sector is to lose a lot of money from this incidence.
Uganda Gorilla trekking Safaris have been affected since gorilla permits are not bought by the tourists since the costs for accommodation is high and they have decided to embark on booking with either Rwanda or Congo for Gorilla Trekking.
Many investors have decided to withdraw from business due to the high VAT that was introduced in the country. Many inventors have resorted to investing in other sectors and abandoning tourism and others have decided to invest in other countries than Uganda.
According to Ugandan tour operators, by the end of last year, almost all accommodation in the Murchison Falls conservation area had been fully booked for November 2013 as the clients anticipated a better view in the area. However this is going to be affected by the introduced VAT to the accommodation.