Breaking

Oil Discovery Boosts Hotel Industry in Hoima

Investors from both within and outside Uganda are flocking the region particularly Hoima district to acquire land for the construction of hotels, one of the crucial businesses likely to boom in the near future as Uganda gets closer to the exploration of oil.
One of the Hotels Under Construction in Hoima Town.

Audio 4

An influx of businessmen and investors in oil related activities has pushed up the demand for accommodation in the Albertine Graben. The area is now attracting more investments from companies and individuals seeking to tap into the Oil and Gas industry.

Investors from both within and outside Uganda are flocking the region particularly Hoima district to acquire land for the construction of hotels, one of the crucial businesses likely to boom in the near future as Uganda gets closer to the exploration of oil.

Currently, the government and oil companies are implementing several infrastructures and environmental social impact studies in preparation for the first barrel of oil expected by 2022.

An Airport is being constructed on part of the 29,000-hectare piece of land where the government plans to construct a 60,000 barrel per day oil refinery and other attendant industries. There is also an ongoing study of the East Africa Crude export pipeline from Hoima to Tanga Port in Tanzania. A number of roads are also being constructed to aid the oil production.

Workers on these infrastructures are supposed to sleep near their areas of operation but they are compelled to retire in Hoima town where investors have established the swanky hotels. There are no suitable accommodation facilities in most rural places.

Grace Koojo, a proprietor of Kontiki Hotel in Hoima town says 80 percent of her Hotel rooms had been booked out up to December, last year by people working in the oil and gas sector before they took a break for the holiday season. She now has a plan of expanding the size of her hotel to accommodate the huge number of expected clients as work resumes on major projects.

//Cue in; "You can see…

Cue out…Are better services."//

The hotelier who explains how the Hotel industry has provided employment to the local people and boosted the demand for foodstuffs also points out some challenges baffling the sector.

Koojo, however, adds that all is not rosy citing a number of challenges including high taxation levied on the hotel business, High power tariffs and Lack of information regarding oil and gas. She says most of the Hoteliers are not prepared to meet the high standards set by the oil Companies.

//Cue in; "You know problem…

Cue out…lack of information."//

Alfred Gafabusa, the proprietor of Crown Hotel expects the hotel industry to boom more in the near future. He too plans to expand his Hotel to meet the modern needs to accommodate the expected big number of clients.

//Cue in; "Yo kuruga niba…

Cue out…ku meeting standards."//

John Kaliisa, a resident of Buseruka tasks local investors in Bunyoro sub region to actively participate in the Hotel Industry business since it is one of the crucial sectors that will boost the Albertine Graben as a result of the discovery of oil and gas.

//Cue in; "Of course need…

Cue out…will be sold."//

Hoima Municipal Town Clerk David Kyasanku says the Hotel Industry business has given a boost to revenue collection of the Municipality.  Currently, Hoima Municipal Council charges not less than 4, 000,000 Shillings from every Hotel Business per year. He says with the increasing establishment of Hotels in the Municipality, the revenue collection of the Municipality will be strongly boosted in the near future.

There are over 100 Hotels built in different parts of Hoima Municipality alone.

Images 1

Keywords