The COVID-19 pandemic devasted Uganda’s tourism sector, with 77% of establishments laying off staff. A survey by the Uganda Bureau of Statistics (UBOS) found border restrictions at the peak of the pandemic to have led to a 70% decline in revenue and forced 30% of establishments to close. Further, a 2020 Association of Uganda Tour Operators (AUTO) survey found that 88% of tour operators couldn’t pay their workers, while 38% faced bankruptcy. The pandemic, in essence, saw Uganda lose an estimated USD 1.6 Billion in foreign exchange revenue. The long-term impact of the pandemic on Uganda's tourism industry is still uncertain, but the World Tourism Organization predicts a slow recovery. To help steer the industry back to profitability and contribute over 2.5% to the nation’s GDP annually as was in previous years, the European Union Delegation contracted DT Global and VJW International to provide Technical Assistance (TA) to the Tourism COVID-19 Response Facility. This TA aimed to support the tourism industry in Uganda by delivering technical assistance to the Uganda Development Bank (UDB) for the implementation of the Tourism COVID-19 Response Facility. The goal is to help the tourism sector recover from the pandemic's adverse effects, create jobs, and contribute meaningfully to Uganda's economic growth.

This EU-funded project, implemented by DT Global and VJW International, aims to revive Uganda's tourism sector, which was severely impacted by the COVID-19 pandemic. The industry faced significant revenue losses and job cuts. To support recovery efforts, create jobs, and restore the sector's contribution to Uganda's GDP, the project provides technical assistance to the Uganda Development Bank (UDB) for grant management and compliance. Key activities in the life of this project include reviewing grant applications, ensuring financial and programmatic adherence, and overseeing effective fund distribution.

The overall objective of this project is to support the hospitality sector by increasing employment, reinstating the sector in the economy, and supporting tour operators through the generation of employment and avoidance of business closure, maintaining their role in the tourism sector. Three specific objectives were established to achieve this goal:

1. Implemented the Tourism COVID-19 Response Facility. To achieve this, the TA worked closely with the management at UDBL and the EUD to facilitate activities that ensured compliance with the agreed terms. The specific activities undertaken to achieve this objective included assessing eligibility for the facility, reviewing facility agreements, disbursing funds, revising facility agreements, and conducting project monitoring visits.
2. Supported the launch of second calls for applications. During this second call, the TA supported UDBL with the preparation and the final launch of the second call that took place on May 18, 2022, at Georgina Gardens Hotel. Attendees included representatives from the EUD, UDBL, Ministry of Tourism, and representatives from the tourism private sector.
3. Provided support in reporting requirements: To achieve this, DT Global’s TA team held several consultative meetings with the UDBL team to foster compliance with EUD reporting requirements and standards.

Additional Project Activities

In addition to the core objectives outlined above, the DT Global TA team also engaged in the following activities:

• Environmental Assessment: Assisted in drafting the Terms of Reference for an environmental assessment to be offered to all beneficiaries under the Tourism COVID-19 Response Facility.
• Expenditure Verification: Supported UDBL in drafting the Terms of Reference for an auditor to verify project expenditures and procured the necessary services.
• External Auditor Procurement: Advised on the overall procurement process for the external auditor.
• Audit Coordination: Met with the external auditor to discuss and clarify specific and key findings.
• Tax Implications: Provided advice on the tax implications of procuring a project motor vehicle and how this would impact EU reporting.