Uganda’s Hotel & Tourism Sector Set to expand as Oil Development Phase kicks in

The hotel and tourism sector in western Uganda in particular is expected to see increased demand as work is set to commence on the development phase in the country’s upstream sector.

According to Petroleum Authority of Uganda in a presentation by director for technical support services Peninah Aheebwa PAU projects the hotel accommodation requirements from the oil and gas sector stakeholders will surge to over 3000 rooms in the Albertine graben to cater for workers and visitors with numbers already ramping up.

The numbers arise from a number of projects expected in commence in 2018 including field development where approximately 435 wells are expected to be drilled on 41 well pads in the Buliisa/Nwoya fields (Tilenga project) and the Kingfisher and Kaosi fields. Investments in field development in the Albertine basin are estimated at between $5-8 billion.

Another planned facility as part of the ‘planned infrastructure for oil development’ is the $3-4 billion 60,000 barrel per day green field refinery project to be built in Kabaale, Hoima where efforts are ongoing to get a lead investor to design, finance, build and operate the refinery as well as $3.5 billion 1445km of 24 inch pipeline from Hoima, Uganda to Tanga, Tanzania. The pipeline project is expected to create jobs all over the region including neighbouring Kenya especially in logistics with over  500000 million tonnes expected to be imported and delivered through sea, rail, road and air.

Workers are also expected from planned support infrastructure such as 12 roads of about 580km, and the 29km2 industrial park which other than hosting the refinery will host an international airport being built by COLAS and SBI, a crude oil export hub, petrochemical industries and other associated industries.

It is estimated that these and other projects could generate 14000 direct jobs, 42700 indirect jobs and 105000 induced jobs both in Uganda, Tanzania and Kenya stretching accommodation demand.

 

The Petroleum Authority of Uganda is now urging investors to prepare for this phase with finance institutions urged to support willing investors with finance which remains a major challenge. Other opportunities include in construction and training in anticipation of the expected demand. Investors on their part are being asked to have a good understanding of the expected demand and existing gaps as well as ways to achieve and maintain quality of service