In 2017 the hotel industry was rated amongst the fastest growing areas following massive investments in the hospitality sector. The industry grew by 4.5% which was attributed to the increase in foreign arrivals in the country. But as many local investors commit resources to the hotels, the owners are concerned about an increment in taxes on hotels. “Some of our hoteliers are closing down, they are selling their buildings. And even as we talk of attracting investors because at the end of the day, the backbone of the economy is by the indigenous people.” Said, Susan Muhwezi – Chairlady, UHOA.

Under the new taxes, hoteliers will be required to pay 2 million shillings per year on music played during any function. “Overwhelmed by the many taxes and most of them are duplicating each other. So, for instance, our argument is, if there is a copyright law that we are supposed to be paying taxes for that, why are we paying twice? Can’t it be consolidated and then we pay one tax. And then they can remove whichever. Why are we paying for the right to play music, then the right to play videos.” The hoteliers are now calling upon the government to revise the tax before it comes into force in 2018/2019 financial year budget. "Help us to grow, once we grow and now on our feet, we will pay the taxes but see how to consolidate the taxes or put a tourism levy that covers all these but in one term." The tax has come at a time when investors are struggling to pay loans acquired from commercial banks because of the high interest rates.