Cross-border sustainable tourism services
Cross-border sustainable tourism services
Type 3: Borderland with fragile context and underdeveloped regional integration infrastructure.
Business Model Description
Develop and market cross-border tourism itineraries showcasing the unique cultural and natural attractions of Karamoja and West Pokot. Train and employ local guides, establish community-run eco-lodges and campsites, and create handicraft marketing platforms. Engage community tourism associations to manage services and benefit-sharing. Target domestic, regional, and international tourists seeking authentic cultural experiences and nature-based adventures. Finance through blended capital—impact investment, tourism development grants, and public-private partnerships—to cover infrastructure, training, and marketing costs.
How is this information gathered?
Cross-border investment opportunities with potential to contribute to sustainable development are based on Borderlands SDG Investor Maps.
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Region
Sector Classification
Services
Hospitality and Recreation
Borderland development need
Tourism in the borderland holds high potential but remains largely untapped due to poor infrastructure, limited accessibility, and insecurity perceptions. Key attractions like Kidepo Valley National Park and the Cherangany Hills lack adequate road and air access, discouraging high-end and adventure tourism. The sector is also constrained by scarce accommodation, stalled public investments, and weak marketing strategies. Limited community engagement and past exclusion from benefits also hinder local support for tourism, requiring more inclusive, locally driven approaches to ensure sustainability and regional growth. (11, 12, 13)
Borderland policy priority
West Pokot and Karamoja prioritize tourism as a pathway to economic growth, cultural preservation, and community empowerment. The CIDP focuses on building tourism infrastructure, promoting wildlife conservation, and branding the county as a sustainable tourism hub, while Karamoja’s KIDP3 emphasizes community-based and nature tourism, investing in cultural sites, guiding skills, and cross-border tourism circuits. Both regions aim to improve accessibility, promote cultural events, and ensure local participation in tourism value chains. (1, 2)
Gender inequalities and marginalization issues
Women, youth, and indigenous communities remain underrepresented in the tourism workforce due to limited skills training, lack of access to capital, and exclusion from decision-making. Cultural norms and safety concerns also limit women’s participation in guiding, management, and enterprise ownership. 11, 12)
Investment opportunities introduction
Tourism offers strong opportunities in the borderland, including eco-lodges near Kidepo and Nasolot, cultural tourism experiences, and adventure tourism (e.g., hiking, cycling). Demand is growing for unique, remote destinations, and investment in accommodation, marketing, and transport circuits can unlock high-value tourism. (11, 12)
Key bottlenecks introduction
Underdeveloped infrastructure, including poor road access and limited air connectivity, restricts tourist flow to key attractions. Perceptions of insecurity, lack of hospitality services, and weak branding and marketing further constrain tourism growth, deterring private investment and visitor confidence. (11, 12, 13)
Leisure Facilities
Pipeline Opportunity
Cross-border sustainable tourism services
Develop and market cross-border tourism itineraries showcasing the unique cultural and natural attractions of Karamoja and West Pokot. Train and employ local guides, establish community-run eco-lodges and campsites, and create handicraft marketing platforms. Engage community tourism associations to manage services and benefit-sharing. Target domestic, regional, and international tourists seeking authentic cultural experiences and nature-based adventures. Finance through blended capital—impact investment, tourism development grants, and public-private partnerships—to cover infrastructure, training, and marketing costs.
Business Case
Market Size and Environment
< USD 50 million
Nationally, tourism contributes 9% to Kenyan GDP, annual earnings from tourism reached USD 1.6 billion in 2018 in Uganda, and numbers of tourists have been steadily increasing in both countries. The Karamoja–West Pokot region offers rich cultural and ecological assets ideal for cross-border tourism. With growing demand for authentic rural experiences in Kenya and Uganda, even modest development could attract 1,000–3,000 tourists per site annually, generating $50,000–$200,000 in direct revenue. (1, 3, 20, 49).
Indicative Return
15% – 20%
Comparable community tourism projects in East Africa report 15–25% ROI over 3–5 years. Revenue sources like eco-lodges, tours, crafts, and cultural events stabilize once visitor numbers grow, especially when integrated into national tourism circuits and supported by trained local staff. (20, 50)
Investment Timeframe
Short Term (0–5 years)
A 3–5 year horizon reflects the setup time needed for infrastructure, training, and marketing in remote areas. Year 1 focuses on feasibility and engagement, Year 2 on launch, and by Years 3–5, operations stabilize, brand visibility grows, and revenue-sharing with communities matures. (20)
Ticket Size
< USD 500,000
Market Risks and Scale Obstacles
Capital - CapEx Intensive
Capital - Limited Investor Interest
Business - Business Model Unproven
Expected Financing Model
Blended financing (risk sharing and public support)
IOA Business Criteria
Rising demand for cultural and nature-based tourism aligns with blended-financed models; strong appeal to regional and niche international markets supports viability. (20)
Targets Karamoja–West Pokot borderland with eco-lodges, guided tours, cultural events, and handicrafts delivered via community-based tourism associations. (20)
Model is replicable across market hubs and ecological zones; scalable through tour operator partnerships, regional circuits, and cross-border festivals. (13, 18, 19)
Kara-Tunga and similar initiatives show market traction and community benefits; donor-supported projects demonstrate viability of the business model. (21)
Impact Case
Sustainable Development Need
Youth unemployment remains high in the borderland; tourism offers alternative incomes through guiding, hospitality, and crafts. (1, 2)
Rich cross-border cultural traditions are under-documented and under-commercialized; tourism can revitalize and monetize them sustainably. (1, 2)
The region remains stigmatized by insecurity; cross-border tourism can foster peace, community cohesion, and economic collaboration. (4)
Gender & Marginalisation
Women in border markets engage in low-income, informal trade; tourism offers pathways to better livelihoods through hospitality, guiding, and craft sales. (6)
Marginalized groups rarely lead or benefit from formal tourism initiatives; inclusive models can promote equitable participation. (16, 48)
Women's cultural roles (e.g., music, crafts, storytelling) are often overlooked; tourism can elevate and reward these contributions. (16, 48)
The lack of training, education and technical skills are among the most important obstacles for women’s employment in the tourism industry. (48)
Expected Development Outcome
Tourism generates employment for youth and women in guiding, lodging, and crafts, reducing reliance on low-return subsistence activities. (11, 12)
Promotes intergenerational knowledge transfer, safeguards traditions, and fosters pride in cultural identity. (11, 12)
Encourages cross-border trade and collaboration between Uganda and Kenya, strengthening economic ties and market access. (11, 12)
Tourism incentivizes peaceful relations, enhances community cohesion, and reframes the borderland as a destination rather than a conflict zone. (11, 12)
Gender & Marginalisation
Provides income-generating roles in guiding, crafts, hospitality, and tourism management, increasing women’s financial independence and decision-making power. (11, 12, 15)
Engages youth, ethnic minorities, and remote communities in tourism value chains, improving visibility, voice, and access to opportunities. (11, 12)
Promotes equitable participation in community tourism associations and benefit-sharing structures, ensuring women influence decisions. (12)
Primary SDGs addressed
5.5.2 Proportion of women in managerial positions
8.9.1 Tourism direct GDP as a proportion of total GDP and in growth rate
12.b.1 Implementation of standard accounting tools to monitor the economic and environmental aspects of tourism sustainability
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Outcome Risks
If not designed inclusively, benefits may be captured by elites, excluding women, youth, or minority communities from tourism value chains.
Over-commercialization of traditions may erode authenticity or disrespect local norms, especially if tourism is driven by external actors.
Competition over tourism sites, revenues, or land access may trigger local disputes or revive historical inter-group tensions.
Increased tourist traffic may lead to waste, habitat disturbance, or overuse of fragile ecosystems without proper conservation measures.
Impact Risks
Without tourism income, youth and communities remain dependent on low-return livelihoods, perpetuating poverty and out-migration from remote areas.
If women are excluded from planning or benefits, tourism may reinforce existing inequalities and miss opportunities to empower marginalized groups.
Poorly managed tourism or stalled conservation efforts may lead to degradation of natural and cultural assets, undermining long-term sustainability.
IMP Impact Classification
What
Generates jobs, promotes cultural heritage, and fosters peace through inclusive, community-led tourism in underserved borderland areas.
Who
Youth, women, and remote communities in Karamoja–West Pokot gain direct income, skills, and visibility through tourism participation.
Risk
Without inclusive design, tourism could exclude marginalized groups, strain natural resources, or spark local tensions over site control or benefits.
Enabling Environment
General Policy Environment
Karamoja Integrated Development Plan 3 (KIDP3): Promotes cultural preservation, youth employment, and eco-tourism as tools for peacebuilding and economic recovery in formerly insecure areas like Karamoja. (1)
West Pokot County Integrated Development Plan (CIDP): Prioritizes tourism infrastructure, promotion of cultural heritage, and community-based tourism to create jobs and market West Pokot as a rural tourism destination. (2)
Uganda Tourism Development Master Plan (2014–2024): Emphasizes diversification into community-based and cultural tourism, especially in under-visited regions like Karamoja, with support for public-private initiatives. (24)
Kenya National Tourism Blueprint (2017–2030): Calls for regional tourism circuits, capacity building for local communities, and investment in sustainable cultural and eco-tourism outside traditional hotspots. (25)
General Cross-border Trade Policy and Regulatory environment
East African Community (EAC) Tourism Marketing Strategy: Encourages cross-border tourism products, joint branding, and regional circuits to enhance competitiveness and unlock shared heritage destinations across borders. (30)
EAC Single Tourist Visa Protocol: Facilitates regional mobility and cross-border circuits by allowing tourists to travel across Uganda, Kenya, and Rwanda with one visa, boosting cross-border tourism flow. (31)
EAC Protocol on Tourism and Wildlife Management: Encourages joint tourism marketing, conservation, and infrastructure development across member states, promoting collaborative cross-border tourism products. (32)
EAC Common Market Protocol (2010): Facilitates free movement of people, labor, and services—key for tourism operators, guides, and cultural performers engaging in cross-border travel. (33)
Capital structure and funding
Sources of Capital: Existing projects are financed through international donors (EU, USAID), tourism boards, and NGOs. Future opportunities will require blended capital from development grants, local public budgets, and impact investors focused on inclusive tourism. (18, 19)
Average Capital Size: Single-site eco-lodges and training hubs need $50,000–$100,000. Integrated cross-border circuits with infrastructure, marketing, and safety logistics may require $300,000–$500,000 per tourism cluster. (20)
Trends of Capital Flows: Capital flows to tourism in remote areas remain limited, with most funding directed toward conservation-linked or peacebuilding tourism. Development finance is concentrated in pilot programs and not yet commercial-scale. (13, 18, 19)
Impact of Conflict on Capital Flows: Past insecurity discouraged investment, but recent peacebuilding has restored confidence. Cross-border peace efforts by Uganda and Kenya have improved investor outlook, especially for tourism tied to stability narratives. (13, 18, 19)
Development Partner Support: Donors support tourism via cultural preservation, youth employment, and infrastructure. Support includes grants, training, and PPP facilitation, often aligned with national tourism or peacebuilding priorities.
Financial incentives
Tourism Finance Corporation (Kenya): Offers concessional loans to tourism investors, including community lodges and campsites, helping reduce financing barriers for early-stage infrastructure. (34)
Uganda Development Bank (UDB): Provides credit for tourism SMEs and infrastructure under its priority sectors program, including eco-tourism and rural hospitality ventures. (35)
EAC Tourism Marketing Support: The EAC provides grants and joint promotion campaigns for regional tourism circuits, helping lower marketing costs for cross-border destinations. (36)
The capital deduction for hotel building expenditures is 70%. Duty exemptions are available for constructing/upgrading accommodation facilities. Capital repatriation and the remittance of dividends and interest are guaranteed for foreign investors if they pay the applicable taxes. VAT exemptions on tourism inputs: Both Kenya and Uganda offer VAT exemptions on construction materials and inputs for registered tourism facilities, reducing capital expenditure burdens. (37, 47)
Public-private partnerships (PPP) frameworks: Kenya and Uganda support tourism PPPs, allowing counties and districts to co-invest or provide land and infrastructure to community tourism projects.
Security Environment
Sporadic cattle raiding and land disputes may create perceptions of insecurity, deterring tourists and limiting private sector willingness to invest in community-based tourism infrastructure. (4, 41, 42)
Limited police presence and slow emergency response in tourism zones reduce visitor confidence and increase reputational risk for tour operators and investors. (41, 42)
Negative narratives persist despite improving conditions; continued media focus on insecurity undermines destination branding and market appeal. (13, 18)
Risk mitigation strategies
Ensure transparent decision-making and fair benefit-sharing through tourism associations with strong representation of women and marginalized groups.
Engage elders, local leaders, and district authorities in securing MOUs for tourism sites to prevent disputes and ensure broad-based legitimacy.
Link tourism development to cultural festivals, reconciliation events, and heritage preservation to reinforce its role in promoting peace and stability.
Establish joint protocols for tourism safety across border districts and train local response teams to build visitor confidence and investor trust.
Actors in IOA Space
References
Sector and Subsector Sources
- (1) Ministry for Karamoja Affairs & Office of the Prime Minister. (2021). The Third Karamoja Integrated Development Plan (KIDP 3) 2021–2025.
- (2) County Government of West Pokot. (2023). Third County Integrated Development Plan (CIDP) 2023–2027.
- (3) Catley, A., et al. (2021). Introducing pathways to resilience in the Karamoja Cluster. Pastoralism, 11(28). https://doi.org/10.1186/s13570-021-00214-4
- (4) UNDP Africa Borderlands Centre. (2022). The Karamoja Cluster: Rapid Conflict Analysis and Gender Assessment (Kenya and Uganda).
- (5) Kenya High Commission Kampala. (2025). Kenya-Uganda Trade & Investments. Accessed February 2025. https://www.kenyamissionkampala.ug/kenya-uganda-trade-investments
- (6) Columbia SIPA. (2020). Ethical Cross-Border Trading between Kenya and Uganda by Women-led Micro and Small Enterprises.
- (7) Aklilu, Y. (2017). Livestock Trade in Karamoja, Uganda: An Update of Market Dynamics and Trends. USAID. https://karamojaresilience.org/wp-content/uploads/2021/05/tufts_1803_krsu_livestock_trade_karamoja_v2_online.pdf
- (8) Arasio, R.L., and E. Stites. 2022. “The Return of Conflict in Karamoja, Uganda: Community Perspectives.” Karamoja Resilience Support Unit (KRSU), Feinstein International Center, Friedman School of Nutrition Science and Policy at Tufts University, Kamp
- (9) Interpeace, IGAD, & FAO. (2023). Conflict, Climate Change, Food Security and Mobility in the Karamoja Cluster. https://www.interpeace.org/wp-content/uploads/2024/01/Conflict-climate-change-food-security-and-mobility-in-the-Karamoja-Cluster.pdf
- (10) Armed Conflict Location & Event Data Project (ACLED). (2025). Regional Overview – Africa, February 2025. https://acleddata.com/2025/02/10/africa-overview-february-2025
- (11) Dr. Tulel Cherop Patricia., Dr. Beatrice Ombaka & Dr. Ann Kariuk . “The Effects of Destination Marketing on Tourism Performance in West Pokot County”, Africa Journal of Technical & Vocational Education & Training, (2020): https://afritvet.org/index.php/Afritvet/article/view/107.
- (12) Manyindo, J., Mukuru, E., Massyn, P. J., Sagal, A., Banobi, H. 2014. An Assessment of the Potential for Community Tourism in the Karamoja Sub-Region. Maendeleo ya Jamii, Kampala, Uganda.
IOA Sources
- (13) Interview with public district officers in Moroto and West Pokot
- (14) African Wildlife Foundation (AWF). Koija Starbeds Ecolodge: A Case Study in Community-Based Ecotourism. Nairobi: AWF, n.d. Available at: https://www.awf.org/sites/default/files/media/Resources/Books%20and%20Papers/Koija_Starbeds_Ecolodge_Case_study.pdf
- (15) White, R. Conservation, Development and Tourism in a Transboundary Protected Area: The Case of the Mount Elgon Region. PhD Thesis, University of York, 2016. Available at: https://etheses.whiterose.ac.uk/id/eprint/15501/7/White_Rose_LJ517.pdf
- (16) Onyango, J. & Nthiga, R. Sustainable Tourism in Kenya’s Coast: Leveraging Green Tourism, Community-Based Initiatives and Local Empowerment through the Lens of Dependence Theory. ResearchGate, 2024. Available at: https://www.researchgate.net/publication/384445385_Sustainable_Tourism_in_Kenya%27s_Coast_Leveraging_Green_Tourism_Community-Based_Initiatives_and_Local_Empowerment_through_the_Lens_of_Dependence_Theory
- (17) Interview with the Kenya Chamber of Commerce in West Pokot
- (18) Interview with the manager of a large hotel in Moroto
- (19) Interview with private sector actor in the tourism industry in Karamoja
- (20) Estimations based on interview data with tourism actors in the IOA space and benchmark regional studies.
- (21) Interview with private company delivering tourism services in karamoja
- (22) Interview with National Revenue Authorities (Kenya and Uganda)
- (23) Interviews with main commercial banks in West Pokot and Karamoja
- (24) Republic of Uganda. Uganda Tourism Development Master Plan 2014–2024. Kampala: Ministry of Tourism, Wildlife and Antiquities, 2014.
- (25) Republic of Kenya. Kenya National Tourism Blueprint 2030. Nairobi: Ministry of Tourism and Wildlife, 2017.
- (26) Republic of Uganda. Uganda Tourism Act, 2008. Kampala: Uganda Printing and Publishing Corporation, 2008.
- (27) Republic of Kenya. Tourism Act, 2011. Nairobi: National Council for Law Reporting with the Authority of the Attorney-General, 2011.
- (28) Republic of Uganda. Uganda Wildlife Act, 2019. Kampala: Uganda Printing and Publishing Corporation, 2019.
- (29) Republic of Kenya. Wildlife Conservation and Management Act, 2013. Nairobi: National Council for Law Reporting with the Authority of the Attorney-General, 2013.
- (30) East African Community (EAC). EAC Tourism Marketing Strategy. Arusha: EAC Secretariat, n.d.
- (31) East African Community (EAC). EAC Single Tourist Visa Protocol. Arusha: EAC Secretariat, n.d.
- (32) East African Community (EAC). Protocol on Tourism and Wildlife Management. Arusha: EAC Secretariat, n.d.
- (33) East African Community (EAC). Common Market Protocol. Arusha: EAC Secretariat, 2010.
- (34) Tourism Finance Corporation (Kenya). Tourism Finance Corporation Services. Kenya Tourism Development Corporation (KTDC), n.d. Available at: https://ktdc.co.ke/inside.php?articleid=19
- (35) Uganda Development Bank (UDB). UDB Priority Sectors. Uganda Development Bank, December 2022. Available at: https://udbl.co.ug/wp-content/uploads/2022/12/UDB-Priority-Sectors-PRINT.pdf
- (36) East African Community (EAC). EAC to Promote the Region as a Unified Tourism Destination at ITB Berlin 2025. EAC Press Release, March 2024. Available at: https://www.eac.int/press-releases/156-tourism-wildlife-management/3308-eac-to-promote-the-region-as-a-unified-tourism-destination-at-itb-berlin-2025
- (37) Real Muloodi News Network. URA Informs Public of New Tax Incentives and Exemptions in Tourism and Construction Sectors. RealMuloodi.co.ug, August 2023. Available at: https://realmuloodi.co.ug/ura-informs-public-of-new-tax-incentives-and-exemptions-in-tourism-and-construction-sectors/
- (41) Gray, S., Sundal, M., Wiebusch, B., Little, M. A., Leslie, P. W., & Pike, I. L. (2003). “Cattle Raiding, Cultural Survival, and Adaptability of East African Pastoralists”. Current Anthropology, 44(S5), S3–S30. Retrieved from: https://www.journals.uchicago.edu/doi/full/10.1086/377669
- (42) Stites, E. (2022). Conflict in Karamoja: A Synthesis of Historical and Current Perspectives, 1920–2022. Karamoja Resilience Support Unit (KRSU), Feinstein International Center, Tufts University.
- (43) USAID. (2023). Applied Political Economy Analysis for the Karamoja Cluster. Washington, DC: USAID.
- (44) Interview with cross-border trade associations.
- (45) World Bank database. https://data.worldbank.org/
- (46) Tourism Regulatory Authority Regulations 2014. Tourism Regulatory Authority. Republic of Kenya. https://eregulations.invest.go.ke/media/Tourism%20Act%20Authority%20Regulations%202014.pdf
- (47) US Department of State (2020). 2020 Investment Climate Statements: Kenya. https://www.state.gov/reports/2020-investment-climate-statements/kenya/
- (48) Riungu Koome, G., Kiprutto, N., Kibe, J. and Kiama, F.W. (2013). Gender Representation in Kenya’s Hospitality Industry: A Connection to Tourism Entrepreneurial Aptitude. https://core.ac.uk/download/pdf/234696749.pdf
- (49) Ministry of Tourism (2020). Draft Revised National Tourism Policy 2020 On Enhancing Sustainable Tourism In Kenya. Republic of Kenya. https://africacheck.org/wp-content/uploads/2020/10/Kenya-Tourism-Policy-May-2020-Draft.pdf
- (50) PwC analysis based on Prof. A. Damodaran data, 2020.