Artificial Intelligence for Revenue Growth in Developing Economies: Results from a Structured Business Survey in Uganda's Hospitality and Tourism Sector

Venkatesh Andavar and Shankar Raman Rajaraman
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Venkatesh Andavar: Lead college (Autonomous), Palakkad, India.
Shankar Raman Rajaraman: Lead college (Autonomous), Palakkad, India.

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Abstract: Artificial intelligence (AI) is reshaping global tourism by enabling data-driven decision-making, personalised guest experiences, and optimised hotel operations. However, empirical research from low-income economies, including Uganda, remains limited. This study investigates the role of AI adoption in supporting revenue growth among hotel and tourism businesses in Uganda, using primary data collected from 212 hotels, tour companies, lodges, and travel agencies operating in Kampala, Entebbe, Jinja, Mbarara, and Gulu. A structured survey was administered to business owners, managers, and digital operations staff. Descriptive statistics, correlation tests, and regression analysis were used to assess how AI tools, including chatbots, dynamic pricing algorithms, customer analytics, automated booking systems, and AI-driven marketing, influence business performance. The results show that 73% of AI-adopting firms recorded revenue growth, 64% improved customer retention, and 58% reduced operational costs within one year of adoption. Regression findings indicate that AI use has a significant and positive effect on annual revenue (p

Date: 2026-07-03
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Published in Asian Journal of Economics, Finance and Management , 2026, 8 (1), pp.544-558

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05685471

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