Asian Journal of Economics, Finance and Management

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 < 0.01), with dynamic pricing and AI-driven marketing showing the strongest influence. The findings suggest that AI has practical potential to support Uganda’s hotel and tourism industry. The study recommends capacity-building programmes, national AI tourism strategies, and subsidised digital infrastructure to accelerate adoption among small and medium-sized tourism enterprises.