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The Uganda Bureau of Statistics has launched an output price index that will measure the change in prices which hotel and restaurant service providers receive for their services.The Producer Price Index for hotels and restaurants (PPI-HR) aims at measuring the contribution of hotels and restaurants to the country’s economic growth.Speaking at the release of the maiden statistics at Ubos offices last week, the statistician in charge of business and PPI-HR, Mr Dick Wanasolo Wadada, said the index was designed to reflect the price trends of a constant well-defined and representative basket of services provided.It will also indicate the level of competitiveness of hotels and restaurants industry in the economy.“PPI-HR will act as a short-term indicator on the level and growth of the tourism industry,” he said.

PPI-HR surveys hotels within the formal sector with a turn over of at least Shs10 million per month.Though it was the first time for the statistics body to release figures on hotels and restaurants, Mr Wanasolo said that prices for hotel and restaurant services rose by 9.3 per cent in the fourth quarter of 2009 (October to December) compared the same period in 2008.He attributed the increase to the 4.8 per cent rise in accommodation prices and the 15.1 per cent increase in prices of catering services during the period compared to the same quarter in 2008.Outputs are categorised in accommodation, conference facilities, food and drinks. Food contributed 29 per cent and 13 per cent price increases for drinks in the catering services category.

Accommodation accounted for 44 per cent of the index and conference facilities accounted for 14 per cent in accommodation and conference facilities group.However, when you compare third and fourth quarter of the year, there was a 4.3 per cent drop in short-stay room prices which Mr Wanasolo attributed to the lower dollar rate during October to December and the promotions offered by hotels during festive seasons.PPI-HR is also expected to help the business community compare the growth rate of their prices with those of the representative index for the industry and provide a guide in decision making. Investors will also use it as a for investment decisions.