Social media marketing and financial performance of tour firms in the Kigezi sub-region of Uganda

The study sought to examine the effects of social media marketing on the financial performance of tour firms in the Kigezi sub-region of Uganda, focusing on three specific objectives, which included: examining the effect of community engagement on the financial performance of tour firms; establishing the effect of branding on the financial performance of tour firms; and assessing the effect of positioning on the financial performance of tour firms. The study was anchored on the Destination Competitiveness Theory, and the cross-sectional research design was employed, targeting 173 employees among the 140 registered tour firms in the Kigezi sub-region of Uganda. Using the Morgan table, the study sampled 120 respondents, which included the tour managers, marketing managers and finance managers, employing the stratified random sampling technique. Structured questionnaires designed on a 5-point Likert scale were used to collect the primary data. Data was then analysed using descriptive and inferential statistics. The findings revealed that community engagement, measured by information sharing, comments and feedback & user-generated content, significantly affected the financial performance of the tour firms (R² = 0.126, p = 0.001 < .005). Branding, which included visual identity and recognition, audience alignment and connection, had a positive and significant effect on the financial performance of the tour firms (R² = 0.251, p = 0.001 < 0.005). On the other hand, market positioning as measured by value proposition, target audience and content strategy was found to be the strongest predictor of financial performance among the tour firms (R² = 0.270, p < 0.001 < 0.005). The study concluded that social media marketing is a key driver of profitability, revenue growth and return on investment among the tour firms. The study recommended that tour firms leverage social media marketing as a strategic tool to improve financial performance.