Economic development of communities has become a matter of concentration and interest for the researchers and practitioners from the last few decades. The purpose of this qualitative study was to investigate the role of hospitality industry in economic development of communities in Uganda and the research objectives were; to examine the role of hotels in improving the economic development of communities in Uganda, to determine the role of tourism in generating tax revenue to states and local government for community infrastructural development in Uganda and to establish the role of cultural events and sites in economic development of societies in Uganda. A sample of 47 participated in the study from hotel La-Grande Bwaise Kampala. The study employed purposive, census and simple random sampling procedures to select respondents from the hotel. Questionnaires were the main tools employed and data collected was coded and analyzed using statistical packages to produce results of the respondents. The study revealed that hotels provide accommodation, jobs to the public, add value to local products, sell local products, advertise local cultural sites, coordinates guests and ensures customer satisfaction. The study however observed that hotels cannot provide food and drinks to the public. Tourism as part of hospitality helps in understanding of cultural and heritage sites, identification, guiding, providing historical facts, generates employment to locals, support other sectors of the economy, help in improving infrastructures, support local crafts, develop other income streams such as cultural norms and sovereignty and improves a country‘s brand image, help in pursuing cultural sites and promotion of national integration. Cultural events and sites generate products, enrich social capital, promote enjoyment of cultural diversity, identifies an area, provide individual expression, promote access to cultural beliefs, provide an insight to social and economic wellbeing of a community, helps in maintaining social and territorial cohesion. The findings of the study revealed that hotels, tourist centers, sites and cultural events are powerful tools for the economic development of communities. It was therefore, recommended that stakeholders should put much emphasis on prioritizing safe guarding, promote and support cultural, hotels, and other tourism sites so as to increase the number of tourists centers in the countries. Hotels were advised to adopt the idea of hanging tourists‘ centres and cultural centres in their receptions and websites so as to support the tourism industry locally.