The President of the Ghana Hotels Association has stated that it is expensive to run a hotel business in Ghana. This, according to him, is due to the many taxes and regulatory fees imposed on the business.
Dr Edward Ackah-Nyamike revealed that the cost of putting up and managing a hotel in the country is high compared to other businesses. This is because it has to stand out with high-class facilities to attract customers.
“It cost at least ¢500,000 to build a 10-bedroom hotel. After that, you pay to register with Ghana Tourism Authority and then regulatory authorities like national fire service, environmental protection agency, etc. which comes with extra fees”, he said.
Speaking with Joy Prime’s Daryl Kwawu on Talking Business on Monday, he said, “the investment that goes into hotel business reflects its’ pricing scale. Additional fees from taxes, utility bills, staffs among others makes it expensive to run the business”.
“However, comparing it with the international market, it is quite moderate. In tourism, the hotel is an international business because it provides services for both foreigners and locals”, he added.
Tourism Minister, Dr Ibrahim Mohammed Awal, speaking at the launch of the 10th Anniversary Celebrations of Movenpick Ambassador Hotel, recently said that the high cost of hotel charges in the country is denying many Ghanaians from using it, affecting local tourism.
According to him, the ministry is bent on developing domestic tourism to generate significant revenue, hence the need for hotel rates to go down.
Reacting to this, Dr Nyamike-Ackah stated, hotels used a standard pricing scale to make them competitive to sustain the business; a reduction will collapse many hotels.
“The rate at five-star hotels should not scare people; there are two and three-star hotels that give alternative rates to the average person”, he detailed.
He admonished that the government should see the industry as a pillar for national development and allocate resources to boost the sector to survive the covid-19 Pandemic.
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