Hotels in Elmina, a major heritage tourism destination in Ghana's Central Region, have been without regular tap water for nearly three months. The Ghana Hotels Association reported that this has forced hotel operators to purchase water from tanker suppliers to meet basic operational needs, including filling guest rooms and swimming pools. This situation has added significant costs to running a hotel business in the area.
The President of the Ghana Hotels Association, Victor Minta, stated that the water crisis has particularly affected Elmina, which is known for its historic castles and coastal attractions. He described the overall cost of running a hotel business in the current environment as "very high." The Association pointed out that hotels have had to source water from alternative suppliers to maintain their operations.
In addition to the water crisis, the Ghana Hotels Association highlighted the tax burden as another major challenge for hotel finances. For every room sold at around 100 cedis, approximately 20 percent is absorbed by taxes, leaving operators with about 80 cedis to cover actual business costs, such as staffing, utilities, and maintenance. This heavy tax load, combined with prolonged water interruptions, means hotels are incurring extra costs.
The combination of water shortages and high taxes is likely to impact hotel operations and potentially lead to higher accommodation prices. Elmina, along with Cape Coast, is one of Ghana's most visited heritage sites, attracting both domestic and international tourists. Rising operating costs for hotels in the area could affect Ghanaians planning weekend getaways and the country's efforts to promote itself as a competitive tourism destination in West Africa.
Despite these challenges, the Ghana Hotels Association reported that hotels are preparing festive season promotions to attract visitors. These promotions include multi-night packages, such as offers where guests who book three or four nights receive an extra night free. The goal is to encourage longer stays and rejuvenation trips during the holidays.
To date, no government agency or utility provider has publicly responded to the water supply complaints raised by the Hotels Association. No timeline has been given for when regular water flow might resume in Elmina. The Association has also not indicated whether it plans to formally petition tax authorities over the levies affecting room sales.
For now, hotels in Elmina continue to rely on tanker services to keep operations running through the festive season. The situation highlights the need for a resolution to the water supply issues and a review of the tax burden on the hotel industry to ensure the sustainability of tourism in the region.
Key points
- Hotels in Elmina have faced nearly three months of water shortages.
- High taxes on room sales further squeeze hotel finances.
- The situation may lead to higher accommodation prices and affect tourism in Ghana.
