The Ghana Hotels Association has warned that the hospitality industry is under growing pressure due to rising taxes, utility bills, and other operational expenses. These increased costs are making it challenging for hotels to keep accommodation costs affordable for guests. The situation is particularly difficult in parts of the Central Region, where hotels are struggling to manage their operations.
In Elmina, some hotels have reportedly had to rely on water tankers after experiencing prolonged interruptions in their regular water supply. The additional cost of securing water is adding to an already difficult operating environment, with hotels having to provide water for rooms and facilities such as swimming pools from alternative sources. This has been a persistent issue for nearly three months, according to Victor Minta, President of the Ghana Hotels Association.
Mr. Minta raised concerns about the tax burden on hotels, explaining that a significant share of revenue from room sales is absorbed by taxes before operators meet their other business expenses. He stated that for every hotel room sold at approximately 100 cedis, about 20 percent is taxes, leaving only 80 cedis to cater for the cost of actually doing business. This has a substantial impact on the financial sustainability of hotels.
The Ghana Hotels Association is preparing promotional offers ahead of the festive season in an effort to attract more guests and encourage longer stays. Proposed packages include offers where visitors who book several nights receive an additional night at no extra cost. This strategy aims to help hotels maintain occupancy rates and revenue during a challenging period.
According to Mr. Minta, the association is exploring various promotional ideas, such as offering a fifth night free for guests who book four consecutive nights. This type of promotion is intended to encourage more people to travel and rejuvenate during the festive season. The goal is to provide incentives that will help hotels overcome the current cost pressures.
The water shortages and high taxes are not isolated issues, as they reflect broader challenges facing the hospitality industry in Ghana. The Ghana Water Company has reported water supply challenges in various parts of the country, including the Sekyere Hemang plant, which is operating below capacity. These issues have significant implications for businesses that rely on a consistent water supply.
Despite these challenges, the Ghana Hotels Association remains committed to finding solutions that will support the growth and sustainability of the hospitality industry. By promoting innovative packages and advocating for a more favorable business environment, the association aims to help hotels navigate the current difficulties and continue to provide quality services to their guests.
Key points
- The Ghana Hotels Association is preparing promotional offers ahead of the festive season to attract more guests and encourage longer stays.
- High taxes and water shortages are pushing up hotel operating costs, making it challenging for hotels to keep accommodation costs affordable.
- The situation is particularly challenging in parts of the Central Region, where hotels in Elmina have had to rely on water tankers due to prolonged interruptions in their regular water supply.
