Hotel operators across Ghana are feeling the pinch of escalating operating costs, with the Ghana Hotels Association flagging high taxes, utility expenses and infrastructure disruptions as key pressures on the sector.
Victor Minta, President of the Ghana Hotels Association, said hotels in the Central Region, particularly in Elmina, have struggled to maintain services. “For nearly three months, there’s been no water flowing through the taps,” he said, adding that hotels have had to rely on water tankers to supply guests and swimming pools, a costly workaround.
He highlighted the tax burden, noting that about 20 percent of revenue from a 100‑cedis room sale goes to taxes, leaving only 80 cedis to cover operating costs. “Every hotel room you sell at approximately 100 cedis, about 20 percent is taxes,” Minta explained.
Despite these challenges, the industry is preparing festive promotions to attract visitors during the Yuletide season. Minta said hotels are considering packages that offer guests a free night after staying three or four nights, hoping to boost tourism and offset revenue losses.
Road construction in the Central Region has also hit business, with occupancy at Minta’s facility dropping from an average of 40‑45 percent to just 28‑29 percent. “Business has gone from about 40‑45 percent to barely 28‑29 percent,” he said, calling for measures to minimise travel disruptions.
He urged authorities to analyse tourism data more deeply, comparing domestic growth with international arrivals. GSS Accommodation Unit Survey data show domestic guest numbers ranging between 1.87 and 2.17 million per month, while foreign guests numbered fewer than 40,000 each month, underscoring the local market’s importance.
As the holiday season approaches, hotels are balancing higher costs with strategic promotions, hoping to keep guests coming despite the economic headwinds.
