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Mixed end-of-year fortunes for hoteliers as costs, taxes and property rates bite

Hoteliers
Dr. Edward Ackah-Nyamike.
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By Roselyn Ganyaglo

Some hotels across the country are experiencing full occupancy this December, while others report average or below-average performance, as rising costs and tax pressures continue to affect the hospitality sector.

Dr. Edward Ackah-Nyamike, President of the Hoteliers Association of Ghana, in an interview with Business News, said the mixed results are typical of the festive season.

“For now, we are experiencing the usual December performance where some hotels are recording full occupancy while others are average,” he said. He noted that international visits linked to the December in Ghana initiative, along with special packages from hotels and tour operators, have boosted patronage in some facilities.

“Generally, some hotels are doing well, especially those benefiting from international visits and packaged events,” he added.

Despite a decline in inflation, challenges remain. “Inflation appears to have gone down, but our members are still complaining about the high cost of the commodities they use,” Dr. Ackah-Nyamike said, citing exchange rate pressures and multiple taxes, including the COVID-19 Levy, VAT, NHIL, and GETFund levies. He warned that higher utility tariffs are to be expected from January, amid the tax review.

He also raised concerns about property rates. “There was a significant change in the property rate regime, and properties were assessed differently, which led to astronomical increases in some of the rates,” he explained, noting confusion in earlier collections between the Ghana Revenue Authority and local assemblies.

“The issue now is the rates that have been slapped on the properties. We need a more holistic assessment of the values that have been churned out… Imagine paying about one thousand cedis for a property and suddenly being asked to pay ten thousand cedis. This is very terrible.”

On safety and guest experience, Dr. Ackah-Nyamike urged visitors to take basic precautions. “We advise our clients and guests to first check the hotel’s website, social media platforms, and online reviews. The experiences of other guests should serve as a useful guide,” he said.

Guests are also encouraged to verify hotels through official channels and ensure facilities are properly licensed. “When you arrive at a hotel, look out for the Ghana Tourism Authority licence. Some facilities are not licensed. If you don’t see it, ask for it, and if they cannot produce it, please look for another hotel,” he cautioned.

He further highlighted secure payment options, reminding guests that hotels are not allowed to charge in dollars. “Guests should explore the various payment systems available, including mobile money and card payments,” he said, adding that payments should be made in cedis.

Dr. Ackah-Nyamike assured the public that licensed hotels across Ghana are ready to receive guests, even after the festive season, emphasizing that safety, compliance, and customer satisfaction remain top priorities.

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