Running a hotel business in Ghana is expensive – Edward Ackah-Nyamike

The president of the Ghana Hotels Association said it is expensive to run a hotel business in Ghana. This, he says, is due to the numerous taxes and regulatory fees imposed on the company.

Dr Edward Ackah-Nyamike revealed that the cost of building and running 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-room hotel. After that, you pay to register with Ghana Tourism Authority, then regulatory authorities like national fire department, environmental protection agency, etc., which comes at an additional cost, ”a he declared.

Speaking to Daryl Kwawu of Joy Prime on Talking Business on Monday, he said, “The investment that goes into the hospitality industry reflects its price range. The additional costs resulting from taxes, utility bills, personnel, among others, make the management of the company expensive ”.

“However, comparing it with the international market, it’s quite moderate. In tourism, the hotel is an international business because it provides services to both foreigners and locals, ”he added.

Tourism Minister Dr Ibrahim Mohammed Awal, speaking at the launch of the Movenpick Ambassador Hotel 10th anniversary celebrations, recently said the high cost of hotel fees in the country was preventing many Ghanaians from l ‘use, affecting local tourism.

According to him, the ministry is determined to develop domestic tourism to generate significant income, hence the need to lower hotel prices.

In response to this, Dr Nyamike-Ackah said, hotels have used a standard price scale to make them competitive and support business; a reduction will collapse many hotels.

“The price of five-star hotels shouldn’t scare people off; there are two and three star hotels that offer alternative rates to the average person, ”he explained.

He urged the government to view the industry as a pillar of national development and allocate resources to boost the sector to survive the covid-19 pandemic.

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