- Ghana's tourism industry is experiencing a boom
- This is accompanied by a growing trend of visitors
- Tourists spend a significant portion
Ghana’s tourism industry is experiencing a boom, with flagship events like “December in GH” attracting more visitors year after year. However, a decline in hotel occupancy rates is raising concerns within the hospitality sector.
Tourist Influx and Airbnb Rise
The 2023 Ghana Tourism Report shows a 25% increase in international tourist arrivals compared to the previous year. This is accompanied by a growing trend of visitors opting for Airbnb rentals. Airbnb usage surged from 11.5% in 2021 to 27% in 2023, and is projected to continue rising.
High Hotel Costs Cited as Reason for Shift
Analysts attribute the hotel occupancy decline to high accommodation costs. Tourists spend a significant portion (almost 80%) of their budget on hotels, with the average weekly spend in non-star rated establishments reaching nearly US$500. This high cost is attributed to the multiple taxes levied on hotels, impacting their pricing structure.
Government Aims for Continued Growth
Despite the hotel occupancy challenge, the Ghana Tourism Authority (GTA) remains optimistic about the industry’s future. They aim to attract two million international tourists in 2024, up from 1.1 million in 2023.
Positive Signs Despite Hotel Occupancy Woes
The “December in GH” event itself has seen increasing popularity, with a rise in first-time visitors. Tourist spending across various sectors, including accommodation, entertainment, and food & beverage, has also shown a significant increase.
Hotel Industry Calls for Tax Review
While the tourism industry flourishes, hotel owners are concerned about losing business to alternative accommodation options. They urge the government to re-evaluate the multiple taxes levied on their sector to make hotels more competitive.
The challenge lies in balancing a thriving tourism industry with a sustainable hotel sector. Addressing the high cost of hotel stays may be crucial to attracting and retaining tourists opting for alternative accommodation options.
