The Second Vice President of the Ghana Hotels Association (GHA) in charge of Operations, Benjamin Afunya, has defended the current cost of hotel accommodation in the country, arguing that the high rates are fully justified given the operational environment.
Speaking in an exclusive interview on Nyankonton Mu Nsem on Rainbow Radio 87.5FM, Mr Afunya explained that the hospitality sector is currently suffocating under the weight of roughly 20 multiple and duplicate taxes, levies, and regulatory charges.
He detailed an extensive list of financial burdens imposed on hoteliers, including the National Health Insurance Levy (NHIL), Value Added Tax (VAT), Ghana Education Trust Fund (GETFund) levy, COVID-19 Health Recovery Levy, Ghana Tourism Authority (GTA) levy, Environmental Protection Agency (EPA) permit fees, Food and Drugs Authority (FDA) charges, Metropolitan, Municipal, and District Assemblies (MMDAs) rates, and National Fire Service fees.
He further noted that operators must contend with Social Security and National Insurance Trust (SSNIT) contributions for staff, Data Protection Authority fees, local property rates, suitability report levies, and Ghana Music Rights Organisation (GHAMRO) licensing fees. Together with maintenance, utilities, and staff salaries, these mandatory payouts inevitably drive up room rates.
Appealing directly to the state to intervene and help sustain local enterprises, Mr Afunya urged the government to consider reducing VAT charges and revising regulatory fees downwards.
“I will admit that the cost of hotel accommodation is generally expensive, but the rates are justified. The regulatory charges, levies, and taxes are high, and maintaining these properties is equally costly. All of these elements form part of our operational expenses,” Mr Afunya stated.
“The government has a vital role to play here. By introducing targeted incentives and reducing these fees, they can help us lower prices so we can compete with destinations like Kenya and Rwanda. Lowering these duplicated taxes and charges will also boost domestic tourism.”
Highlighting the severity of the regulatory burden, he revealed that the EPA even charges hotel owners based on the number of chairs in their dining areas. He did, however, commend the Ghana Tourism Authority, describing their operational fees as the most reasonable among the regulatory bodies.
His comments come in response to recent concerns raised by the Member of Parliament for Cape Coast North, Hon. Dr Kwamena Minta Nyarku. The MP had warned that exorbitant accommodation costs in Cape Coast could deter visitors and undermine ongoing efforts to position the historic city as a premier tourism hub. Dr Nyarku emphasized that a thriving destination must balance compelling attractions with reasonably priced lodging, security, efficient transport, and vibrant entertainment.
Reacting to the lawmaker’s remarks, Mr Afunya maintained that hoteliers have no desire to price out guests, but their hands are tied by the excessive taxes and charges levied against their businesses.
By: Rainbowradioonline.com/Ghana
