The future of the hospitality sector has drawn the attention of the Ghana Hotels Association (GHA), given the skyrocketing costs of utilities and the escalating rates of tariffs, taxes, and levies.
The industry, like a number of other industries, was severely impacted by the COVID-19 pandemic’s aftermath, which included issues with property rates, high taxes, and price increases.
Mr. Isaac Nkoom, the association’s recently elected Central Regional Chairman, stated that the industry’s enterprises are seriously at risk of failing due to the current difficult circumstances and “astronomical increases.”
What would cause a facility that pays GH¢700 in property rates to abruptly increase to GH¢20,000 or GH¢1,800 to GH¢50,000? We oppose the skyrocketing increases that are hurting our businesses, not the rise and collection by GRA.
He went on to say that the issue is made worse by the 20 different and redundant levies and taxes that are in place, including the 1% tourism levy, NHIL, VAT, GETfund, COVID-19 levy, EPA levy, FDA levy, MMDAs levy, Fire Service levy, and others.
Mr. Nkoom demanded modifications, claiming that these seemed to be punitive measures against the industry.
“This needs to alter for the benefit of both of us. Because the rates do not accurately reflect the nature of our business, it seems that we are being penalized for being business owners as a whole, he bemoaned.
Speaking on Friday at the Elmina Beach Hotel during the GHA’s Fourth National Executive Meeting, Mr. Isaac Nkoom spoke the topic of “Sustaining the Hotel Industry in Ghana Post-COVID-19 Pandemic.”