ACCRA – The Ghana Hotels Association (GHA) has voiced strong concerns over the recent surge in utility tariffs, taxes, and levies, saying these increases are further crippling an industry already battered by the COVID-19 pandemic.

According to a new release by the Ghana News Agency, the group took issue with the Government for imposing heavy taxes, especially in property rates, rather than aiding the sector’s recovery. Mr. Isaac Nkoom, the immediate past Central Regional Chairman of the GHA, criticized the property rate regime currently overseen by the Ghana Revenue Authority. He questioned the sudden and substantial hikes in property rates, for instance, going from GHS700 to GHS20,000 or from GHS1,800 to GHS50,000, and called for stakeholder consultations before implementing such changes.

Nkoom spoke at the Fourth National Executive Council Meeting of the GHA, held at the Elmina Beach Hotel on Friday. The meeting was themed “Sustaining the Hotel Industry in Ghana – Post-COVID-19 Pandemic” and gathered national and regional executives of the GHA, along with key stakeholders like metropolitan, municipal, and district assemblies, the Ghana Tourism Authority, Ghana National Fire Service, and the Food and Drugs Authority.

During the meeting, he enumerated additional challenges, which include 20 multiple and duplicate levies such as the NHIL, VAT, GETfund, COVID-19 levy, GTA levy, EPA Levy, FDA levy, MMDAs levy, Fire Service levy, and one percent tourism levy, among others. These taxes, according to Nkoom, are suffocating the growth of the sector and are being reflected in pricing mechanisms for the industry.

Despite the burden these taxes impose, Nkoom indicated that the GHA has no alternative but to fulfill all tax obligations, on top of covering maintenance costs, utilities, and salary payments. He urged the Government to consider reducing VAT charges and regulatory fees, citing the sector’s dwindling patronage and the risk of job losses.

To address these challenges and improve operations, Nkoom also called on hotel owners who have not yet registered with the Association to do so. Mr. Kwame Gyasi, the Central Regional Director of the Ghana Tourism Authority, encouraged hotel operators to invest in customer service to bolster the country’s tourism industry, which has been marred by issues with customer service despite its hospitable reputation.