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Over taxation collapsing hospitality industry – Industry players cry out

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Industry players in the Ghana tourism and hospitality space have decried government to reduce the financial obligation outlined to the industry to meet.

According to some Hoteliers, the significant increment in utility bills over the last two years is one of the main reasons accounting for the rise in the cost of doing business in the industry, adding that Utility bills alone are reported to take up to 45 % of their cost of operation.

Speaking at Citi FM’s Akwaaba forum organised in Accra, some hotel owners who spoke exclusively to Ghanaweb.com say the industry may soon collapse if the government does not intervene to mitigate the more than 20 financial obligation Hotel owners have to pay to government organization and agencies.

“As hotels, we use water and electricity commercially the current situation where over a two-year period we have suffered more than 200% in increment has not helped because most hotels are in crises because utilities form already over 45% of their cost of operation,” one hotel manager says.

Meanwhile, the Managing Director for Jumia Travel West Africa, a leading online travel agent also observed that the taxes are too high for a sector like the tourism industry.

“It should be lowered for the businesses because we are forced to charge high prices when providing services whether in a hotel or others in the tourism industry. So I think it is something that should be looked at,” Mr. Kushal Dutta said

Currently, the Hospitality industries in Ghana have financial obligations with about 12 agencies, including Ghana Revenue Authority, Ghana Tourism Authority, Food and Drugs Authority, Environmental Protection Agency, Immigration Service, Registrar General Department, Ghana National Fire Service, and the District Assemblie.

These exclude Electricity tariffs from the Ghana Electricity Company and Water tariff from the Ghana Water Company Limited.

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