How utility tariff review could make hotel stays cheaper

For years, customers have lamented the high cost of hotel accommodation in Ghana, often comparing local rates unfavourably with cheaper options abroad. Many argue that the steep prices discourage domestic tourism and holidays.

While hoteliers in Ghana have acknowledged these concerns, they continue to implement measures to improve guest experiences despite the prevailing cost structure.

Speaking to Citi News, the President of the Ghana Hotels Association, Victor Opoku Minta, stressed that a review of utility tariffs would significantly benefit hotel operators and, in turn, customers.

He explained that electricity and water remain the largest operating expenses in the industry.

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Using a simple breakdown, he said, “If you take a GH¢100 hotel bill, roughly GH¢20 goes to taxes. The remaining GH¢80 has to cover electricity, water, staff salaries, maintenance, and several other expenses required to keep the facility running.”

“If utility tariffs for hotels are reviewed, it will ease the operational burden on businesses, and that could eventually reflect in more competitive room rates for customers,” he added.

Minta further explained that easing the burden of utility tariffs would allow hotels to operate more efficiently and competitively.

He therefore called on government to review both taxes and utility tariffs affecting the hospitality sector.

He argued that the current cost structure is a major contributor to the high price of hotel accommodation in Ghana.

SA/MA