FLASHBACK: Hotels to increase prices over harsh economic situation

Last year, hotels hinted at increasing rates due to harsh economic conditions.

According to the president of the Ghana Hotels Association, Dr. Edward Ackah-Nyamike Jnr, “The hotel is basically like any other business so the economic environment affects our business, so we also depend a lot on disposable income. So, when the cost of living becomes an issue, it affects us because some will have to do with leisure, and some will have to do with business.”

Read the full story originally published on April 5, 2022 by GhanaWeb

President of the Ghana Hotels Association, Dr. Edward Ackah-Nyamike Jnr, has hinted that hotels will have to adjust their prices as general prices of goods and services have gone up in recent times.

According to him, just like all other businesses the hospitality sector has suffered the brunt of the COVID-19 pandemic and is still struggling to recover.

“The hotel is basically like any other business so the economic environment affects our business, so we also depend a lot on disposable income. So, when the cost of living becomes an issue, it affects us because some will have to do with leisure, and some will have to do with business.”

He intimated that for hotels to be able to stay in business, consumers would have to bear part of their operational costs, translating to an increase in their prices.

“So, if the economy is not doing well, it affects your pocket and you may want to stay away from hotels. If you want to stay in business, it means that the customer will have to fund part of our operational cost, so we try as much as possible to stay within the comfortable profit margins because without these profits we will be out of business because hotel business is an investment.”

“Someone has invested money and expects returns, if the returns are not coming, you fold up and you leave. So, we try to stay within those margins, and once those margins are coming you stay in business. It’s not about making life uncomfortable for our clients it’s a matter of using basic business principles to ensure that we stay in business," he added.

Watch the latest edition of BizTech and Biz Headlines below: