NHAG petitioning government to rescue the industry from imminent collapse

The National Hospitality Association of Ghana (NHAG) wishes to draw the attention of Government and its related agencies to the unprecedented revenue losses and its attendant mass layoffs threatening the survival of the industry in the wake of the COVID-19 upsurge in Ghana.

As the 4th largest industry and foreign currency earner in Ghana, the hospitality industry provides jobs for tens of thousands of Ghanaian households and families across the country. Unfortunately, the industry is among the most overwhelmed by the pandemic.

The National Hospitality Association of Ghana (NHAG) recognises measures announced by President, Nana Akufo-Addo to salvage the industry, including a proposal to inject a 3 billion cedi facility (GH. 3 billion) for the Pharmaceutical, Manufacturing and Hospitality sectors, in addition to a 6-month moratorium of principal repayments to the banks.

While commending Government for its prompt response to addressing peculiar challenges in the industry, it is the view of the Association that the announced measures are not far-reaching enough. Consequently, the Association proposes the following comprehensive back-up actions to rescue the industry from a total meltdown. Specifically, we urge Government to:

• Reduce utility and water tariffs by at least 65%

• Suspend the Tourism Levy of 1%, and use current reserves to aid in Hotel bail-out

• Reduce the Output Rate for hotels to match 3% Input Rate paid by all suppliers

• Reduce property rates by 50%

• Suspend EPA/GHAMRO/ARSOG charges until further notice

• Negotiate with SSNIT to pay 50% salary of employee over a period of six-month

• Suspend Union annual salary increment requests

• Mitigate import duties on Food and Non-Food Products

• Suspend rental charges for commercial tenants for at least 6 months

The Association believes the above measures would provide further safeguard for the industry and prevent an unmitigated collapse which could wipe off all the economic gains made so far by the Government in the last few years.

About the NHAG

The National Hospitality Association of Ghana (NHAG) is constituted by about 60 mainline restaurants and eateries in good standing within the Accra and Tema Metropolis. The Association speaks for its members on national issues, promotes professional standards and best practice in the industry and supports the progress and sustainability of the industry.

Theodore Dzeble

Executive Secretary

Media contact: 0243940662

Email: info@nahoag.com.gh