Petit Palais Charming Boutique Hotel, Takoradi
Petit Palais Charming Boutique Hotel, Takoradi

Hotel owners are complaining that they are having to spend between 32% and 38% of their operational cost on electricity tariffs.

The Daily Express gathered from hoteliers that some major hotels in and outside Accra are paying from a low of GH¢18,000 and as high as almost GH¢1 million a month on electricity.

This is said to be one of the major reasons contributing to the high cost of operations affecting the hospitality industry in the country.

On the average, 5-star hotels in Ghana pay between GH¢500,000 and GH¢850,000 a month. Four star hotels are paying between GH¢350,000 and GH¢450,000 monthly, while those in the three star category pay between GH¢200,000 and GH¢300,000 per month.

Those in the two star category are spending between GH¢25,000 and GH¢60,000.
Hotels contacted by the Daily Express include Alisa Hotel, Movenpick Ambassador Hotel, Accra City Hotel, Kempinski Hotel Gold Coast City, and the Royal Plaza Hotel, Koforidua.

Others were the Capital View Hotel, Elimina Beach Resort, Labadi Beach Hotel, Golden Tulip Hotel and the La Palm Royal Hotel. The rest are Cresta Royale Hotel, Coconut Groove Hotel, Dots’ Inn, Commville, Blue Royal, Central Hotel among others.

Commenting on the issue, President of the Ghana Hotels Association (GHA), Herbert
Acquaye, said the association is doing a lot of advocacy work to address some of these challenges facing the industry.

“The association tried to have an engagement with the Public Utilities and Regulatory Commission (PURC) on the issue but that did not work out. We are however discussing the issue of high electricity tariffs with government through the
Ministry of Tourism, Culture and Creative Arts, as well as the regulator of the sector,” he said.

Mr. Acquaye pointed out that the sector is a resilient one and if the right things are done, they will bounce back. “We have seen some effort from the sector Ministry to address some of these issues affecting our operators,” he added.

Mr. Acquaye categorically stated that another issue affecting the hotel sector is weak marketing and promotion on the part of the industry players and the association.

“I think that promotion is weak and as a result, we have not been drawing a lot of people from outside and locally because the economy for the past few years have been in a state of challenge. People are also not moving around as expected,” he revealed.

According to him, there is a reduction in conferences because organizations are reducing their budgets. “It’s a multiplicity of issues and we need to look at them critically,” said the President of GHA.

He said some industry players were last year tempted to lay of workers, saying some businesses left the sector completely.

For his part, Mr. Kwadwo Antwi, Chief Executive Offcer of the Ghana Tourism Development Company (GTDC) told the Daily Express that together with the Ministry and the Ghana Tourism Authority (GTA), they have had meetings with hotel operators over the tariff issue.

“After our engagement with them we realized that the utility tariffs especially the electricity tariff is one of the areas which is seriously affecting their operations. We also realized that there are licenses on permits from Environmental Protection Agency, Town and Country Planning, Accra Metropolitan Assembly (AMA), the
District Assemblies and others which are affecting them,” he said.

“As a matter of fact we are making effort to solve these problems,” he also mentioned.

By: Fred Yaw Sarpong
The Daily Express
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