The Ghana Hotels Association has voiced strong opposition to proposed utility tariff increases, warning that such hikes could severely impact the already struggling hospitality sector, Accra Street Journal reports. The Association argues that the cost pressures from electricity and water bills are unsustainable for many hotel operators still recovering from post-pandemic setbacks
The Ghana Hotels Association has appealed to government and industry regulators to reconsider planned utility tariff increases, warning that the increase would worsen the financial strain on the hospitality sector, which is still recovering from the impact of COVID-19.
Stakeholders are urging regulators to reconsider the proposal and engage in broader consultations to safeguard jobs, maintain competitive pricing, and prevent a potential collapse in local tourism-driven businesses.
The Public Utilities Regulatory Commission (PURC) last week announced new tariff adjustments set to take effect on May 3, 2025, including a 14.75% hike in electricity charges and a 4.02% increase in water tariffs.
At a press briefing to launch its 50th anniversary celebrations in Accra, President of the Association, Dr. Edward Nyameke Ackah, described the hikes as unsustainable for hotels, noting that electricity already consumes over 20% of the industry’s revenue, far exceeding global benchmarks.
Dr. Ackah said, study shows that electricity should ideally account for no more than 6% of a hotel’s revenue inflow. Yet, in Ghana, we are dealing with over 20%. Any further increase will hit the industry hard.
“The government must intervene. We need to critically reassess the cost build-up that keeps driving these tariffs,” he added.
He stressed that the hospitality sector, which plays a vital role in tourism and job creation, requires targeted support to remain viable amid rising operating costs.
The Association’s call comes at a time when many hotels are still struggling to return to pre-pandemic occupancy and revenue levels.
The Association however, reiterated its commitment to championing the interests of its members while promoting sustainable growth in Ghana’s hospitality sector.
Meanwhile, other institutions and agencies have also called for the reversal of increased utility rates, explaining that unaccountable debt and mismanagement at ECG has led to higher rates in utilities.
Last Updated on April 16, 2025 by samboad
