The Ghana Hoteliers Association president has expressed disappointment over the mid-year budget review, stating that it failed to address the core issues facing the hospitality industry.
Edward Ackah-Nyamike Jnr explained that the Association had a wish list of expectations, hoping that the Finance Minister’s presentation in Parliament on Tuesday would tackle key concerns within the sector.
However, these expectations were not met.
“His presentation has come with a mixbag of excitement and disappointment,” Mr Ackah-Nyamike Jnr said on Joy News’ PM Express on Tuesday.
“At the macro level, the debt restructuring, expanding the tax net through the invoice system, and plans to upgrade some roads are positive steps.”
He acknowledged signs of stabilisation, noting the upward adjustment of real GDP.
“These are signs that things are stabilising; however, when it comes to the real deal, which is how we face the economy, that is where we have challenges,” he added.
Mr Ackah-Nyamike Jnr highlighted that before the 2024 budget reading, the Association had several meetings with the Ghana Tourism Authority (GTA) regarding the tax burdens faced by the hospitality industry.
“At that meeting, we concluded that the tax regime needed revision, especially due to complaints about high hotel service rates,” he said.
“We proposed consolidating various taxes, including VAT, NHIS, COVID-19 levies, GetFund, and others, to a more manageable level.”
The GTA assured them that although the information was submitted late, it would be considered in the mid-year budget review.
“We waited patiently since November, hoping our request would be addressed, but it wasn’t,” he noted.
Furthermore, he expressed disappointment that the budget review did not address exchange rates and fuel prices, which are crucial to the industry.
“The exchange rates and fuel prices are significantly impacting us, as forex links to electricity tariffs, a major input in our business,” he explained.
“We wanted clear measures from our wish list to deal with inflation, even though it’s gone down, we’re still not where we want to be,” he concluded.