The Public Utilities Regulatory Commission (PURC) has received a petition from the Ghana Hotels Association (GHA) regarding the high water rates, which they claim are negatively affecting their members.
While hotels had anticipated an 8.3 percent adjustment, as stated by the PURC earlier in the first quarter of this year, which would have increased the cost of water from roughly GH11.2 per cubic metre to approximately GH12.3, they actually saw a stunning 167 percent increase in their prices.
“When hotels received their water bills for February 2023, our tariff per cubic metre of water was GH¢30, indicating a whopping 167 percent increase as against the 8.3 percent announced by the PURC,” lamented the Association’s president, Dr. Edward Ackah-Nyamike.
In the meantime, it’s noteworthy that water tariffs have experienced three separate increases since the start of this year.
During a press conference held in Accra, Dr. Ackah-Nyamike Jnr pointed out that the actions and decisions made by the utilities regulator, PURC, have led to significant financial burdens for hotels.
He emphasized the need for an urgent resolution to what he described as an ongoing issue.
Dr. Ackah-Nyamike Jnr recalled that the challenges for hotels began in January 2023 when PURC announced an 8.3 percent upward adjustment in water tariffs, effective from February 1, 2023.
In light of what appears to be a lack of response from PURC, the Association has taken the step of submitting another petition to the regulatory body, hinting at the possibility of staging a protest at its offices if the perceived billing inaccuracies are not addressed.
Furthermore, during this press conference, the Association also raised concerns about other issues that, in their view, are exacerbating the challenges faced by the industry.
“The last thing we expect are actions and inactions from public agencies that seek to deepen our woes. We are referring specifically to the actions and inactions of government in keeping the COVID-19 levy in our tax books when the World Health Organisation (WHO) has declared the pandemic over.
“The actions and inactions of government in implementing a new property rate payment regime that has increased property rates astronomically; the Ministry of Roads and Highways in making travel on some of the highways a nightmare for tourists, both domestic and international.
“The actions and inactions of the Board of the Ghana Tourism Authority in the administration of the Tourism Development Fund, which are denying the Tourism Trade Associations of needed financial support to be effective partners in the public private sector collaboration mix. Also, the actions and inactions of the Ministry of Tourism, Arts and Culture and the Ghana Tourism Authority in under-utilising the Public Private Partnership Forum, as provided in the Tourism Act 817, to address industry challenges,” the president listed.
In light of these concerns, the Association has urged the government to reevaluate what it has termed a “faceless” property rate system, which has the potential to further burden businesses.
The Association’s president clarified that their objection is not against the payment of property rates but rather stems from their dissatisfaction with the substantial increases in these rates that property owners, including hoteliers, are now required to bear. He argued, “In an economic climate where businesses are already grappling with survival, the significant hikes in property rates without considering the existing rates are deeply concerning and distressing. A more thoughtful approach to adjusting property rates would have shown empathy for the challenges faced by the struggling business community, including hotels.”
Furthermore, on the issue of deteriorating road conditions, the Association made an appeal to the Minister of Roads and Highways. They called for special attention to be given to the highways that connect to tourist destinations such as Cape Coast and Elmina Castles, Bisa Aberwa Museum, Ankasa Forest, Nzelezu, and others, emphasizing the importance of maintaining these routes for tourism and local businesses.
Tourism Development Fund
“Another worrying trend over the past few years has been the lack of accountability in disbursement of the fund. To put it more bluntly, the administration of the Tourism Development Fund has denied the Tourism Trade Associations much-need financial support to be effective partners in the public private sector. We call on the Board of the Ghana Tourism Authority to revisit the proposal for a portion of the fund to be allocated to functional tourism trade associations every year, to support administration of the associations.
“We also call on the board to revert to the old practice wherein stakeholders were updated regularly on the inflows and outflows of the fund,” he appealed.
The necessary hotel membership, copyright royalties, and funding of training programs are just a few of the other issues he brought up. None of these have gotten the proper attention. Additionally, he exhorted the ministry and Ghana Tourism Authority to seek to maximize the benefits of the Public Private Partnership Forum (PPPF).
According to Dr. Edward Ackah-Nyamike Jr., these trends need to be addressed right now since they are essential to the survival of the hotel sector as well as the tourist and hospitality industry as a whole.