Business

STOPGALAMSEY- Hoteliers Feel the Pinch as Utility Tariffs Rise

Dr. Edward Ackah-Nyamike Jnr, President of the Ghana Hoteliers Association, has sounded the alarm on the recent utility tariff hikes, warning that despite seeming minimal, these increases will significantly impact hotel operations. The Association had previously petitioned the Public Utilities Regulatory Commission (PURC) over high water tariffs, which saw a whopping 167% increase, contrary to the expected 8.3% adjustment.

According to Dr. Ackah-Nyamike, hotels will need to reassess their costs in light of the new tariffs. While some establishments may be able to absorb the additional expenses, others may be forced to pass them on to customers. The decision will ultimately depend on each hotel’s ability to cushion the effects of the new tariffs.

Dr. Ackah-Nyamike acknowledges that quarterly tariff adjustments are necessary for maintaining financial stability in the energy sector. However, hoteliers expect a stable and regular power supply in return. The Association has been vocal about its concerns, also highlighting issues with the COVID-19 levy, property rate payments, and the administration of the Tourism Development Fund.

As the hotel industry grapples with these challenges, the Ghana Hoteliers Association continues to advocate for solutions that will support the sector’s growth and sustainability. With the utility tariff hikes, the Association’s concerns are unlikely to subside anytime soon.

Ruth Abla ADJORLOLO

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