While we celebrate the recent strength of the Cedi, our tourism sector is about to take a serious hit.
In 2024 an international visitor on a 13-day trip to Ghana spent on average, US$3,750 on accommodation, food and entertainment (Ghana Tourism Authority report).
If local inflation remains around 10 %, the same holiday in 2025 would cost roughly US$4,160. Factor in the Cedi’s appreciation and this price increases to US$5,760 representing a 35 % price hike in a single year.
Our four and five star international hotels will be hit but not as serious as our local Ghanaian owned hotels. International hotels use a local administration in Cedis but are reporting to their mother company in USDor Euro, depending on where they are from. Thus, the effects are less for them. Most of their supplies are imported thus becoming cheaper and most of their bookings are done and paid from abroad. A stronger Cedi lowers their import costs but does not lower their prices for tourists.
Local restaurants, bars and guesthouses, on the other hand, buy and sell almost everything in Cedis. As such their costs do not change, yet the tourist now pays far more after exchanging foreign currency.
For Example:
A Club beer that costs US $ 2.58 in December 2024 now costs US $3.85. Also, a simple dinner for two that was US $ 34 last Christmas is now US $ 47.
My question is?
IS ANYONE AT THE GHANA TOURISM AUTHORITY OR THE MINISTRY OF TOURISM AWARE OF THE GIANT IMPACT THIS CAN HAVE ON OUR TOURISM SECTOR?
Ghana is not a top tourism country in Africa, like South Africa, Kenia, Tanzania and Morocco. We compete with Senegal, Sierra Leone, Liberia, Nigeria and others for the same “tourist dollar”.To continue that climb and fight for tourist in the world we need to be careful not to end up with price levels that will chase tourist out.
A global example is we can look at is when Croatia became too expensive, travelers simply moved on to Turkey, Bulgaria and Albania.
Ghana should be very careful, since this is most likely to us Sierra Leone, Liberia are not far away, Nigeria is working hard on its safety image.
My advice to the tourism sector: lower your prices where possible!
Suppliers of imported products on behalf of tourism sector, adjust your prices a.s.a.p. so the restaurants and bars should start sell their products cheaper.
Hotel owners should adapt and lower your price levels. Government of Ghana: lower airport taxes, Visa fees etc. so the total cost of a holiday to Ghana can stay competitive.
Finally, most of the home coming Ghanaians and friends who will also be hit hardby a more expensive holiday will reduce their remittances or come home less frequently.
We all need to work this year on our prices to make sure our tourist come back next year.