Tourism, one of the indigenous and oldest sectors of the Ghanaian economy, has its huge prospects crashed by the outbreak of the coronavirus pandemic. Since the second quarter of 2020 when most of the sectors contracted, the tourism sector is yet to record any positive growth afterwards.
Players in the sector are still experiencing the devastating effect of the pandemic due to restrictions on most of their activities. For instance, beaches and pubs still remain closed. Even though cinemas have reopened, the pandemic is biting hard on the movie industry. In Q1 2021, Hotel and Restaurants sub-sector contracted 4.4%, according to data form the Ghana Statistical Service.
According to the Minister of Tourism, Arts and Culture, Dr. Ibrahim Mohammed Awal, the sector lost about 75 percent of its resources and about GH¢8million last year due to the COVID-19 pandemic.
GH¢55million government support
Just like the IMF has advised, government’s stimulus package must continue, targeting sectors that are worst hit by the pandemic. On June 28, 2021, Dr. Awal hinted of a government grant of GH¢55million to players in the tourism industry in the coming weeks
Making Ghana number one tourism destination in West Africa
According to Dr Awal, he is touring all the 16 regions in the country to see how their tourist sites can be developed into acceptable standards and new ones created where necessary.
“The objectives of the Government is to, at least, develop two iconic sites in each of the 16 regions. Ghana is now number three in West Africa to Senegal and Gambia and we do not think this is enough.
“That is why we are touring these sites to see where to partner with the traditional authorities, and the communities to uplift the sites. We are the most peaceful nation in West Africa with very diverse cultures, forts and castles, which are unique selling points that Ghana can develop”.
Meanwhile, government has plans of making Ghana the number one tourism destination in the ECOWAS region.
“We think that Ghana is so big and endowed. So, by the end of 2021, we want Ghana to be the most attractive tourist country in West Africa”.
Tourism to become largest contributor to Ghana’s economy
Moreover, the government plans to make the tourism sector the largest contributor to Ghana’s economy. Even though, possible, a lot needs to be done to achieve this target in the long term. In line with this, Dr. Awal noted that the Ministry would ensure that the sector contributed US$5 billion annually to the economy, by the beginning of next year.
Obviously, raking in $5 billion a year will require more resources than the GH¢55million the government is planning to give to sector players. The sector is one that has huge prospects for the Ghanaian economy but the country is yet to make the most of this sector. In 2019, the contribution of travel and tourism to GDP for Ghana was US$3.8 billion.
Whilst the government’s efforts are worth commending, a lot is expected from the government if it truly wants to make the most out of the tourism sector.
As a result, any attempts to resuscitate the sector which holds huge prospects for the country, will require more resources. Such resources should not only be disbursed as stimulus packages to the players but the ministry needs to rethink the direction of tourism in the country. Already, government has given 30% tax rebates to players in the industry, yet, the sector requires more than that.
Ghana can learn from countries like Tanzania, Kenya and South Africa that have rolled out virtual tourism due to the COVID-19. Also, part of the resources earmarked for the sector must go into educating the public about measures the government and industry players have put in place to make it safe for tourist..
READ ALSO: Ghana secures €280 million first Social Loan financing in SSA
