While not considered a mainstream economic activity in a country successfully exploiting oil and gas, cocoa, gold, and diamonds tourism is nonetheless becoming recognised as an increasingly important sector in Ghana that generates employment and reduces poverty. Accordingly, a Tourism Act was promulgated in 2011 to support the development of the industry and to assure the quality of services that it provides. Ghana is blessed with excellent natural, cultural and heritage resources such as historical forts and castles, national parks, a beautiful coastline, unique arts, cultural traditions as well as a vibrant lifestyle, which when further developed and properly packaged and marketed, will continue to form the basis of a tourism offer that will attract a range of markets.
In 1996, a National Tourism Development Plan (referred to in the text as the 1996-2010 Plan) was formulated by the Government with the assistance of United Nation World Tourism Organization (UNWTO) and the United Nations Development Programme (UNDP) with a 15- year horizon to stimulate the development of the sector. This plan engendered actions that have developed and progressed the sector over the years, which has been growing above world and regional average driven by the strong overall performance of Ghana‘s economy, the enabling business environment generating important demand for business travel and the country‘s reputation for political stability and safety in a volatile region.
With renewed interest in the sector and the conclusion of the 1996-2010 Plan the time is apposite to examine progress made and take stock, identify barriers that have been (and are still) hampering the development of the sector, propose a strategic direction to embark on and define activities to achieve the national goals expressed in the Ghana Shared Growth and Development Agenda (GSGDA) as well as those of the United Nations Millennium Development Goals (MDGs). Hence, the Government of Ghana is keen on promoting sustainable growth to convert tourism into a leading sector in the national economy and has commissioned an update to the 1996-2010 Plan.
The structure and performance of the tourism sector in Ghana: The number of starrated hotels in Ghana has grown from 1,345 in 2005 to 1,747 in 2010. The majority are in the 1- and 2-star categories although several higher category hotels are in the construction phase, mostly in Accra. Greater Accra dominates the supply of hotels particularly at the 2- to 5-star category levels but the quality of regional hotel supply is improving as Cape Coast, Takoradi, West Coast, and Kumasi have seen the opening of new higher category hotels. In addition to the star-rated hotels, there are 137 guesthouses, 1176 budget and 67 supplementary accommodation establishments around the country. Hotel occupancy rates, especially in star-rated hotels, have been relatively high during the past decade. Ghana Tourism Authority (GTA) statistics show roughly 80 per cent occupancy rates on average for 4-star rated hotels.
The figures for licensed travel agents and tour operators, show an absolute decline in the number of businesses in this sector over the period 2005 to 2010 from 211 to 164, however, it is also clear that the greatest decline has been in the category of travel and tour operators without an International Air Transport Association (IATA) licence, which suggests that the sector itself is becoming more professional and thus a stronger and more effective component of the tourism sector. Based on stakeholder interviews in October 2012, the majority of incoming tourism business is handled by roughly ten travel agencies and tour operators. The licensed car rental sector shows a healthy growth from 53 companies in 2005 to 92 in 2010. The licensed restaurants and night clubs sector has remained essentially the same absolute size over the period 2005 to 2010 (366 to 359).
The country‘s location, stability, and rising role as a regional business hub have resulted in an increase in the number of flight connections internationally and domestically. Airline capacity has grown rapidly, from 24 carriers servicing Ghana in June 2011 to 34 by July 2012, with expectations of six more added by the end of 2012. Domestic flights have also received a boost as internal traffic rose 60 per cent in 2011 following an increase in the number of airlines connecting Ghana‘s five airports and the offering of more affordable flights.
The tourism economy in Ghana: Ghana‘s tourism sector has been visualised as a major potential engine of growth and development since the 1970s. Efforts to systematically provide the enabling environment for its development never materialised economically until the 1996-2010 Plan was formulated and launched. Chapter 8 of the 1996-2010 Plan tackled, inter alia, the economic impact of tourism on the Ghanaian economic and provided the case for the prioritisation of the sector. The current long-term plan and its sections on economic impact of tourism are, therefore, sequels to the first plan. In undertaking the study, the methodologies, outcomes and current government priorities and economic growth expectations were taken into account to develop a set of reliable criteria for the projections of the impact indicators. Primary emphasis has been on international tourism.
The impact indicators under review included 1) tourist arrivals, 2) receipts/foreign exchange generation, 3) employment creation, 4) income generation and 5) fiscal impact, i.e. tax revenue generation. Other developmental factors considered included economic growth, poverty reduction and tourism nexus. The results obtained in the analysis of the relevant issues are provided below.
The trends in tourist arrivals during the last plan show that the sector has been undergoing a steady growth. For the current National Tourism Development Plan - 2013-2027 (referred to in the text as the 2013-2027 Plan), it is projected to rise quite rapidly from the 2010 level of 746,500 to 993,600 thousand in 2013; with receipts of USD 1.5 billion in 2017; 2.5 billion in 2022; and 4.3 billion in 2027. These are conservative projections, which will depend primarily on the policy stance of government. It is in this respect that the political will of the government to prioritise the sector will be deemed crucial.
The gross contribution of foreign exchange to GDP generated by tourism will rise from the 2010 level of 4.3 % in 2010 to 4.7% in 2013 and will continue the gradual rise as follows: 5% in 2017, 5.20% in 2022 and to finally reach 5.70% in the terminal year of the 2013-2027 Plan. It can be inferred from the figures that the growth of the oil and gas industry would dampen the influence of the tourism sector on GDP during the plan period. An equally rewarding approach is the consideration of the net foreign exchange generated after the various foreign exchange leakages that go into importation of goods and services and the repatriation of profits are factored out. However, as the economy undergoes structural transformation, the extent of leakage is expected to decrease because of availability of local supplies.
High aggregate employment and incomes are expected from the sector during the Plan period because of its labour-intensive characteristics. The latter aspect offers the economy the potential for absorbing the growing surplus labour in the system. The estimates show that total employment figures (direct plus indirect) will rise from the 2010 level of 231,000 to 319,000 in 2013 and further rise to 487,000 in 2017, the initial and terminal years of the first Phase of the 2013-2027 Plan. The projected trends for the terminal years of the remaining two phases provide some hope for the labour market and poverty reduction, especially in the destination areas. The corresponding income generation trends partially reinforce the foregoing assessment, provided a vigorous policy and implementation effort will be made to develop domestic tourism. In terms of income generation, extrapolations made from the previous study and the limited information and data available gives quite a bright future. Total projected income will rise from the 2010 level of USD 194 million to USD 286 million in 2013 and reach USD 439 million in 2017, It will continue to rise in subsequent years until it reaches USD 1.3 billion in the terminal year of Phase 3 (2027).
From the Ghana Revenue Authority (GRA), the Ghana Immigration Service (GIS) and the Ghana Tourism Authority (GTA), destination surveys, research methodologies and results from the previous study, extrapolations have been made to generate the fiscal (tax revenue) contributions of tourism to the economy. The outcome shows that the sector could generate as much as USD 204.9 million in 2013 and reach USD 391.9 million in 2017. By the terminal year of the Plan (2027) the figure will be above USD 2.0 billion. A closer look at the sector seems to indicate that there may exist some level of differentiated tax compliance. There is, therefore, the need for a thorough study of the compliance system in order not only to widen the tax net but also to close the loopholes in the system.
The sectoral linkage aspect of the previous study and its subsequent re-visit for this Plan, clearly shows that tourism has very limited linkage with other sectors. Coupled with a high foreign exchange leakage, efforts must be made to raise the linkage in order to enhance the supply and value chains. Of particular concern is the agricultural sector where there are high concentrations of the poor. In other words, a tourism policy that seeks the use of domestic agricultural produce will go a long way to reduce the incidence of poverty. A case in point is government support for producers who specialise in crops for the hotel industry.
Over the years, there has been just a token policy approach to the development of domestic tourism to supplement the gains from international tourism. Currently, economic statisticians rank Ghana as a middle-income country. If the structural changes in the economy continue, then the time may be ripe for inculcating in the youth the essence of travel beyond their parochial locations for excursions to tourism landmarks in the country. Beyond the economic gains, there will emerge socio-political benefits for an enlightened citizenry.
The constraints on the development of the sector have been analysed in the text. However, the two most critical ones are worth mentioning at this juncture. The sector critically lacks the statistical base for policy formulation and evaluation. Under such circumstances, even relevant research findings which may be policy rewarding are bound to be shelved to gather dust because the ultimate decision makers have no confidence and interest in such findings and recommendations. Secondly, the marginalisation of the sector in the overall policy framework must be reversed. Adequate funding must be available for the implementing agencies i.e. Ministry of Tourism (MOT) and GTA. Finally, the oil curse, as captured by the proverbial Dutch Disease must engage the attention of government and, consequently, the need to consider tourism as a potentially viable outlet for ensuring the diversification of the economy.
The tourism statistical system: The existing system of tourism statistics has suffered from significant weaknesses for many years and this situation appears to have been brought about through a combination of institutional and financial shortcomings that have led to operational compromises, capacity constraints and the abandonment of a previous programme of statistics improvement.
It is equally clear that the current system of tourism statistics lacks the authority to transparently represent the key performance indicators of the tourism sector such as international visitor arrivals, visitor arrival characteristics and expenditure, and unless the political commitment and financial resources to address this inadequacy are made available, the fundamental basis for understanding the economic and social contribution of tourism to the economy will be further compromised and also undermine the effective planning and development of the sector.
The 2006-2010 Plan correctly identified the general weaknesses in data collection but failed to present a clear direction for overcoming the inadequacies. The missing policy recommendation which must be introduced is the commitment to the development and introduction of the Tourism Satellite Account (TSA), a methodology for measuring the contribution of tourism to Gross Domestic Product (GDP) which is highly demanding in terms of information and thus the existence of a robust system of tourism statistics but whose recommended implementation offers an institutional framework through which this complex, multi-stakeholder process of tourism statistics strengthening can be managed.
The UNWTO recommended approach to developing the TSA is through the introduction of an Inter-Institutional Platform (I-IP) through which a cooperative and collaborative forum is established for the various public and private sector bodies such as the Ministry of Tourism (MOT), Ghana Tourism Authority (GTA), Ghana Statistical Service (GSS), Ghana Immigration Service (GIS), Ministry of Finance (MOF), Bank of Ghana (BOG) and private sector trade associations that produce and use tourism statistics, to identify shortcomings, design solutions and implement recommendations. The establishment of just such a Committee was undertaken around the time of the publication of the Draft Tourism Policy but this was disbanded following a failure of political and financial commitment to its recommendations and little was achieved. Implementation of the policy supporting the introduction of the TSA demands that the I-IP be re-established and led from a technical perspective by the GSS.
As a matter of urgency, the GTA and GIS must re-establish a dialogue and cooperate over the collection, analysis and dissemination of international tourist arrivals data to recover the transparent accuracy and authoritative nature of the figures, which has been lost for some years. Discussions should also be held over improvements to the design of the current entry/exit card and to work with GIS to introduce a training programme for Immigration and Border Officials which will lead to their better understanding of tourism and improved handling of tourism data.
GTA must also, as a priority, speak with Ghana Airports Company Ltd (GACL) to secure the necessary permissions, which will allow the re-introduction of the visitor expenditure survey at Katoka International Airport. This is a fundamental data collection instrument, which has not been undertaken for a number of years and is critical to our understanding of the pattern and value of tourism expenditure and visitor perception of Ghana as a visitor destination.
The existing GTA Hotel Occupancy Rate Survey, which is conducted nationally, suffers from a poor response rate, resulting in the collection of limited data with limited value. A review of the conduct of this survey is essential including consideration of integrating it within the new Tourism Levy questionnaire and the provision of further training of private sector hoteliers to improve their understanding of the survey requirements.
The existing GTA Accommodation Statistics Survey experiences such a poor response rate that the data collected is too small for analytical purposes and thus is not used. A complete review of this survey is necessary from questionnaire design through to implementation including examination of GTA technical capacity in their regional offices, the capacity of GTA staff in Accra and the training implications for private sector hoteliers of the introduction of a new survey. Consideration should also be given to the conduct of this survey by experienced technical staff in the existing regional network of offices operated by GSS.
An Inbound and Outbound Tourism Survey is one of the surveys required to be introduced as part of the strengthening of the system of tourism statistics and the development of the TSA and this could be structured, implemented, managed and results analysed by GSS with guidance from international technical advisors.
Capacity building and training of GTA statistics staff is required in data handling, analysis and reporting techniques as well as in knowledge of tourism concepts, definitions and classifications for tourism statistics and in relation to the introduction of the TSA. I-IP committee members could also benefit from training seminars in tourism concepts, tourism statistics and the TSA while technical assistance will be needed in due course when compilation and completion of the various TSA tables is needed for the production of the first TSA results. This could also be delivered through the introduction of international technical advisors.
Tourism infrastructure and services: There have been significant improvements in tourism infrastructure and services, since the 1996-2010 Plan. In respect of international air access, carriers have doubled from approximately 15 to 30 and Kotoka, Accra‘s international airport, has expanded. However, airport taxes and aviation fuel costs are relatively high and expansion of the airport is barely keeping pace with demand. The number and choice of internal flights has also increased. Access for tourists within Ghana is primarily by road, and much of the existing highway network is in poor condition with congestion adding to journey times and the overall discomfort of travel. There are only very limited alternative options of rail or water transport, although new initiatives and proposals offer scope for both – including significant enhancement of water transport on Lake Volta. New highway proposals should improve journey times and the convenience and comfort of road travel. Water and electricity supplies are expanding, as is demand, and all tourist areas are serviced. However, the need for generators to provide back-up power supplies adds to accommodation costs.
Marketing: International and domestic tourism has been and still is increasing steadily in Ghana. Ghana‘s tourism market structure, however, is dependent on business segment and six major international markets. Real leisure tourism has been very limited up-to-today. Therefore the development goals of marketing are a) to raise awareness about Ghana in the major source markets, b) to establish leisure tourism in Ghana and c) to diversify tourism market structure from business and volunteer tourism to leisure tourism segments.
In order to achieve these goals, a phased marketing strategy approach is recommended: consolidation of current international markets and focus on domestic markets in the shortterm while developing the product for expansion and expanding to new international markets in the medium and long-term.
In the short-term, marketing activities in North America and Europe should concentrate on building awareness about Ghana as a tourist destination among both the travel trade and the general public. These activities will also raise the interest of stakeholders to start developing specialised tours and to improve the quality of the product to provide more value for money.
Awareness raising and image building needs well-organised and coordinated promotion involving editorial coverage in appropriate media, tour operator support (selected tour operators targeting the desired markets and market segments should be assisted by providing them with specific material including photos, information on new developments), provision of well-designed and quality information via a website and in printed collateral materials as well as on social media.
Public-private sector working group on marketing should be set up. Effective public-private partnership is the key in marketing Ghana as a leisure tourism destination. Joint marketing action plan, which specifies roles and responsibilities, should first be agreed upon and then implemented by the responsible parties. The action plan should be reviewed on an annual basis and revised based on the achievements and market research results.
The marketing budget should be increased to implement the branding and marketing strategies. If Ghana is not known in the markets, it will not be included in the 'shopping-list‘ of prospective customers. Therefore marketing is the key!
Tourism resources: A key strength of Ghana‘s tourism appeal is the overall diversity of resources. These include: the UNESCO designated World Heritage Sites – forts and castles, and Asante traditional buildings; other traditional architecture such as in the North, the extensive protected areas within Ghana and the diversity of resources that they contain; the depth and significance of cultural traditions within the country, together with the accessibility for tourists to engage with it; and, not least, the genuine and general friendliness of Ghanaian people and, on the whole, their positive attitude to tourists. The quality of the resources suffer, generally, from poor standards of cleanliness and sanitation, particularly in public areas and from the effectiveness of some authorities, including the District Assemblies, to enforce planning control and guidance which has led to inappropriate development to the detriment of tourist resources. The Ghana Museums and Monuments Board does not have sufficient resources to adequately protect the heritage buildings within the country and there is a danger that these assets will be irreparably damaged. Interpretation, signage and information are generally weak.
Structure plan for tourism: The current structure plan for tourism within Ghana is based on the triangle of resources formed by Accra (as the principal arrival point and capital), Kumasi and Cape Coast/Elmina/Kakum. There are off-shoots from this core, including the West coast beaches, Mole National Park and short trips from Accra to destinations such as Ada, Shai Hills and Akosombo. The proposed strategy for the tourism structure plan for 2013 – 2027 is to combine the consolidation and enhancement of existing resources with the development of new attractions, which will expand the overall framework and extent of tourism within Ghana. This expansion is to be phased and linked with infrastructure improvements that are currently planned within the country. Establishing a stronger South-North movement corridor along Volta Lake and the highway to the East of the lake, will help strengthen the tourism connections to Tamale, Mole and the North and form the Eastern part of an enhanced triangle of tourism resources connecting Accra, Tamale and Kumasi.
Institutional framework: Public sector tourism institutions in Ghana comprise the Ministry of Tourism, the Ghana Tourism Authority, which was established by the Tourism Act 817 in 2011 to replace the Ghana Tourist Board, the Ghana Tourism Development Corporation (GTDC) and the Hotel, Catering and Tourism Training Institute (HOTCATT). Private sector institutions include several peak associations, which are collectively represented by the Ghana Tourism Federation (GHATOF).
The 2013-2027 Plan recommends a number of actions and improvements as well as some restructuring to ensure that the institutional framework for tourism is better coordinated and effective. These include designating the Ministry as a technical Ministry, addressing leadership instability at both the Ministry and the GTA and recruiting professionals to manage the GTA rather than political appointees, improving the working environment and conditions, building the capacity of officers at the institutions, strengthening the use of Information Technology, the 'Monitoring and Evaluation‘ function as well as the 'Communication and PR‘ function, creating new desks at the MOT and GTA to handle issues concerning the environment and community participation in the tourism sector, and encouraging other relevant Ministries to establish tourism desks at their institutions to liaise with the MOT. The newly formed GTA will be represented at District level and many new officers will be recruited. However it is recommended that staff numbers should be kept to a manageable size.
The 2013-2027 Plan must be legally adopted and sent to Cabinet and Parliament for approval. A Master Plan Permanent Coordination Task Force will be set up to ensure that the plan is implemented. This will be an independent unit reporting to the Minister and to the Chairman of the GTA Tourism Board who will also represent the private sector.
Although Act 817 makes provision for a Public Private Partnership Forum to meet at regular intervals, until now these meetings have been sporadic. It is recommended that these are organised every three months as prescribed in the Act bringing together tourism stakeholders but also representatives from other sectors that impact on tourism and that joint initiatives are agreed and acted upon. Private sector associations must be strengthened and the support of traditional rulers for tourism development in their areas must be garnered.
It is recommended that a new Inter-Ministerial Committee be formed to replace the ineffective current Committee bringing together the same Ministries as well as including the National Development Planning Commission. The Committee should be chaired by the Vice-President who will also call the meetings to ensure that Directors and above attend.
Policy and regulatory framework: A tourism policy was formulated in 2006 with stakeholders in the sector but never presented for ratification to the Parliament. The policy document needs to be redrafted and updated in a more concise paper, which Parliamentarians would be more likely to absorb, accept and ratify.
There is poor understanding of the tourism sector by other government institutions in Ghana, which is affecting tourism‘s credibility as a productive sector generating income and jobs and benefiting other sectors of the economy. An educational campaign aimed at the Presidency, the Cabinet, the Economic Advisory Council, the Budget Division of the Ministry of Finance and Economic Planning and the Parliamentary Committees on both Finance and Tourism must be carried out, supported by an international conference on the impact of tourism on the economy of selected countries. Invitations to attend should be extended to all senior personnel at Ministries in Ghana (Chief Directors and above), important personalities and stakeholders in the country but also in the region, and to the Press Corp, both nationally and internationally to generate TV and newspaper coverage, explaining the uniqueness, economic power and how Ghana can develop international competitiveness based on a visitor economy.
Wording in the Tourism Act 817, 2011 is in places confusing and could be open to misinterpretation; for instance, the functions of the GTA are not comprehensively spelt out. These issues should be addressed and the Act reworded or amended in an addendum.
The private sector must be involved in regulating and monitoring their industry rather than having rules imposed on them. For instance it could play an active role in the running of the classification system as the example of South Africa.
The Tourism Act 817 empowers the GTA to collect a levy from tourism enterprises amounting to 1% on goods and services consumed by tourists. However, the system to collect this revenue has not been agreed yet in terms of logistics and cost effectiveness. It is recommended that the 1% levy is collected from tourism enterprises that are above a certain size or a certain turnover and that a formula is agreed for the application of the Tourism Development Fund to the relevant activities to progress the sector.
The visa regime in effect in Ghana is cumbersome and expensive. It is proposed that a study to analyse the impact of the visa regime on the number of international tourist arrivals is carried out, presented at the tourism conference recommended above and a media campaign launched to publicise the results.
Human Resource Development: Some education and training for both the public and private sector workforce of the tourism industry has been undertaken since the development of the 1996-2010 Plan but these were not been done in an effective and systematic manner. There is thus, a huge gap between both the quality and quantity of human resource requirements of the tourism industry.
An analysis of the human resource situation in the tourism industry shows the following:
To resolve the above challenges facing the development of human resource of the tourism industry in Ghana, the following recommendations have been made:
Tourism and the environment: Tourism and the environment are inextricably linked and it is important that policies are formulated and actions implemented to ensure that the environment is protected and that tourism contributed to sustainable development. Therefore it is recommended that GTA Officers work with the Environmental Protection Agency (EPA) to ensure that tourism enterprises operate in a sustainable manner, report the impact of their operation and are regularly inspected. They must also work with Metropolitan, Municipal and District Assemblies (MMDA) and the Town and Country Planning Department to ensure that tourist areas are environmentally well maintained and that public waste management services are effective and efficient. In particular they must support the EPA and the MMDAs in stopping illegal mining, cutting of mangroves and sand winning. Efforts should be made to encourage the Corporate Social Responsibility (CSR) of large businesses from other sectors to protect the environment and contribute to the tourism sector.
Ministry staff must liaise with the Ministry of the Environment, Science and Technology (MEST) and with Officers from the Wildlife Division (WD), from Ghana Museum and Monuments Board (GMMB) on establishing environmental protection systems and on protecting cultural heritage assets. They must work with MEST to develop a set of indicators that will measure environmental impacts at tourism sites. A visitor management system at each attraction and cultural heritage site that attracts large flows of tourists at certain times must be put in place.
Community involvement in the tourism sector and socio-cultural considerations: Community participation in the tourism sector and community-based tourism initiatives are quite well developed and many long-term projects are established in Ghana. Marketing is a major hindrance to promote community initiatives as communities rarely have the funds, knowledge and reach to be effective. GREET, an NGO established to monitor, accredit and promote initiatives around Ghana institution, markets some 20 community-projects around the country and advises on new initiatives to eventually accredit them. GREET was promised support from the government which has only partially been extended. To ensure that this invaluable service continues it is recommended that GREET is absorbed into the GTA as an independent unit so that it has permanent Government support to continue its work.
Communities should be represented in tourism development decisions that impact on their areas and should be assisted to participate in the sector. They must be included in all decision-making processes and in development initiatives. It is recommended that Destination Management Organisations (DMO) are set up in Ghana‘s tourism zones based on the model of those already established in the coastal strip of Ghana‘s Western region and around the Mole National Park. These will bring together the private sector in the local area, various public sector institutions, civil society and local communities. A mechanism must be adopted to finance the operation of the DMO. Community projects, particularly those that involve women working in the industry, the youth and vulnerable groups must be supported and business partnerships between the private sector and local communities developed and encouraged.
General recommendations: Signage should contribute to the tourist experience by easing access and providing useful information. This requires Government to formulate a tourism signage policy to develop a system based on international designs, general content and guidelines on standard symbols to be used around the country. The MOT must have a policy that will set guidelines for tourist signage and symbols to direct all organisations and businesses wanting to erect signage relating to attractions or tourism businesses.
It is important to showcase the magnificent views that are in every Region and District in Ghana. Viewpoints will be prepared to encourage tourists to stop and admire spectacular views on their travels around Ghana.
The establishment of campsites especially at locations where accommodation is limited would provide the opportunity to develop new tourism products in Ghana suitable for adventure tourists, both international and domestic.
The Master Plan document presents the blueprint to improve and develop tourism in Ghana over the next 15 years, building on the base provided by the 1996-2010 Plan. It concludes with a five-year action plan as a road map to achieve the strategic objectives for the first five years of the plan and kick-start the process.
While not considered a mainstream economic activity in a country successfully exploiting oil and gas, cocoa, gold, and diamonds tourism is nonetheless becoming recognised as an increasingly important sector in Ghana that generates employment and reduces poverty. Accordingly, a Tourism Act was promulgated in 2011 to support the development of the industry and to assure the quality of services that it provides. Ghana is blessed with excellent natural, cultural and heritage resources such as historical forts and castles, national parks, a beautiful coastline, unique arts, cultural traditions as well as a vibrant lifestyle, which when further developed and properly packaged and marketed, will continue to form the basis of a tourism offer that will attract a range of markets.
In 1996, a National Tourism Development Plan (referred to in the text as the 1996-2010 Plan) was formulated by the Government with the assistance of United Nation World Tourism Organization (UNWTO) and the United Nations Development Programme (UNDP) with a 15- year horizon to stimulate the development of the sector. This plan engendered actions that have developed and progressed the sector over the years, which has been growing above world and regional average driven by the strong overall performance of Ghana‘s economy, the enabling business environment generating important demand for business travel and the country‘s reputation for political stability and safety in a volatile region.
With renewed interest in the sector and the conclusion of the 1996-2010 Plan the time is apposite to examine progress made and take stock, identify barriers that have been (and are still) hampering the development of the sector, propose a strategic direction to embark on and define activities to achieve the national goals expressed in the Ghana Shared Growth and Development Agenda (GSGDA) as well as those of the United Nations Millennium Development Goals (MDGs). Hence, the Government of Ghana is keen on promoting sustainable growth to convert tourism into a leading sector in the national economy and has commissioned an update to the 1996-2010 Plan.
The structure and performance of the tourism sector in Ghana: The number of starrated hotels in Ghana has grown from 1,345 in 2005 to 1,747 in 2010. The majority are in the 1- and 2-star categories although several higher category hotels are in the construction phase, mostly in Accra. Greater Accra dominates the supply of hotels particularly at the 2- to 5-star category levels but the quality of regional hotel supply is improving as Cape Coast, Takoradi, West Coast, and Kumasi have seen the opening of new higher category hotels. In addition to the star-rated hotels, there are 137 guesthouses, 1176 budget and 67 supplementary accommodation establishments around the country. Hotel occupancy rates, especially in star-rated hotels, have been relatively high during the past decade. Ghana Tourism Authority (GTA) statistics show roughly 80 per cent occupancy rates on average for 4-star rated hotels.
The figures for licensed travel agents and tour operators, show an absolute decline in the number of businesses in this sector over the period 2005 to 2010 from 211 to 164, however, it is also clear that the greatest decline has been in the category of travel and tour operators without an International Air Transport Association (IATA) licence, which suggests that the sector itself is becoming more professional and thus a stronger and more effective component of the tourism sector. Based on stakeholder interviews in October 2012, the majority of incoming tourism business is handled by roughly ten travel agencies and tour operators. The licensed car rental sector shows a healthy growth from 53 companies in 2005 to 92 in 2010. The licensed restaurants and night clubs sector has remained essentially the same absolute size over the period 2005 to 2010 (366 to 359).
The country‘s location, stability, and rising role as a regional business hub have resulted in an increase in the number of flight connections internationally and domestically. Airline capacity has grown rapidly, from 24 carriers servicing Ghana in June 2011 to 34 by July 2012, with expectations of six more added by the end of 2012. Domestic flights have also received a boost as internal traffic rose 60 per cent in 2011 following an increase in the number of airlines connecting Ghana‘s five airports and the offering of more affordable flights.
The tourism economy in Ghana: Ghana‘s tourism sector has been visualised as a major potential engine of growth and development since the 1970s. Efforts to systematically provide the enabling environment for its development never materialised economically until the 1996-2010 Plan was formulated and launched. Chapter 8 of the 1996-2010 Plan tackled, inter alia, the economic impact of tourism on the Ghanaian economic and provided the case for the prioritisation of the sector. The current long-term plan and its sections on economic impact of tourism are, therefore, sequels to the first plan. In undertaking the study, the methodologies, outcomes and current government priorities and economic growth expectations were taken into account to develop a set of reliable criteria for the projections of the impact indicators. Primary emphasis has been on international tourism.
The impact indicators under review included 1) tourist arrivals, 2) receipts/foreign exchange generation, 3) employment creation, 4) income generation and 5) fiscal impact, i.e. tax revenue generation. Other developmental factors considered included economic growth, poverty reduction and tourism nexus. The results obtained in the analysis of the relevant issues are provided below.
The trends in tourist arrivals during the last plan show that the sector has been undergoing a steady growth. For the current National Tourism Development Plan - 2013-2027 (referred to in the text as the 2013-2027 Plan), it is projected to rise quite rapidly from the 2010 level of 746,500 to 993,600 thousand in 2013; with receipts of USD 1.5 billion in 2017; 2.5 billion in 2022; and 4.3 billion in 2027. These are conservative projections, which will depend primarily on the policy stance of government. It is in this respect that the political will of the government to prioritise the sector will be deemed crucial.
The gross contribution of foreign exchange to GDP generated by tourism will rise from the 2010 level of 4.3 % in 2010 to 4.7% in 2013 and will continue the gradual rise as follows: 5% in 2017, 5.20% in 2022 and to finally reach 5.70% in the terminal year of the 2013-2027 Plan. It can be inferred from the figures that the growth of the oil and gas industry would dampen the influence of the tourism sector on GDP during the plan period. An equally rewarding approach is the consideration of the net foreign exchange generated after the various foreign exchange leakages that go into importation of goods and services and the repatriation of profits are factored out. However, as the economy undergoes structural transformation, the extent of leakage is expected to decrease because of availability of local supplies.
High aggregate employment and incomes are expected from the sector during the Plan period because of its labour-intensive characteristics. The latter aspect offers the economy the potential for absorbing the growing surplus labour in the system. The estimates show that total employment figures (direct plus indirect) will rise from the 2010 level of 231,000 to 319,000 in 2013 and further rise to 487,000 in 2017, the initial and terminal years of the first Phase of the 2013-2027 Plan. The projected trends for the terminal years of the remaining two phases provide some hope for the labour market and poverty reduction, especially in the destination areas. The corresponding income generation trends partially reinforce the foregoing assessment, provided a vigorous policy and implementation effort will be made to develop domestic tourism. In terms of income generation, extrapolations made from the previous study and the limited information and data available gives quite a bright future. Total projected income will rise from the 2010 level of USD 194 million to USD 286 million in 2013 and reach USD 439 million in 2017, It will continue to rise in subsequent years until it reaches USD 1.3 billion in the terminal year of Phase 3 (2027).
From the Ghana Revenue Authority (GRA), the Ghana Immigration Service (GIS) and the Ghana Tourism Authority (GTA), destination surveys, research methodologies and results from the previous study, extrapolations have been made to generate the fiscal (tax revenue) contributions of tourism to the economy. The outcome shows that the sector could generate as much as USD 204.9 million in 2013 and reach USD 391.9 million in 2017. By the terminal year of the Plan (2027) the figure will be above USD 2.0 billion. A closer look at the sector seems to indicate that there may exist some level of differentiated tax compliance. There is, therefore, the need for a thorough study of the compliance system in order not only to widen the tax net but also to close the loopholes in the system.
The sectoral linkage aspect of the previous study and its subsequent re-visit for this Plan, clearly shows that tourism has very limited linkage with other sectors. Coupled with a high foreign exchange leakage, efforts must be made to raise the linkage in order to enhance the supply and value chains. Of particular concern is the agricultural sector where there are high concentrations of the poor. In other words, a tourism policy that seeks the use of domestic agricultural produce will go a long way to reduce the incidence of poverty. A case in point is government support for producers who specialise in crops for the hotel industry.
Over the years, there has been just a token policy approach to the development of domestic tourism to supplement the gains from international tourism. Currently, economic statisticians rank Ghana as a middle-income country. If the structural changes in the economy continue, then the time may be ripe for inculcating in the youth the essence of travel beyond their parochial locations for excursions to tourism landmarks in the country. Beyond the economic gains, there will emerge socio-political benefits for an enlightened citizenry.
The constraints on the development of the sector have been analysed in the text. However, the two most critical ones are worth mentioning at this juncture. The sector critically lacks the statistical base for policy formulation and evaluation. Under such circumstances, even relevant research findings which may be policy rewarding are bound to be shelved to gather dust because the ultimate decision makers have no confidence and interest in such findings and recommendations. Secondly, the marginalisation of the sector in the overall policy framework must be reversed. Adequate funding must be available for the implementing agencies i.e. Ministry of Tourism (MOT) and GTA. Finally, the oil curse, as captured by the proverbial Dutch Disease must engage the attention of government and, consequently, the need to consider tourism as a potentially viable outlet for ensuring the diversification of the economy.
The tourism statistical system: The existing system of tourism statistics has suffered from significant weaknesses for many years and this situation appears to have been brought about through a combination of institutional and financial shortcomings that have led to operational compromises, capacity constraints and the abandonment of a previous programme of statistics improvement.
It is equally clear that the current system of tourism statistics lacks the authority to transparently represent the key performance indicators of the tourism sector such as international visitor arrivals, visitor arrival characteristics and expenditure, and unless the political commitment and financial resources to address this inadequacy are made available, the fundamental basis for understanding the economic and social contribution of tourism to the economy will be further compromised and also undermine the effective planning and development of the sector.
The 2006-2010 Plan correctly identified the general weaknesses in data collection but failed to present a clear direction for overcoming the inadequacies. The missing policy recommendation which must be introduced is the commitment to the development and introduction of the Tourism Satellite Account (TSA), a methodology for measuring the contribution of tourism to Gross Domestic Product (GDP) which is highly demanding in terms of information and thus the existence of a robust system of tourism statistics but whose recommended implementation offers an institutional framework through which this complex, multi-stakeholder process of tourism statistics strengthening can be managed.
The UNWTO recommended approach to developing the TSA is through the introduction of an Inter-Institutional Platform (I-IP) through which a cooperative and collaborative forum is established for the various public and private sector bodies such as the Ministry of Tourism (MOT), Ghana Tourism Authority (GTA), Ghana Statistical Service (GSS), Ghana Immigration Service (GIS), Ministry of Finance (MOF), Bank of Ghana (BOG) and private sector trade associations that produce and use tourism statistics, to identify shortcomings, design solutions and implement recommendations. The establishment of just such a Committee was undertaken around the time of the publication of the Draft Tourism Policy but this was disbanded following a failure of political and financial commitment to its recommendations and little was achieved. Implementation of the policy supporting the introduction of the TSA demands that the I-IP be re-established and led from a technical perspective by the GSS.
As a matter of urgency, the GTA and GIS must re-establish a dialogue and cooperate over the collection, analysis and dissemination of international tourist arrivals data to recover the transparent accuracy and authoritative nature of the figures, which has been lost for some years. Discussions should also be held over improvements to the design of the current entry/exit card and to work with GIS to introduce a training programme for Immigration and Border Officials which will lead to their better understanding of tourism and improved handling of tourism data.
GTA must also, as a priority, speak with Ghana Airports Company Ltd (GACL) to secure the necessary permissions, which will allow the re-introduction of the visitor expenditure survey at Katoka International Airport. This is a fundamental data collection instrument, which has not been undertaken for a number of years and is critical to our understanding of the pattern and value of tourism expenditure and visitor perception of Ghana as a visitor destination.
The existing GTA Hotel Occupancy Rate Survey, which is conducted nationally, suffers from a poor response rate, resulting in the collection of limited data with limited value. A review of the conduct of this survey is essential including consideration of integrating it within the new Tourism Levy questionnaire and the provision of further training of private sector hoteliers to improve their understanding of the survey requirements.
The existing GTA Accommodation Statistics Survey experiences such a poor response rate that the data collected is too small for analytical purposes and thus is not used. A complete review of this survey is necessary from questionnaire design through to implementation including examination of GTA technical capacity in their regional offices, the capacity of GTA staff in Accra and the training implications for private sector hoteliers of the introduction of a new survey. Consideration should also be given to the conduct of this survey by experienced technical staff in the existing regional network of offices operated by GSS.
An Inbound and Outbound Tourism Survey is one of the surveys required to be introduced as part of the strengthening of the system of tourism statistics and the development of the TSA and this could be structured, implemented, managed and results analysed by GSS with guidance from international technical advisors.
Capacity building and training of GTA statistics staff is required in data handling, analysis and reporting techniques as well as in knowledge of tourism concepts, definitions and classifications for tourism statistics and in relation to the introduction of the TSA. I-IP committee members could also benefit from training seminars in tourism concepts, tourism statistics and the TSA while technical assistance will be needed in due course when compilation and completion of the various TSA tables is needed for the production of the first TSA results. This could also be delivered through the introduction of international technical advisors.
Tourism infrastructure and services: There have been significant improvements in tourism infrastructure and services, since the 1996-2010 Plan. In respect of international air access, carriers have doubled from approximately 15 to 30 and Kotoka, Accra‘s international airport, has expanded. However, airport taxes and aviation fuel costs are relatively high and expansion of the airport is barely keeping pace with demand. The number and choice of internal flights has also increased. Access for tourists within Ghana is primarily by road, and much of the existing highway network is in poor condition with congestion adding to journey times and the overall discomfort of travel. There are only very limited alternative options of rail or water transport, although new initiatives and proposals offer scope for both – including significant enhancement of water transport on Lake Volta. New highway proposals should improve journey times and the convenience and comfort of road travel. Water and electricity supplies are expanding, as is demand, and all tourist areas are serviced. However, the need for generators to provide back-up power supplies adds to accommodation costs.
Marketing: International and domestic tourism has been and still is increasing steadily in Ghana. Ghana‘s tourism market structure, however, is dependent on business segment and six major international markets. Real leisure tourism has been very limited up-to-today. Therefore the development goals of marketing are a) to raise awareness about Ghana in the major source markets, b) to establish leisure tourism in Ghana and c) to diversify tourism market structure from business and volunteer tourism to leisure tourism segments.
In order to achieve these goals, a phased marketing strategy approach is recommended: consolidation of current international markets and focus on domestic markets in the shortterm while developing the product for expansion and expanding to new international markets in the medium and long-term.
In the short-term, marketing activities in North America and Europe should concentrate on building awareness about Ghana as a tourist destination among both the travel trade and the general public. These activities will also raise the interest of stakeholders to start developing specialised tours and to improve the quality of the product to provide more value for money.
Awareness raising and image building needs well-organised and coordinated promotion involving editorial coverage in appropriate media, tour operator support (selected tour operators targeting the desired markets and market segments should be assisted by providing them with specific material including photos, information on new developments), provision of well-designed and quality information via a website and in printed collateral materials as well as on social media.
Public-private sector working group on marketing should be set up. Effective public-private partnership is the key in marketing Ghana as a leisure tourism destination. Joint marketing action plan, which specifies roles and responsibilities, should first be agreed upon and then implemented by the responsible parties. The action plan should be reviewed on an annual basis and revised based on the achievements and market research results.
The marketing budget should be increased to implement the branding and marketing strategies. If Ghana is not known in the markets, it will not be included in the 'shopping-list‘ of prospective customers. Therefore marketing is the key!
Tourism resources: A key strength of Ghana‘s tourism appeal is the overall diversity of resources. These include: the UNESCO designated World Heritage Sites – forts and castles, and Asante traditional buildings; other traditional architecture such as in the North, the extensive protected areas within Ghana and the diversity of resources that they contain; the depth and significance of cultural traditions within the country, together with the accessibility for tourists to engage with it; and, not least, the genuine and general friendliness of Ghanaian people and, on the whole, their positive attitude to tourists. The quality of the resources suffer, generally, from poor standards of cleanliness and sanitation, particularly in public areas and from the effectiveness of some authorities, including the District Assemblies, to enforce planning control and guidance which has led to inappropriate development to the detriment of tourist resources. The Ghana Museums and Monuments Board does not have sufficient resources to adequately protect the heritage buildings within the country and there is a danger that these assets will be irreparably damaged. Interpretation, signage and information are generally weak.
Structure plan for tourism: The current structure plan for tourism within Ghana is based on the triangle of resources formed by Accra (as the principal arrival point and capital), Kumasi and Cape Coast/Elmina/Kakum. There are off-shoots from this core, including the West coast beaches, Mole National Park and short trips from Accra to destinations such as Ada, Shai Hills and Akosombo. The proposed strategy for the tourism structure plan for 2013 – 2027 is to combine the consolidation and enhancement of existing resources with the development of new attractions, which will expand the overall framework and extent of tourism within Ghana. This expansion is to be phased and linked with infrastructure improvements that are currently planned within the country. Establishing a stronger South-North movement corridor along Volta Lake and the highway to the East of the lake, will help strengthen the tourism connections to Tamale, Mole and the North and form the Eastern part of an enhanced triangle of tourism resources connecting Accra, Tamale and Kumasi.
Institutional framework: Public sector tourism institutions in Ghana comprise the Ministry of Tourism, the Ghana Tourism Authority, which was established by the Tourism Act 817 in 2011 to replace the Ghana Tourist Board, the Ghana Tourism Development Corporation (GTDC) and the Hotel, Catering and Tourism Training Institute (HOTCATT). Private sector institutions include several peak associations, which are collectively represented by the Ghana Tourism Federation (GHATOF).
The 2013-2027 Plan recommends a number of actions and improvements as well as some restructuring to ensure that the institutional framework for tourism is better coordinated and effective. These include designating the Ministry as a technical Ministry, addressing leadership instability at both the Ministry and the GTA and recruiting professionals to manage the GTA rather than political appointees, improving the working environment and conditions, building the capacity of officers at the institutions, strengthening the use of Information Technology, the 'Monitoring and Evaluation‘ function as well as the 'Communication and PR‘ function, creating new desks at the MOT and GTA to handle issues concerning the environment and community participation in the tourism sector, and encouraging other relevant Ministries to establish tourism desks at their institutions to liaise with the MOT. The newly formed GTA will be represented at District level and many new officers will be recruited. However it is recommended that staff numbers should be kept to a manageable size.
The 2013-2027 Plan must be legally adopted and sent to Cabinet and Parliament for approval. A Master Plan Permanent Coordination Task Force will be set up to ensure that the plan is implemented. This will be an independent unit reporting to the Minister and to the Chairman of the GTA Tourism Board who will also represent the private sector.
Although Act 817 makes provision for a Public Private Partnership Forum to meet at regular intervals, until now these meetings have been sporadic. It is recommended that these are organised every three months as prescribed in the Act bringing together tourism stakeholders but also representatives from other sectors that impact on tourism and that joint initiatives are agreed and acted upon. Private sector associations must be strengthened and the support of traditional rulers for tourism development in their areas must be garnered.
It is recommended that a new Inter-Ministerial Committee be formed to replace the ineffective current Committee bringing together the same Ministries as well as including the National Development Planning Commission. The Committee should be chaired by the Vice-President who will also call the meetings to ensure that Directors and above attend.
Policy and regulatory framework: A tourism policy was formulated in 2006 with stakeholders in the sector but never presented for ratification to the Parliament. The policy document needs to be redrafted and updated in a more concise paper, which Parliamentarians would be more likely to absorb, accept and ratify.
There is poor understanding of the tourism sector by other government institutions in Ghana, which is affecting tourism‘s credibility as a productive sector generating income and jobs and benefiting other sectors of the economy. An educational campaign aimed at the Presidency, the Cabinet, the Economic Advisory Council, the Budget Division of the Ministry of Finance and Economic Planning and the Parliamentary Committees on both Finance and Tourism must be carried out, supported by an international conference on the impact of tourism on the economy of selected countries. Invitations to attend should be extended to all senior personnel at Ministries in Ghana (Chief Directors and above), important personalities and stakeholders in the country but also in the region, and to the Press Corp, both nationally and internationally to generate TV and newspaper coverage, explaining the uniqueness, economic power and how Ghana can develop international competitiveness based on a visitor economy.
Wording in the Tourism Act 817, 2011 is in places confusing and could be open to misinterpretation; for instance, the functions of the GTA are not comprehensively spelt out. These issues should be addressed and the Act reworded or amended in an addendum.
The private sector must be involved in regulating and monitoring their industry rather than having rules imposed on them. For instance it could play an active role in the running of the classification system as the example of South Africa.
The Tourism Act 817 empowers the GTA to collect a levy from tourism enterprises amounting to 1% on goods and services consumed by tourists. However, the system to collect this revenue has not been agreed yet in terms of logistics and cost effectiveness. It is recommended that the 1% levy is collected from tourism enterprises that are above a certain size or a certain turnover and that a formula is agreed for the application of the Tourism Development Fund to the relevant activities to progress the sector.
The visa regime in effect in Ghana is cumbersome and expensive. It is proposed that a study to analyse the impact of the visa regime on the number of international tourist arrivals is carried out, presented at the tourism conference recommended above and a media campaign launched to publicise the results.
Human Resource Development: Some education and training for both the public and private sector workforce of the tourism industry has been undertaken since the development of the 1996-2010 Plan but these were not been done in an effective and systematic manner. There is thus, a huge gap between both the quality and quantity of human resource requirements of the tourism industry.
An analysis of the human resource situation in the tourism industry shows the following:
To resolve the above challenges facing the development of human resource of the tourism industry in Ghana, the following recommendations have been made:
Tourism and the environment: Tourism and the environment are inextricably linked and it is important that policies are formulated and actions implemented to ensure that the environment is protected and that tourism contributed to sustainable development. Therefore it is recommended that GTA Officers work with the Environmental Protection Agency (EPA) to ensure that tourism enterprises operate in a sustainable manner, report the impact of their operation and are regularly inspected. They must also work with Metropolitan, Municipal and District Assemblies (MMDA) and the Town and Country Planning Department to ensure that tourist areas are environmentally well maintained and that public waste management services are effective and efficient. In particular they must support the EPA and the MMDAs in stopping illegal mining, cutting of mangroves and sand winning. Efforts should be made to encourage the Corporate Social Responsibility (CSR) of large businesses from other sectors to protect the environment and contribute to the tourism sector.
Ministry staff must liaise with the Ministry of the Environment, Science and Technology (MEST) and with Officers from the Wildlife Division (WD), from Ghana Museum and Monuments Board (GMMB) on establishing environmental protection systems and on protecting cultural heritage assets. They must work with MEST to develop a set of indicators that will measure environmental impacts at tourism sites. A visitor management system at each attraction and cultural heritage site that attracts large flows of tourists at certain times must be put in place.
Community involvement in the tourism sector and socio-cultural considerations: Community participation in the tourism sector and community-based tourism initiatives are quite well developed and many long-term projects are established in Ghana. Marketing is a major hindrance to promote community initiatives as communities rarely have the funds, knowledge and reach to be effective. GREET, an NGO established to monitor, accredit and promote initiatives around Ghana institution, markets some 20 community-projects around the country and advises on new initiatives to eventually accredit them. GREET was promised support from the government which has only partially been extended. To ensure that this invaluable service continues it is recommended that GREET is absorbed into the GTA as an independent unit so that it has permanent Government support to continue its work.
Communities should be represented in tourism development decisions that impact on their areas and should be assisted to participate in the sector. They must be included in all decision-making processes and in development initiatives. It is recommended that Destination Management Organisations (DMO) are set up in Ghana‘s tourism zones based on the model of those already established in the coastal strip of Ghana‘s Western region and around the Mole National Park. These will bring together the private sector in the local area, various public sector institutions, civil society and local communities. A mechanism must be adopted to finance the operation of the DMO. Community projects, particularly those that involve women working in the industry, the youth and vulnerable groups must be supported and business partnerships between the private sector and local communities developed and encouraged.
General recommendations: Signage should contribute to the tourist experience by easing access and providing useful information. This requires Government to formulate a tourism signage policy to develop a system based on international designs, general content and guidelines on standard symbols to be used around the country. The MOT must have a policy that will set guidelines for tourist signage and symbols to direct all organisations and businesses wanting to erect signage relating to attractions or tourism businesses.
It is important to showcase the magnificent views that are in every Region and District in Ghana. Viewpoints will be prepared to encourage tourists to stop and admire spectacular views on their travels around Ghana.
The establishment of campsites especially at locations where accommodation is limited would provide the opportunity to develop new tourism products in Ghana suitable for adventure tourists, both international and domestic.
The Master Plan document presents the blueprint to improve and develop tourism in Ghana over the next 15 years, building on the base provided by the 1996-2010 Plan. It concludes with a five-year action plan as a road map to achieve the strategic objectives for the first five years of the plan and kick-start the process.
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