Tourism: Exploiting potential for growth

Exploiting potential for growth

Ghana attracts growing numbers of tourists to its sandy shores and rapidly growing cities, making the tourism sector one of the fastest growing industries in the country. It was the fourth highest foreign exchange earner for Ghana in 2016. In the same year, tourist arrivals into Ghana also continued to increase, hitting 1.2 million.

In 2018, Kotoka International Airport, the country’s major airport situated in the capital, added a third terminal to cope with steadily rising passenger traffic. The USA,

UK, Germany, France and the Netherlands are the top five countries from which tourists visit Ghana.

As a result of positive growth, government has shown increased commitment to the sector. In its 2017 budget, the government stated that the Mole National Park, the Accra Eco-Park, the Shai-Hills Resource

Reserve and the Kakum National Park will be the focus of eco-tourism development, of which there is huge untapped potential.

There is also a drive to attract international brands to the hospitality industry by making such companies assess the full available incentives and exemptions that they can benefit from. The Ghana Tourism Authority (GTA) is the main government body which regulates the sector.

In order to protect Ghana’s natural beauty and important history, Ghana’s tourism policy states that the type of tourism to be promoted shall be non-mass and shall respect and conserve the natural, cultural, historical, ecological and environmental heritage of the country.

Overview As a tropical country, Ghana has several unique attractions that make it appealing to continental and international visitors, including: 539km of white, sandy beaches; 33

Ghana’s Cape Coast offers many attractions for tourists

forts and castles; 28 eco-tourist sites with wildlife viewing; cultural tourism by way of over 70 annual festivals; and national parks, such as wildlife safari park Mole National Park, where elephants and other tropical animals can be seen.

Ghana also attracts high numbers of business visitors as well as visitors coming to Ghana to connect with friends and family.

Investment Opportunities

Continued private investment is crucial for continuing growth of the sector. Rising numbers of visitors create opportunity in the following areas:

• Tourist Accommodation: There is a demand for accommodation of all types ranging from luxury hotels to budget hostels and eco-lodges ad campsites. • Motel and Highway Rest Stops: More small and medium-scale rest stops for travellers are needed along the country’s major routes. • Tourist Information Shops: These are in

The canopy walkway in Kakum National Park provides treetop views of the rainforest

high demand in major tourist centres, especially in Accra, Kumasi, Cape Coast,

Elmina and at border entry points. • Tourist Transport Services: Inadequate tourist and air taxi services provide significant opportunity for investment given the growing demand from business visitors and holidaymakers. More tourist coaches, buses, limousines and cross-country vehicles for trekking and safari are also needed. The Volta Lake also needs a better passenger service as well as boats for cruise excursions. • Tourist Travel Services: Tour guide operators, tour handlers, large-scale tour operations involving buses and travel agencies are all needed in larger numbers (with the exception, perhaps, of travel agencies given the current number, although an enterprising new entrant would stimulate further competition). • Tourism Financial Services: To facilitate greater tourist spending, the sector needs more credit card agents to facilitate credit card payments, more foreign exchange bureaux and tourism rental services. • Tourism Medical Services: There is growing demand for various types of health services for visitors, including tourism insurance companies and an ambulance service for tourists, especially to service remote tourist sites. • Food and Entertainment: Given that spending on food and drinks is a major outlay for tourists, more quality restaurants and bars are needed, as well as clubs and amusement parks. • Leisure & Sports: So far sight-seeing has dominated Ghana’s tourism sector, but there is scope to develop sporting activities such as yachting, sailing, surfing and golf. • Shopping: Although shopping accounts for around significant tourist spending, there is still scope for more malls, supermarkets and shopping arcades. • Meeting Facilities: Multi-purpose convention/conference/exhibition centres are needed to facilitate business.

Sources of Funding There are many sources, both domestic and foreign, that potential investors can explore to fund their tourism activities. As well as Ghana’s banks, stock exchange and investment funds, investors can look to organisations such as the World Bank, UNESCO World Heritage Centre Funding and the European Union.