Accommodation sector is top tourism beneficiary – 2023 Ghana Tourism Report

Accommodation sector is top tourism beneficiary – 2023 Ghana Tourism Report

Accommodation sector is top tourism beneficiary - 2023 Ghana Tourism Report

The 2023 Ghana Tourism Report has revealed that the accommodation sector, particularly hotels and resorts, outperformed other tourism related businesses like restaurants and transport services, emerging as the leading beneficiary of tourist spending.

From 2019 to 2022, tourist expenditure on accommodation fluctuated between 31% and 54%, with a peak in 2020. Upmarket hotels, particularly 3-5 star establishments, saw significant improvements in average occupancy rates over this period.

For instance, five-star hotels in Accra experienced their lowest occupancy rate of 31% in 2020, which surged to 65% by 2022 and reached a high of 71% in 2023. Four-star hotels, on the other hand, saw a dip to 38% occupancy in 2020 but gradually recovered to 50% in 2023, though still below the pre-pandemic level of 59%.

Similarly, three-star hotels rebounded from an 18% occupancy rate in 2021 to 55% in 2023, reflecting a strong recovery across the accommodation sector. These occupancy trends highlight a positive revival of the hospitality industry in the post-COVID era.

In 2019, the tourism sector recorded an average tourist expenditure of $2,931, generating $3.3 billion in revenue. However, the pandemic caused a steep decline in 2020, with average spending falling by 62.81% to $1,298, leading to a revenue drop to $387 million—an 88% reduction. By 2022, the sector showed signs of recovery, with average tourist expenditure rising to $2,743 and total receipts reaching $2.7 billion.

Nevertheless, these figures remained below pre-pandemic levels. Forecasts for 2023 estimate an increase in average tourist expenditure to $3,746.65, translating to a projected sector revenue of $3.8 billion—a 51.9% improvement from the previous year.

Additionally, the average length of stay is projected to be 13 days in 2023, indicating a strong recovery in tourist spending and revenue and a promising outlook for the sector’s continued growth.

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