Impact of COVID-19: Hoteliers call on gov’t for tax cuts to sustain their operations

The Ghana Hotels Association has called on government to consider some tax cuts for its members as the spread of the coronavirus pandemic takes a toll on their operations.

Some hotels have started laying off casual workers in a bid to sustain their operations due to a huge drop in patronage.

Some hotel managers fear they may shut down completely if government does not intervene. Guest visits and hiring of conference halls have reduced drastically, as some organizations have even cancelled already booked events.

The COVID-19 has affected over 200,000 globally, with over 8,000 deaths, although Ghana has recorded nine cases with no death.ADVERTISEMENT

The President of the Ghana Hotels Association, Dr. Edward Ackah Nyameke Jnr., told Citi Business News hotels are still paying high utility bills despite the huge decline in patronage.

“We are looking at VAT rate being reduced if possible. Is it possible to even adjust the electricity and water tariffs, is it possible to look at suspending the payment we make to regulatory bodies including property rates and similar costs, that’s what we want to know now”, he stressed.

The General Manager of Accra City Hotel, Roman Krabel, stated that, “All hoteliers in Accra are waiting for an official announcement, and we are looking forward to reduction in VAT, as well as the tourism levy”.

citibusinessnews.com