Tourism Authority targets GH₵ 8million from Tourism Levy

Although the implementation of theTourism Levy is still in the bud, MaxwellAdombila Akalaare reports that the levy could serve as a cash cow for the development of the local tourism industry if implemented properly


REVENUES from the Tourism Levy would amount to over GH₵ 8million by October this year,estimates from the Ghana Tourism Authority (GTA) has shown.
The estimated amount is expected to come from some 457 star-rated hotels – hotelswith exceptional services and facilities beyond the normal bed and breakfast – identifiednation-wide.
Thedeputy CEO of the Tourism Authority, Mr Samson Donkor disclosed this in aninterview.
He told the GRAPHIC BUSINESS in Accra that the authority has since October 1, 2012– when the levy took off – to January 8 this year collected GH₵240,254 from 38of such hotels.
Those hotels have so far complied with the collection and payment requirements of thelevy, Mr Donkor added.
The Tourism Levy is one per cent of a person’s total expenditure at a tourismenterprise such as a hotel, conference center, beach, drinking spot amongothers. It is to be collected by the operators of the enterprise in questionand later forwarded to the GTA, the regulator of the local tourism industry.
Although 273 star-rated hotels have so far registered to collect the levy, the deputyCEO at the Tourism Authority said only 38 of them have dully complied with thecollection.
Theauthority is currently using persuasion and dialogue to get the rest to complydespite having the power to prosecute the defaulters, Mr Donkor said.
“Itis early days yet and we don’t want to rush into applying sanctions. We want toproceed with the implementation gradually so that we can get every stakeholderto buy into it,” he explained.
“But if we are able to get the rest on board, our estimates show that in three months’time, we should be able to get GH₵ 3million.”
“And by October this year – one year into the implementation – that figure should rise to GH₵ 8million or GH₵ 9million,” he added.
Further estimates, he said, showed that the star-rated facilities would account for morethan 80 per cent of the total amount to be collected from the levy hence theauthority’s resolve to deal with them first and tactically.
Hospitalityservice providers such as hotels, conference centers, beach operators andrestaurants which are affected by the levy are to register with the GTA toenable them deduct the necessary amount from their patrons’ expenses and later payit into a common account, the Tourism Levy Account.
Thedeputy CEO explained that the authority selected the Agriculture DevelopmentBank (ADB) as the receiving bank to receive all payments arising from the levy.
Consequently,Mr Donkor said the that special account at the ADB has been shared with allfacilities registered to collect the levy on GTA’s behalf.
Eachregistered facility is, however, given a distinct number with which it uses tomake payments into the account, the deputy CEO said.
“Thesystem is such that we can sit here (referring to GTA’s offices) and monitorwho is making payments and who is not,” Mr Donkor said.
Onif the authority intends bringing more banks to receive the levy on its behalf,the deputy CEO answered in the negative, explaining that “we have been advised thatif we spread it, it will not accumulate enough interest for us.”
Thelevy is one of the sources of funding to the newly created Tourism DevelopmentFund captured in the revised Tourism Act, 2011, (Act 817).
According to the act, monies from the fund would beused for the marketing, promotion and development of tourist sites and relatedinfrastructure, building the capacity of stakeholders in the sector and fundingof research works in tourism among others.
Although the implementation of the levy wasenvisaged to come with some resistance from hospitality service providers andthe general public, the deputy CEO of the Tourism Authority said the affectedinstitutions have so far cooperated fully.
“Response wise, I don’t think we’ve had a lot ofdifficulty. The hotels are familiar with a levy like this because it is done inadvance countries where branches of these hotels are located.”
“It is the lower market that will have a problemwith it,” Mr Donkor said, in reference drinking spots, restaurants, beaches andthe likes.
He called on the relevant stakeholders to cooperatewith the authority in easing the challenges associated with the implementationand collection process, noting that “this levy could not have come at a bettertime.”
“If we are able to make it work, it will helpdevelop the sector and all will benefit,” Dr Donkor said.
While commending the logic behind the introductionof the levy, the General Manager of the Coconut Grove Regency Hotel in Accra,Mr Ralph Ayitey, said the Tourism Authority ought to use money accruing fromthe levy to develop the sector instead of limiting it to the institution.
“For me as a manager, I’m ok with it. The problem,however, is what will the money be used for?”
“The Tourism Authority should not see it as a fundfor them to use in developing themselves to the neglect of key things such ashuman resource development, provision of access roads to tourist sites andconstant electricity and water supply to hotels,” Mr Ayitey said.GB