The President of the Ghana Hotels Association, Dr Edward Ackah-Nyamike, has warned that the rapid growth of Airbnb without proper regulation could undermine Ghana’s hotel industry.
He insists that the issue is not competition but an uneven regulatory and tax environment.
Speaking on Joy News’ PM Express Business Edition on Thursday, Dr Ackah-Nyamike said hotels have never feared competition because they offer a range of services that go beyond room bookings.
“Our challenge has never been with competition at all, because the hotels have, if I should call it some monopoly in terms of the services that they provide,” he said.
According to him, hotels operate as full-service facilities, providing accommodation, food, drinks, entertainment, and recreational activities, and, in some cases, car rentals, all under one roof.
“We provide accommodation at the same place, we provide entertainment, and we provide food and drinks. We also provide some recreational activities and, in some cases, car rentals. So we have that unique niche in the market,” he explained.
Dr Ackah-Nyamike said the concern of hotel operators is rooted in regulation and taxation, noting that hotels are subject to multiple taxes, levies and regulatory fees that many Airbnb operators do not pay.
“What we have not been happy about is the regulation of that sector in terms of taxes, in terms of levies, in terms of the regulatory fees that we pay that they don’t pay, and so they end up providing services at cheaper rates,” he stated.
He acknowledged that short-term rental platforms sometimes support the hospitality industry, especially during peak periods when hotels are fully booked.
“To the extent that you can go to some hotel, the place is booked, and the only option that you may have is an Airbnb, so yes, it’s helping the industry as a whole,” he said.
However, he stressed that the unequal playing field created by weak regulation remains the core issue for hotel operators.
“It’s the unequal environment that it provides in terms of taxation. That’s what our issue has been,” he added.
Dr Ackah-Nyamike said the Ghana Hotels Association would have no objection to Airbnb operations if they were properly regulated and subjected to the same standards hotels are required to meet.
“So once that sector of the industry is well regulated, and they are paying their tax, they are paying their levies, they are doing all the regulatory things that we do, FDA, fire service, EPA and all that, we have no problem at all with that,” he said.
He warned that failure to address the regulatory gap could distort pricing in the hospitality market and place traditional hotels at a disadvantage, even as demand for accommodation continues to grow.
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