best weekend places near delhi where you should visit.pdf
PEF Ghana mid year tourism sector performance jean lukaz-aug_2008
1. Tourism Sector
MID-YEAR PRIVATE SECTOR REVIEW OF THE
GHANAIAN ECONOMY
AUGUST 2008
PREPARED FOR THE GHANA TOURISM
FEDERATION (GHATOF)
BY
JEAN LUKAZ
2. Contents
2
1.
2.
3.
4.
5.
6.
7.
8.
9.
The expectations you had for the year
Reasons for such expectations
The performance of your sector during the first half-year in terms
of output, employment, profitability, turnover and level of
competitiveness.
What were the factors that affected the performance of your
sector?
Policy initiative in 2008 that has boosted or retarded the growth
of your sector.
Expectations for the last half year.
Challenges facing the sector.
Actions taken to address challenges.
Recommendations to Government for an improved performance
of the sector.
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
3. The expectations for the year 2008
3
GDP
GROWTH
EMPLOYMENT
DEMAND
VISITOR EXORTS
CAPITAL INVESTMENT
GOVERNMENT EXPENDITURE
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
4. The expectations for the year 2008
4
GDP:
The Travel &Tourism Industry is expected to
contribute directly
4.3% to Gross Domestic Product (GDP) in 2008 (GHC6,847.4
bn or US$726.2 mn),
rising in nominal terms to GHC18,416.3 bn or US$1,678.9 mn
(4.5% of total) by 2018.
The T&T Economy contribution (% of total) should rise from
9.6% (GHC15,186.8 bn or US$1,610.7 mn) to 9.9%
(GHC40,761.9 bn or US$3,715.9 mn) in this same period.
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
5. The expectations for the year 2008
5
REAL GROWTH:
In 2008, Travel & Tourism in Ghana is Forecast to See
Real Growth of:
Rate
Value
Direct Industry GDP
4.5 %
...to GHC6,847 bn
(US$726 mn)
Direct Industry
Employment
0.8 %
...to 175,000 jobs
Economy GDP
4.9%
...to GHC15,187 bn
(US$1,611 mn)
Economy Employment
1.2%
...to 393,000 jobs
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
6. DIRECT IMPACT 2008
6
In 2008 Ghana's Travel & Tourism is Expected to
Generate GHC15,187 BN (US$1,611 MN) of
Economic Activity (GDP). The industry's Direct
Impact includes:
Rate
Value
Direct Industry GDP
4.3 % of Total GDP
GHC6,847 bn (US$726
mn)
Direct Industry
Employment
3.5 % of Total Employment
175,000 jobs
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
7. INDIRECT IMPACT 2008
7
However, since Travel & Tourism Touches All Sectors of The Economy,
its Real Impact is Even Greater. In 2008 Ghana's Travel & Tourism
Economy Directly and Indirectly Accounts for:
Rate
Value
Economy GDP
9.6% of Total GDP
GHC15,187 bn (US$1,611
mn)
Economy Employment
7.8% of Total
Employment
393,000 jobs
Exports, Services &
Merchandise
20.7% of Total Exports
GHC 12,766 bn (US$1,354
mn)
Capital Investment
8.2% of Total Investment
GHC 4,102 bn (US$435
mn)
Government Expenditure
3.3% of Total Government GHC 729 bn (US$77 mn)
Expenditure
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
8. The expectations for the year 2008
8
EMPLOYMENT:
Travel &Tourism Economy employment is estimated
at
393,000 jobs in 2008, 7.8% of total employment, or 1 in every
12.9 jobs.
By 2018, this should total 505,000 jobs, 8.0% of total
employment or 1 in every 12.6 jobs.
The 175,000 T&T Direct Industry jobs account for 3.5% of total
employment in 2007 and are forecast to total 226,000 jobs or
3.6% of the total by 2018.
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
9. The expectations for the year 2008
9
DEMAND:
In 2008, Travel & Tourism is expected to post
GHC28,128.4 bn (US$2,983.3 mn) of economic activity (Total
Demand),
growing to GHC73,607.2 bn (US$6,710.2 mn) by 2018.
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
10. The expectations for the year 2008
10
VISITOR EXPORTS:
Exports make up a very important share of Travel &
Tourism's contribution to GDP. Of Ghana's total
exports, Travel & Tourism is expected to generate
20.7% (GHC12,766.2 bn or US$1,354.0 mn) in 2008,
increasing to GHC33,349.1 bn or US$3,040.2 mn (21.7% of
total), in 2018.
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
11. The expectations for the year 2008
11
CAPITAL INVESTMENT:
Travel & Tourism Capital Investment is estimated at
GHC4,101.5 bn, US$435.0 mn or 8.2% of total investment in
year 2008.
By 2018, this should reach GHC10,797.1 bn, US$984.3 mn or
8.4% of total.
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
12. The expectations for the year 2008
12
GOVERNMENT EXPENDITURE:
Government Travel & Tourism operating
expenditures in Ghana in 2008 are expected to total
GHC729.3 bn (US$77.3 mn), or 3.3% of total government
spending.
In 2018, this spending is forecast to total GHC1,961.6 bn
(US$178.8 mn), or a 3.4% share.
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
13. Reasons for such expectations
13
ACN/CAN 2008
Increased arrivals from Africa an subregion
Increased revenues
Construction of Extra Luxury
accommodation provision- direct &
indirect jobs
Tourism Marketing and Promotion
ITB 2008 [resumption]- increased
arrivals from Germany
COTTM 2008 [new market]
Gold Award in Aprilincreased arrivals from China
Joseph Project- downturn [recession in
US- main market]
Civil War in Bawku
Low turnout in North and Ghana as a
wholefor Community-Based Tourism
oriented Tourists- Mole, Weichiau,
Sirigu/SWOPA
Travel Advisory negative about Ghana
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
Crime
UNCTAD XII/AU Summit/ Ghana@50
High Road Accident Rates
Higher air fares to compound existing
high rates
Recession in US [Credit Crunch]
Risk of clashes- reduced tourist arrivals in
Oct-Dec
High Oil Prices
Even President involved!!!
Elections 2008
Mugging on the rise
Armed Robbery
Roadside Thuggery on the rise
Travel Advisory negative about Ghana
African American Market adversely
affected
National Airline Crisis- GIA
Barbados; irregular flight schedules
10/29/2013
15. Output
15
Focus on Key Areas of the Value Chain
Hotel Occupancy- high
Tours Generated and Executed high
Food and Beverage Sales- high
Taxes and Levies from Sector High
Metropolitan Assemblies
VAT
GTB
District Assemblies
Airport Taxes
IRS
Pro-poor impact high due to high % of MSMEs
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
16. Employment
16
Hotels
Trend towards Temporary Staff Recruitment
Indicator of Seasonality and or lack of recognition for skills
Indicator of very little quality-demanding consumers
Impact on Service Quality
Tour Operators
Trend towards Temporary Staff Recruitment [Tour Guides]
Indicator of Seasonality
F&B
Trend towards Temporary Staff Recruitment
Indicator of lack of recognition for skills
Indicator of very little quality-demanding consumers
Indirect Jobs from Capital Projects
Hotel Construction
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
17. Profitability
17
Hotel Occupancy
Upper quartile 65% plus
80% plus [for 3-5 star in Accra]
Tours
Cultural Tours increasing
Educational Tours increasing
Food and Beverage Subsector
Trends in Self-service increasing
Ghanaian increasingly dining out at lunch-time and on weekends[Sundays especially]
More establishments coming p due to low barriers to entry,
especially in informal Sector
Profitability of up to 70% gross
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
18. Level of Competitiveness
18
Internal
International/ Transnational players changing the climate in
Hotel Sub-Sector
Ethnic Cuisine taking over in the Fine Dining Category
Service Quality still a challenge in MSMEs
Hotels, Restaurants, Chop Bars
External
Tourist Product Competition questionable because of Unique
cultural product
Neighbours leveraging on Lack of Aggressive Tourism
Branding and Marketing by Government killing Sector
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
19. Factors that affected the Performance of Tourism
Sector I
19
Lack of bankable projects
Financial institutions not supporting sector apart from Car
Rentals
Hotels built on loans [2-3yrs] defaulting- financial institutions
do not offer long-term loans because they do not understand
[long-term] profitability of Sector Projects
Tourism Sector still MSME driven- over 85%
Support to Tourism MSMEs
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
20. Factors that affected the Performance of
Tourism Sector II
20
POSITIVE
NEGATIVE
ACN/CAN 2008
Increased arrivals from Africa an subregion
Increased revenues
UNCTAD XII/AU Summit/
Ghana@50
Construction of Extra Luxury
accommodation provision- direct &
indirect jobs
Tourism Marketing and Promotion
ITB 2008 [resumption]- increased
arrivals from Germany
COTTM 2008 [new market]
Gold Award in Aprilincreased arrivals expected from China
Crime
High Road Accident Rates
Barbados; irregular flight schedules
Civil War in Bawku
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
African American Market adversely affected
National Airline Crisis- GIA
Higher air fares to compound existing high rates
Recession in US [Credit Crunch]
Risk of clashes- reduced tourist arrivals in OctDec
High Oil Prices
Even President involved!!!
Elections 2008
Mugging on the rise
Armed Robbery
Roadside Thuggery on the rise
Travel Advisory negative about Ghana
Low turnout in North and Ghana as a wholefor
Community-Based Tourism oriented TouristsMole, Weichiau, Sirigu/SWOPA
Travel Advisory negative about Ghana
10/29/2013
21. Tourism Policy initiative in 2008
21
that has boosted the growth of tourism sector
that has retarded the growth of tourism sector
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
22. Expectations for July-Dec 2008
22
Average Peak Season in August because of expected fall
in African American numbers
Because of Credit Crunch
Low Season in Election Period
Because of perceived risk of violence
Low Season
Because of Bawku War
Rising Oil Prices can keep more ‘dollar’ tourists out due
to high air fares;
however, local inflation will make tourism cheaper for Euro/Pound
Sterling holders
Domestic Tourism still unexplored potential
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
23. Challenges facing the sector
23
Excessive operational tariffs
Weak domestic air link
Expensive destination
Low Government Budgetary Allocation
Misplaced Priories of Industry Decision Makers
Sector financing restricted to Development Funded
Projects that skew progress towards foreign policies
of donor governments
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
24. Actions taken to address challenges
24
Excessive operational tariffs
GTB and GHATOF working together on this
Weak domestic air link
Local investors must be encouraged- beyond City Link
Expensive destination
In line with policy to keep out Mass Tourism
Low Government Budgetary Allocation
Advocacy Strategy being developed to build a Case for More
Tourism Funding
Misplaced Priories of Industry Decision Makers
The 3 Key Figures-GHATOF+MOTDR+GTB must cooperate beyond
collaborative self-destruction
Sector financing restricted to Development Funded Projects that skew progress
towards foreign policies of donor governments
Financial Sector reluctant to research and learn about sector in spite
of attempts
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013
25. Recommendations to Government for an
improved performance of the sector.
25
Incentivise Private Sector investments in sector
Practicalize GIPC exemptions that do not work!
Dedicate a bigger and proportional % of National
Budget to Tourism, being 4th largest FX earner
Recognize the pro-poor impact of Tourism on the
Nation
Be reminded of the Competition
Te need for a focused aggressive National
Branding and Marketing Strategy beyond Tourism
Mid-Year Private Sector Review of the Ghanaian
economy- TOURISM SECTOR-GHATOF
10/29/2013