The President of the Ghana Hotels Association Dr. Edward Ackah-Nyamike Jnr has said government is scoring positive points with some economic indicators like inflation, but it does not translate into gains for businesses.
He told Evans Mensah on Joy News’ PM Express that the reality on the ground is that the economic environment is eroding the profit of businesses.
He said despite the sustainability the Finance Minister spoke about during his presentation of the Mid-year budget review in Parliament on Tuesday, “there is a mismatch between what is happening on the macro level and the ground.”
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“Even when you try to get those macro figures right, we are still dealing with variables like the exchange rate because a lot of our hotels import several kinds of stuff as they are not available here.
“You have to deal with import duty, exchange rate and the cost of borrowing and other factors. When you compare this and what is being said about the bigger picture, there is a mismatch.”
Edward Ackah-Nyamike Jnr explained that the Association had a wish list of expectations, hoping that the Finance Minister's presentation in Parliament on Tuesday would tackle key concerns within the sector. However, these expectations were not met.
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“His presentation has come with a mixed bag of excitement and disappointment,” Mr. Ackah-Nyamike Jnr said on Tuesday.
“At the macro level, the debt restructuring, expanding the tax net through the invoice system, and plans to upgrade some roads are positive steps.”
He acknowledged signs of stabilisation, noting the upward adjustment of real GDP.
“These are signs that things are stabilising; however, when it comes to the real deal, which is how we face the economy, that is where we have challenges,” he added.
On his part, the Ghana Union of Traders' Association (GUTA) president, Dr. Joseph Obeng, said the cost of doing business is still high because of the numerous taxes.
For him, “the status quo remains the same, especially with taxes. Even though new taxes were not announced, we still have to contend with the taxes we pay, and that is impacting negatively on our business."
Regarding the exchange rate’s “seeming stability, we plead that whatever measures they put in place to stem the high rise of the dollar should still be adopted so that we can sustain this gain.”
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