The President of the Ghana Hotels Association (GHA), Dr. Edward Ackah-Nyamike, has warned that the unchecked growth of Airbnb in Ghana could severely impact the local hotel sector unless the short-term rental platform is properly regulated.
Dr. Ackah-Nyamike stated that the issue for hotel operators isn't the competition itself, but the unfair regulatory and tax advantages that Airbnb enjoys compared to traditional hotels.
In an interview, he explained that hotels have never felt threatened by competition because they provide much more than just rooms.
“Our challenge has never been about competition, as hotels offer a wide variety of services that go beyond accommodation,” he said.
He pointed out that hotels offer comprehensive services, including food and beverages, entertainment, recreational activities, and sometimes car rentals, all in one place.
However, he emphasized that the real problem lies in the regulation and taxation differences between hotels and Airbnb hosts.
Dr. Ackah-Nyamike explained that hotels are burdened with numerous taxes, levies, and regulatory fees, while many Airbnb operators avoid these obligations, which allows them to offer lower prices.
“What we’re unhappy about is the lack of regulation, especially concerning taxes, levies, and regulatory fees that hotels are required to pay but Airbnb hosts are not,” he said.
Although he acknowledged that platforms like Airbnb can complement the hospitality industry, especially when hotels are fully booked during peak times, the key issue remains the uneven regulatory environment.
“There are times when hotels are fully booked, and guests turn to Airbnb as the only option. In that sense, Airbnb helps the industry,” he added.
However, Dr. Ackah-Nyamike stressed that the lack of regulation for Airbnb is the primary concern for hotel operators.
He made it clear that the Ghana Hotels Association would have no objections to Airbnb operations as long as they are properly regulated and held to the same standards as hotels.
“If Airbnb is well regulated, pays taxes and levies, and meets the requirements from agencies like the FDA, Fire Service, and EPA, then we have no issue with it,” he said.
Dr. Ackah-Nyamike warned that failure to address the regulatory gap could distort pricing in the accommodation market and disadvantage traditional hotels, especially as demand for lodging continues to grow.
Source: The Ghana Report
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