The Ghana Hotels Association and Ghana Progressive Hotels Association have raised concerns over the steep water tariffs.
According to the group, the increased tariff is significantly impacting operational costs and leading many industry players into substantial debts.
At a press conference in Accra on Tuesday, August 28, 2023, the National President of the group, Dr. Edward Ackah Nyamike, stated the hotels’ problems began in January 2023, when the PURC issued an 8.3 percent increase in water tariff starting February 1, 2023.
“When hotels received their water bills for February 2023, their tariff per cubic meter of water was GHC30, indicating a whopping 167% increase as against the 8.3% announced by the PURC.
“The PURC responded promptly to the association’s petition in a letter dated 15th March and attempted to justify the 167% increase as part of an ongoing restructuring of Ghana Water Company Ltd consumer categories,” he added.
In response to the anomalies, the association lodged a complaint with the regulatory body.
The PURC’s initial response, dated March 15, defended the substantial increase, citing an ongoing restructuring of Ghana Water Company Ltd’s consumer categories.
Dissatisfied with this response, the association submitted a second petition, warning of a potential protest at the PURC office if the perceived billing errors were not rectified.
Following meetings and communications, the PURC acknowledged on April 5, 2023, that the significant billing surge was due to misclassification during tariff implementation.
Subsequently, the PURC directed the Ghana Water Company Ltd (GWCL) to revert misclassified non-residential customers back to their proper categories and to halt disconnections for disputed bills.
“To put it more bluntly, the administration of the Tourism Development Fund has denied Tourism Trade Associations the needed financial support to be effective partners in the Public Private Sector collaboration space,” he said.
However, Dr. Nyamike highlighted that despite these directives, the PURC later reclassified hoteliers as a commercial category and announced new tariff increments, causing additional surprise and concern within the industry.
Dr. Nyamike called for the PURC to enforce its initial directive to correct the categorization and billing errors for the months of February through May, as the misclassifications had led to substantial debts for association members.
The call also extended to the government, urging them to abolish the 1% COVID-19 Health Recovery Levy, given the conclusion of the global health emergency.
Dr. Nyamike further expressed apprehensions regarding steep increases in property rates for hotels.
He asserted that in a struggling economic environment, the significant property rate hikes without reference to existing rates were distressing.
The association also urged the Roads and Highway Ministry to prioritize upgrading major highways leading to tourist destinations.
The deteriorated state of certain roads to these attractions has adversely affected tourist visits and consequently impacted hotel occupancy, such as the Accra-Cape Coast road.
In addition, Dr. Nyamike voiced concerns over the exclusion of the association and its counterparts from the disbursement of the 1% Tourism Development Fund, established in 2012 to support industry development.
Concluding their press conference, the association formally petitioned the PURC to reconsider its decision to reclassify hoteliers under the commercial category for water billing.















