Ghana’s Tourism Surge: Unlocking Profitable Opportunities And Economic Expansion

Despite the challenges brought by the COVID-19 pandemic, the country’s tourism industry has made significant strides, positioning itself as a key contributor to Ghana’s economic recovery.

In 2019, Ghana welcomed 1,130,307 international visitors, a signal of the country’s rising appeal as a travel destination. Yet, the global pandemic led to a sharp 69% decline in arrivals in 2020. The tourism sector, like many others, faced an unprecedented challenge as travel restrictions and health concerns crippled international movement.

By 2021 however, the tourism sector experienced a strong rebound. International arrivals surged by 76% compared to the previous year, indicating a recovery trend. This positive momentum continued into 2022, with arrivals growing by 47%. By 2023, Ghana recorded 1,148,002 international visitors, a 25% increase from the previous year and a 2% rise above pre-COVID levels.

From 2019 to 2023, the United States, Nigeria, and Britain emerged as the top contributors to international arrivals, collectively accounting for between 23.4% and 29.7% of all visitors.

In 2023, nearly 134,000 visitors came from the United States alone. This underscores Ghana’s appeal as a top destination for both leisure and business travel from North America and Europe. The “December in Ghana” initiative, which attracts large numbers of tourists during the holiday season, has also played a vital role in driving up visitor numbers. December 2023 saw 37% of the year’s total international arrivals, a 7.7% increase compared to pre-pandemic levels in 2019.

The sector has long been a significant driver of economic growth, contributing substantially to the country’s GDP.

In 2019, the tourism industry generated $3.3 billion, helping to establish it as one of Ghana’s top foreign exchange earners. However, the COVID-19 pandemic caused a sharp decline, with revenue plummeting to $387 million in 2020—a staggering 88% decrease.

Despite this setback, the sector bounced back impressively in 2022. Revenues had risen to $2.5 billion, with average tourist spending reaching $2,743 per visitor.

The highest average daily expenditure for tourists according to statistics was on accommodation, entertainment, and food and beverages, with visitors spending an average of $477 per day on accommodation as of 2023.

Projections for 2023 estimated total tourism revenues of $3.8 billion, marking a 51.9% increase from the previous year, further underscoring the sector’s strong recovery trajectory.

To boost tourism, the Ghanaian government introduced a 15-year National Tourism Development Plan (2013-2027), designed to position tourism as a primary foreign exchange earner and enhance the livelihoods of rural populations. The plan outlined a clear strategy for expanding tourism infrastructure, and source markets, and promoting both domestic and regional travel. In 2018, the government secured a $40 million financing agreement with the World Bank for the Ghana Tourism Development Project (GTDP). The project focuses on improving the tourism ecosystem through industry training, branding, marketing, and infrastructure upgrades.

According to Statistics, the number of tourist accommodation establishments in Ghana has grown, with over 4,600 licensed enterprises by 2023. Tourists typically spend 8-14 days in accommodations, mainly in 3-5-star hotels. In Greater Accra, Movenpick Ambassador Hotel and Golden Tulip Hotel had the largest room capacities in 2022, each with over 230 rooms. Hotels and restaurants contributed approximately 3.9 billion Ghanaian cedis (257.3 million U.S. dollars) to Ghana’s GDP in 2022.

Currently, Accra remains a major draw for both leisure and business tourism. There is a need for intensified efforts to promote tourism across the rest of the country. Investment in rural infrastructure and ecotourism should be a key priority, not only to attract more visitors but also to spread the economic benefits of tourism to rural areas.

By Leo Nelson