Hotelier Calls for Single Payment System as Multiple Levies Squeeze Upper East Businesses

By – Gladys Apuweni

For hotel operators in Ghana’s Upper East Region, keeping the doors of their businesses open is becoming more than a question of attracting guests.

It is increasingly about finding enough room in their already-tight finances to meet the numerous taxes, levies and regulatory charges demanded by different state institutions.

For Simon Aluze-Ele, Chairman of the Upper East Regional Hotels Association and Managing Director of TAP Hotel, the pressure is real—and it is beginning to threaten the survival of businesses that provide accommodation, employment and other services to people in the region.

He says hotel operators are often required to deal separately with institutions including the Environmental Protection Agency (EPA), Ghana National Fire Service and Metropolitan, Municipal and District Assemblies (MMDAs), among others.

Each payment may be legitimate on its own, he explained, but the cumulative effect can become overwhelming for businesses already struggling with declining patronage.

“The issue is not about refusing to pay what is due,” Mr. Aluze-Ele stressed. Rather, he wants government to make the payment process simpler, more predictable and less burdensome for businesses.

He was speaking on the sidelines of the fifth Upper East Regional Ghana Journalists Association Awards in Bolgatanga.

Behind the figures on hotel occupancy are businesses with staff to pay, electricity and water bills to settle, buildings to maintain and investments to protect.

Mr. Aluze-Ele says the hospitality industry in the Upper East has taken a hit from developments that have reduced the movement of people and economic activity in the region.

The continuing challenges in Bawku, he noted, have affected business activity, while the withdrawal of USAID-related activities has also contributed to a decline in hotel patronage.

For hotel owners, fewer guests do not necessarily mean fewer expenses.

A hotel may have empty rooms, but its workers still need to be paid. Facilities still require maintenance, utility bills continue to arrive and statutory obligations remain.

It is against this background that Mr. Aluze-Ele believes the multiplicity of payments has become particularly difficult for operators.

His solution is straightforward: a single-window payment system that allows hotels to make their various statutory payments through one coordinated platform.

Instead of an operator having to navigate several institutions, processes and payment deadlines, the proposed system would bring the obligations together and give businesses a clearer picture of exactly what they owe and when.

Mr. Aluze-Ele believes such a system would allow hotel owners to plan their finances better, reduce uncertainty and minimise situations where unexpected demands place additional pressure on already struggling businesses.

He is therefore calling on the Ghana Tourism Authority (GTA), which he regards as a key regulator and partner of the hospitality industry, to lead discussions with other relevant institutions towards a more coordinated approach.

But beyond the financial burden, the hotelier is also concerned about the manner in which some regulatory demands are enforced.

He expressed concern about instances where officials allegedly threaten to shut down hotels over unpaid fees without sufficiently considering the investments made by business owners and the livelihoods that depend on those establishments.

For him, enforcement should not automatically become confrontation.

A hotel is not simply a building with rooms. It is a workplace for cleaners, receptionists, security officers, cooks, drivers and other workers. It also supports suppliers, food vendors, laundry operators, artisans and other businesses within the local economy.

The closure of a hotel, therefore, could have consequences far beyond its owner.

Mr. Aluze-Ele is calling for greater collaboration between regulators and hotel operators, arguing that government can protect its revenue interests while also creating an environment in which businesses can survive and grow.

He wants the GTA and other regulatory institutions to sit down with hoteliers and develop a practical framework that reduces the burden of multiple payments without compromising statutory revenue.

For the Upper East hospitality industry, he believes the goal should not simply be to collect more from businesses, but to create a system that helps them remain viable enough to continue paying taxes, employing people and contributing to the regional economy.

As hotel occupancy falls and operating costs continue to weigh heavily on businesses, Mr. Aluze-Ele’s message is ultimately about finding a balance.

Hotels need to meet their obligations. Government needs its revenue. But businesses, he argues, must also be given enough breathing space to survive

Source – gbcuraonline.com