Economic Problems: Time to take tourism more seriously?
A few months ago, President Mahama indicated that it was time for Ghana to create more pillars for the economy to stand on. In reality, H.E’s call was the latest of many that have advocated a diversification of the structure of the economy.
Advertisement
However, recent happenings on the economic front have added a more urgent imperative that must be treated with all the seriousness that can be marshalled.
Ghana’s present economic predicament is not necessarily new and is due to a myriad of factors, key of which is its structure, and a cursory look at our recent history tells it all.
The country’s over-reliance on unprocessed exports has meant high vulnerability when the prices of these commodities (particularly cocoa and gold) have plummeted on the world market.
The 1999 financial crunch, as well as the current one being experienced, are both outcomes of these fluctuations. The country’s excessive importation bill is not helping matters as it fittes away the already meagre hard-earned foreign currency through the importation of goods that can alternatively be produced internally.
It is perhaps in this light that the President seeks to champion a major shift from the status quo. A new paradigm in which Ghana becomes largely self-sufficient and becomes a net exporter of goods and services.
In that regard, tourism stands out as one sector that has bright prospects both as an agent of diversification and a vehicle for Ghana’s socio-economic transformation.
Ghana stands to gain tremendously if the country’s tourism potential is tapped and well-managed.
If with its current meagre budget allocation the sector is able to rake in an annual average of US$1.5billion dollars from tourism, then a doubling of that amount will (all other things being equal) yield something in the region close to US$ 3billion (which is the amount of money being sought from the Chinese loan).
Furthermore, tourism’s quality of being labour intensive implies it can provide real jobs for the teeming number of Ghanaian youth who would otherwise be unemployed. Currently, this figure is believed to be in the region of 300,000.
Again, tourism is credited to have stimulative abilities as demonstrated by its attribute of being able to create demand for other sectors of the economy, particularly agriculture.
Perhaps, given the country’s current challenges, the most relevant of tourism’s properties would be its well-documented ability to earn the country hard currency, thereby helping to improve the balance of payment position.
This is particularly true if the country is able to attract inbound tourists, particularly from USA, Britain and Germany. Aside from the aforementioned benefits, tourism is also known to diversify the economy and reduce the high dependence on traditional exports whose prices at best fluctuate.
Like the proverbial coin with its two sides, however, tourism equally has its bad sides. For example, it has been found to create macro-economic imbalances as well as foster conditions for many antisocial activities to take place. All the same, it is generally agreed that the benefits of tourism far outweigh its costs.
It is for this reason that almost all countries in the world as well as key multilateral agencies look to tourism as a potential tool for delivering development, particularly to poor countries. Hence, the costs of tourism should rather provide the justification for a more proactive involvement by the state in providing policy direction for the trade.
Available figures suggest that Ghana has also benefited from tourism but these gains have not been optimised owing largely to inadequate financing (both from the public and private sectors). Currently, tourism receives one of the lowest amounts by way of budgetary allocations and is fraught with many challenges , particularly in the area of attractions, facilities , infrastructure and personnel.
Moving forward, let us as a nation declare tourism a national priority for the next five years, a period which will see a sustained effort from government and all stakeholders to enhance the quality of the tourist experience through massive investment in creating new attractions, improving on related infrastructure, training personnel and creating workable linkages with other sectors to maximise the economic gains from the trade.
We must decentralise the development of tourism. Local and traditional authorities must be encouraged and helped to create tourist destinations out of their respective areas. Using the Local Economic Development Approach, these MMDAs must be proactive in developing and owning tourist attractions.
While some assemblies are doing that, the practice must be institutionalised, particularly in areas which abound in untapped attractions. It should not be too difficult, for example, for every district and paramountcy in Ghana to collaborate to own a museum that tells the history and culture of the ethnic groupings in those areas.
Though the current financial difficulties are working against domestic demand for tourism, it can turn out to be a blessing in disguise for the country to maximise its gains from inbound tourism.
Advertisement
The writer is a Senior lecturer at the Department of Hospitality and Tourism Management, at the University of Cape Coast and a Research Fellow with the Tourism Research and Advocacy Centre (TRAC), Ghana.
Email: boakye.kwaku@ymail.com