The Finance Minister, Mr. Ken Ofori Atta has said Ghana returned to a path of sustainable economic growth with economic indicators returning to a positive trajectory and If not contained both globally and domestically, the COVID-19 could have a devastating impact on Ghana’s economy, despite the gains made these last three years.
Elaborating on some of the main potential impacts of the virus on the economy of Ghana, Mr. Ofori Atta said the global trend in the cancellation of flights, closure of borders (land, sea, and air), and the need to maintain social distancing, including the ban on public gatherings, are having huge negative impacts on economic activities in the hospitality industry.
Speaking on the floor of Parliament, the Minister said, among the worst hit are hotels, airline business, tourist sites and attractions, and car rental services.
He noted that Hotel occupancy rates are down from 70% to fewer than 30% and staff is being sent home and even before the impact of the current lockdown, restaurants were already experiencing an average drop in patronage of 60%.
The Minister said Scheduled international conferences in Ghana canceled, including the 4th African Union Specialized Technical Committee (STC) on Finance, Monetary Affairs, Economic Planning, and Integration meeting and the G24 Technical meetings, which were programmed in early March 2020, resulted in a loss of 1000 combined participants and therefore a loss in 1000 hotel beds.
He added that Transportation services have been among the worst hit due to social distancing, closure of schools, and a ban on public gatherings.
Source: Mybrytfmonline/Kofi Atakora
