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Travel/tourism sector contributed 7.6% to global GDP, with 22 million new jobs created - Ofori-Atta

Minister of Finance, Kenneth Ofori-Atta has revealed that as of 2022, the Travel and tourism sector contributed 7.6% to global GDP, with 22 million new jobs created globally.


According to him, these statistics illustrate Travel and tourism's huge value to the Economy, which validates policy objective of growing the sector's contribution to

Ghana's GDP from circa 3% in 2016 to closer to 5% by 2022.


Speaking at the Tourism Investment Summit held in Accra, he said "Furthermore, official statistics demonstrate that the number of tourists visiting

Ghana rose consistently from 932,579 in 2016 to 1,130,307 in 2019. Although the COVID-19 pandemic led to a significant drop in tourist arrivals, our policy

orientation toward bolstering the sector saw international arrival numbers grow 47% from 625,523 in 2021 to 914,892 in 2022"


He noted that with this, Ghana's international tourist arrivals stand at roughly 81% of prepandemic levels, a figure that is significantly higher than the African average of 65%.


"Similarly, average tourist expenditure rose strongly from US$1,805 in 2016 to US$2,931 in 2019, a 62% growth in three years. Post-pandemic, the figure

grew from US$1,289 in 2021 to US$2,743 in 2022, standing at 94% of prepandemic levels"


"These benefits to the Ghanaian Economy are hugely significant as the tourism, culture, and creative sectors provide two in every ten jobs. Given the multiplier effects on economic growth, job creation and

development, tourism will continue to be a fundamental pillar of the Ghanaian Economy for the foreseeable future"


Mr. Ofori-Atta hinted that the Akufo-Addo government are guided by a vision of placing Ghana among

Africa's top three tourism destinations over the next five years, generating at least US$5 billion annually.


"Moreover, with approximately US$4.7 billion received in Ghana through remittances and US$1.35 billion in FDI at the end of 2022, we aim to be the bridgehead for capital seeking rewarding investment opportunities on the

African Continent"


He cited countries such as Indonesia, where over the next ten years, tourism is expected to grow at an average annual rate of 10%, twice the rate of the overall

Economy, and create 500,000 new jobs every year, are places that Ghana aspire its tourism sector will develop into.


"We also remain acutely aware that the spirituality of Ghana is the foundation of our openness, adaptation and endurance. Thus, we initiated the construction

of a National Cathedral to become the spiritual gateway to Africa, similar to how Israel and the Hajj have at least 3 million people visit annually, generating approximately US$6 billion and US$8 billion, respectively, each year"


"In the end, we are mindful that as a Country, we led the economic emancipation of the Continent in 1957 when we declared independence. We also are the centre for the economic emancipation of the Continent, with the

AfCFTA situated here. Now, the national cathedral has become our way of leading the spiritual emancipation of the Continent during a particularly challenging time in global history"


The Finance Minister explained that there is also absolutely no doubt about the urgency of mobilising the African and Caribbean Diaspora in trade, investment, science, sport, culture, and entertainment.


"McKinsey estimates the African American buying power alone will reach $1.7trn by 2030. We believe there is significant capacity to crowd in a considerable portion of this to the Continent, particularly to Ghana

Furthermore, we want to be intentional about exploring opportunities with investors based on the Continent. Certainly, our development partners, such

as the World Bank, will continue to be our trusted partners on our journey"


He was confident that the conference will allow Ghana to

explore how there can be a full interchange of ideas and capital so it can create areas of convergence across various tourism-related investment opportunities.


"We know that indicative returns (IRR) on tourism infrastructure lie in the region of 20-25% on the Continent. Indeed, we all witnessed the corresponding increase in average monthly revenue of GH¢1 million (from GH¢3,000) from the refurbished Kwame

Nkrumah National Park since its commissioning in July 2023"


"So clearly, there is strong potential for significant returns in the tourism space. There is an urgent need for increased funding and investment to enable

sustainable tourism practices and infrastructure, including investments in renewable energy, green transportation, eco-friendly accommodation, and

waste management systems that reduce carbon emissions, minimise environmental impacts, and promote sustainable resource use"


"Additionally, we want to work alongside potential investors to facilitate community-based tourism initiatives, provide training and capacity-building

opportunities for local communities, and foster cultural preservation and heritage conservation"


Story by: Joshua Kwabena Smith

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