After the Tourists Leave: A Brief Look Into the Effects of Ghana’s Over-Reliance on Tourism & The Year of Return Initiative

By Ama Owusuaa Ackom Yarboi

Through the Coastal plains of West Africa, Ghana remains a hotspot for tourists. On the coastal shores of Ghana, Elmina Castle — the first castle built by the Portuguese in 1482 — still stands. However, Ghana’s attraction to tourists is not linked exclusively to the country’s colonial past. In contemporary times, Ghana has remained one of the most peaceful countries in Sub-Saharan Africa [1]. In 2019, Ghana’s President Nana Akufo-Addo announced The Year of Returninitiative. The initiative was introduced to incentivize Africans in the diaspora to trace their African roots[2] and learn about the history of the Trans-Atlantic slave trade. Aside from its economic benefits, tourism contributes to the revitalization of arts, crafts, and culture[3].

In December, Ghanaians who do not have the opportunity to visit Ghana follow the antics and enjoyment of their diaspora peers on Twitter, Snap Chat, TikTok, and Instagram among others. On these platforms, it seems like Accra, the capital city, has been transformed overnight. From December through January, the city does not sleep, and the stories posted leave one feeling nostalgic about life in the tropics while winter’s frost and chill settle in. On social media, everything looks perfect. Yet, one cannot help but notice that the prices of goods and services are displayed in U.S. dollars. Even in January when the tourists have left and the dust in Accra has settled, dollar signs remain on various advertisements despite the Bank of Ghana prohibiting the pricing of goods and services in foreign currencies[4]. The Bank of Ghana placed such limits on advertisements and foreign exchange services to stop the depreciation of the cedi and (BBC, 2014 )ensure the continued use of the Ghana cedi as the legal tender of the country[5]. This limit was also an attempt to stabilize the economy. While this pricing might suit the palate of tourists outside the country, it inflates the property value of properties[6] in Accra as locals struggle to keep up.

While an influx of tourists during December and January boosts the city’s economy and attracts foreign investors, “tourism has a direct effect on the quality of life for local residents, often resulting in their displacement[7].” The Ghanaian Constitution prohibits foreigners from owning land in Ghana and limits them to leaseholds of no more than fifty years.[8]” One of the provisions of the Year of Return initiative which angered most Ghanaians was the special land deal[9] offered to visitors to incentivize them to become naturalized. Since foreigners may not own land unless they become naturalized, these special land deals incentivize investors to obtain citizenship and enjoy the perks that come with naturalization. (USAID, 2016 )Provisions such as these have worsened Accra’s already dire land and housing crisis.

The traders at the  Kaneshie market are feeling the heat of the scorching African sun and the higher cost of living. An article in The Guardian highlights the dire situation of one trader to the point that she has decided to eat once a day,[10] as compared to her previous thrice a day, to save money. The traders around echo her sentiments. “Food prices in Ghana have risen by 30% over the last year. Energy costs have also climbed sharply, and inflation is running at 27%, according to the country’s statistics authorities[11].” As Ghana’s central bank raises interest rates[12] to handle the rising national debt, the government has not backed away from building a national cathedral in the midst of the crisis the country faces. While the current president looks at the construction of the cathedral as a religious symbol, some citizens believe that this is an attempt by the government to capitalize even more heavily on tourism. In an interview with the British Broadcasting Corporation (BBC), the finance minister emphasized that the cathedral would increase tourism and generate more revenue for the local economy [13].  It is this over-reliance on tourism which leads traders and business owners alike to inflate prices during peak tourist seasons. In desperation, these people try to make a substantial amount of money from tourists before the season dies down and they are left desolate again. As Ghana and Accra rebrand to attract the diaspora community, locals are priced out of everything. Locals are not considered in the market because they have less purchasing power as compared to tourists.

Nonetheless, Ghana’s declining economic growth cannot be placed squarely on the shoulders of an initiative that was meant to encourage oneness among people of African origin. The COVID-19 pandemic and a growing national debt[14]might be part of the root causes of this increase in the cost of living. These causes added to an influx of tourists during a particular season does not solve the problem but only postpones its solution to the months when the tourist have left.  As one of the leading exporters of cocoa and gold[15], Ghana’s overreliance on tourism baffles many. The International Trade Administration projects that The Ghanaian Ministry of Tourism, Arts and Culture (MoTAC) will generate $2.1 billion[16] in revenue this year. Although tourism’s revenue is substantial, it cannot be the only way to tackle the 467.4 billion cedis ($37.4 billion) national debt[17]. The former minister of finance explained that this debt was more than 100%[18] of the country’s GDP.

While the Year of Return initiative is formidable, the problems within the Ghanaian economy cannot be solved by the revenue generated by tourism alone. Even if Ghana decided to use all the money from tourism against the national debt, the revenue from tourism would only chip down 6% of the national debt. An overreliance on tourism does not fix the economic problems faced by the country, rather, it postpones finding solutions to tackle a bigger problem.

[1]  Sasu, D. D. (2023). Annual Global Peace Index in Ghana. Statista.

[2] (BBC, 2020)

[3] . (Frempong & Deichmann, 2017)

[4] (BoG, 2023)

[5] (BBC, 2014 )

[6] (Erezi, 2021)

[7] (Glup, 2021)

[8] (USAID, 2016 )

[9] (Paquette, 2020)

[10] (Akinwotu, 2022)

[11] (Akinwotu, 2022)

[12] (Akinwotu, 2022)

[13] (BBC, Why the Ghana National Cathedral Project Causes Controversy, 2022)

[14] (Kent, 2022)

[15] (Kent, 2022)

[16] (Commission)

[17] (Savage & Jones, 2022)

[18] (Savage & Jones, 2022)

REFERENCES

Akinwotu, E. (2022). Lean Times for Ghana’s Yam Traders As Cost of Living Crisis Bites. Accra : The Guardian . Retrieved from https://www.theguardian.com/world/2022/jul/06/ghana-yam-traders-cost-of-living-food-prices-rise

BBC. (2014 ). Ghana limits dollar transactions to protect cedi. Accra : British Broadcasting Corporation . Retrieved from https://www.bbc.com/news/world-africa-26064127BBC, N. (2020). African Diaspora: Did Ghana’s Year of Return attract foreign visitors? BBC News. Retrieved from https://www.bbc.com/news/world-africa-51191409

BBC, N. (2022). Why the Ghana National Cathedral Project Causes Controversy. Accra: BBC News. Retrieved from https://www.bbc.com/pidgin/articles/cmml11mye5mo

BoG, B. o. (2023). Prohibition of Pricing, Advertising, Receipting and/or Making Payments for Goods and Services in Foreign Currency in Ghana. Retrieved from https://www.bog.gov.gh/news/prohibition-of-pricing-advertising-receipting-and-or-making-payments-for-goods-and-services-in-foreign-currency-in-ghana/

International Trade Administration, U.S Department of Commerce.

Erezi, D. (2021). Accra Ranks Higher Than Lagos, Johannesburg, Nairobi And Cairo Among African Cities With The Most Expensive Property Prices. Business Insider, Africa. Retrieved from https://africa.businessinsider.com/local/markets/accra-ranks-higher-than-lagos-johannesburg-cairo-among-african-cities-with-most/f72046l

Frempong , F., & Deichmann, J. I. (2017). Ghanaian Hospitality Professionals’ Perceptions Of International Tourism Impacts. GeoJournal , 273-291.

Glup, M. (2021). Tourism’s Impacts on Local Populations. Nebtraska Anthropologist , 29, 50-66. Retrieved from https://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1194&context=nebanthro

Kent, E. (2022). How Ghana, Africa’s Rising Star, Ended Up In Economic Turmoil. Accra : Al Jazeera . Retrieved from https://www.aljazeera.com/features/2022/12/31/how-ghana-africas-rising-star-ended-up-in-economic-turmoil

Paquette, D. (2020). Ghana to black Americans: Come home. We’ll help you build a life here. Accra : The Washington Post . Retrieved from https://www.washingtonpost.com/world/africa/ghana-to-black-americans-come-home-well-help-you-build-a-life-here/2020/07/03/1b11a914-b4e3-11ea-9a1d-d3db1cbe07ce_story.html

Sasu, D. D. (2023). Annual Global Peace Index in Ghana. Statista. Retrieved from https://www.statista.com/statistics/1173244/annual-global-peace-index-in-ghana/#:~:text=As%20of%202022%2C%20Ghana%20achieved,Saharan%20Africa%20and%20West%20Africa.

Savage , R., & Jones, M. (2022). Explainer: Who Holds Ghana’s Debt And What Restructuring Is Planned? Johannesburg / London : Reuters. Retrieved from https://www.reuters.com/world/africa/who-holds-ghanas-debt-what-restructuring-is-planned-2022-12-09/

USAID. (2016 ). Ghana: Property Rights And Resource Governance Profile . Accra : United States Agency for International Development . Retrieved from https://www.land-links.org/country-profile/ghana/#1528471614497-67e582db-43fe