Hotel occupancy in Ghana declines as Airbnb gains popularity during the festive season, driven by affordability, flexibility, and unique experiences.
As the Christmas season unfolds in Ghana, the hospitality sector is experiencing notable shifts in accommodation preferences among travelers.
Despite a rise in tourist arrivals, traditional hotels are witnessing a decline in occupancy rates, while alternative lodging options, particularly Airbnb, are gaining popularity.
Recent data indicates a downward trend in hotel occupancy during peak tourist seasons. The 2023 Ghana Tourism Report reveals a 3-5% decline in hotel stays over the past few years, with occupancy rates in five-star hotels standing at 71% in 2023.
This decline is attributed to factors such as high accommodation costs, influenced by nearly twenty different taxes affecting pricing structures.
In contrast, Airbnb has experienced significant growth. Usage surged from 11.5% in 2021 to 27% in 2023, with projections indicating continued growth in the coming years.
This shift is partly due to travellers seeking more affordable and flexible accommodation options. Ghana leads the West African market with a 41% increase in Airbnb bookings in 2023 compared to 2022, underscoring its appeal among travellers.
Hotel rates in Ghana vary by classification:
Five-Star Hotels: Average daily rates range from $200 to $400.
Three and Four-Star Hotels: Rates typically fall between $100 and $200 per night.
Budget Hotels and Guesthouses: Prices range from $30 to $70 per night.
In comparison, Airbnb offers a wide spectrum of pricing:
Entire Apartments/Homes: Depending on location and amenities, prices range from $50 to $150 per night.
Private Rooms: Options are available from $20 to $50 per night.
These competitive rates, combined with the appeal of unique and personalized experiences, contribute to Airbnb’s growing market share. The shift towards Airbnb is influenced by several factors:
First, there are cost considerations; thus, travelers are increasingly budget-conscious and seek value for money. Second, many prefer the local immersion that Airbnb accommodations can provide. Larger groups find Airbnb accommodations more practical and economical.
Despite these trends, hotels continue to attract guests through amenities such as on-site dining, security, and concierge services.
The post-election period in Ghana has been relatively stable, with minimal disruptions affecting travel and tourism. This stability has encouraged both domestic and international travellers to proceed with their holiday plans, positively influencing the hospitality sector.
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While traditional hotels face challenges in maintaining occupancy rates during this festive season, the rise of alternative accommodations like Airbnb reflects evolving consumer preferences. The hospitality industry in Ghana is adapting to these changes, striving to meet the diverse needs of modern travellers.
