Ghana's Hospitality Hit Hard: Hotel Occupancy Rates Plummet Amidst Abundant Vacancies

Ghana's accommodation industry, despite possessing substantial capacity, experienced a notable weakening in demand for room-nights between March and June 2025, according to findings from the Ghana Statistical Service (GSS). The 2025 Accommodation Unit Survey (AUS), detailed in the Accommodation Occupancy Report, revealed that approximately five million room-nights were available nationwide each month during this period. However, the number of occupied room-nights consistently declined, falling from 2.14 million in March to 1.99 million by June.

This decline represented a decrease of about seven per cent in monthly totals and approximately four per cent on an average daily basis. Consequently, national room occupancy remained relatively low, fluctuating from 41.7 per cent in March to 41.9 per cent in April, then dropping to 39.7 per cent in May, and slightly recovering to 40 per cent in June. This indicates that, on average, only four out of every ten available rooms were occupied throughout the four-month span. Bed occupancy rates, while comparatively higher, also saw variations, increasing from 47.3 per cent in March to 49.2 per cent in May before falling to 46.2 per cent in June.

The survey highlighted significant disparities in performance across different accommodation types, establishment sizes, and regions. Hotels, which form the bedrock of Ghana's accommodation sector by accounting for roughly 71 per cent of available rooms, recorded relatively low room occupancy rates, ranging between 32.4 per cent and 34.9 per cent. In stark contrast, hostels demonstrated considerably higher room occupancy, maintaining rates between 92.9 per cent and 96.1 per cent, with bed occupancy ranging from 96.1 per cent to 98.3 per cent, indicating that standard hostels operated near full capacity.

Financial indicators showed some resilience despite the occupancy challenges. The average daily rate (ADR) for accommodation rose from GH¢1,018 in March to GH¢1,145 in June. Similarly, revenue per available room (RevPAR) saw an increase from GH¢425 to GH¢458 over the same period, despite some fluctuations in the intervening months. Regionally, the Central and Western regions posted some of the highest occupancy rates, with the Central Region reaching 56.8 per cent in June and the Western Region consistently maintaining rates above 50 per cent. Conversely, the Eastern, Bono East, and North East regions reported significantly lower occupancy rates, falling below 25 per cent, which underscores the uneven distribution of demand across the country.

Domestic travellers constituted the primary source of demand for accommodation, with between 1.78 million and 1.86 million domestic guests recorded monthly. This significantly overshadowed foreign guests, who numbered between 23,000 and 30,000 per month. The Central Region attracted the largest share of domestic guests, while Greater Accra was the preferred destination for most foreign visitors. The report further noted that "although foreign guests were fewer, they generally stayed longer, averaging between three and nine nights, compared with one to two nights for domestic guests." Throughout the period, Greater Accra consistently recorded the highest regional RevPAR.

The GSS survey for March to June 2025 is part of a broader nationwide panel study, which is being conducted monthly from November 2024 to October 2025. It incorporated a nationally representative sample of 1,085 establishments, selected from a comprehensive frame of 9,602 registered and unregistered accommodation establishments spanning all 16 regions of Ghana.