- Ghana’s Accommodation Paradox: Millions Of Rooms, But Fewer Than Half Are Occupied
Ghana’s accommodation industry generated an estimated GH¢11bn in room revenue over the four months to February 2025, yet fewer than half of the available rooms were occupied, revealing a hospitality market with substantial capacity but sharply uneven demand.
The country recorded between 4.69m and 5.21m available room-nights each month from November 2024 to February 2025. Occupied room-nights, however, ranged from 2.1m to 2.42m, according to the Ghana Statistical Service’s first nationally representative Accommodation Unit Survey.
National room occupancy peaked at 46.6 per cent in December before declining to 44.1 per cent in January and recovering marginally to 44.7 per cent in February.
The findings suggest that Ghana’s immediate tourism challenge may not be a shortage of accommodation. It is how to generate sufficient and consistent demand for the rooms already available.
“Tourism development is not only about increasing the number of accommodation facilities,” Government Statistician Alhassan Iddrisu said.
“It is also about understanding demand, improving utilisation, strengthening destinations, matching investment to market conditions and ensuring that tourism creates wider opportunities for businesses, communities and households.”
The survey covered 1,085 establishments selected from a national frame of 9,602 licensed and unlicensed accommodation businesses across all 16 regions.
Hotels accounted for about 70 per cent of available room capacity but recorded occupancy rates of only 36.4 to 37.8 per cent. This means almost two-thirds of available hotel rooms remained unsold.
Hostels, by contrast, recorded occupancy rates of between 91.1 and 95.2 per cent, despite accounting for a significantly smaller share of capacity. Standard hostels performed even better, maintaining room occupancy of between 96 and 99.4 per cent.
The contrast suggests that price, purpose of travel and location may be influencing demand more strongly than conventional hotel classifications.
It also raises questions about continued investment in new hotels without reliable evidence of the demand required to sustain them.
Domestic guests provided the overwhelming majority of accommodation demand. Establishments recorded approximately 8.09mn domestic guests over the four months, compared with about 137,800 foreign guests.
Residents consequently accounted for more than 98 per cent of reported guest numbers.
Foreign visitors were fewer but generally stayed longer. Foreign hotel guests spent an average of three to four nights, compared with about two nights for domestic guests.
The figures indicate that domestic tourism is the commercial foundation of Ghana’s accommodation industry, while international visitors represent a smaller but potentially higher-value segment.
Regional differences were equally pronounced.
Greater Accra had the largest accommodation capacity and generated about GH¢7.18bn in room revenue nearly two-thirds of the national total. Yet its room occupancy ranged from 41 to 47.6 per cent.
Central Region maintained room occupancy of approximately 60 per cent and bed occupancy above 70 per cent. Savannah recorded the highest regional room occupancy rate, reaching 63.7 per cent in January, although it operated from a much smaller accommodation base.
Eastern, Bono East and Volta remained below 28 per cent room occupancy throughout the period, pointing to weak destination demand or a mismatch between existing capacity and visitor activity.
Unlicensed establishments also emerged as a substantial part of the market. They generated an estimated GH¢2.29bn in room revenue and recorded occupancy rates of between 44.8 and 58 per cent, outperforming formal hotels throughout the period.
The report’s central message is therefore not that Ghana’s accommodation industry lacks potential. It is that the sector cannot be treated as one market.
Before approving new hotel projects, extending incentives or financing additional rooms, investors and policymakers must ask where demand will come from and whether existing facilities are already underused.
For regions with low occupancy, the priority may not be another hotel. It may be better transport, stronger attractions, regular events, improved destination marketing and tourism products that persuade visitors to stay overnight.
Ghana has built a sizeable accommodation base. The more urgent task is to understand why so many rooms remain empty and what must change to fill them.
