- Hotels Have Five Million Room-Nights to Sell, but Six in 10 Remain Empty
Ghana’s accommodation industry generated more than GH¢2 billion in monthly room revenue between March and June 2025, but nearly six out of every 10 available rooms remained unoccupied, exposing a tourism market with substantial physical capacity but insufficient and uneven demand.
The Ghana Statistical Service’s first nationally representative Accommodation Unit Survey estimates that about five million room-nights were available each month during the period. Occupied room-nights nevertheless declined from 2.14 million in March to 1.99 million in June—about 7 per cent in monthly terms and 4 per cent after adjusting for differences in the number of days.
National room occupancy was 41.7 per cent in March, 41.9 per cent in April, 39.7 per cent in May and 40 per cent in June. The relative stability conceals the more consequential finding: most of Ghana’s accommodation capacity was idle throughout the four months.
The numbers challenge the assumption that Ghana’s tourism constraints can be addressed principally by building more hotels. They suggest that the immediate problem is not a nationwide shortage of rooms but the country’s limited ability to convert tourism assets, business travel and domestic mobility into sustained overnight stays.
Dr Alhassan Iddrisu, the Government Statistician, said the results carried “a simple message”.
“Ghana’s opportunity is not only to expand accommodation capacity, but also to make better use of the capacity already available,” he said.
That conclusion has implications for government incentives, tourism promotion and private investment. Approving additional capacity in poorly performing locations without first understanding existing demand could deepen oversupply, weaken profitability and increase financial stress among accommodation operators.
The survey’s national average masks sharply different outcomes across establishment types, sizes and regions.
Hotels accounted for approximately 71 per cent of available rooms but recorded occupancy of only 32.4 per cent to 34.9 per cent. Hostels, by contrast, achieved room occupancy of between 92.9 per cent and 96.1 per cent, while their bed occupancy ranged from 96.1 per cent to 98.3 per cent.
Standard hostels operated close to full capacity, suggesting that establishments serving students, workers and other longer-term or institutionally anchored guests enjoyed more predictable demand than conventional hotels dependent on leisure and business travel.
Serviced apartments also showed strong momentum. Their room occupancy increased from 47 per cent in March to 83.1 per cent in June. The report cautioned, however, that serviced apartments accounted for a relatively small share of estimated room supply, making large monthly movements more sensitive to changes among a limited number of establishments.
The divergence indicates that Ghana does not have a uniform accommodation industry. Hotels, hostels, serviced apartments, guest houses, homestays and unlicensed operators serve different clients and respond to different economic pressures.
A policy designed around conventional hotels may therefore miss the factors driving demand elsewhere. Hostels benefit from recurring institutional demand, while serviced apartments may appeal to guests seeking longer stays, privacy and flexibility. Hotels must compete more aggressively for shorter and less predictable visits.
Size also mattered. Establishments with at least 100 rooms consistently recorded occupancy above 83 per cent, while those with between 90 and 99 rooms remained below 15 per cent.
The result appears counterintuitive because larger properties carry higher operating costs and need more guests to fill their inventory. Their stronger performance could reflect better locations, established brands, corporate contracts, conference facilities, marketing budgets or access to digital booking platforms.
It also warns investors that room count alone is a poor measure of commercial viability. A smaller property in a weak location may be riskier than a larger hotel connected to dependable corporate, educational or conference demand.
Regional performance further demonstrates why national averages can mislead.
Central and Western regions recorded some of the highest room occupancy levels. Central Region reached 56.8 per cent in June, while Western remained above 50 per cent throughout the four-month period.
The Central Region also attracted the largest number of domestic guests, reflecting the pull of Cape Coast, Elmina and the region’s heritage, education and leisure assets. Western Region’s performance may reflect a combination of tourism, extractive-sector activity and business travel.
Eastern, Bono East and North East regions, however, recorded occupancy below 25 per cent throughout the period. Persistent underutilisation at that level raises questions about destination visibility, transport connectivity, the quality of local attractions, pricing and whether existing accommodation was developed ahead of realistic demand.
Revenue was even more concentrated. Greater Accra recorded the highest revenue per available room every month, rising from GH¢695 in March to GH¢811 in April, falling to GH¢630 in May and recovering to GH¢790 in June.
Only Greater Accra and Volta consistently produced RevPAR above the national range of GH¢399 to GH¢464.
Volta’s performance is particularly notable. Its average daily room rate ranged from GH¢2,012 to GH¢2,155 during the first three months before ending June at GH¢2,087. Greater Accra’s rate rose from GH¢1,701 in March to GH¢2,381 in June.
By comparison, Eastern Region’s RevPAR fell from GH¢106 to GH¢63, while its average daily rate dropped from GH¢447 to GH¢306.
These disparities reveal different commercial realities. Some regions sustain premium prices despite moderate occupancy, while others struggle with both low utilisation and weak room rates. Tourism policy must therefore be tailored to local market conditions instead of applying one investment strategy nationwide.
Domestic guests provided the overwhelming majority of demand, numbering between 1.78 million and 1.86 million each month. Foreign guests ranged from approximately 23,000 to 30,000.
The difference confirms that Ghana’s accommodation industry is primarily supported by residents rather than international visitors. Domestic travellers provide scale, making local tourism, conferences, funerals, festivals, education and business movements central to hotel viability.
Foreign visitors, although considerably fewer, generally stayed longer. Their average stay ranged from three nights in June to nine nights in May, compared with about one to two nights for domestic guests.
Greater Accra attracted the largest number of foreign guests, reinforcing its position as the country’s main international gateway and corporate centre. Central Region dominated domestic guest numbers but did not match Accra’s revenue performance, suggesting that large guest volumes do not automatically produce stronger earnings.
The strategic opportunity is to preserve domestic volume while extending length of stay. Packaging heritage attractions, festivals, food, coastal tourism and community experiences could encourage Ghanaian travellers to remain at destinations beyond a single night.
For international tourism, the challenge is increasing visitor numbers without sacrificing length of stay. Aviation access, destination marketing, visa processes, ground transport and the quality of visitor experiences all influence whether foreign demand spreads beyond Accra.
Total room revenue increased from GH¢2.18 billion in March to GH¢2.31 billion in April, fell to GH¢2.05 billion in May and recovered to GH¢2.28 billion in June.
National RevPAR followed the same pattern, moving from GH¢425 to GH¢464, falling to GH¢399 and recovering to GH¢458. The average daily rate rose from GH¢1,018 in March to GH¢1,145 in June, despite broadly unchanged occupancy.
The June recovery therefore appears to have been driven principally by pricing and changes in the composition of rooms sold rather than a broad increase in utilisation.
That distinction matters. Raising prices can support revenue temporarily, but sustained increases without stronger demand may make accommodation less competitive, particularly for domestic tourists facing pressure on disposable income.
Unlicensed establishments generated between GH¢279.5 million and GH¢466.2 million in monthly room revenue, demonstrating that activity outside the licensed market is economically significant. Their presence should not be treated merely as a regulatory inconvenience; it reflects changing consumer preferences and competition from informal or digitally marketed accommodation.
Government must balance enforcement with formalisation. Excessively burdensome licensing could drive operators further underground, while weak oversight creates risks involving safety, taxation, service quality and consumer protection.
The survey provides only four months of results, meaning conclusions about seasonality and annual performance must remain cautious. However, its central signal is already difficult to ignore: Ghana has built considerable accommodation capacity without creating equally strong demand across the country.
The policy response should shift from counting hotels to building destinations. Roads, sanitation, safety, events, attractions, digital marketing and reliable visitor information determine whether accommodation investments become commercially viable.
Businesses must also use occupancy, average daily rate and RevPAR together. High prices mean little when rooms remain empty, while strong occupancy achieved through deep discounts may fail to cover costs.
As Dr Iddrisu noted, the statistics should be used “not simply read”.
The real test is whether the new evidence changes investment behaviour. Ghana does not need identical accommodation expansion across every region. It needs targeted demand creation, differentiated regional strategies and better utilisation of rooms already built.
Until that happens, the industry’s defining statistic will remain uncomfortable: five million room-nights available each month, but only four in every 10 occupied
