- Aviation expert warns new airport charge could hurt tourism and trade
Ghana’s newly introduced airport infrastructure levy is facing growing criticism from policy analysts, who warn that the measure could undermine the country’s competitiveness in aviation, tourism and trade at a time when regional connectivity is becoming increasingly price-sensitive.
In a press statement, infrastructure finance advisor Dr Kwame Ofori-Kuragu cautioned that while investment in airport infrastructure is necessary, the current structure of the Airport Infrastructure Development Charge (AIDC) places an excessive burden on passengers and risks distorting demand in the aviation market.
The levy, which took effect on April 1, significantly increases the cost of air travel to and from Ghana. International passengers now face total charges approaching $173 on a one-way journey, rising to about $243 on a return basis when existing fees are included levels that place Ghana among the most expensive aviation markets globally.
The scale of the increase is particularly striking when benchmarked against major global hubs. Airports such as Heathrow, Schiphol, Changi, and Dubai typically charge between $30 and $70 in passenger-related fees, highlighting the widening gap between Ghana and more established aviation centers.
For analysts, the concern is not merely the absolute level of charges but the mismatch between pricing and value. Ghana is effectively charging premium-level fees without offering the connectivity, traffic volumes or passenger experiences associated with leading international hubs.
This imbalance, Dr Ofori-Kuragu argues, risks suppressing demand rather than supporting growth. Air travel in West Africa remains highly price-sensitive, with even modest increases in ticket costs capable of shifting passengers’ behaviour. The introduction of the levy, therefore, comes with immediate implications for tourism flows, business travel, and regional trade integration.
Higher costs could discourage inbound travel, reduce airline traffic and divert passengers to competing regional gateways, particularly as other countries move to lower aviation taxes to stimulate connectivity.
The broader economic implications are significant. Aviation serves as a critical enabler of trade, investment and services exports, meaning that higher barriers to travel can ripple across sectors from hospitality and logistics to conferences and international business activity.
At the heart of the debate is a familiar policy trade-off: how to finance infrastructure without undermining usage. The government has positioned the levy as a mechanism to fund airport modernisation and expansion. However, critics argue that front-loading the cost onto passengers, before visible improvements in infrastructure and service delivery, risks weakening the very demand base needed to sustain long-term investment.
Dr Ofori-Kuragu points to an alternative model centred on private sector participation and public-private partnerships, where infrastructure is financed upfront through capital investment, with user charges introduced gradually and aligned with service improvements.
Such an approach, he argues, would reduce immediate cost pressures while supporting a more competitive and growth-oriented aviation strategy.
The warning also draws on recent domestic policy experience. Ghana’s electronic levy (e-levy) demonstrated how higher transaction costs can lead to reduced usage, ultimately undermining revenue expectations. A similar dynamic, analysts suggest, could emerge in aviation if elevated passenger charges suppress travel demand.
“There is a clear risk that infrastructure is developed at the expense of usage,” the statement noted, warning that the current approach could amount to a costly policy misstep if not recalibrated.
The statement calls for an urgent review of the scale and structure of the levy by the government, parliament, and Ghana Airports Company Limited, with a focus on restoring balance between infrastructure financing and market competitiveness.
At stake is Ghana’s ambition to position itself as a regional aviation hub. Maintaining competitive pricing, analysts argue, is critical not only for attracting airlines and passengers but also for sustaining long-term growth in traffic volumes and related economic activity.
