To change the tourist industry and spur economic growth, President Nana Akufo-Addo on Wednesday announced the $10 million Tourism Grant to Small and Medium Enterprises (SMEs).
The Grant is being offered by the International Development Association of the World Bank Group to assist the government's Tourist Development Project, an endeavour to enhance tourism performance, develop the capabilities of sector actors, and boost tourism earnings.
The award will revive a sector of the economy that has been severely impacted by the COVID-19 pandemic: tourism. The agreement, which will primarily target women operators who make up the bulk of the sector's operators, is anticipated to help about 1,500 SMEs.
President Akufo-Addo stated during the Grant's inauguration in Accra that the government's efforts to encourage SMEs in the tourism and arts value chains to fast recover from the effects of the COVID-19 epidemic and boost job creation are in line with the Grant's distribution.
He pointed out that the pandemic had a severe negative impact on the hospitality and creative arts industries, which led to a 75 percent fall in foreign tourist arrivals in 2020 and a 45 percent decline in 2021.
Therefore, he added, it was crucial to provide the sector with the necessary support in order to spur recovery. The President said that the government's all-encompassing response to the epidemic and the implementation of measures specifically for the tourist industry were facilitating the sector's recovery.
He said that the government was dedicated to creating a supportive business climate that fosters entrepreneurship in order to boost economic activity and change the nation's fortunes.
The government, he added, "remains dedicated to ensuring that the private sector is capable of operating successfully by creating an ecosystem that generates possibilities for enterprises to expand and create jobs for the youth."
In order to draw in investors, President Akufo-Addo urged participants in the travel, hotel, and creative arts industries to implement sound corporate governance procedures in their operations.
Even though Ghana has a number of well-rounded businesses that have shown a commitment to strong corporate governance, the country's Corporate governance has been identified as the main cause of the failure of several enterprises in the nation.
Investors are willing to pay a premium for shares in a well-governed firm, thus Ghanaian businesses must be led by this reality as they compete worldwide for foreign investment partnerships.
The onus is on company owners to ensure that they establish and execute sound corporate governance in order to position their companies effectively for foreign investment, he said.
The World Bank's assistance of the Ghana Tourism Development Programme was praised by the President. We continue to cherish the World Bank's participation in our development efforts, he added.
The World Bank's Country Director, Pierre Laporte, claimed that the organization's support for the initiative to enhance Ghana's tourism was a sign of improved ties between Ghana and the World Bank.
He said that the initiative was the ideal means for Ghana to expand its economy in the face of the worldwide recession and urged award winners to use the money prudently.
Minister of Tourist, Arts, and Culture Dr. Ibrahim Mohammed Awal reaffirmed the government's commitment to providing resources to the tourism industry so that it may successfully contribute to national transformation and progress.
He urged participants in the sector to make use of the grant, gain access to it, and prudently use the money to expand their companies.
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