THE KWAHU INVESTMENT DIALOGUE 2023 – A CASE FOR TOURISM INVESTORS TO CONSIDER

The importance of tourism as a factor in economic development is now widely accepted. Since it is recognized everywhere that the expansion of the international tourist trade generates foreign exchange earnings and stimulates employment and incomes, it is not surprising that for some time now World Bank economic reviews and appraisals have regularly given consideration to the tourist industry in the countries surveyed.

Tourism, like other economic activities, flourishes best when it fits into a context of general economic policies and programs designed to lead to the optimum growth of the economy as a whole. For this, some sort of national planning—at least in setting priorities and seeing that they are emphasized—is required to create a climate for productive investment in all suitable fields.

Although businessmen do invest in hotels and other tourist facilities even in the absence of a national plan for tourism—particularly if the traffic is presenting itself—a plan, devised in consultation with the tourist industry, acceptable to it, and widely understood, is probably the single most important step that any country can take to ensure a balanced program of investment in the development of tourism.

Most countries including Ghana provide a range of incentives for productive investment in various types of activities, and tourist enterprises are often included. A re-examination of such an incentive system can often ensure that the special needs of tourism are more effectively met.

For example, many countries offer a set of tax incentives for listed investment: rebates, allowances, tax holidays, and the like. Tourism often requires a special “package,” including favourable real estate taxation, with incentives used as an instrument of the national program: differential treatment may be applied, with zones of high priority receiving the most favourable concessions.

Africa is fast emerging as a hot tourist destination for travellers from across the world as air connectivity and new road networks improve accessibility to the continent’s remote natural tourist spots and attract visitors from all across the globe. Clearly, improved air and ground connectivity has resulted in an increase in the number of travellers visiting the African continent for leisure and tourism.

A record 67 million tourists visited Africa in 2018, up from 58 million in 2016, the African continent is ranked as the second fastest growing region for tourists. According to a recent report by World Tourism Organisation, the number of tourist arrivals in Africa will more than double to 134 million by 2030.

As the number of airlines flying into Africa continues to grow, Africa is sure to attract a growing number of both leisure and business visitors in the coming years.  As a result, new hotels are coming up in all parts of Africa in anticipation to accommodate these visitors.

Not surprising then that many multinational hotel chains are beginning to recognise the huge potential and investment opportunities opening up in Africa, specially in the tourism and hotel sectors. The Radisson Hotel Group, for example, has signed 11 new hotel deals in Africa during the first nine months of 2019, increasing its African real estate to almost 100 properties. According to industry experts, the Radisson Hotel Group is expected to reach more than 130 hotels and 23,000 rooms in Africa by 2022.

Ghana’s recreation and tourism sector consists of a rich display of different cultures, festivals, arts and crafts, forests, water bodies, wildlife and historical attractions. This sector provides employment opportunities to several Ghanaians. These include persons working in travel and tour companies, music and dance, handicrafts, hospitality and cuisine.

The tourism industry comprises certain key sectors. These include accommodation, food and beverage and attractions.

The accommodation sector comprises hotels, guest houses, lodges, hostels and apartment complexes. Hotels and restaurants in Ghana contributed around $640 million to Ghana’s GDP in 2021.

The food and beverage sector comprises companies and enterprises that operate restaurants, bars and nightclubs, and other food vendors. This sector has become very competitive over the years with the proliferation of several small producers. The demand for high-quality cuisine has increased in Ghana as a result of the growth of the middle class.

There are several tourist attractions in Ghana. There are 21 protected areas, including 7 national parks, 6 resource reserves, 2 wildlife sanctuaries, 1 strict nature reserve and 5 coastal wetlands. The largest national park in Ghana is the Mole National Park. Several other attractions include ecotourism sites, waterfalls, beaches, and heritage sites.

Ghana’s stable political environment makes it conducive for tourism and entertainment-related activities.

Ghana’s investment laws have the requisite guarantees to attract investors. These include guarantees against expropriation and the free transferability of profits and dividends.

The Kwahu traditional area occupies the northern part of the Eastern Region of Ghana and covers an area of about 51,520 sq. km. The area can conveniently be divided into 3 distinct geographical regions: the south-west lowlands; the plateau region which slopes gently into the Afram River basin (an arm of the Volta Lake), and the Afram Plains. From the southern lowlands the land rises sharply to an average height of about 580m on the plateau, where the most important towns are located. Abetifi, for example, is noted to be one of the highest settled points in the country. The highest peak is Mt. Odweanoma (780m).

The name Kwahu applies both to the people and the area, and has several dramatic explanations of its origin. One such explanation is that it was given to a tribe which decided to resist the expanding domination of the Ashanti Empire and barricaded itself on a high ridge overlooking the Afram River (Now part of the Volta Lake). These peaceful people were nevertheless stout enough to guard their land by threatening to roll rocks down on anyone who came after them, and so outsiders called the area ‘’Kwahu’’- Go and die! We are happy to say that today’s welcome is warmer. The scenery is equally full of drama, as weather- sculpted rocks tower precariously above ravines and command spectacular views. Waterfalls and huge trees, rivers (trickling in January, racing in July), brilliant flowers and butterflies, wind-swayed crops and above all the great expanse of the man-made Lake Volta, fringed with gaily painted boats, make Kwahu a hidden paradise unlike any other area of Ghana.

The varied topography of Kwahu (and the way of life of the people) present the area as one of the most diverse regions in the country. The area is endowed with a variety of tourism attractions some of which are the prominent escarpment revealing horizontal beds of sandstones; the several high points (particularly the summit of Mt. Odweanoma) which offer panoramic view of many places; the Oworobong and Oku-Abena water falls; the impressive rock structures of Kotoso and Amartey, and the famous Buruku inselberg near Kwahu Tafo; the luxuriant forest at the foothills of the Kwahu mountains and several traditional grooves.

The Kwahu Plateau is a 260 km (160 mi) long plateau in southern Ghana. It consists of the uplifted southern edge of the Volta River Basin. It forms the main watershed of Ghana, separating rivers in the Volta River system from rivers in the western half of Ghana which flows into the Atlantic Ocean (Birim, Pra, Ankobra).

Other attractions include the bracing climate of the plateau region; the historic sites such as the Ramseyer Centre at Abetifi; the beautiful towns with magnificent buildings; the warm hospitality of the people and their famous Easter festivities and the graceful funerals.

Since the launch of the first “Ghana Hang and Paragliding Festival” which was staged on the Kwahu Mountains (Mt. Odweanoma) in March 2005, the Kwahu Easter has assumed a national and international character. The paragliding event has helped popularize the Kwahu Easter Holidays and placed Kwahu on the international tourist map. People from all walks of life visit Kwahu during Easter.

The increase in visitations to Kwahu has also been spurred on by growth in the tourism related enterprises. The past ten years has seen the emergence of a number of hotels including Rock City, a 300-room 4 Star Hotel at Kwahu Nkwatia, Freedom Hills Hotel at Nkwatia, Modak Royal Hotel at Pepease, Rojo Hotel at Nkawkaw, Wags Hotel at Obomeng, Ohene Nana Klassic at Mpraeso, Nyarkoa Ba Nyarko Royal Hotel, a 3-star hotel at Obo and several others.

There are also other developed attractions for adventure such as the Twenedurase Mystical Cave (Nkofieho Tourist Site) and the Abetifi Stone Age Park, and many restaurants and eateries. A recent trend is the attraction for hosting conferences by the hotels, particularly Rock City.  It is expected that the development of the airport at Nkwantanang-Ahinase in the Kwahu East District, for which permit has been granted by the EPA Environmental Protection Agency (EPA) to Kwahu Airport Limited, will serve as a further boost to tourism development in Kwahu.

Tourism investors are being urged to visit Kwahu and explore the untapped tourism potential in the area. “Kwahu features the authentic experience of local culture and traditions and some natural tourist sites such as Waterfall, Caves and several fortresses, given its position as the highest habitable elevation in Ghana”

Investment and financing opportunities for sustainable tourism growth in Kwahu are critical and it is the forefront going forward and center for the upcoming Kwahu Investment Dialogue 2023. With the strong forecast growth in global tourism to 2030, significant investment will be required to provide the accommodation, transport, and other tourism-related services and infrastructure necessary to meet expected demand while enhancing economic, social, and environmental outcomes.

As is the case for tourism policy more generally, this will require an integrated approach across many departments (e.g., transport, environment, agriculture, innovation, education, tourism) and levels of government (national, regional, local), with input and support from industry.

The vast Afram land and water can be the next waterfronts and resorts in the coming years. The real question is, how do we attract and expand the development to all other areas and sectors in Kwahu and develop more tourist sites, destinations and infrastructure to ensure sustainability and diversity? Exactly the question to be answered at the Kwahu Investment Dialogue.

The Kwahu Investment Dialogue will focus on the Agricultural and Tourism potentials in the Kwahu enclave considering the growing global investors search for the conducive and business friendly environments for investments especially in Ghana. The five-day event will convene leaders from government and the private sector to promote a dialogue on the Agricultural and Tourism agenda that aims to increase investment and technical assistance support for the Kwahu enclave and Ghana in general. Leaders will share relevant experiences and showcase innovative practices. Agriculture and Tourism policy research institutions will share evidence on reform impacts, and business leaders will discuss reforms needed to increase private sector financing. The Kwahu Investment Dialogue will facilitate the discussion on how we can unlock investment financing opportunities for the transformation of Kwahuman through three strategic Pillars (Incentives, Innovation, and Investments) for improved local economies and jobs.

THE KWAHU INVESTMENT DIALOGUE 2023 – A CASE FOR TOURISM INVESTORS TO CONSIDER

The importance of tourism as a factor in economic development is now widely accepted. Since it is recognized everywhere that the expansion of the international tourist trade generates foreign exchange earnings and stimulates employment and incomes, it is not surprising that for some time now World Bank economic reviews and appraisals have regularly given consideration to the tourist industry in the countries surveyed.

Tourism, like other economic activities, flourishes best when it fits into a context of general economic policies and programs designed to lead to the optimum growth of the economy as a whole. For this, some sort of national planning—at least in setting priorities and seeing that they are emphasized—is required to create a climate for productive investment in all suitable fields.

Although businessmen do invest in hotels and other tourist facilities even in the absence of a national plan for tourism—particularly if the traffic is presenting itself—a plan, devised in consultation with the tourist industry, acceptable to it, and widely understood, is probably the single most important step that any country can take to ensure a balanced program of investment in the development of tourism.

Most countries including Ghana provide a range of incentives for productive investment in various types of activities, and tourist enterprises are often included. A re-examination of such an incentive system can often ensure that the special needs of tourism are more effectively met.

For example, many countries offer a set of tax incentives for listed investment: rebates, allowances, tax holidays, and the like. Tourism often requires a special “package,” including favourable real estate taxation, with incentives used as an instrument of the national program: differential treatment may be applied, with zones of high priority receiving the most favourable concessions.

Africa is fast emerging as a hot tourist destination for travellers from across the world as air connectivity and new road networks improve accessibility to the continent’s remote natural tourist spots and attract visitors from all across the globe. Clearly, improved air and ground connectivity has resulted in an increase in the number of travellers visiting the African continent for leisure and tourism.

A record 67 million tourists visited Africa in 2018, up from 58 million in 2016, the African continent is ranked as the second fastest growing region for tourists. According to a recent report by World Tourism Organisation, the number of tourist arrivals in Africa will more than double to 134 million by 2030.

As the number of airlines flying into Africa continues to grow, Africa is sure to attract a growing number of both leisure and business visitors in the coming years.  As a result, new hotels are coming up in all parts of Africa in anticipation to accommodate these visitors.

Not surprising then that many multinational hotel chains are beginning to recognise the huge potential and investment opportunities opening up in Africa, specially in the tourism and hotel sectors. The Radisson Hotel Group, for example, has signed 11 new hotel deals in Africa during the first nine months of 2019, increasing its African real estate to almost 100 properties. According to industry experts, the Radisson Hotel Group is expected to reach more than 130 hotels and 23,000 rooms in Africa by 2022.

Ghana’s recreation and tourism sector consists of a rich display of different cultures, festivals, arts and crafts, forests, water bodies, wildlife and historical attractions. This sector provides employment opportunities to several Ghanaians. These include persons working in travel and tour companies, music and dance, handicrafts, hospitality and cuisine.

The tourism industry comprises certain key sectors. These include accommodation, food and beverage and attractions.

The accommodation sector comprises hotels, guest houses, lodges, hostels and apartment complexes. Hotels and restaurants in Ghana contributed around $640 million to Ghana’s GDP in 2021.

The food and beverage sector comprises companies and enterprises that operate restaurants, bars and nightclubs, and other food vendors. This sector has become very competitive over the years with the proliferation of several small producers. The demand for high-quality cuisine has increased in Ghana as a result of the growth of the middle class.

There are several tourist attractions in Ghana. There are 21 protected areas, including 7 national parks, 6 resource reserves, 2 wildlife sanctuaries, 1 strict nature reserve and 5 coastal wetlands. The largest national park in Ghana is the Mole National Park. Several other attractions include ecotourism sites, waterfalls, beaches, and heritage sites.

Ghana’s stable political environment makes it conducive for tourism and entertainment-related activities.

Ghana’s investment laws have the requisite guarantees to attract investors. These include guarantees against expropriation and the free transferability of profits and dividends.

The Kwahu traditional area occupies the northern part of the Eastern Region of Ghana and covers an area of about 51,520 sq. km. The area can conveniently be divided into 3 distinct geographical regions: the south-west lowlands; the plateau region which slopes gently into the Afram River basin (an arm of the Volta Lake), and the Afram Plains. From the southern lowlands the land rises sharply to an average height of about 580m on the plateau, where the most important towns are located. Abetifi, for example, is noted to be one of the highest settled points in the country. The highest peak is Mt. Odweanoma (780m).

The name Kwahu applies both to the people and the area, and has several dramatic explanations of its origin. One such explanation is that it was given to a tribe which decided to resist the expanding domination of the Ashanti Empire and barricaded itself on a high ridge overlooking the Afram River (Now part of the Volta Lake). These peaceful people were nevertheless stout enough to guard their land by threatening to roll rocks down on anyone who came after them, and so outsiders called the area ‘’Kwahu’’- Go and die! We are happy to say that today’s welcome is warmer. The scenery is equally full of drama, as weather- sculpted rocks tower precariously above ravines and command spectacular views. Waterfalls and huge trees, rivers (trickling in January, racing in July), brilliant flowers and butterflies, wind-swayed crops and above all the great expanse of the man-made Lake Volta, fringed with gaily painted boats, make Kwahu a hidden paradise unlike any other area of Ghana.

The varied topography of Kwahu (and the way of life of the people) present the area as one of the most diverse regions in the country. The area is endowed with a variety of tourism attractions some of which are the prominent escarpment revealing horizontal beds of sandstones; the several high points (particularly the summit of Mt. Odweanoma) which offer panoramic view of many places; the Oworobong and Oku-Abena water falls; the impressive rock structures of Kotoso and Amartey, and the famous Buruku inselberg near Kwahu Tafo; the luxuriant forest at the foothills of the Kwahu mountains and several traditional grooves.

The Kwahu Plateau is a 260 km (160 mi) long plateau in southern Ghana. It consists of the uplifted southern edge of the Volta River Basin. It forms the main watershed of Ghana, separating rivers in the Volta River system from rivers in the western half of Ghana which flows into the Atlantic Ocean (Birim, Pra, Ankobra).

Other attractions include the bracing climate of the plateau region; the historic sites such as the Ramseyer Centre at Abetifi; the beautiful towns with magnificent buildings; the warm hospitality of the people and their famous Easter festivities and the graceful funerals.

Since the launch of the first “Ghana Hang and Paragliding Festival” which was staged on the Kwahu Mountains (Mt. Odweanoma) in March 2005, the Kwahu Easter has assumed a national and international character. The paragliding event has helped popularize the Kwahu Easter Holidays and placed Kwahu on the international tourist map. People from all walks of life visit Kwahu during Easter.

The increase in visitations to Kwahu has also been spurred on by growth in the tourism related enterprises. The past ten years has seen the emergence of a number of hotels including Rock City, a 300-room 4 Star Hotel at Kwahu Nkwatia, Freedom Hills Hotel at Nkwatia, Modak Royal Hotel at Pepease, Rojo Hotel at Nkawkaw, Wags Hotel at Obomeng, Ohene Nana Klassic at Mpraeso, Nyarkoa Ba Nyarko Royal Hotel, a 3-star hotel at Obo and several others.

There are also other developed attractions for adventure such as the Twenedurase Mystical Cave (Nkofieho Tourist Site) and the Abetifi Stone Age Park, and many restaurants and eateries. A recent trend is the attraction for hosting conferences by the hotels, particularly Rock City.  It is expected that the development of the airport at Nkwantanang-Ahinase in the Kwahu East District, for which permit has been granted by the EPA Environmental Protection Agency (EPA) to Kwahu Airport Limited, will serve as a further boost to tourism development in Kwahu.

Tourism investors are being urged to visit Kwahu and explore the untapped tourism potential in the area. “Kwahu features the authentic experience of local culture and traditions and some natural tourist sites such as Waterfall, Caves and several fortresses, given its position as the highest habitable elevation in Ghana”

Investment and financing opportunities for sustainable tourism growth in Kwahu are critical and it is the forefront going forward and center for the upcoming Kwahu Investment Dialogue 2023. With the strong forecast growth in global tourism to 2030, significant investment will be required to provide the accommodation, transport, and other tourism-related services and infrastructure necessary to meet expected demand while enhancing economic, social, and environmental outcomes.

As is the case for tourism policy more generally, this will require an integrated approach across many departments (e.g., transport, environment, agriculture, innovation, education, tourism) and levels of government (national, regional, local), with input and support from industry.

The vast Afram land and water can be the next waterfronts and resorts in the coming years. The real question is, how do we attract and expand the development to all other areas and sectors in Kwahu and develop more tourist sites, destinations and infrastructure to ensure sustainability and diversity? Exactly the question to be answered at the Kwahu Investment Dialogue.

The Kwahu Investment Dialogue will focus on the Agricultural and Tourism potentials in the Kwahu enclave considering the growing global investors search for the conducive and business friendly environments for investments especially in Ghana. The five-day event will convene leaders from government and the private sector to promote a dialogue on the Agricultural and Tourism agenda that aims to increase investment and technical assistance support for the Kwahu enclave and Ghana in general. Leaders will share relevant experiences and showcase innovative practices. Agriculture and Tourism policy research institutions will share evidence on reform impacts, and business leaders will discuss reforms needed to increase private sector financing. The Kwahu Investment Dialogue will facilitate the discussion on how we can unlock investment financing opportunities for the transformation of Kwahuman through three strategic Pillars (Incentives, Innovation, and Investments) for improved local economies and jobs.