Diaspora and tourism

T he tourism sector came to a complete halt with the outbreak of COVID-19. Revenues fell for hotels, catering, entertainment, and associated services. The sector has since staged a recovery. It reached pre-pandemic levels again in 2023. Ghana defaulted on its domestic and international bond in December 2022 after a spiral of high inflation, currency depreciation, fiscal instability and ballooning national debt. Tourism has become a key driver of the recovery. It generated US$3.8 billion in revenues in 2023, after a negative 88 percent loss at the height of the COVID-19 in 2020. In fact, the gouvernment of Ghana is targeting tourism as one the strategic sectors that will help pull the country out the economic turbulence.

The diaspora is central to this policy and one of the core functions of the Ministry of Tourism, Arts and Culture is ‟to link up with the Diaspora for Tourism”.

An investment and tourist destination for the diaspora

Investment opportunities

Ghana is the third largest economy in West Africa after Nigeria and Cote d'Ivoire, with a gross domestic product (GDP) of US$76.28 in 2023 and a GDP per capita of US$2,230. The International Monetary Fund forcasts that the economy will grow by 2.8 percent in 2024 and potentially, 3.00 percent in 2025. The country has a diversified economy and 15 active economic sectors. Agriculture, extractives (oil, gas, mining) and the services sector contribute over 60 percent of the GDP. Ghana is Africa top gold producer followed by South Africa. The fastest growing sectors are the ICT (Information Communication and technology), financial services, manufacturing, utilities and transportation. Untapped opportunities exist in real estate, media and tourism sectors.

Despite its recent economic difficulties, the country continues to provide a peaceful and attractive business climate and a gateway to Economic Community of West African States (ECOWAS) which has a market of over 400 million people. Ghana's population is young, well-trained and technology-savvy. In recent decades, this young population has developed into an instiable consumer market.

Tourism opportunities

The tourism sector contributed 4.6 percent of the GDP in 2022. It employs 735,000 people thoughout the country. The country had 4,613 licensed tourist hotels, residences and accommodation establishments in operation as of 2023. Several factors drive supply including, attractiveness of the destination, access and accommodation. Amenities available in Ghana and activities are also important factors. Demand, on the other side, depends on personal elements such as motivation, finances, time, and physical ability to travel. External paramaters that play a role include government policy, community receptiveness and regional competition.

• Cultural tourism	▪ Traditional Festivals (over 30 festivals celebrated by different ethnic groups at different calendar month in Ghana, PANAFEST), ▪ Contemporary Arts, Handicrafts, Carnival, Local Cuisines and Music
  Ecotourism	▪ Ghana has over 20 ecotourism sites, including Wli waterfalls, Kakum National Park, and Mole National Park.
  Adventure tourism	▪ Paragliding , Water Sports, Soccer, golf, hiking
  Wildlife tourism	▪ Wildlife species - 222 Mammals, 128 reptiles, 38 amphibians, 721 bird species. ▪ 20 National Parks and reserves covering approximately 5 percent of Ghana’s total land surface. ▪ 540 kilometres coastline with sandy beaches, Waterfalls, (Kintampo Waterfall, Wli waterfall and Boti waterfall) Lakes, (Lake Bosomtwe and Volta Lake) Animal Sanctuaries such as Wechiau Hippo Sanctuary, Paga Crocodile Pond, Mole National Park, Monkey sanctuaries(like Buabeng Fiema, Tafi Atome etc)
  Historical tourism	▪ Ghana has over 30 Forts and Castles i.e. Elmina and Cape Coast castles, Manhyia ▪ Palace Museum which has historic relics and artifacts of Ashanti Kings. ▪ Religious monuments such as Larabanga Mosque which is among the oldest mosques in West Africa.
  Business tourism	▪ Ghana and more precisely Accra is a prime location for business event. ▪ The country has a perfect time zone for business events, which aligns with London, GMT. ▪ It is strategically located for all the members of the Economic Community of West African States (ECOWAS), of which it is founding member. ▪ Accra is also the headquarters of the African Continental Free Trade Agreement (AfCFTA)
  Medical tourism	▪ Ghana has the most efficient and organized healthcare system in West Africa, with a rising pharmaceutical industry. ▪ The country's National Health Insurance Scheme (NHIS) is accessible to over 16 million people including non-citizen residents.

Courting the diaspora

Ghanaian authorities have been courting the diaspora for over two decades, beginning with the legalization of dual citizenship for people of Ghanaian descent in 2001. The country then targetted Carribean nations islands, offering 90 days visa free travel to Barbados, Guyana and Trinidad-and-Tobago. In recent years, the most conspicuous policy has been the ‟Year of Return” which was launched in 2018 and its extension program called ‟Beyond the Return”. These two initiatives were the brand names of a marketing campaign to present Ghana as an attractive tourist and migration destination for people with African descent, particularly from North American and Europe.

On December 27th, 2019, during the launch of the extension program, the President said that as the year-long Year of Return drew to a close, it is time to ‟engage Africans in the diaspora and persons of African descent more positively in areas such as trade and investment co-operation, and skills and knowledge development”. He indicated that ‟Beyond Year of Return” builds on feedback received from the diaspora and host communities. Ghanaian authorities have promised to tackle practical issues, such as the facilitation of visa procedures and online information. They have also developed a diverse tourism offer and immigration packages.

Members of the diaspora have the opportunity to travel to Ghana to reconnect with their roots and experience a ancient cultures and traditions that Ghana has managed to preserve despite the brutality of slave and colonization. Ghana also offers an economic opportunity to the diaspora. They can settle and or invest in the country.

Regaining the momentum with help from the World Bank

On April 3rd 2022, in London, United Kingdom, the government launched another flagship tourism project, dubbed ‟Destination Ghana”. The goal, as explained by President Akufo-Addo is to build on the ‟the successes of the Year of Return, which he said, has contributed to a slow but steady recovery in the sector. During the launch, the President of Ghana declared that ‟we can turn the tourism and hospitality industry into a major tool for the positive transformation of the Ghanaian economy and into a win-win situation for investors”¹. The increase in arrivals is a noticeable sign of recovery since the end of the COVID-19 lockdown.

Ghana has been working with the World Bank to improve the performance of tourism in targeted destinations in Ghana and position the tourism and hospitality sectors as key drivers of social and economic development. The Bank and Ghanaian authorities signed the Ghana Tourism Development Project (GTDP) on on July 13, 2018. The US$40 million project became effective on February 8, 2019. According the to President of Ghana, the project will bring ‟an enriched access to Ghana’s tourism market, better provision of tourism products and services, and the upgrading of skills in the labor force in the tourism, arts, and culture sector”.

This project has four components. The first component, seeks to strengthen the tourism environment, aims to address the following constraints likely to have a transformative impact on the tourism sector in Ghana. The plan is to modernize skills, in aviation, entry visa policy, and also in branding and marketing.

One component of the program will develop tourism sites and destinations, in order to diversify the leisure tourism offering in Ghana by identifying and upgrading the promising destination areas. The third component is an enterprise program to build capacity in the value chain. Finally, the Ministry of Tourism, Arts and Culture (MoTAC) will receive funds and technical help to improve project management and institutional strengthening, and also to improve policy and project coordination².

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