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General News of Wednesday, 12 April 2000

Source: GNA

Ministry of Tourism Lashes at AMA for intransigence

Accra, April 11, GNA - The Ministry of Tourism on Wednesday expressed dissatisfaction with the Accra Metropolitan Assembly (AMA) for its intransigence to an order to quit the grounds adjacent to the Novotel Accra.

This is in spite of several reminders to the Assembly to quit the place to facilitate quick and easy survey work for the commencement of two Accor Afrique International Hotels.

Mr Mike Gizo, Minister of Tourism, made this known when he took his turn at the "Meet the Press" series in Accra. Present at the meeting were heads of departments and agencies under the Ministry.

Mr Gizo said "this notice has lasted for months and after reminders no visible signs are insight indicating AMA's readiness to move out as they hold no title to the land".

He noted that such occurrences severely affect investment in the sector and deprive those in the industry the much needed incentives. Mr Gizo said some of the significant projects in the pipeline to develop the hotel industry are the building of the Accra Palace Hotel, Palm Royale, Inter-Continental Hotel and Ambassador Sheraton.

"The others are the City Hotel and Kumasi Novotel in Kumasi, Atlantic Hotel in Takoradi under Holiday Inn franchise and the rehabilitation of the Mole Lodge into a two-star receptive facility by Accor Afrique"( Novotel Group).

Mr Gizo said as a further commitment to private sector initiative, the Ministry is dealing with both the Cabinet Sub-committee on Trade and Industry, as well as the Ghana Investment Promotion Centre to provide tourism specific investment initiatives.

This would make the sector attractive and competitive in support of the plan. A number of tax reliefs have been put in place to attract more operators and investors.

He said it has been proposed that construction materials and furnishings not locally manufactured must be tax exempt. "Subsequently, after a period of five years items for refurbishment are also tax exempt", adding that "consumables will however, be subject to tax".

Mr Gizo said a number of roads are being put in shape to make visit to tourist sites less cumbersome. The Accra-Cape Coast road would be made a dual carriage from Accra-Kasoa to ease congestion.

Studies have been conducted to change the classification of the road from Fulsi Junction near Tamale to the Mole National Park from class four to class one to enable donors, investors and the public sector to place premium on its development.

He said the Ministry is collaborating with the Association of Ghana Industries to introduce them to the potential in the tourism sector. "In this case, we are looking at the entire array of inputs for tourism plants, from construction to furnishing and subsequent refurbishment.

"These are areas where private initiative is required either in partnership or otherwise, taking advantage of the free zone to establish plants with the appropriate production technology and technology to manufacture for the local tourism sector".

He said the Ministry has achieved significant strides over the years to become the third foreign exchange earner after gold and cocoa. "If we can sustain and build upon these modest gains, with assurances of adequate flow of resources the sector will indeed act as the catalyst to our giant efforts at the overall transformation of the economy".

The Acting Executive Director of the Ghana Tourist Board (GTB), Mrs Doreen Owusu-Fianko said it seeks to ensure sustainable tourism development by creating an enabling environment, supervising the provision of quality tourism plants and services for the travelling public.

It also sees to the engagement of qualified and motivated workforce in the tourism industry. She said the Board and R&K Limited have established a joint-venture company called Leisure Facilities Limited to develop 12 service apartments on the Board's land at Cantonments, each with two bedrooms, living room and kitchenette.

She said the Board has entered into a joint-venture company with Holinvest, Sweden, for the development of Accra Intercontinental Hotel, a 400 room-Five Star Beach Resort on the Marine Drive Extension near the Arts Centre.

"Another is that with Air Harbour Technologies, Saudi Arabia, to develop Accra Palace Hotel at the Accra Race Course near the Conference Centre. The project involves the construction of a Five-Star 260-room hotel and 380 condominiums".

Mr Fritz Baffour, Acting Managing Director of the Tourism Development Company, said the company is undergoing a comprehensive restructuring process that would make it as a business development oriented company that is into capital fund activities.

He said GTDC has divested its casino business to the private sector. Mr Baffour said the GTDC has been awarded ownership of the La Pleasure Beach and is paying royalties to the La stool.

"This we will redevelop to meet the new development agenda facing the nation". Mr Baffour said assets that were confiscated to the state and given to the GTDC have been returned to the owners except the Caprice.

The GTDC is owned by the Ghana Commercial Bank, SSB Bank, State Insurance Company and Akuaba Tours Company Limited. On the high turnover of Chief Executives of the Company, Mr Baffour said it would soon be a thing of the past, especially with the approval of the report of the consultants, which recommends a new organisational, corporate and business structure.

"This will include the appointment of a Managing Director with an investment-oriented background and general managers for finance and administration and business development".

Mr Baffour said the new board would ensure that GTDC plays its rightful role in the development of tourism in Ghana and appealed to the public to help to see this dream through.