The Association noted with regret that COSGA failed to meet and negotiate with it before fixing the 2011 new tariffs, which it described as very high.
Mr Philip Ntiamoah, National Financial Secretary of the Association, told the Ghana News Agency (GNA) in Sunyani at the weekend that the association had held several meetings with the national executives of COSGA for the reduction of the tariffs but there has been no success.
He said “considering the current inflation trend, the only option left for the association is to seek legal action, for the reduction of the rates.”
He explained that hotels which had one to 10 rooms used to pay GH¢ 5 per year but COSGA had increased it to GH¢ 50, a 500 percent increase, whilst the association had proposed to pay GH¢ 25.
The new tariffs for hotels with 11 to 20 rooms and those with 21 to 30 rooms are GH¢ 60 and GH¢ 70 respectively, whiles the association has agreed to pay GH¢ 35 and GH¢ 50 tariffs respectively for those hotels, he added.
Mr Ntiamoah said that tariff for hotels with 31 to 40 rooms had been increased from GH¢12 to GH¢80 whilst those with 41 rooms and above had also been increased from GH¢15 to GH¢100.
He said the association also proposed to pay GH¢60 instead of the GH¢80 and GH¢75 instead of the new GH¢100, saying such hotels were paying a tariff of GH¢12 and GH¢15 respectively.
A tariff for one star hotel with 11 to 20 rooms, which was GH¢30 per year, has been increased to GH¢250 whilst those with 21 rooms and above now attract GH¢300 instead of GH¢48 tariff.
With two star hotels, the financial secretary explained that tariffs for those with 11 to 20 rooms had been increased from GH¢39.60 to GH¢540 whilst those with 21 to 30 rooms had also been increased from GH¢63.36 to GH¢600.
He said the association had proposed to pay GH¢200 and GH¢320 for those hotels respectively.
Mr Ntiamoah added that under the two star hotel category, tariffs for those with 31 to 40 rooms, which was GH¢98.12, had been increased to GH¢660 whilst the association had proposed GH¢490.
He said the COSGA had increased tariffs for rooms with 1 to 30 under three star hotels from GH¢126.70 to GH¢2,400 whilst those with 31 rooms and above had also been increased from GH¢174.24 to GH¢3,600.
With four to five star hotels, Mr Ntiamoah said the annual tariffs for Labadi Beach had been increased from GH¢ 2,937 to GH¢7,809.75 whilst that of Golden Tulip hotel had also been increased from GH¢ 6,185 to GH¢12,183.21.
The GHA had also requested to pay GH¢ 4,405.50 for Labadi and GH¢ 9,277.50 for Golden Tulip, he added.
Mr Ntiamoah said the COSGA had increased tariffs for the Novotel and La Palm Royal hotels from GH¢ 5,286 to GH¢ 9,371.70 and from GH¢3,818 to GH¢ 10,152.68 respectively.
“We have resolved that these hotels should pay GH¢7,930 and GH¢5,730 respectively”, he stated.
Mr Ntiamoah explained that beside COSGA tariffs the hotels had to also pay other tariffs to other tax agencies such as the TV license, Metropolitan, Municipal and District Assembly dues, Value Added Tax, among others.
“In view of this, COSGA should not just use percentages to increase the rates, but consider the current inflation trend”, he stated.
The financial secretary advised hotels in Brong-Ahafo to be extra vigilant and expose clients with questionable traits as well as those who might seek to foment trouble during the impending national delegates’ conference of the National Democratic Congress to be held in Sunyani from July 8-9.