Creation of an enabling environment for private sector participation in the development of tourism in Ghana

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Date
1999-02-22
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Abstract
In April 1983, the erstwhile Provisional National Defence Council (PNDC) government embarked on a programme of economic austerity and structural adjustment. A major policy measure was to diversify the economy from its dominant reliance on primary products in foreign exchange earnings, open other avenues as well as reduce state participation in active economic production and promote the private sector. Over the past decade, tourism has gained increasing recognition as an important sector with enormous potentials for generating economic growth and employment. To harness these potentials required the active participation of the private sector, which is often described as the engine of economic growth. The study aimed at examining the enabling environment conducive for private investment in tourism development. To this effect, the study focused on the macroeconomic situation (interest rate and access to credit), infrastructure provision and human capacity development among others. The study revealed that high interest rates, access to credit, deplorable and inadequate infrastructure provision, particularly road network linking the tourist destinations, inadequate manpower and inadequate and poorly packaged marketing and promotional literature constitute the major constraints deterring private investment in tourism development. This notwithstanding the sector registered positive growth rates trend in foreign exchange earnings and tourist arrivals since 1990. To ameliorate these constraints, it was recommended that adequate funding be made available for private sector investment, priority be given to human resource development; improve infrastructure facilities particularly the road network linking the tourist attractions and the need to elicit the cooperation and support of the local community at the respective destinations. it is the view of the author that the adoption of the recommendation made in this report can considerably attract the private sector investment in tourism development.
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A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirement for the award of the Degree of Master of Science in National Development Policy and Planning, 1999
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