HITT Inception Analysis GHANA

2

Index EXECUTIVE SUMMARY ...................................................................................................... 4 FOREWORD .................................................................................................................. 6 THE HITT GHANA RESEARCH TEAM CONSISTS OF: ........................................................................ 6 1. INTRODUCTION ........................................................................................................... 8 1.1. CONTEXT: THE HITT PROGRAMME .......................................................................................... 8

1.2 THE HITT PROJECT IN GHANA ............................................................................................... 9

2. METHODOLOGY ........................................................................................................ 13 2.1. QUANTITATIVE RESEARCH PLAN FOR HITT GHANA .......................................................................... 13

2.2. FOCUS GROUPS WITH KEY PRIVATE SECTOR ENTERPRISES IN WESTERN REGION AND CENTRAL REGION ........................... 17

2.3. LESSONS LEARNED FROM RESEARCH ....................................................................................... 18

3. TOURISM CONTEXT AND MARKET ANALYSIS ......................................................................... 20 3.1. INTRODUCTION .......................................................................................................... 21

3.2 OVERVIEW OF GHANA ..................................................................................................... 25

3.3. KEY ACTORS IN DEVELOPMENT OF TOURISM ............................................................................... 27

3.4 MACRO ENVIRONMENT.................................................................................................... 30

3.5 TOURISM PROFILE OF GHANA .............................................................................................. 35

3.6 BENCHMARKING GHANA AS A TOURISM DESTINATION ........................................................................ 35

3.7 DESTINATIONS WITH MARKET DEMAND AND GROWTH POTENTIAL ........................................................... 36

3.8 SELECTION OF INTERVENTION AREAS ........................................................................................ 41

4 TRAINING NEEDS ANALYSIS ............................................................................................. 43

3

4.1. CURRENT STATUS OF TVET IN GHANA ..................................................................................... 43

4.2. QUICK SCAN OF THE TVET ENVIRONMENT AND CHARACTERIZATION OF TVET SERVICING THE OCCUPATIONS SELECTED ............ 46

4.3 CHALLENGES IN THE PROVISION OF TVET ................................................................................... 48

5 CONCLUSIONS INCEPTION PHASE ...................................................................................... 52 5.1. CONCLUSIONS RELATED TO TOURISM SITUATION ANALYSIS AND EXPECTED DEMAND FOR LOW-SKILLED YOUTH AND WOMEN LABOUR52

5.2. CONCLUSIONS RELATED TO THE TRAINING NEEDS ANALYSIS AND CONSTRAINTS FOR TVET TOWARDS SELECTED TARGET GROUPS .. 53

5.3. RECOMMENDATIONS FOR TVET CURRICULUM DEVELOPMENT AND HITT IMPLEMENTATION PHASE ............................. 54

4

Executive Summary

This research report is the main result of the inception phase of the HITT project in Ghana. Through the European Commission (EC) funded programme Developing Technical and Vocational Education and Training (TVET) Methodologies and Services for the Informal Economy, SNV is implementing the HITT programme: High Impact Tourism Training for Jobs & Income. The overall objective is to improve access for disadvantaged and marginalized communities (in particular women, youth, unskilled and semi-skilled)to quality jobs in the tourism and hospitality sector in seven least-developed and low-income countries in Sub-Saharan Africa (Benin, Ghana, Mali, Mozambique) and Asia (Cambodia, Nepal, Vietnam). The objective of HITT in Ghana is to train 1,200 people from a ‘poor’ background with an emphasis on youth and women and to facilitate their access to quality employment before the end of 2013. The HITT training program and its curricula is competency based, labour market oriented and private sector driven. HITT aims to provide TVET in tourism and hospitality with innovative approaches for curriculum development and training. Partnerships and mechanisms will be established and capacity of selected institutes will be built to guarantee the sustainability of the HITT approach after the end of the project in January 2014. Extensive quantitative and qualitative research was conducted to provide a solid argumentation for the HITT Ghana strategy. The research had

to make sure that the key principles of HITT, being an industry driven and demand oriented project with a high pro poor impact, were respected.

Ghana is an emerging tourism destination with an average annual growth in international arrivals of almost 20%, but with a tourism sector in its

infancy. Sustainable growth is hampered by poor tourism governance; a weak private sector advocacy in a business environment that is far from

conducive and in poor human resource development. The poor service quality and the low skills level of the work force have a highly negative

impact on service quality. The TVET sector is rather traditional in its approach. Competence based curriculum development has become a buzz

word, but in practice it is a novelty for most of the sector. Tourism TVET is in its infancy and is not market driven. Sufficient reasons to welcome

HITT as a market driven project aiming at delivering qualified staff and entrepreneurs recruited from the informal economy.

Growth rates and market share in tourism are highest in Greater Accra, Western Region, Central Region and Ashanti Region. Value chains with

highest growth potential are business tourism and leisure tourism. Occupations with growth potential can be found in the accommodation

sector (front desk, house keeping, security); Food & Beverage (waiters, kitchen assistants/cooks and bar staff).

5

In hospitality long working days, poor payment and poor labour conditions are common practice, especially in MSME. The sector is characterized by a high level of informality. This makes it challenging to get potential beneficiaries interested in tourism and hospitality occupations and consequently in a participation in HITT. The risk has to be avoided that HITT participants might end up competing over scarce and unattractive jobs with existing workers and other TVET graduates.

Although there are definitely training needs at the level of micro and small enterprise and self employed, the needs are very diverse and it is difficult to link them to certain value chain activities like production of handicrafts, food sellers etc. It is also not clear how conditions could be created to secure accessibility, motivation and loyalty of beneficiaries. The needs analysis of informal workers shows a preference for the training of generic skills, it is not clear how this would lead to a high impact in terms of increase in income. Given the high unemployment in Ghana and the high demand for skilled labour, it is preferable to opt for occupation based training. For businesses it would help to address the problem that they have to invest heavily in in-house training, whereas job loyalty is very limited due to “poaching”. Training at occupation level would best serve the needs of the industry and of beneficiaries; High end hotels and resorts offer the best opportunities for trainees in terms of employability, access to formal jobs and good working conditions and even to career perspectives; Considerable growth is foreseen in this market segment, especially for business tourism, in complementarities with the leisure segment. Four job profiles were identified with a high potential for growth and employability: Waiter/ bartender, room attendant, receptionist and (assistant cook). Waiter and room attendant are selected because of the combination of high demand, lack of existing curricula and relatively short duration of basic training; HITT Ghana will focus on attitude and skills, as the needs analysis for the industry showed that a hospitality and service oriented attitude is lacking among workers and students. A focus on skills would be competency based in order to meet the need of the industry or graduates who are up to their task. HITT graduates should meet international industry standards; The targeted industry segment is enthusiastic about the HITT approach, under the condition that it will be sustainable after the end of project; Industry would be willing to provide resources to the training program; at least in kind (traineeships, supervision, facilities etc.) This could make in company training budget neutral for the project and could help to explore total sustainability by the end of the project; The inception phase has not provided HITT Ghana with a comprehensive overview of the training sector in Ghana. The institutions that are accredited and monitored by NVTI could be mapped, but we have no strategic analysis due to limited availability of data. In general technical TVET shows a number of constraints that could perfectly be addressed by HITT.

6

Foreword The HITT Ghana research team, consisting of SNV Netherlands Development Organisation Ghana, Opportunities Industrialization Centre Ghana and the National Vocational Training Institute, presents this report with pride. The road has been long and winding and field testing the innovative and complex HITT approach has been a true challenge, but the result can be considered to be a mile stone in the development of demand driven, labour market oriented curriculum development. Its significance goes beyond the target sector of the informal tourism economy and it will benefit TVET development in Ghana.

The inception phase of HITT in Ghana has generated new dynamics around the principles of competence based learning and demand driven

approaches to curriculum development. It has been a steep learning curve for all involved. The availability and reliability of data and statistics on

the labor market for the hospitality sector; on trends in tourism development on the informal sector and its workers and micro enterprises

informal sector is fairly limited. Therefore, a comprehensive research project was needed to gather the basic data needed for the HITT

methodology.

We are grateful for the support and the response from our stakeholders and especially from the private sector. They have been motivating us to

push this research forward and they have shared their passion for the industry. We are convinced that the HITT project in Ghana will not only

meet its objective, but will lead to a sustainable result that can make a difference in the lives of many young people and that will serve the needs

of the industry.

The HITT Ghana research team consists of:

National Vocational Training Institute NVTI:

Mr Stephen Amponsah, Director NVTI

Mrs Juliana Nkrumah, Controller of Apprenticeship and HITT Ghana Program Coordinator for NVTI

George Aboage-Ochere, Head of Monitoring and Evaluation

Alhaji Iss-hak Omar, Head of Informal Apprenticeship

Mr. Freeman Gyebe, planning Officer

7

Opportunities Industrialization Centre Ghana OICG:

Mr. Samuel Debrah, Executive Director

Mrs. Joyce Ackon, Coordinator Programmes; HITT Ghana Program Coordinator for OICG

Mr. Isaac Incoom; Program Manager HR and Administration

Mr Kwaku Asante Program Manager Accra Centre

Mr. Joseph Akwei, Program Manager Finance SNV Netherlands Development Organisation Ghana:

Mr. Amagoin Keita, Country Director SNV Ghana and Regional Sector Head for HITT West Africa

Mr. Souley Salami, Account manager HITT Ghana

Mr. Gyasi Offei Agyeman, Financial Officer

Mr. Victor Caesar, National HITT advisor

Mr. Nico Beunders, Consultant and Country Program Leader for HITT Ghana

8

1. Introduction

1.1. Context: The HITT Programme

Through the European Commission (EC) funded programme Developing Technical and Vocational Education and Training (TVET) Methodologies and Services for the Informal Economy, SNV is implementing the HITT programme: High Impact Tourism Training for Jobs & Income. The overall objective of the High Impact Tourism Training (HITT) project is to improve access for disadvantaged and marginalized communities (in particular women, youth, unskilled and semi-skilled)to quality jobs in the tourism and hospitality sector in seven least-developed and low-income countries in Sub-Saharan Africa (Benin, Ghana, Mali, Mozambique) and Asia (Cambodia, Nepal, Vietnam). This will be achieved through the development and implementation of an integrated, market-driven tourism vocational training approach, targeting the informal economy. The approach will be developed in partnership with national partners in TVET and with leading industry partners. HITT is 80% funded by the European Commission and is 20% co-funded and implemented by SNV Netherlands Development Organisation and its national partners in each of the participating countries. The HITT programme duration is three years starting in February 2011 and ending in January 2014, and is organized in 4 phases: inception (January-December, 2011); preparation (January- June, 2012); implementation (July 2012-September, 2013); and conclusion (September 2013- January 2014). With technical support of MDF Training and Consultancy, SNV is developing a methodology for each of the programme phases that will be applied and revised throughout the implementation process. The expected results of the HITT Corporate Program: 1) Informal tourism economy mapped 2) Opportunities and constraints for informal workers identified 3) Data and analysis shared and understood by key stakeholders and decision-makers 4) Direct links between informal and formal tourism sector and between training institutes and the tourism business community) established/strengthened; 5) Core tourism job profiles, curricula and methodologies developed to equip target communities with the practical skills to maximum potential sustainable employment and income generation; 6) Programme adapted for, and implemented in, seven least developed countries in which tourism is a development priority 7) Enhanced capacity of TVET training institutes in each country with substantially increased outreach to target communities 8) 8,000 men, women and youth seeking employment and SME opportunities in the tourism sector trained

9

9) sustainable systems established for continued TVET implementation and growth after the programme concludes; 10) Tools, methodologies, training materials, case studies and lessons-learned documented and disseminated in support of domestic and international up-scaling.

1.2 The HITT project in Ghana

The HITT program in Ghana is responsible for the results at country level. Relevance and expected results For Ghana the project is very relevant as the relatively young tourism industry is one of the actual and future pillars of the national economy. Despite the fast tourism growth in some regions and segments, the tourism potential of many areas has remained underdeveloped and even untapped. Also because service quality has been a critical issue throughout, the industry has a tremendous need for qualified human resources at all levels. Given the high degree of informality of the economy, this project can make a difference in improving the employability and the livelihoods of informal workers, self employed people and of MSME s involved in the tourism economy. Although Ghana was recently redeemed from its low income country status, considerable pockets of poverty remain. Disadvantaged segments of the population, like women and youth, experience insurmountable barriers in access to quality jobs in the service industry.

The HITT target in Ghana is to train 1,200 people from a ‘poor’ background with an emphasis on youth and women and to facilitate their access to quality employment before the end of 2013. The HITT training program and its curricula is competency based, labour market oriented and private sector driven. HITT aims to provide TVET in tourism and hospitality with innovative approaches for curriculum development and training. Partnerships and mechanisms will be established and capacity of selected institutes will be built to guarantee the sustainability of the HITT approach after the end of the project in January 2014.

This report is the main result of the Inception Phase:

The project starts with a situation analysis that maps the informal tourism sector and identifies the opportunities and constraints for informal

workers, as their needs are to be addressed. Maximizing their employability requires a demand oriented approach as a match has to be found

between the needs of the industry and the potential of beneficiaries. The opportunities to connect beneficiaries to quality employment require a

thorough understanding of the hospitality sector and its growth dynamics. In which sub sectors of the tourism and hospitality industry can

10

expansion be expected and in which destinations? What occupations will be in high demand? What is the ideal job profile and what are the

qualifications?

What is the situation in tourism and hospitality TVET in Ghana? How is it catering for the needs of the industry and the students? What are

success stories that HITT could build on and which gaps can be identified where HITT could make a difference? The results of the inception phase

will be used to establish a Steering Committee comprised of the key stakeholders that can guide and supervise the preparation, implementation

and sustainability of HITT.

In the Preparation Phase curricula will be developed and capacity of training institutions will be strengthened through train the trainer programs

and the provision of state of the art training programs. All relevant structures will be put in place for implementation. Partnerships with the

industry will have to be forged to maximize industry input and commitment to provide in company learning opportunities.

The Implementation Phase will start as soon as possible, but latest August/September 2012. From July 2013 the Conclusion phase will start in

which results and impacts will be assessed and where a sustainability strategy is formulated and implemented.

1.1.1. Institutions and Organizations

The European Commission (EC), represented by the Delegation of the European Commission in Ghana, is the commissioner of the HITT

project and funds 80% of the total budget.

SNV Ghana is responsible for the project management and implementation in Ghana. SNV Netherlands’ Development organization is a non-profit, international development organization that has been present in Ghana since 1992 and has a strong track record in fostering sustainable economic development (production, income and employment) in agriculture and tourism. Other key sectors were education, health and NRM. Due to a global strategy review from 2011 the focus has changed to agriculture, WASH and renewable energy. TVET (Technical Vocational Education Training) is a cross cutting sector. 20% of the project budget will be contributed by SNV Ghana.

The Ghanaian partner is Opportunities Industrialization Centre Ghana (OICG). The Centre has a solid reputation and an extensive track record in technical TVET in a variety of sectors. OICG is one of the biggest national training institutes and has been targeting a variety of unskilled and semi skilled workers and more particularly underprivileged segments of society like women and youth. OICG has training centres in Accra, Kumasi and Takoradi. OICG contributes 20% of the allocated budget to the project.

An MOU has been signed with the National Vocational Training Institute (NVTI) aiming at a close cooperation in making the HITT project a success in Ghana. This public institution has been playing not only the leading and coordinating role in TVET in Ghana as a body for accreditation and certification. NVTI is the biggest technical vocational training institute in Ghana, with a nationwide coverage. It has a

11

special focus on training unskilled and semi skilled people. NVTI is a key stakeholder in achieving the objective to close the gap between informal and formal vocational education and training in Ghana.

HITT Ghana will be prepared and implemented in partnership with leading enterprises in the hospitality sector.

The success of HITT depends on a close co-ordination and co-operation with key institutions from the public and private sector. They will be represented in the HITT Steering Committee.

The actor constellation map below provides a comprehensive picture of relevant actors and institutions

12

13

2. Methodology The HITT methodology is probably the trade mark of the project. It is a pioneer approach that has been developed and has been evaluating over the inception phase. The concept of industry demand driven and labour market oriented curriculum was embraced by partners and stakeholders from the onset. In Ghana competence based learning has become a buzz word, but in practice hardly any systematic research was done so far to provide the data needed to implement this approach. Some parts of the HITT research methodology proven to be a challenge to the HITT Ghana Team. In hindsight too much energy was put in getting the initial HITT methodology implemented. This merely quantitative approach came closest to the traditional type of research that the HITT team was used to. The HITT research was already in a very advanced stage of preparation when the new methodology was introduced in July 2011. The field research was done in August-September 2011, after a considerable delay because of contracting issues. After the first data processing at the end of October 2011 it also became clear that the targets of the initial research were not all met and that actually the larger tourism businesses were not covered. It was agreed that more input from key players in the industry was needed to comply with a real demand and industry driven approach. A new activity plan was accepted by all members the HITT Ghana team. This activity plan was delayed by excessive work loads of team members, but this inception report is the long awaited result. It has to be stressed that the process of getting to this report has been characterized by a steep learning curve. Achievements in terms of capacity building make the process as important as the result.

2.1. Quantitative research plan for HITT Ghana

2.1.1. Background As stated earlier, a key bottleneck in conducting the HITT research is the limited availability of reliable, accurate and up-to-date data and statistics at national as well as at destination level. This concerns the tourism sector and its sub-sectors, as well as the labour market and the informal tourism economy. Therefore primary data collection had to form part of the research. An advantage is that in two out of three destinations selected, Value Chain Analysis and/or VCA related research has been conducted through SNV. Although competency based TVET has been accepted as a leading principle; systematic labour market research and active involvement of the industry in curriculum development and practice learning has been limited. The HITT approach is therefore a highly innovative approach in Ghana. This makes the implementation of the HITT methodology also to a challenge for partner, client and key stakeholders.

14

2.1.2. The research set up The research approach presented here is based on: 1. the ambition to present a research report that would have national coverage

2. the need to collect reliable data at national and destination level

3. the fact that partner and/or client have presence in the 3 regions, which are the most important tourism regions in Ghana. This would

enable data collection on site at a large scale at a relatively low cost

4. proven capacity of client and partner in survey based research

5. lack of experience of partner and client in tourism sector and in tourism related research

This has lead to an approach in which questionnaires were designed for 4 different segments and target groups, as much as possible based on the HITT methodology: 1. informal workers in the tourism industry. Informality is hidden by its nature and to our knowledge no research has been conducted on

informal workers. An assumption is that informality can be found throughout the tourism economy and not only in MSME. Especially in jobs

that are considered to be low skilled or semi skilled, like housekeeping, security and waiters, a high level of informality was suspected. It is

however a challenge to get to these informal workers, as managers of tourism establishment will generally not allow this research.

2. self employed in the tourism industry. Also about this segment there are hardly any reliable data. Given the small scaled character of the

tourism industry and its sub sectors, it is expected that this sector is very relevant and substantial. The business environment has not been

very conducive and limited support has been available. Formal registration would be a cumbersome process generating limited benefits,

whereas it could lead to additional levies, taxes and licensing issues. The level of informality is expected to be very high. The research will

have to test this assumption;

3. MSME in the tourism sector (<10 employees). Given the relatively small scaled and scattered nature of the tourism sector; the informality of

this category is again expected to be substantial. In urban as well as rural areas, drinking bars (“spots”), small snack bars/local restaurants

15

(“chop bars”) are uncountable. Also subsectors like crafts, transportation and even accommodation could be dominated by MSME. MSME

have a double importance in this research: they form in their majority part of the informal sector and could be potential beneficiaries, but

they are also important as (potential) employers of HITT trainees. This category should also form part of the labour market research.

4. “Large” tourism enterprises (>10 employees) are interviewed as part of the labour market research in order to identify relevant job profiles

and curricula. These enterprises could also play a crucial role in “in company training”. Their role in employing informal labour was not the

main focus of the questionnaire, as this sensitive issue could make respondents reluctant to participate actively in HITT implementation.

2.1.3. Geographical coverage Given the ambition to produce a report with national coverage, the following regions have been identified as research areas:

Greater Accra (business tourism, hub for international tourism)

Central Region (eldest tourism destination in Ghana with emblematic slave forts, beach tourism, Kakum NP)

Western Region: (Upcoming tourism destination: beach tourism, slave forts, booming business tourism from oil and mining industry)

2.1.4. Value Chains The geographical selection also covers to a considerable extend two leading value chains: 1. Business tourism (Greater Accra). Business tourism, especially international business tourism, is concentrated in Accra. As Ghana is a safe and politically stable country, also international organizations, including INGO’ s use Ghana as a meeting point. Some resorts in the Central and Western Region also offer MICE facilities. The mining industry has been an important source of revenue and oil is becoming increasingly important. The West Coast and its capital Takoradi, as a booming oil city, will see its business tourism increase, but will also benefit from the number of people working in the oil industry who want to spend leisure time on the beach. 2. Leisure tourism has two major sub segments: beach tourism and eco-tourism. Beach tourists stay mainly in resorts, hotels and lodges. The beach and beach related activities are the main purpose of travelling, but excursions to slave forts, protected areas and cultural events as well as nature based activities as whale and marine turtle watching and even sports angling can form part of their program. Eco-tourism (Broader definition is used here: orientation towards enjoying nature and culture, including protected areas, local culture and cultural heritage and community based tourism ( CBT) is the main motivation for travelling)can be found all over the country and especially offers tourism

16

opportunities for those areas in Ghana that are basically land locked and that have important natural and cultural resources. Volunteer tourism is another important value chain, but there are no reliable statistical data. I is expected that in the research areas beach tourism will be predominant. Unfortunately the resources for a more comprehensive focus were not available. Field and desk research will justify the most relevant value chains for intervention. 2.1.5. Value Chain sub sectors Four sub sectors are identified in the HITT project proposal:

Accommodation

Food and beverage

Souvenirs/ handicrafts

Guiding and excursions.

These 4 sub sectors cover most of the tourism spending at in-country level and therefore cover virtually the whole in-country VCA apart from the sub sectors ground handling, tour operating and in-country transportation. The research will have to identify the most relevant sub sectors for interventions and their respective job profiles. 2.1.6. Sample As no data are available at national and regional level the sample sizes were based on the estimated relative importance of each segment. It was important to make sure that the numbers for different segments are high enough to enable relevant analysis and meaningful statistical elaboration. This has lead to the following sampling at segment level

17

Category Number (N)

Large tourism enterprises 50

MSME/community enterprises

200

Self employed 150

Dependent workers 200

Total number of surveys 600

The questionnaires were based on the first HITT manual and were adapted to the local context. They can be found in Annex…

2.2. Focus groups with key private sector enterprises in Western Region and Central Region

As part of the HITT inception phase research three focus groups were organized for key industry managers and other actors at regional level in two of the most important tourism destinations in Ghana. The focus groups were considered to be of vital importance in order to get direct input from key industry players about the needs for training and to identify potential job profiles and their main qualifications. Two focus group sessions were organized in the Western region, with support form the Ghana Tourism Authority Regional Manager and the West Coast Destination Management Organisation. One focus group session was organized for hotels in Takoradi. In this session most of the hotels were middle class, medium size local enterprises, merely catering for domestic markets. The other session was organized in Axim Beach Resort. Here the owners/ managers of three emblematic resorts were present. Two of them have a European background, one of them is a Ghanaian with a strong international orientation. The international orientation is reflected in their client base. The third session was organized and hosted by the Tourism Department of CEDECOM, the Central Region Development Commission in Cape Coast and included a wider variety of actors (regional hotel association, Kakum National Park, restaurant owner, resort owner and manager; regional GTA manager, tour guide/ tour operator and CEDECOM tourism department manager and staff.) All sessions lasted between 2 and 2.5 hours due to time constraints of private sector actors, but were very constructive and productive and created a good basis for the project.

18

2.3. Lessons learned from research

The cross cultural differences between countries in the interpretation and implementation of a global programme should not be

underestimated. In Ghana it has been a challenge to get a common understanding of the HITT approach and to work with it accordingly,

despite the detailed manuals that were developed. Partners seemed to feel that the methodology was imposed on them, rather than being

a product of the HITT Ghana team. Ownership for the methodology has been developing slowly;

In this context distance coaching from HITT corporate can be ineffective as it is too far away to appreciate local realities and as coaches in

the end are not responsible for the result;

In Ghana the HITT inception research has been very challenging as tourism development and the development of a demand oriented TVET

sector are at an early stage of development. Reliable and recent existing data are scarce and accessibility of data is limited. In hindsight a

more simple and straight forward approach might have been more in line with local conditions. The industry can easily define key growth

areas, core occupations and their qualifications;

As HITT is an innovative and to a certain extent experimental programme, it is inevitable that during the implementation changes in logical

framework and methodologies are made. These changes can create confusion among partners, especially if they are not involved in the

discussion and in the re-design. In terms of capacity building and demand oriented approaches HITT has been a big success. The HITT Ghana

team went through a steep learning curve;

The combination of quantitative and qualitative research has proven to be successful in a context where reliable quantitative data are not

readily available;

The quality and reliability of research data depends on the capacities of the research team and its sense of ownership for a methodology and

a research plan. A more participatory approach in the development of the methodology would have been more fruitful. In the HITT research

it became clear that field staff had difficulties to target the defined segments and to interpret the selection criteria and the items of the

questionnaire properly. In hindsight a two day training for field staff was insufficient; more field testing should have been done and

monitoring should have been more strict to avoid deviances from the research plan that have affected validity and reliability of some

research data;

19

Informality might not be a valid selection criterion for participation in the HITT project in a country where informality reigns. It disqualifies

enterprises who have been maintaining high ethical standards by formalizing all their staff. It also disqualifies formal staff in low skilled

positions with poor salaries. There is no clear boundary between formality and informality and grey zones are omnipresent. It is difficult to

assess if workers, self employed and MSMEs have a formal status. Research has provided evidence that individuals as well as enterprises

may meet some criteria for formality, but at the same time clearly lack others. That makes common definitions and understanding of

formality complicated. Too many enterprises, especially in the MSME segments, make use of high unemployment rates and weak legal

protection of employees to dodge regulations. Even clear cases of exploitation have come to light

20

3. Tourism Context and Market Analysis

The purpose of the tourism context and market analysis is to identify and select most suitable geographical areas (destinations/micro-clusters) for programme intervention. This will be done by: 1. Conducting a quick scan of the tourism sector (including identification of tourism contribution to local economy, key market actors and

policies influencing tourism development) (Step 1) 2. Developing an understanding of the market demand and growth potential of the tourism sector (Step 2) 3. Identifying and selecting geographical areas (destination and/or micro-clusters) for planning and implementing programme interventions

(Step 3)

OUTPUT: Geographical areas (destinations/micro-clusters) for programme

intervention selected

Step 1 Quick scan of the tourism sector

Step 2 Understand market demand and tourism growth potential

Phase I: Tourism Context and Market Analysis

Step 3 Identification and selection of geographical areas for programme intervention

21

3.1. Introduction

Ghana has a central location in West Africa. It shares borders with Togo to the East, La Côte d’Ivoire to the West and with Burkina Faso to the North. To the South the coast line of the Gulf of Guinea forms a natural border.

Ghana currently enjoys a boom in its economy, leading to sustained growth rates that even have reached double digits over the last years. This it

owes to its new oil find and the varied and vast mineral resources. Ghana is also one of the main cocoa producers and its agricultural production

is still a solid base under the nation’s economy. The service sector has been showing high growth rates and the tourism sector is no exception.

Although the business environment is not yet very conducive, the private sector has become more robust. This has created good business

opportunities for Ghana leading to more business related tourism. Ghana has recently entered into the category of low middle income countries,

although considerable pockets of poverty remain.

The Republic of Ghana has been enjoying democratic governance since January 1993. It is one of the most stable states in the West African sub-

region. The capital city is Accra. Available estimates from 2011 population census secretariat put Ghana’s population at approximately 24.2

million of which 16.1% lives in the Greater Accra Region and 19.5% in the Ashanti region (capital Kumasi). The average population growth has

decreased from 2.7% annually in 2000 to 2.3% in 2010. Over the last decade the population has increased with 28%1

3.1.1 Tourism in Ghana: 2 With less than 1 million international tourists per year, of which only 19% of leisure tourists, and a domestic tourism that is in its infancy, the relative importance of Ghana as a tourism destination is extremely limited.

Ghana has many natural attractions: from sandy palm-fringed beaches, forested hills, grassy plains and a dense rainforest. The list of man made attractions features the largest man-made lake in the world, Lake Volta. Ghana is famous for its old trading forts and castles, remnants of early colonialism and of the sad history of slave trade. Popular tourist activities include visiting casino’s, shopping at the craft markets of the Centre for National Culture; drumming, dancing and feasting at one of the many cultural festivals; hiking and exploring the savannah and rainforest;

1 Ghana Statistical Service 2010 Population and Housing Census, Provisional Results, Accra, February 2011

2 Partially based on: Environment Business & Development Group (EBDG) & Yellow Railroad International

Destination Consultancy (2011) Tourism Value Chain Analysis: Kenya, Mozambique, Ghana – Part 4: Tourism in the Western and Central Regions of Ghana. London, UK: EBDG

22

water sports on Lake Volta; canoeing through the mangrove jungle of the Ankobra River; bird watching on the numerous islands whiles canoeing through the mangrove jungle of the lower Volta River just before in enters the Sea at Ada.

As an international tourism destination Ghana is still in its infancy, but it has been growing fast with an average annual 17% growth rate. The number of international arrivals has more than doubled from 2005 to 2010, as have the tourism receipts.

Table 1: International tourist arrivals and receipts3

Year Arrivals % growth Receipts (US $ ‘m) % growth

2005 428,533 836.09 2006 497,129 16.0 986.8 18.0 2007 586,612 17.9 1,172.0 18.7 2008 698,069 19.0 1,403.1 19.7 2009 802,779 14.9 1,615.2 15.1

2010 931,224 16.0 1,875.0 16.0

As the Ghana Tourism Authority (GTA) table below shows, the breakdown of incoming tourism has not varied much between 2005 and 2009. People arriving with the main purpose of a ‘Holiday” only represent an average 19% of total international arrivals, whereas MICE (“Business” and “Conference/Meeting”) travellers account for around 30%. Visiting Friends and Relatives (VFR) is the main purpose of travel for 25% of visitors. As part of MICE and VFR leisure tourism4 activities can be undertaken. The average tourism spend has been steady around US$2000 per visitor per trip from 2005-2008, whereas the length of stay showed a marginal increase (from 10.67 to 11.00 days). The average spending per day seems to be stagnant. Domestic tourism is still in an early stage of development and numbers of trips are fairly low compared to international/ incoming tourism: 380,243 visits were registered in 25 attractions in 2010, almost doubling the 2006 figure5.

3 GTA 2011: GTA data provided for this research in October 2011

4 GTA 2011, GTA data provided for this research in October 2011.

5 is based on visitor registrations at 25 tourism attractions/sites, it cannot be compared to incoming tourism)5.

23

Table 2: International tourist arrivals by purpose of visit 2005 – 20096

Purpose 2005 2006 2007 2008 2009

Business 92,840 (22.1%)

108,473 (21.8%)

146,653 (25%)

160,556 (23%)

184,639 (23%)

Conference/meeting 36,687 (8.6%)

39,661 (8.0%)

58,661 (10%)

62,826 (9%) 72,250 (9%)

Study/training 28,707 (6.6%)

41,125 (8.3%)

52,795 (9%) 55,846 (8%) 64,222 (8%)

VFR 113,839 (26.5%)

125,388 (25.2%)

129,055 (22%)

174,517 (25%)

192,667 (25%)

Medicals 4,308 (1%) 5,429 (1.1%) 5,866 (1%) 6,981 (1%) 8,028 (1%) Holiday 83,030

(19%) 98,555 (19.8%)

105,950 (18%)

132,633 (19%)

160,556 (19%)

Transit 48,662 (11.4%)

52,913 (10.6%)

58,661 (10%)

69,807 (10%)

80,278 (10%)

Others 20,460 (4.8%)

25,585 (5.1%)

29,331 (5%) 34,903 (5%) 40,139 (5%)

3.1.2. A quick scan of tourism supply and tourism potential Ghana apparently has few Unique Selling Points or “must sees” for tourism, apart from the emblematic slave forts along the coast. In terms of eco-tourism Ghana (and Western Africa) cannot compete with the famous wildlife, rich biodiversity and intact landscapes of Eastern and Southern Africa. The natural environment has been suffering from ongoing deterioration for decades due to excessive timber production (an estimated 3-4 times the natural regeneration capacity of forest resources over the last decades); hunting and poaching and other unsustainable land use practices (charcoal and firewood production; bushfires; and clearing mountain slopes for agricultural purposes leading to erosion). In terms of culture however, Ghana is definitely competitive due to the rich ethnic diversity and related living culture, such as festivals, handicrafts and the traditional ways of life. An important cultural feature is also that Ghanaians are very welcoming to visitors. Tourists can get into the heart of communities and even participate in daily life activities and celebrations, without feeling like intruders. This authentic

6 GTA 2011: GTA data provided for this research in October 2011

24

interaction adds a strong human dimension to the cultural experience and caters for the growing demand for real life experiences and encounters. Hospitality is also a powerful volunteer tourism resource. Ghana is the only English speaking country in the sub-region. This is an advantage for most European markets, although a disadvantage for the francophone market. Ghana’s beaches are attractive as they offer extensive white sand beaches and palm trees, but not they are competitive with international standards. Although most of the coastline outside urban areas is still relatively virgin and features a rich traditional fishing culture, in many areas the ocean is dangerous for swimmers due to strong currents and violent waves. Pollution and sand depletion are major challenges. Extended lagoons are abundant and, despite poverty driven degradation, they offer unique eco-tourism opportunities that have been remaining largely unexploited. The coast offers seasonal sea turtle and whale watching. Business tourism is competitive due to the central location of Ghana in the sub region, its safety and political stability. Most of the international business tourism is concentrated in Accra where international standards are met and where increasing demand seems to create its own additional supply. Availability of qualified human resources and high prices for building plots, real estate and construction are other bottlenecks. The chronic and increasing traffic congestion in Accra leads to serious transportation problems. Business visitors loose a lot of time in traffic and it is a challenge to have more than two meetings at different locations on the same day.

Domestic business tourism should not be overlooked, as it is of considerable importance. The value chain analysis on business and conference tourism that was conducted in Accra in 2009 states that: “(…)hotel surveys reveal the large number of domestic business tourists who are ‘invisible’ in official tourist statistics in addition to ‘budget’ foreign travellers. Hotel surveys suggest that, whilst about 336,224 foreign business and conference tourists stayed in hotels in Accra in 2008, there were also about 105,038 domestic business tourists also staying in hotels.7” In regional capitals and major cities the number of accommodation providers seems to be increasing rapidly. Due to their central location, good accessibility and more reasonable pricing cities like Kumasi and Tamale seem to be gaining importance.

According to the World Economic Forum Travel and Tourism Competitiveness Report of 2009, Ghana is reasonably competitive compared with other countries in West Africa (ranked 3rd out of nine countries), but it is not competitive in Africa (22nd out of forty countries) and is highly uncompetitive on a global scale (ranked 110th out of 133 countries in 2009).8

7 Coles and Mitchell, 2009, p. 19

8 Coles and Mitchell, 2009

25

3.2 Overview of Ghana

3.2.1. Structure of the Tourism Sector Ghana’s tourism sector is relatively small in scale. Although the number of international hotel chains investing in Ghana has been increasing, they are mostly located in Accra and rarely include more than one hotel. Golden Tulip has hotels in Kumasi and Accra. International business tourism, concentrated in Accra, is the value chain with highest spending tourists. Luxury hotels like Golden Tulip and La Palm Golden Beach have single room rates of US$320. The number of up market hotels in Ghana has increased significantly in recent years, including international brands like Moevenpick, Hilton, Best Western, Golden Tulip, Novotel (Accor group), Holiday Inn (PFO group). Domestic brands like Alisa, Golden Beach Hotels, African Regent and Coconut Grove target the same market segment and offer international standards. Most of the international hotels are owned by foreign investors and are under franchise that can include management contracts. General managers are often foreigners. It appears that most MSME in the sector are owned by individual entrepreneurs or are family businesses. It is estimated that less than 25% of tourism entrepreneurs have a relevant education and/or training in tourism/hospitality. Tourism education is still in its infancy. A considerable number of the lodges, resorts and restaurants are owned or managed by foreigners or Ghanaians who spent part of their life abroad. 3.2.2. The Market Environment for Tourism Businesses and Employment The tourism environment in Ghana has a strong potential to grow. Projections from both the World Travel and Tourism Commission and Ghana Tourism Authority (GTA) show a growth projection of between 37 and 38 % in the next 10 years and puts job requirement is at 5,000 per annum. The growth has been steady. Figures received from GTA confirms that direct employment as at 2009 stands at 75,765 while indirect stands at 187,392 bringing total employment to 263,157 that of 2010 has not been broken down yet but the total employment is 291,202. This means a growth of 10.7%. There were no records on seasonality, full time and part time. Interactions with key players in the accommodation sub-sector of the hospitality industry put growth at 30% in the next five years in the research area. This means that the potential to take in more staff in the research area is great. These same industry players from the survey area (i.e. Accra and Takoradi) believe that there will be human resource deficit in the job market i.e. the experienced and qualified staff to fill the many vacancies that will be created with the growth in the sector. This growth will be spread countrywide. The only issue is that the HITT project is not covering the whole country and therefore may not enjoy the full benefit of this boom for its trainees.

26

The growth of the tourism contribution to the country’s GDP growth has been consistent. Looking at it from 2003 to 2010 it has been growing steadily. In 2003 the estimated growth rate was 4.7%, reaching a growth rate of 6.9% in 2010 and getting to 7.1% in 2011. [Ghana Statistical Service (GSS) and MoT]. The strong growth in the recent years is even more remarkable given the global economic downturn. 3.2.3. The policy environment A tourism analyst Richard Debrah concluded already in 2003: “The planning and re-planning of strategies in the quest to develop a viable tourism industry for Ghana seems to have become a never to be concluded ritual (…)Ghana’s tourism development projects started in the early 1980s with the Medium Term Tourism Development Plan of 1983-1995. This plan sought to promote leisure and business travels to Ghana and within Ghana. Then came the National Tourism Policy (NTP) in 1987 which focused on promoting three different types of tourism: in-bound international tourism, regional tourism and domestic tourism. The NTP was replaced by another development plan, termed the Integrated Tourism Development Plan (ITDP) which is supposed to span the period 1996-2010. The ITDP aims to make tourism Ghana’s leading income earner by the year 2020. The ITDP is still in place but the Tourism Capacity Development Initiative (GTCDI) is already taking its place as yet another development strategy.”9 Little has changed since 2003, despite numerous initiatives based on foreign and domestic support. Over the last decade several INGO’ s and donor programs have been supporting tourism development initiatives, like the Ghana Tourism Cluster Project, the Public Private Partnership in Tourism and the Tourism Marketing Strategy 2009-2012. Government plans have been announced to promote domestic tourism in general and the development of historical, cultural and natural heritage sites as well as craft markets. However, few of these strategies, policies and initiatives have been fully implemented and sustainable results are rare. Ghana Tourist board recently was upgraded to an authority and given a greater mandate to be able to generate its own resources and also better manage the sector. This was achieved with the passage of the new Tourism Bill (2010). With the passage of this bill, the GTA now has the mandate to regulate the tourism industry. As part of the policies in the sector, the Ministry of Tourism (MoT) and Ghana Tourism Authority (GTA) created the Hotels Catering and Tourism Training institute (HOTCATT) to train s resource needs of the industry. This same policy mandated Ghana Tourism Authority to license all tourism businesses in Ghana and the Internal Revenue Authority to formulate and implement policies with regards to taxes and tax reliefs to all

9http://www.ghanaweb.com/GhanaHomePage/features/artikel.php?ID=37748; consulted April 20th 2012

27

businesses in Ghana. This same policy created Ghana Investment Promotion Centre (GIPC) who by law are to create a good and healthy investment climate and invite investors into the Country and crested Registrar Generals’ Department (RGD) who are to register all companies and organizations of all prospective investors both local and foreign and legalize their operations in the country. Generally, the business environment has not very conducive, all the same one can weather it.

3.3. Key Actors in Development of Tourism

For the tourism sector to succeed attention must be paid to the various organizations, institutions and Associations that play the numerous roles to make the sector to operate. These can be coming from either the public or private sectors or from either local or international NGOs. They either operate at the national, regional or district levels or at just one two or all the levels. Currently the public institutions working in the tourism sector are the Ministry of Tourism (MoT), Ghana Tourism Authority (GTA), the Regional Coordinating Councils (RCCs) and Metropolitan, Municipal and District Assemblies (MMDAs). These public institutions play specific roles to make sure that there is information flow from national to the districts and vice versa. The role of the ministry is to formulate policies and projects and it is the duty of GTA implement and also to pass on these to the regional coordinating councils and district assemblies to also implement at their levels. 3.3.1. The Public Sector: Under the public sector come all the governmental institutions. The institutions are the Ministry of Tourism (MoT), Ghana Tourism Authority (GTA), Regional Coordinating Councils (RCC) and the Metropolitan, Municipal and District Assemblies (MMDAs). Ministry of Tourism (MoT). This is the ministry with the mandate to promote tourism in the country. It is also to formulate policies that will help create the necessary environment for tourism investment to take place. These policies are to affect the legal, investment and marketing environments in which tourism will thrive. These supports seem to be very low. They have not been able to provide effective guidance and support to the development of the tourism industry. There seems to no strategic approach to tourism development and none of the strategies mentioned was implemented successfully. SNV supported them to prepare with funding from JICA even that remains to be implemented.

28

Ghana Tourism Authority (GTA) GTA is by law the implementing agency of the Ministry of Tourism and should therefore be one of the cornerstones of tourism governance. Like the Ministry, it has limited resources and capacity. The new Tourism Bill (2010) re-defined the role of Ghana Tourist Board and upgraded it into an Authority with more autonomy in terms of its mandate and its capacity to generate income from tourism development activities. This Bill also focuses on decentralization by strengthening the role of the districts. This bill however, did not re-define the mandate of the Ministry of Tourism. This means that the will still have to stick to their initial mandate as the tourism policy maker/developer whiles the GTA implements them together with their new mandate. It is not very clear if this new mandate will result in any significant improvements in their practices. The GTA has their head office in Accra with eleven regional offices in Ghana. These offices can play a pivotal role in tourism development in their various regions and should have supervisory roles in Metros, Municipalities and District Assemblies. Some regional offices have been successful in playing their coordinating roles: these have mostly depended on the personality, capacities and motivation of the regional manager and their key staff. In the regions the bulk of their work has been licensing, inspection, protocol and other assignments as they are assigned from the head office. The Ghana Tourism Authority Law (Act of Parliament 817), approved in May, replaces the old Ghana Tourism Board (GTB) with the GTA. This new body will play a more wide-ranging and proactive role than the tourism board – a non-profit organisation – which was more of a regulatory body. The GTA retains many regulatory functions. It is able to develop and manage tourist sites and is responsible for ensuring the safety and security of tourist products. It is hoped that its powers will help drive up standards in the sector. At present, service quality is variable, and a significant unlicensed segment operates. One of the new body’s first moves will be to establish and oversee a tourism development fund (TDF), financed by a 1% levy on tourism products. The TDF will help fund the tourism authority, supplemented by seed capital from the government and donors, as well as the organisation’s own profit-generating activities. The fund is expected to support promotion and marketing, education and training, and associated industries such as handicrafts. The GTA will also start to decentralise its operations to encourage greater decision making at the local level. The Regional Coordinating Councils (RCCs) The RCCs are the political authority at the regional level. They are the direct representative of the government. This gives them the power to coordinate every activity in the regions. The RCCS are responsible for economic policy formulation and implementation at regional level. They

29

also approve district budgets for project implementation and other developmental activities. They normally work close association with the regional GTA managers to get tourism activities done in the regional capital. Metropolitan Municipal and District Assemblies (MMDAs) Because of decentralization the Metropolitan, Municipal and District Assemblies (MMDAs) are in a better financial position than RCCs when it comes to Governance at regional and local level even though their budget approval comes from the RCCs. Under the new Tourism Bill all districts are required to have a tourism officer and to set up Tourism Development Organisations at District level. The MMDAs are also responsible for economic planning in their various districts. For that matter they are required by law to include tourism in their Mid Term Development Plans. The capacity of the MMDA in tourism governance is in general relatively low. 3.3.3. The Private Sector There are a number of associations in the private tourism sector. Given their considerable numbers and their diversity bigger umbrella associations are mainly responsible for sector advocacy. One of the umbrella associations is Ghana Tourism Federation (GHATOF). GHATOF has 13 member associations and 6 affiliate organizations. Three of the major national associations operating under GHATOF are Ghana Association of Travel & Tour Agents (GATTA) Tour Operators Union of Ghana (TOUGHA), Ghana Hotels Association and Ghana Restaurants & Nightclubs’ Association. (http://www.ghanatourismfederation.org/ghatof/membership.html) 3.4.3. International and domestic Non-Governmental Organizations Local and international NGOs have been recognizing the role of tourism as a tool for sustainable development and poverty alleviation. INGO’s like JICA, GIZ, Ricerca e Cooperazione and SNV have been supporting tourism development from different angles, like business development, decentralization, conservation and natural resource management and poverty alleviation. SNV has supported multi-stakeholder platforms, in most cases destination management organizations (DMOs): West Coast DMO from Western region, Savannaland DMO from the Northern region and Volta DMO from Volta Region until the decision was made at corporate level to exit the tourism sector in 2011. Prominent among local NGOs are Ghana Wildlife Society, NCRC, AROCHA, GREET and COSPE. It seems that most NGO’s do no longer consider tourism to be a priority sector. UNWTO has been supporting STEP projects in the Northern and the Western region in cooperation with NGOs. UNWTO and UNIDO have been supporting a tourism project in Ada Foah (Greater Accra Region) under the COAST program. World Bank, UNDP, USAid and others have been supporting more generic programs (Integrated Coastal Management, MSME support) with a tourism component.

30

3.4 Macro environment

The macro environment examines the general business climate towards a profile of the national tourism sector. The macro environment is primarily concerned with major issues and upcoming changes in the economic, political-legal, socio-cultural and physical environment that influence and shape the country’s tourism industry. 3.4.1 Economic Overview Estimated statistics from 2010 showed that Ghana had an overall GDP of US$ 61.97 billion, which comes down to a GDP per capita of US$ 2,500. (2011) Ghana’s GDP composition by sector includes:

Agriculture 32.8%

Industry 14.4%

Services 52.8%. Additionally, labour force by occupation is divided as:

Agriculture 75%

Industry 7%

Services 18% This could imply a low productivity in the agricultural sector; a high productivity in the industrial sector and a very high productivity of the service sector (of which tourism forms part). The estimated labour force as at 2010 stood at 10.56 million.

3.4.2. Trends in Tourism Demand at Country Level 3.4.2.1. Source Markets10

10 Environment Business & Development Group (EBDG) & Yellow Railroad International

Destination Consultancy (2011) Tourism Value Chain Analysis: Kenya, Mozambique, Ghana – Part 4: Tourism in the Western and Central Regions of Ghana. London, UK: EBDG

31

The market source of tourist in Ghana has been mostly from Europe North America, Other African countries and the rest coming from Asia, South America and Oceania. These are largely from EU countries. Table 1 mentioned count for 143,000 or about 20% of the international tourism arrivals in 2008. It should however be taken into account that this is only a figure for 6 of the EU countries, even if the whole of Scandinavia could be considered to form part of the EU.

Table 3: International tourist arrivals from international markets 2006-2008

Number of Arrivals (in thousands)

Country 2006 2007 2008 USA 62.8 76.9 86.8 UK 36.8 50.4 58.1 Germany 17.1 21.8 26.4 France 11.9 12.9 15.2 Netherlands 14.7 18.3 21.6 Canada 11.1 16.3 18.8 Switzerland 2.1 2.9 3.5 Scandinavia 8.6 11.7 14.8 Italy 4.6 5.9 7.5 Cote d'Ivoire 25.9 26.3 35.5 Nigeria 56.3 66.4 79.0 Togo 13.9 17.2 22.0 South Africa 11.0 16.3 19.8 Overseas Ghanaians 67.0 69.2 79.6 Other 153.3 174.1 209.5 Source: GTA Fact Sheet 2010

The 2006 number of European arrivals is 93,700 or 21%. Compared to the 136.500 of three West African countries (excluding neighbouring countries like Benin and Burkina) in 2008, the market share is similar. Several respondents identify Nigeria as a growth market, especially for weekend tourism. USA and Canada account for 15%. Unfortunately the countries of origin for 30% of the arrivals are not identified (“Other”). The data are very general and do not allow a break down in leisure tourist profiles. Overall reliability of the data could be questioned. The monitoring tools for visitor data are not known and the status of the sources of information used is not clear. Currently there is movement towards Ghana from Nigeria because of agitations from the socio-political front. This has led to influx of many Nigerians to Ghana. The same was the trend with La Cote d'Ivoire during their political crisis. Ghana is taking advantage of all these occurrences

32

to shore up its tourist arrivals. In this case we are not looking at those at the refugee camps but those living in our hotels and enjoying both accommodation and restaurant facilities. The 2009 and 2010 figures in table 2 (no breakdown available) show a sustained growth, despite the global economic downturn there was still growth.

Table 4: International tourist arrivals and receipts

YEAR ARRIVALS % GROWTH RECEIPTS (US $ ‘M) % GROWTH

2005 428,533 - 836.09 -

2006 497,129 16.0 986.80 18.0

2007 586,612 17.9 1,172.0 18.7

2008 698,069 19.0 1,403.1 19.7

2009 802,779 14.9 1,615.2 15.1

2010 931,224 16.0 1,875.0 16.0

Source: GTA FACT SHEET 2010

3.4.2.2. Market Segments Tourists visit for a number of reasons. It is these reasons that create the segment and determine the market. From the table 3, below, it is clear that visitors who visit Ghana do so for either of the reasons below or a combination of them; for business and or conference/meeting or holidays, for medical attention, for VFR, for transit or for ‘others’. These ‘others’ too could come up if the immigration forms were not well filled out and with this data from any of the reasons could wrongly find its way there. We are not very sure the efficiency of the tools used to gather the data in table 2 below. In Africa there are also a lot of unapproved routes through our loose and porous borders. This might even not be a true reflection of visitors into the country in any of the periods mentioned.

Table 5: International tourist arrivals by purpose of visit 2005 – 2009

Purpose 2005 2006 2007 2008 2009

Business 92,840(22.1%) 108,473 (21.8%) 146,653 (25%) 160,556 (23%) 184,639 (23%)

33

Conf/Meeting 36,687 (8.6%) 39,661 (8.0%) 58,661 (10%) 62,826 (9%) 72,250 (9%)

Study/Training 28,707 (6.6%) 41,125 (8.3%) 52,795 (9%) 55,846 (8%) 64,222 (8%)

VFR 113,83 (26.5%) 125,388 (25.2%) 129,055 (22%) 174,517 (25%) 192,667 (25%)

Medicals 4,308 (1%) 5,429 (1.1%) 5,866 (1%) 6,981 (1%) 8,028 (1%)

Holiday 83,030 (19%) 98,555 (19.8%) 105,950 (18%) 132,633 (19%) 160,556 (19%)

Transit 48,662(11.4%) 52,913 (10.6%) 58,661 (10%) 69,807 (10%) 80,278 (10%)

Others 20,460 (4.8%) 25,585 (5.1%) 29,331 (5%) 34,903 (5%) 40,139 (5%)

Source: GTA Data 2010 fact sheet

From the data in table 3 above, it is clear that those who are here for business and conference top the list with 32% or approximately a third.

This confirms interview the outcome of the interview with some selected key stakeholders operating in the accommodation and Food &

beverage sub-sector of tourism from Accra and Takoradi. These key informants confirms that more than 50% of their clients are for business and

conferencing and the remaining are for either medicals, holidays, to visit friends and relatives, on transit, others or a combination of the above.

From this it also clear that accommodation and food & beverage are the sub-sectors that can feature in the study.

Table 6: TOURIST EXPENDITURE 2003-2009

YEAR

AVERAGE EXPENDITURE (US $)

2003 2004 2005 2006 2007 2008 2009

1,344 1,711 1,950 1,985 1,998 2,010 ????

Source: GTA 2010 fact sheet

34

On the average, $2,010 is spent by tourists who stay for the average length of stay of 11 days in Ghana. This expenditure has been rising steadily

from $1,344 in 2003 to its current $2,010 in 2008. There have not been figures from 2010 to date.

Table 7: AVERAGE LENGTH OF STAY

AVERAGE LENGTH OF STAY

YEAR

2002 2003 2004 2005 2006 2007 2008 2009

10.00 10.11 10.58 10.67 11.00 11.00 11.00 ????

Source: GTA 2011 compiled data

From the table 5 above the average length of stay has been increasing slightly from 10 to 11 days from 2002 to 2006; for the remaining 2 years it

seems to have stabilized despite an increased price level.

The numbers of hotels licensed each year have also been on the increase. From 2005-2010 the total increase has been 33%. The number of licensed hotels from 2005 to 2010 nation-wide is =1,797; Rooms = 27,873 & Beds = 34,058. This implies an average number of rooms of 15,5 per establishment. Restaurants licensed from 2005 to 2010 stands at 1,998 nation-wide. (Ghana Tourism Authority) Table 8: NUMBER OF ACCOMMODATION ESTABLISHED NATIONWIDE 2005 - 2010

YEAR

2005 2006 2007 2008 2009 2010

1,345 1,427 1,432 1,595 1,775 1,797

Source: GTA 2011 compiled data

35

3.5 Tourism Profile of Ghana

Travel and tourism is one of the most essential and fastest growing areas of the Ghanaian economy. However, it took the country almost forty years following its independence in 1957 to establish a Ministry of Tourism (MoT). Despite making a late start in travel and tourism for a number of reasons, one of these being political unrest/instability from coup d’états, travel and tourism has been making a significant impact on the socio-economic development of Ghana in recent years. With the return of political stability, Ghana is today the third most important tourism destination in West Africa in terms of tourist arrivals after Senegal and Nigeria. Travel and tourism is also the fourth highest foreign exchange earner for the country, raking about US$1 billion annually. 3.5.1 Entrance of multinational hotel chains boosting growth in hotels

In the past, travel and tourism in Ghana struggled with a limited supply of travel accommodation facilities. However, this problem is being addressed with hotels which meet international standards rapidly increasing. Hotels are receiving a boost as new international luxury hotels are being built or refurbished, most of them concentrated in Accra. At present, travel accommodation represents the largest portion of travel and tourism revenue in Ghana, accounting for 34% of tourist expenditure. Hotel development projects currently underway in the country include Hilton, Marriot, Sheraton, Mövenpick Hotel and Resort. Upon completion, these new hotels will be able to cater to the increasing number of visitors travelling to country. Growth in hotel revenue will also be essential in increasing Ghana’s foreign exchange earnings and thereby enhancing development.

3.6 Benchmarking Ghana as a tourism destination

The VCA for business tourism in Accra conducted by ODI in 200911 identifies a number of bottlenecks and challenges. The business environment for tourism raises a number of challenges for tourist operators in Ghana. The World Economic Forum (2009) assesses the competitiveness of the travel and tourism industry in 133 countries and ranks their performance. Ghana appeared in the index for the first time in 2009 and was ranked 110th place overall – reflecting serious problems with the competitiveness of the destination. Table 1 and Figure 6 below illustrate that Ghana’s business environment for the travel and tourism industry is held back by poor:

11 Coles, C. and Mitchell, J. (2009) A Value Chain analysis for Business Tourism in Accra, SNV unpublished document, Accra

36

Air transport (particularly low number of departures, lack of airport density and quality of air transport infrastructure);

Ground transport (especially the quality of trains, ports and roads); and

Tourism infrastructure (availability of hotel rooms, car hire companies and ATMs accepting Visa cards).

Table 9: Travel and tourism competitiveness index, Ghana 2009

Criteria: Score (1-7 scale) Rank (out of 133 countries)

Overall business environment and infrastructure 2.8 102

Air transport infrastructure 2.5 101

Ground transport infrastructure 2.9 96

Tourism infrastructure 1.8 114

Source: World Economic Forum (2009) Travel & Tourism Competitiveness Report 2009 Note: Price competitiveness index has been omitted because the results could be misleading

A shortage of skilled human resources has also long been a hindrance as it has been contributing to the poor service quality that has been hampering tourism . In 2009, the GTB estimated that only 15% of tourism professionals had formal training.

3.7 Destinations with Market Demand and Growth Potential

3.7.1. Current and Future Demands

Currently the numbers in the attractions are still receiving tourists and the numbers have been on the increase. A cursory look at table 7 below shows a steady and continuous growth in the numbers of three selected destinations over a three year period in Ghana. It is not clear how the numbers were increasing in all the years but revenue in some of the sites went down even though arrivals were going up. A reason could be a high % of school groups and/or more domestic tourists since the entry fees paid by Ghanaians are relatively low. Geographically, areas of tourism development have been Central, Western, Northern and Greater Accra regions. Eastern and Ashanti regions are coming up gradually. This is when one takes out business and conference tourism from the equation. Table 10: SUMMARY OF DOMESTIC TOURISM AND RECEIPTS FOR CENTRAL REGION

37

SITE

2008 2009 2010

ARRIVALS REVENUE (GH¢)

ARRIVALS REVENUE (GH¢)

ARRIVALS REVENUE (GH¢)

CAPE COAST CASTLE

60,074

101,286.70

74,293 92,644.70

83,293

97,234.83

ELMINA CASTLE

60,842

91,704.94

76,109 12,316.72

90,235 108,686.90

KAKUM

121,719

267,016.18 150,884

259,878.99 155,137

112,015.30

TOTAL

242,635 460,007.82 301,286

464,840.41 328,665

317,937.03

Source: GTA Data from 2011 compilation

DOMESTIC TOURISM

Table 11: SUMMARY OF 30 TOURIST SITES - ARRIVALS AND REVENUE IN 2009

MONTH RESIDENTS NON-RESIDENTS TOTAL

ARRIVALS

REVENUE

(GH¢)

JANUARY 18,155 9,888 28,043 72,313.19

FEBRUARY 30,220 9,022 39,242 106,680.76

MARCH 44,562 8,016 52,578 99,864.17

APRIL 29,759 9,534 39,293 93,979.30

MAY 24,910 9,060 33,970 88,755.21

JUNE 27,452 8,730 36,182 85,442.60

JULY 50,409 17,144 67,553 140,225.89

38

AUGUST 34,613 14,265 48,878 107,801.46

SEPTEMBER 18,622 8,095 26,717 90,994.39

OCTOBER 26,685 9,799 36,484 105,756.11

NOVEMBER 35483 9,132 44,615 104,501.06

DECEMBER 34,895 10,735 45,630 170,576.39

SUB TOTAL 375,765 123,420 499,185 1,132,620.13

ANKASA 525 316 841 3,325.86

MOLE 6,908 7,901 14,809 127,557.76

TOTAL 383,198 131,637 514,835 1,263,503.75

Source: 2010 Fact Sheet

3.7.2. Source Market

The source of visitors to the destinations has been mostly domestic. This source has been categorised into residents and non-residents. The table 8 above shows data for 2009 of tourists to 30 selected sites in Ghana.

39

Table 12: SUMMARY OF DOMESTIC TOURISM AND RECEIPTS FOR 25 SITES

Source: 2010 Fact Sheet

Table 13: TOURISTS ARRIVALS AND RECEIPTS OF THE MAIN ATTRACTIONS IN THE WEST COAST DESTINATION MANAGEMENT AREA

Source: Field study compilation of SNV and UCC, (2011 Unpublished)

YEAR

RESIDENTS Arrivals and Growth %

NON-RESIDENTS Arrivals and Growth %

TOTAL Arrivals and Growth %

REVENUE (GH¢) Receipts and

Growth %

2006 198,922 (--) 143,819 (--) 342,741 (--) 563,372.40 (--)

2007 303,668 (52.6%) 113,890 (-20.8%) 417,558 (21.8%) 748,241.18 (32.8%)

2008 289,455(-4.6%) 110,272 (-3.1%) 399,727 (-4.2%) 733,007.00 (-2.0%)

2009 351,155 (21.3%) 108,466 (-1.5%) 459,627 (14.9%) 884,419.06 (20.6%)

2010 380,243 (8.2%) 119,944 (10.5%) 500,187 (8.8%) 902,318.72 (2.0%)

Year

NZULEZO STILT VILLAGE ANKASA FOREST

CONSERVATION

FORT

ANTONIO

CAPE 3

PTS.

LIGHT

HOUSE

FORT

APPOLONIA

TOTAL

Arrivals Receipts

(GH¢)

Arrivals Receipts

(GH¢)

Arrivals Arrivals Arrivals Arrivals Receipts

(GH¢)

2005 4780 8664.00 1296 2413.30 - 292 6368 11077.30

2006 6033 13529.00 1203 2176.80 - 297 7533 15705.80

2007 6567 18196.00 1172 2907.51 186 317 8242 21103.51

2008 8665 25563.10 1088 2376.81 572 528 10853 27939.91

2009 10669 46371.00 743 4034.05 344 1034 12790 50405.05

2010 12821 52624.00 1379 8952.50 599 1030 Oct-Dec 105 15934 61576.50

40

2011 Jan-Jun

6399

24693.00

Jan-Jun

724

6,528.00

Jan-Jun

343

Jan-Jun

391

Jan-Jun

889

8746 31221.00

TOTAL 55934 189640.1

0

7605 29388.97 2044 3889 994 70466 219029.0

7

41

3.8 Selection of intervention areas

After assessing the tourism environment in Ghana it is clearer that the HITT project can be implemented in Greater Accra; Western Region,

Central Region and Ashanti Region. In arriving at these destinations careful thought was given to the type of tourism practiced there. The tourist

arrivals and receipts and rate of growth of tourism infrastructure as gathered from GTA were combined with poverty rates as stated in the

Ghana UNDP MDG report 2011 and the GLSS II (Ghana Living Standard Survey Vol. II by Ghana Statistical Service – GSS).

In choosing Greater Accra the private sector interaction revealed that business tourism ranks higher. Mention was made that and the numbers

of tourist arrivals and receipts at the facilities were increasing and they believed were higher than all the other regions selected. It was also

realised that it had the higher numbers of all categories of hotels and restaurants and also most of the new hotels coming up were in Accra

according GTA and some of the facility operators we interacted with during the validation exercise. Talking about poverty one can find urban

poverty as one visits the slums in Accra. It was realised that if we train in the poverty endemic regions in Northern Ghana which are too far from

the tourism hot spots this might not lead to increases in employment.

In choosing Western region one looked at the new oil find and associated gas find which were the reason business tourism have increased there.

This is complementing the already existing west coast destination management area (WC DMA) which is operational and is recording growth

with each passing year. The numbers of hotels coming up according to the Regional Manager of GTA is encouraging and will require

correspondent increase of human resource capital with the requisite capacity to work there. The region also has pockets of poverty especially in

the fishing communities and districts in the hinterlands.

In choosing Central Region we looked at the attractions that are drawing tourists to the region. It was clear that the two castles at both Elmina

and Cape Coast as well the Kakum National Par12k. These attractions keep recording increasing arrivals and receipts. These have led to a limited

but mature hospitality industry. In another breadth they also have a number of the vocational institutions in Ghana these gives Cape Coast an

additional edge over the others.

42

When it comes to Northern and Ashanti regions, we have very little data to help make a good decision. For Ashanti region i.e. Kumasi the

argument is that it is the region with more hotels after Accra.

The potential for growth of Ghana’s tourism definitely exists, this adds to the argument that the project can be implemented in Ghana and that when we give skills to the one thousand two hundred youth there is the likelihood that they can enter into the formal tourism sector in Ghana. Business tourism in Ghana is growing steadily and is even booming in Accra and there is a spill over to Takoradi and Cape Coast.

43

4 Training Needs Analysis

Having now identified the specific tourism sub-sectors, value chains, products/services and job profiles where the greatest income and employment opportunities for disadvantaged groups exist, the next step will be (i) develop an understanding of the TVET sector (key stakeholders, policies, etc), (ii) identify the challenges and opportunities in TVET for the informal sector; and (iii) define the concrete labour market demand for competencies. This will allow the Steering Committee to make informed decisions in where, how and with whom to provide TVET for the maximum benefit to disadvantaged groups and informal workers.

4.1. Current status of TVET in Ghana

TVET systems in Ghana are delivered at different levels in different types of institutions, including technical and vocational schools/institutes (both public and private), universities, polytechnics, enterprises, and apprentices training points. The traditional apprenticeship offers the largest opportunity for the acquisition of employable skills in the informal sector, which accounts for more than 90 percent of all skills training in the country.

Step 7 Quick scan of TVET environment for tourism

Step 8 Identify and characterize the supply of TVET serving the selected geographical areas

PHASE III: Training Needs Analysis

OUTPUT: Competences directed to tourism informal workforce and potential solutions to gaps in the provision of practical and market

oriented TVET for the informal tourism workforce

Step 9 Identification of competencies and gaps in the provision of TVET for informal tourism workers

44

Formal TVET programmes in Ghana are all school-based. Generally, trainees enter the vocational education path at the end of basic education, corresponding to nine years of primary and junior high school. The duration of school-based technical and vocational education is four years. Ghana, in an attempt to expose young people to pre-employment skills has incorporated basic vocational skills into the lower or junior high school curriculum. Oversight responsibility for TVET is shared among 9 (nine) ministries with the Ministries of Education and of Employment and Social Welfare as the forerunners. Some specialized vocational training programmes (in agriculture, health, transport, energy, tourism, etc.) fall under the supervision of the sector ministries. TVET in Ghana is delivered by both government and private providers, which include profit and non-profit, NGO and Church-based institutions. Non-government provision of TVET is on the increase both in terms of number of institutions and trainee population. This trend is based on the premise that private providers train for the informal sector (which is an expanding job market all over Ghana and elsewhere) while public institutions train mostly for the more or less stagnant industrial sector. Private providers also target business and service sector skills like secretarial practice, cookery, and dressmaking that do not require huge capital outlays to deliver. A limited amount of in-company or enterprise-based training also takes place in some enterprises. However, this type of training is often dedicated to the sharpening of specific skills of company employees. The socio-economic environment and the contextual framework in which TVET delivery systems currently operate in Ghana is characterized by:

High population of labour force;

Shrinking or stagnant wage employment opportunities especially in the public and industrial sector;

Huge numbers of poorly educated, semi-skilled, unskilled and unemployed youth and women; Potential demand for TVET is huge. Large numbers of BECE school leavers find themselves in situation without any perspective. In 2011, about 146,000 Basic School Graduates were not placed for further training. According to the Deputy Minister of Employment and Social Welfare 65% of Job seekers lack skills.

Geographical, gender and economic inequities in poverty distribution and in labour market opportunities;

However, TVET has a number of challenges, like poor public perception and inadequate financing, poor management and organizational structures that will be analyzed below.

Ghana in 2006 passed an Act of Parliament that establishes an apex body, the Council for Technical and Vocational Education and Training (COTVET) under the Ministry of Education to oversee all TVET activities. A National Apprenticeship Training Board is to be established under COTVET to handle issues concerning registration, training content, duration and certification.

45

The National Vocational Training Institute (NVTI) established by Act 351 of 1970 to coordinate at national level all aspects of vocational training including apprenticeship had been operating as such to date. The institute conducts trade tests for almost all formal vocational training institutes in the country. NVTI tests in certificates I and II and also allows for the proficiency testing of informal trainees, including traditional apprentices. NVTI in 1990s partnered with donor bodies such as the World Bank, Overseas Development Assistance (ODA) now Department for International Development (DFID) and United Nations International Development Organization (UNIDO) for the development of Competency Based Training Materials. The partnership with ODA led to the pioneering of the very first implementation of Competency Based Training in Ghana in 1998. This has made the graduates of the institute perform credible and recognized in Ghana and elsewhere. NVTI is responsible for certification of 60% of the technical TVET certificates. The Opportunities Industrialization Centres (OICs) provide skill training to the disadvantaged youth, post-training support and follow-up services to their trainees. The ultimate aim of vocational training is employment. As employment opportunities in the formal sector shrink, the acquisition of business management and entrepreneurial skills for self-employment becomes a major imperative in the design of vocational training programmes. Training for high-quality skills requires appropriate training methodology, equipment and tools, adequate supply of training materials, and practice. Other requirements include relevant textbooks and training manuals and qualified instructors with experience in enterprises. Traditional apprenticeship, particularly as practiced in Ghana is Competency Based Training (CBT). It is necessary to incorporate the principles and methodology of CBT into the formal technical and vocational education system to closely linked to the building of strong, professional management and leadership capacity as well as a suitable qualifications framework and monitoring mechanism to drive the entire TVET system. Given the positive and conducive atmosphere in Ghana, the potential of TVET is unprecedented; the HITT project addresses vital constraints it TVET and can be a showcase of true competency based training in Ghana. As the new paradigm of CBT advocates for active learning where learners are assessed on an ongoing basis, learners are motivated to adhere to critical thinking, reasoning, reflection and action. The CBT also advocates for an integration of knowledge, skills and attitude learning is relevant and connected to real life/work situation. An added advantage of CBT is base on the principle of flexible time frames which allow learners to work at their own pace. HITT is therefore better placed to give training to enhance the employability status of the disadvantage groups. The main occupation in tourism TVET has been cookery or catering. It includes modules like Cooking Technology, Waiting, Housekeeping, Marketing, Entrepreneurship, English Language, Mathematics, Commodities, Storekeeping, Hygiene and Safety, First Aid, Menu Planning, Maintenance, Cost Control and Budget, Decorations and others.

46

4.2. Quick scan of the TVET environment and characterization of TVET servicing the occupations selected

Table 23. OVERVIEW OF TOURISM TVET PROVIDERS

NO.

NAME OF TEVT

PROVIDER

TYPE OF PROVID

ER (FORMAL/NON-FORMA

L)

LOCATION

FIELDS OF EXPERTISE

EXPERIENCE IN

THE TOURIS

M SECTOR

(YES/NO)

TOURISM VALUE CHAINS OF EXPERTISE

JOB PROFILES

EDUCATION LEVEL

ENROLLMENT

FIGURES OF

TRAINEES FOR TVET COURSES/ SERVICES

COST PER MODULE/T

RG. (GH¢) per

term

ESTIMATED NO. OF JOBS

AFTER EDUCATION

SELF EMPLOYEE

1. Kanda Career Trg. Inst. (NVTI)

Formal Accra Catering Yes Catering Cooks, Chefs, Baker, Chop Bar Operator s

NVTI 27 200 20

2. Calvary Methodist Voc. School

Formal Accra Catering Yes Catering Cooks, House Keepers, Nutritionist, Entrepreneurs, waiters

NVTI/GES Certificate

75 200 50

3. Hannah Girls Voc. Inst.

Formal Accra Catering Yes Catering Room attendants, waiters, Reception

Entrepreneurs, Waiters, Police food vendors

NVTI/GES Certificate

78 132 55

4. Presby Voc. Trg. Inst.

Formal Lartebio-koshie Accra

Food service, Catering Cookery

Yes Kitchen experts, Menu Planners, Cooks Nutritionist

Cooks, Local NVTI, COTVET Advanced City & Guilds

100 120 50

47

5. Tema Industrial Mission (NVTI)

Formal Tema Cookery Pastry, Cake Décor. Chop Bars

Yes Waiters, Cooks, Food vendors

Bakers, Entrepreneurs, Waiters, House Keepers

Bakers, Waiters, House Keepers, Cleaners, Tour Guides

NVTI Advanced

167 149 100

6. YWCA Formal Kokoml-emle Accra

Catering, Cooks, Bartenders, Reception

Yes Cooks, Waiting, House Keepers, Local food preparation

Chefs, Waiters, Housekeepers, Chop bar operators

NVTI, City & Guilds

73 180 38

NO.

NAME OF TEVT

PROVIDER

TYPE OF PROVID

ER (FORMAL/NON-FORMA

L)

LOCATION

FIELDS OF EXPERTISE

EXPERIENCE IN

THE TOURIS

M SECTOR

(YES/NO)

TOURISM VALUE

CHAINS OF EXPERTISE

JOB PROFILES

EDUCATION LEVEL

ENROLLMENT

FIGURES OF

SURDENTS FOR TVET

COURSES/ SERVICES

COST PER MODULE/T

RG. (GH¢)

ESTIMATED NO. OF JOBS

AFTER EDUCATION

SELF EMPLOYEE

7. South La Girls Voc. Trg. Inst.

Formal Accra Cookery, Waiting entrep. Home Mgt. Nutritionist Local food, Continental dishes etc.

Yes Cookery, waiting, food service entrep. Etc.

Cooks, Waiters, Food vendors, Home Mgt.

NVTI, City & Guilds

100 50 40

48

8. Khameen Voc. Trg. Inst.

Formal Tema Catering, Patisserie, Waiting, Housekeeper

Yes Marketing, Waiting, House Keeper, Caterers

Cooks, Chefs, Waiters, House keepers, Marketers

Diploma, NVTI, City & Guilds

50 500 30

9. College of Culinary Arts & Hospitality Management

Formal Accra Cookery, food service, entrep. AccommodateTourism, Housekeeper

Yes Accommoda- tion Tourism Waiting, Food service Housekeeper

Housekeepers, Waiters, Nutri- tionist, Tour Guilds, Cleaners, Food- vendors

NVTI, All Levels

100 - 80

10. Tema Voc. Trg. Inst.

Formal Tema Entreprenuer- ship, Culinary service

Yes Nutritionist, Food service, Cookery, Storekeepers

Nutritionist, Housekeepers, Cooks, Chefs, Waiters, Restaurant operators

NVTI, City & Guilds

29 70.4 20

4.3 Challenges in the provision of TVET

Technical TVET in Ghana has been facing constraints in terms of:

Type of Constraint Specific constraints Solutions that HITT can provide

Financial resources * high costs of operations and limited public funding

* advocacy for increased commitment of state by piloting innovative approaches for hospitality industry

49

* Internships and in company learning should complement the 1-3 month ‘theoretical’ training offered by HITT; in company component budget neutral

* scan options for donor support * introduce new financial mechanisms; increased involvement and commitment of industry * co-operation with Skills Development Fund

Governance * Lack of conducive environment, including bureaucracy, inertia and corruption * Lack of support from public sector, including financial support, sector support * Problems with licensing

* HITT research/ inception report shared with public sector * commitment of public sector through Steering Committee * increasing role of private sector reduces dependency on public sector

Human Resources * Lack of skilled staff * Despite new single spine system salaries and wages are low and not geared to motivation of staff *Lack of industry orientation and expertise * Different levels of motivation and dedication

* motivated and dedicated trainers with a passion for the industry and for innovative training that meets the needs of target groups * improved future perspective, status and self esteem of teachers/trainers * explore incentives in terms of remuneration * exposure to industry; intensify co-operation

50

Marketing and image * Poor public perception of vocational education * Low status among youth who prefer white collar jobs

* HITT offers attractive curricula that lead to quality employment * improve image of work in hospitality sector by exposure to quality jobs in quality environment

Trainees * Accessibility of TVET for disadvantaged groups is limited * Overall attitude and motivation of trainees * Level of trainees: TVET is often negative choice

* HITT offers participants attractive, motivating TVET with clear job perspectives * HITT secures opportunities for disadvantaged target groups

Educational/ Training Resources * In general limited resources, related to poor funding: * facilities and infrastructure are basic and outdated. Facilities for practical skills training are limited. * curricula, courses and materials are not up to date and not based on actual demand of economy

* establish links with industry to share facilities and resources *innovative, attractive curricula

Innovation and Modernization * the system has been quite rigid and there are insufficient incentives for innovation and modernization at the level of standards, curricula and didactical approaches and methods needs improvement

* HITT innovation is industry and labour market driven and meets international standards

Links with industry and labour market *Gap between the industry and TVET institutions and between practice and theory. No structural links, no incentives for improvement, no synergy or structured communication

Addressing these constraints is essence of value proposition of HITT

*Gaps can be addressed by HITT through establishing sustainable partnerships between industry and

51

*Lack of involvement of industry in curriculum development and training programmes

*Lack of involvement of industry in traineeships and in company learning;

* Majority of MSME is not meeting criteria to offer attractive employment opportunities; no importance is given to training of staff, no resources are provided

TVET, based on win-win situations;

*Industry can lead in curriculum development and in training, based on existing industry training programs;

*Poor HR and poor service quality form a vicious circle; HITT has to show a way out based on fostering a passion for the industry;

*Increased quality of HR and of services provided should lead to higher productivity and higher guest satisfaction; both have an income generating potential

*HITT will focus on top of industry and will have to be select participating MSME carefully and offer them coaching in practice learning;

52

5 Conclusions Inception Phase

5.1. Conclusions related to tourism situation analysis and expected demand for low-skilled youth and women labour

The sustained high growth rates for tourism will no doubt result in a high demand of qualified staff. The poor service quality, related to poor HR in the industry and their low salaries and poor working conditions also requires a higher level of skills. Demand for training is no doubt big. In all categories of workers and self employed and even at the level of management of MSME, there is a high % of women and youth. Not the gender balance as such is a problem, but the access to decent jobs. Our research has shown hat even skilled workers do not earn salaries that are significantly higher of those who are semi skilled or even low skilled. The main problem is the poor working conditions in big parts of the industry and especially in the MSME that create an unattractive image. Existing training and education programs in hospitality are too often not able to offer quality employment to their graduates, who consequently leave the industry as soon as they see a way out. Even in formal or semi formal MSME a considerable part of the workers is informal. It will be a challenge to select and motivate enough enterprises that meet criteria of good wages, good labour conditions and good quality of management. Those enterprises are badly needed for in company learning and to create quality jobs for quality staff. As the management of most MSME in tourism is not highly qualified, it will be virtually impossible to create a learning environment. As high end business tourism is the main growth market, it is most likely not realistic to target the ultra poor. Even though it would be the HITT ambition to get graduates to meet minimum international standards in order to make them meet entry qualifications in this segment, it is virtually a mission impossible to close the gap between the most disadvantaged and the minimum criteria of the industry with relatively short training programs. Given the giant reservoir of youth that has completed at least Junior High School or Senior High School but who find themselves stuck in a situation that does not provide them with opportunities to continue their education or to have access to decent employment, the impact of HITT Ghana on poverty alleviation is high. It provides a justification for the HITT focus on underprivileged women and youth. Teaming up with industry leaders with a good CSR policy will be the way forward. HITT has already a good value proposition in delivering quality staff. Partnerships with industry leaders in order make our participants benefit from expertise and know how in the enterprise. Technical TVET

53

already has a good system in place for several occupations in which learning is mostly done by doing on the job, under supervision of a qualified Master Craftsman.

5.2. Conclusions related to the Training Needs Analysis and constraints for TVET towards selected target groups

Given the high levels of informality of the Ghanaian economy and the lack of perspective that is the fate of too many Ghanaians, market oriented training is highly relevant. This counts for Training needs were clearly identified in terms of occupations and in terms of general skills, the latter are often considered to be of high importance. It was surprising that most of the respondents have completed primary or even secondary school. Constraints of the target groups are: Workers (formal, informal and semi-formal)

Low salaries that would not allow them to pay more for training than a symbolic amount. Costs for transportation, course materials and meals could already form a barrier

They work under poor management and under equally poor conditions. It is highly questionable if a considerable part of the employers would be willing to contribute in terms of study leave, reduction or adaptation of working hours

Training therefore has to be made compatible with work, both in terms of adaption to working schedules as well as reduction of loss in income through absence;

There is no direct correlation between skills level and salary or labour conditions; training of MSME employees might not lead to significant increase in income

Work is not perceived in terms of careers or job loyalty

Low motivation and job satisfaction due to the above mentioned problems might also affect willingness to participate in training;

Generic skills are considered to be more important than specific skills, on which their employers agree

Although weekends and evenings are generally preferred, others would prefer mornings. It would be hard to set training hours that would guarantee high participation and loyalty

There is a willingness to pay for trainings, although average amount is low due to budget constraints.

54

Self employed workers and Micro businesses

There is a considerable differentiation in income levels (from very low to acceptable), but incomes are generally variable and unpredictable;

Self employed and micro businesses seem to have higher average incomes than workers

Long working days and weeks are standard;

Considerable differentiation in levels of education; no direct relationship between education level, occupation and income. This is due to the lack of opportunities that even people with a higher education perceive;

Training is considered important, but the focus of training is not very clear, also at an aggregate level. This could be due to a lack of long term professional/ business perspective. A job is not a preference or a choice, but a necessity;

Generic skills are considered more important than job specific skills; it could even be because of the increased flexibility on labour market or in business

Short trainings are preferred for the same reasons as identified by workers

As mobility is low, it would be difficult to organize trainings that are far from the work place/job

Although weekends and evenings are generally preferred, others would prefer mornings. It would be hard to set training hours that would guarantee high participation and loyalty

There is a willingness to pay for trainings, although average amount is low due to budget constraints.

5.3. Recommendations for TVET curriculum development and HITT implementation phase

The tourism sector in Ghana has been considered as a key economic sector and has been growing with double digits. Ghana is however not a competitive destination at international and even at African level. Apart from the limited tourism profile, the poor service quality and the low skills level of the work force have a highly negative impact on service quality;

The tourism sector is characterized by a high level of informality, especially at the level of MSME. Working conditions, remuneration and job security are generally deficient or even poor. As there is no clear relation between the skills and education level and income, it would be difficult to show impact for HITT in this segment;

Although there are definitely training needs at the level of micro and small enterprise and self employed, the needs are very diverse and it is difficult to link them to certain value chain activities like production of handicrafts, food sellers etc. It is also not clear how conditions could be created to secure motivation and loyalty of beneficiaries. Challenges would include location, as mobility and time budget of beneficiaries are limited and variable.

Although the needs analysis of informal workers shows a preference for the training of generic skills, it is not clear how this would lead to a high impact in terms of increase in income. Given the high unemployment in Ghana and the high demand for skilled labour, it is preferable to opt for occupation based training. For businesses it would help to address the problem that they have to invest heavily in in-house

55

training, whereas job loyalty is very limited due to “poaching”. Training at occupation level would best serve the needs of the industry and of beneficiaries;

High end hotels and resorts offer the best opportunities for trainees in terms of employability, access to formal jobs and good working conditions and even to career perspectives;

Considerable growth is foreseen in this market segment, especially for business tourism, in complementarities with the leisure segment;

As employment in hospitality sector has an image problem, high end hotels could improve that image

Growth of tourism is foreseen in Greater Accra, Western Region, Ashanti Region and to a lesser extend Central Region. The latter is the most important destination in Ghana, but tends to stagnation;

Although the HITT budget is limited;

Four job profiles were identified with a high potential for growth and employability: Waiter/ bartender, room attendant, receptionist and (assistant cook). Waiter and room attendant are selected because of the combination of high demand, lack of existing curricula and relatively short duration of basic training;

HITT Ghana will focus on attitude and skills, as the needs analysis for the industry showed that a hospitality and service oriented attitude is lacking among workers and students. A focus on skills would be competency based in order to meet the need of the industry or graduates who are up to their task. Traditional TVET is considered theoretical; HITT should train skills that meet industry standards;

The targeted industry segment is enthusiastic about the HITT approach, under the condition that it will be sustainable after the end of project;

Industry would be willing to provide resources to the training program; at least in kind (traineeships, supervision, facilities etc.) This could make in company training budget neutral for the project and could help to explore total sustainability by the end of the project;

The inception phase has not provided HITT Ghana with a comprehensive overview of the training sector in Ghana. The institutions that are accredited and monitored by NVTI could be mapped, but we have no strategic analysis. We might miss out on some quality private providers. In general technical TVET shows a number of constraints that could perfectly be addressed by HITT