Ghana retains less than 40 per cent of the revenue generated from its popular December festivities, with the bulk of the earnings leaking out of the country despite the surge in tourism and entertainment activities during the festive season.
According to a Joy News report, an estimated $450 million to $650 million annually from its popular December festivities, but retains only 33 to 38 per cent of that revenue.
The report notes that the largest revenue leakages occur in aviation, petroleum consumption, and premium beverage imports, sectors that dominate spending by the estimated 150,000 to 200,000 diaspora visitors who travel to Ghana during the festive season.
The report identifies aviation as the single biggest leakage point, accounting for 85 to 95 per cent of lost revenue. With no national flag carrier since the collapse of Ghana Airways in 2004, virtually all ticket revenue flows to foreign airlines including British Airways, KLM, Delta, Emirates, Turkish Airlines, and Ethiopian Airlines. With average return tickets priced between $800 and $1,200, Ghana is estimated to lose about $150 million annually, retaining only airport taxes and ground-handling fees.
Joy News notes that strategic options such as revenue-sharing agreements with select airlines, the revival of Ghana Airways at an estimated $200–$300 million investment, or the creation of a regional ECOWAS carrier could potentially increase annual revenue retention by $40–70 million.
The petroleum sector is another major source of leakage, with 70 to 75 per cent of spending lost due to heavy reliance on imported crude and refined fuel. Although government taxes and retail margins are retained locally, only about 25 per cent of fuel-related spending remains in Ghana. The report estimates petroleum-related leakages across transportation, events, hotels, and power generation at $60–80 million annually.
Joy News indicates that restarting the Tema Oil Refinery through private partnerships could reduce refined product imports and retain an additional $12–20 million annually, while promoting electric vehicle fleets for ride-hailing services could offer immediate relief and position Ghana as a regional green transport leader.
Premium beverage imports also contribute significantly to revenue losses. The report estimates that $30–40 million is spent annually on imported premium alcohol, including cognac, whisky, champagne, vodka, and wines, with 70 to 80 per cent leakage. This translates to roughly $30 million lost each year to foreign beverage brands.
Joy News highlights that promoting locally produced premium alternatives, such as branded akpeteshie, Castle Bridge Gin, local craft beers, and fruit-based spirits, alongside higher luxury import duties and targeted marketing campaigns, could retain $15–20 million annually within the local economy.
The report concludes that while the December festivities have successfully boosted Ghana’s global tourism profile, strengthening local value chains, domestic ownership, and strategic policy interventions remains critical if the country is to fully benefit economically from its flagship tourism season.
