Ghana’s domestic air passenger volume has increased by 24 percent after the government through its first budget has removed the 17.5% VAT on domestic air travel to make it affordable. The passenger volume increased from 163,322 to 201, 851 in a year since May 2016.
The policy intervention and other expansion works at various airports are expected to increase domestic travel numbers. The new government pledged to encourage and support local airlines and entrepreneurs to set up strong private airlines that can fully utilize the nation’s route rights.
The tax cut was among a number of interventions to reduce the cost of operation for the local airlines. It follows a time when the previous government reduced the cost of aviation fuel for airlines fueling in Ghana. With more airlines showing interest in Ghana’s aviation industry, the sector ministry is equally positioning itself to attract more while retaining the already existing ones.
The interventions include, reviewing laws and completing major construction works at respective airports.
- The decoupling of aviation regulation from air navigation services provision
- Construction of a modern air navigation services centre at the Kotoka International Airport
- Construction of phase II of the Kumasi airport consisting of the extension of the run-way and a new terminal building.
- The completion of the Terminal 3 at the KIA by 2018ompletion of the Ho Airport by 2017.”
In 2016, Ghana recorded a total passenger throughput of 2,381,789 and is projected to increase to 5 million in the next five years. The figures was made up of 1,746, 521 international arrival and departing passengers with 213,232 transiting passengers and 421,986 domestic passengers.