The Chairman of the Hostel Owners Association, Bishop Dr Akwasi Owusu, has defended the cost of private student accommodation, saying high taxes, land prices, loan interest and operational expenses are driving up hostel fees.
His comments follow concerns raised by Rent Commissioner Frederick Opoku over the conditions in some private student hostels.
Mr Opoku recently described some of the facilities as “appalling” and “shocking” after inspections triggered by a petition from the National Union of Ghana Students (NUGS).
According to the Rent Commissioner, the inspections revealed overcrowded rooms, poor ventilation and facilities which, in his view, did not meet the basic standards expected of student hostels.
However, speaking on Adom FM’s Dwaso Nsem, Bishop Dr Akwasi Owusu said hostel operators also face significant financial obligations that students may not be aware of.
He explained that the cost of acquiring land and constructing hostels is already high, while many operators have to rely on loans with high interest rates to finance their projects.
“Here in Ghana, if you are building, the land itself is very expensive. If you take a loan, the interest rate is also high, so by the time you finish the project, you have already spent a lot of money,” he said.
Bishop Owusu said hostel operators are also required to make several statutory payments and taxes, which he claimed take a significant portion of their revenue.
He explained that payments to regulatory institutions, including the Environmental Protection Authority (EPA), Tourism Development Fund, Metropolitan, Municipal and District Assemblies (MMDAs), Ghana National Fire Service and Ghana Revenue Authority (GRA), add to the financial burden.
According to him, hostel operators also pay property rates, operational permits and other charges, while some payments are calculated on gross revenue.
“By the time you finish paying all these statutory obligations, about 20 percent of the gross revenue is gone,” he said.
He stressed that these costs are incurred before hostel operators account for other expenses such as refuse disposal, maintenance, salaries and general upkeep of the facilities.
“The students do not know all these payments we make to the government. They think that if you charge GH¢5,000, all the money is going into your pocket, but that is not the case,” he said.
Bishop Owusu said operators had realised that charging GH¢5,000 per bed could, in some cases, result in losses after all expenses were considered.
He added that operators also incur additional costs when students damage facilities or leave rooms in poor condition.
“Some students leave the rooms dirty, break door locks and damage other things before they leave. They do not always keep the place neat, and all these things come at a cost,” he said.
According to him, the additional expenses make it difficult for some hostel operators to repay loans taken to construct or renovate their facilities.
He said hostel owners had raised concerns about the taxes and levies imposed on them and called for discussions with the relevant regulatory bodies to review the burden.
“We have raised the issue that the taxes being imposed on us are very high. We have asked that something be done about it because, after everything, we believe what we charge students is reasonable,” he said.
Bishop Owusu, however, acknowledged the concerns about hostel conditions and said operators must also ensure that students are provided with safe and decent accommodation.
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