Don’t prioritise hospitality sector in stimulus; they aren’t needed now – Lord Mensah
Dr Lord Mensah, economist
An economist and senior lecturer at the University of Ghana Business School, Dr Lord Mensah, has appealed to the government not to prioritize areas like the hospitality and hotel sectors of the economy in the stimulus packages for businesses over the coronavirus infection.
Read full article He explained that the services of these areas are not needed now therefore, the government must prioistise sensitive areas.
The Government intends to spend one billion cedis under a Coronavirus Alleviation Programme to cushion Ghanaians as government tightens measures to control the spread of the deadly coronavirus.
Announcing the package on Friday evening, President Akufo-Addo said the amount would mitigate the impact of the Coronavirus on businesses and households and ensure that job losses are minimized.
But Dr Lord Mensah “There are some areas that even if you give them the subsidies or some sectors that even if you give them the subsidies, they won’t get patronage as we speak now… now we are distressed as a country and areas like hospitality, hotels are not key sectors to touch now when it comes to providing stimulus package”.
He also that the stimulus package may come in tax cuts or subsidies to help lessen the pressure on businesses.
“You can provide tax cuts and at the same time subsidies. Provide incentives to areas and possibly that is where the one billion will go. And providing funds does not mean you have to go direct by putting money into people’s pockets. We have to be careful how we go about this,” he stressed.
He explained that providing a stimulus package is in itself an incentive that must engineer economic growth to cover for losses or support the vulnerable hence it must be approached with tact.
“If you provide stimulus package for these sectors who are those going to patronize it. It’s a problem for people to go to the public and have entertainment and all that in this time,” he told Cti FM.
