Hostel owners explain rising student accommodation fees [Listen]

Bishop Dr Akwasi Owusu, Chairman of the Hostel Owners Association, has defended the high costs of private student accommodation in Ghana. He attributes the rising fees to several factors, including high taxes, expensive land, and high interest rates on loans. According to Bishop Owusu, these financial obligations significantly impact hostel operators' revenue.

In response to concerns raised by Rent Commissioner Frederick Opoku about the conditions in some private student hostels, Bishop Owusu emphasized that hostel operators face substantial expenses that students may not be aware of. These expenses include payments to various regulatory institutions, property rates, operational permits, and other charges. The Chairman explained that these costs can consume about 20 percent of a hostel's gross revenue.

Bishop Owusu highlighted that some hostel operators have experienced losses after accounting for all expenses, with the students perceiving that all charged fees go to the hostel owners. He also mentioned that operators incur additional costs when students damage facilities or leave rooms in poor condition, further straining their financial situation.

The hostel owner called for discussions with regulatory bodies to review the burden imposed on them due to the high taxes and levies they pay. While acknowledging the need to provide safe and decent accommodation for students, Bishop Owusu maintained that the charges imposed on students are reasonable after considering all expenses incurred by hostel operators.