Jamaica's Tourism Product Development Company (TPDCo) and Jamaica Tourist Board (JTB) are facing scrutiny over their handling of unlicensed tourist attractions. With ongoing concerns about safety and fair competition, industry stakeholders are calling for stricter enforcement and legislative updates to ensure all operators meet required standards and protect visitors effectively.

Risky attractions

Legal, safety concerns arise as tourist hot spots shun licensing requirement without sanction

Jamaica Gleaner/15 Sep 2024/Jovan Johnson Senior Staff Reporter 

IN MAY, George Shand* and some friends visited an attraction on Jamaica’s scenic north coast, not knowing that at the time, it was operating without the required government licence.

“That’s incredible,” Shand, 32, exclaimed when The Sunday Gleaner informed him about the attraction’s then status. “We didn’t even think to check on that ... . We all assumed everything was approved.”

Shand and his local friends enjoyed a range of activities. But had he known about the lack of a licence, Shand said he would not have visited.

“There is no way I would have gone there if I knew that they did not have a licence. What if there was any problem? Who is looking out for us?” he asked.

At the time of Shand’s visit, the attraction had gone at least two months without a licence, which it finally obtained from the Jamaica Tourist Board (JTB), through the Tourism Product Development Company (TPDCo), three months later. Because of its now-legal status, The Sunday Gleaner will not name the attraction.

In April, the head of the attraction was insistent that his business was operating legally.

“We have a licence to operate from TPDCo,” he told The Sunday Gleaner.

However, after further questions, he said: “The last correspondence I saw from TPDCo indicated that everything had been approved and we’re just awaiting to issue the licence and so we’ve gone ahead and operated.”

On June 3, the TPDCo responded to an April information request, revealing that the entity lacked a licence since the previous one expired on April 30, 2023. It confirmed that owners applied for a licence on April 8, 2024 and that two outstanding documents were delaying a submission to JTB for approval.

ILLEGAL OPERATION

TPDCo was asked on June 13 what enforcement action it had taken, and in a response provided July 10, it said while it was aware of the illegal operation, it was working with the attraction to meet the requirements.

On September 4, TPDCo confirmed that a three-year JTB licence was granted to the entity on August 14.

The case has turned a spotlight on the broader issue of unlicensed tourist attractions operating across Jamaica, often with the authorities’ knowledge and under a legal regime with fines some stakeholders believe are too paltry to have any deterrent effect.

TPDCo, an agency in the Ministry of Tourism, is responsible for the development and oversight of Jamaica’s tourism product. It inspects service providers for health and safety, and processes accommodations, attractions and car rental licences, among others, for the JTB. The board is the government body responsible for the marketing and promotion of Jamaica’s tourism.

The 1955 Tourist Board Act requires all tourism enterprises to obtain a licence to operate legally. Those found in breach face fines of up to $20,000 or two years in prison. If the offence continues after conviction, they face paying up J$500 per day until the breach is remedied.

TPDCo told The Sunday Gleaner that it did not have a view on the fines for breaches, adding in its July response that it was out of its remit to say whether they should be increased.

A tourism attraction license costs $10,000 per year, and expires annually on April 30. Three-year licences are also available. It takes between two weeks to a month to process licences, according to information on TPDCo’s website.

Among the general requirements for a licence are public liability insurance, proof of property ownership, and public health, fire, and security certificates. Operators with swimming, rafting and motorbike offerings have additional requirements.

TPDCo said it had no record of legal action taken against an entity for operating without a licence over the last five years.

The regulatory system last gained major public attention in 2022 when a lion ripped off the finger of a taunting employee at the Jamaica Zoo in St Elizabeth and TPDCo later indicated that the zoo was operating without a licence.

Up to August 19, the agency said it was aware of 15 unlicensed attraction operators.

Despite being asked earlier this month, it has not indicated to The Sunday Gleaner whether the status of any of those entities has since changed. As such, The Sunday Gleaner will not publish the list at this time.

Among those named by the TPDCo are two popular animal attractions in the south of the island, several others having water-based activities, at least one cultural experience, a Government-owned park, a gold club, and others providing accommodations. The entities span the breadth of the island from the eastern parish of Portland to the popular resort town of Negril in the west.

Asked what actions it took regarding the unlicensed entities, the TPDCo spoke to monitoring protocols such as quality assessments of services, and sending reminders to entities to renew their licences or apply if they had never been licensed.

It acknowledged that it has safety concerns about the unlicensed entities.

WHAT ACTION TO TAKE

“Any information regarding tourism entities is provided to the Jamaica Tourist Board. JTB then decides what action to take,” it said in response to questions about its recommendations for enforcement action of breach of licence.

The JTB has not answered seven questions submitted to it on August 27, seeking its response to, among other things, actions taken, and its position on the fines.

Some attractions are “inspected and deemed safe” but fall short of meeting all the documentation requirements, a TPDCo official disclosed.

“Sometimes the attractions are safe, but having failed to satisfy all the license requirements, they cannot be officially certified. But, I accept that until there is a change in the law, the rules have to be applied,” the official said.

The authorities are reportedly working on creating a transitional or conditional licence to ease the burden on small operators and simplify the application process.

The Jamaica Hotel and Tourist Association supports a revision of the outdated law and its “ridiculous” penalties, argued President Robin Russell, who said the unregulated entities pose a “great danger” to the sector.

“When we have an organisation, or an attraction, or even a single person operating without a licence, it means that there’s been no checks and balances, and that person has not been vetted to do business. Anybody doing business in Jamaica should have their licence and it should be safe,” said Russell, whose group represents Jamaica’s leading hotels, attractions and transportation providers, among others.

“The last thing we would want is for a local or a tourist going on one of these attractions and getting hurt,” Russell stressed.

“UNFAIR ADVANTAGE”

He also pointed to the “unfair advantage” unlicensed operators have over licensed entities that pay fees, undergo inspections, and invest in safety upgrades.

“I might be rafting down Rio Grande, I’ve gone through all my inspections, I’ve upgraded my place so it’s safe, but across the river is somebody who didn’t upgrade their place, and they’re able to offer that same ride cheaper than me,” he contended.

Unlicensed attractions also pose significant legal and financial risks for visitors, according to attorney Georgia Hamilton, who specialises in commercial and civil law, which includes personal injury cases.

“You are exposed to risk of injury, damage to your property, loss of your loved ones, and the possibility exists that because of the informal nature, you may not be able to recover any kind of compensation,” Hamilton said.

The attorney said that informal operators often lack insurance coverage, and in the event of an accident, there may be no financial protection for victims.

“These informal operators tend to pull up stumps when trouble comes, and even if they don’t, the nature of their operations is such that they don’t have insurance coverage,” Hamilton added. “Those who decide would have taken the decision to self-insure.”

However, she acknowledged that some well-established entities operating without licences may still have relationships with insurers and manage to obtain coverage despite their unlicensed status.

Opposition Senator Janice Allen, the People’s National Party’s tourism spokesperson, also expressed support for a review of the JTB Act.

“This is something that has been delayed or on the cards for so many years. And, if we are serious about the advancement of the industry and ensuring that we are operating a modern and new and moving-with-thetimes kind of industry, then our legislation must be in line,” she commented.

Allen argued that maintaining high standards within the tourism sector is key to ensuring big earnings.

“High standards result in the delivery of high service, which, in turn, creates a more profitable industry,” she said.

Allen dismissed suggestions that the economic power of the tourism sector may have influenced the lack of enforcement, emphasising that rogue operators should be “dealt with” to ensure the safety and sustainability of Jamaica’s tourism product.

“It’s not that we should be having a piece of legislation that is all about fines … . We must have legislation that facilitates; it must be facilitatory, such that it enables an industry that sustainably grows.”

The tourism industry employs more than 100,000 people, accounting for over 10 per cent of Jamaica’s workforce. It’s also Jamaica’s biggest foreign exchange earner, with last year recording US$4.38 billion in earnings, although just about 40 per cent (US$1.75 billion) is retained locally.

*Name changed.

“These informal operators tend to pull up stumps when trouble comes, and even if they don’t, the nature of their operations is such that they don’t have insurance coverage ... . Those who decide would have taken the decision to self-insure.”

 

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