A different approach on tourism is needed

THE EDITOR, Madam:

RIU International recently broke ground for another hotel, it’s seventh in Jamaica. This is a boost of confidence for Jamaica. RIU operates 100 hotels in 20 countries and 15 per cent of their global workforce is reportedly in Jamaica. This suggests that Jamaican labour is very cheap and the country is a profitable destination with prospects for growth.

Mexico, for example, has 10 RIU hotels and they receive 10 times more visitors. The Dominican Republic has six RIU hotels. They receive twice as many visitors as Jamaica. Despite the growth in tourism in Jamaica over the years, there is hardly any impact on economic growth, the reason being, much of the profits from tourism don’t remain here.

If we don’t find ways to claim a bigger share of revenues and profits from tourism, there will be negligible impact on the economy. The primary purpose of investing is to generate income streams over the long term. Income will boost consumer spending if it trickles down. We need to employ more but, if workers don’t earn much, they can’t spend much, they merely survive. Hotels tend to import a lot of items, we must look at ways to establish local supply chain links that are cost-effective, so that more Jamaicans can benefit. Excessive imports will reverse economic growth. There are also qualitative and environmental factors affecting investment decisions. Most Jamaicans, for instance, don’t have easy access to good beaches, the best ones are tucked away on private hotel properties. Leisure is important for development and to encourage a mindset which encourages development.

We must look at economic growth differently now and not limit our vision. More focus is needed on attractions and excursions, amenities and entertainment. Tourists should have more options to experience more of Jamaica after days of sun, sea and sand from the confines of a resort. In top destinations around the globe, cultural and historical day excursions with multiple stops allow visitors to see more, do more, spend more and enjoy more.

Barbados and the Bahamas are both heavily dependent on tourism, their gross domestic product (GDP) per capita is three and five times that of Jamaica’s, respectively. Barbados and the Bahamas each receive about one million visitors per year, (one-fourth of Jamaica’s) and tourism contributes as much as 50 per cent of GDP in the Bahamas and 36 per cent in Barbados. Tourism in Jamaica contributes a mere 12 per cent of GDP, despite the increase in tourism investments and arrivals. We benefit from employment but there is no improvement in workers’ compensation and benefits, to add economic value. Maybe it is time to rethink our vision and strategy to allow Jamaica to benefit more from tourism, to sustain the type of economic growth we badly need.

P CHIN

chin_p@yahoo.com