Revamp tourism industry for greater economic impact
Dear Editor,
RIU International, one of the largest hotel chains in the world, recently broke ground to build another hotel in Jamaica, it’s seventh on the island.
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, which suggests that Jamaican labour is very cheap and the country is a profitable destination with prospects for growth. There might also be more foreign workers based here at properties.
Relative to size and arrivals by country, Jamaica has more RIU hotels. Mexico, for example, has 10 RIU hotels and they receive 10 times more visitors than Jamaica, while the Dominican Republic has six RIU hotels and 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 as 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. Investments increase gross domestic product (GDP), however, 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, 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 inspires 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 within 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. Entertainment outside the hotels is as important as within, and it creates more options.
The “Hip Strip” in Mobay has not been hip for decades, imagine if it were more pedestrian-friendly with amenities for leisurely enjoyment. Port Antonio, Ocho Rios, and Port Royal need some enhancing to be more picturesque and inviting.
Barbados and The Bahamas are both heavily dependent on tourism, their GDP per capita is three and five times that of Jamaica’s, respectively. They each receive about one million visitors per year — 1/4 of Jamaica’s — and tourism contributes as much as 50 per cent to GDP in The Bahamas and 36 per cent in Barbados.
Tourism in Jamaica contributes a mere 12 per cent to 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