Tourism to the rescue: Part 1
The system of capitalism under which we operate, and to a large extent thrive, has been driven by the component of cheap labour. Some would immediately argue that this obsession with getting something done for little or nothing has its genesis in the grotesque practice of slavery. Whether through the eyes of author Charles Dickens or playwright William Shakespeare, we have long since been aware of the tension between labour and capital.
But we have evolved, and not through altruism or any “road to Damascus” experience. The recognition by workers that the final product brought enormous wealth to a few people and as such they deserved a bigger piece of the collective pie resulted in them running into the arms of trade unions. Collective bargaining had arrived, albeit kicking and screaming, with a few fisty cuffs and strikes.
And even as this new marriage between labour and capital got underway, there was constant tension between the two. It was no surprise to the keen observer that the owners of capital controlled the terms of employment while shrinking the benefits to labour. In almost every economic sphere, as the presence of the trade unions waned, so did the status of labour. And yet it is this push and pull that has positively impacted all our lives.
Then came COVID-19, and large blocks of labour were separated from their places of work and as such their livelihoods.
Tourism was experiencing its most devastating and catastrophic event, and no model existed on what to do. What became apparent was that hardly any contingency was in place, but, as is now evident, the steps taken by the Caribbean tourism industry, led mainly by Jamaica, heralded a recovery that will no doubt be a case study.
Tourism, like most of the service sectors, took a major hit. This was against the backdrop of the cheap labour syndrome under which most capital operated, whereby labour was devalued, the glorification of robotics took on real meaning, and the new artificial intelligence (AI) applications loomed. Sick leave mostly disappeared with all the meagre benefits. The dreaded contract worker became the order of the day.
But people had to survive. More to the point, they discovered that they could survive, and they did not have to sacrifice all their time for low wages. Quite significantly, the world’s largest economy found itself being buttressed by the strong winds of strikes, as large blocks of workers began the push back by joining and rejoining unions to negotiate on their behalf. The cheap labour era had abruptly come to an end.
As industry began to rebound from the weight of COVID-19, the unusual was occurring. The historical behaviour associated with a recovering economy or sector is an increase in demand for all goods and services. The unusual or new reality is that the critical component of labour is getting harder and harder to find. This new reality is impacting all sectors of the industrial apparatus. There is no question that we have arrived at a new paradigm.
In just about all the matrices dealing with production, labour shines through as the component that cannot be avoided. To this end, it is simply smart for us to recognise that we have a tremendous opportunity to transform our economy and our country by qualitatively making Jamaica a better place for labour to prosper, by any measurement.
The expansion in the construction of hotel rooms represents a major part of Jamaica’s success. There was a time, not so long ago, when one million arrivals was a celebratory event. But even as we are struggling with how to satisfy the current needs of the tourism sector, the importation of labour, which was always there, is enjoying a renaissance, suggesting a brand new opportunity is here.
We now need to take an in-depth look at how Jamaica intends to treat with tourism, going forward.
Tourism is a transformative and transforming industry and represents a massive social and economic driver. Examples of this are abound in Jamaica, with Negril, Montego Bay, and Ocho Rios as prime examples.
It was not so long ago that Jamaica’s tourism encompassed a few high-end hotels, with annual opening times of four months — December 15 to April 16. The communities surrounding these hotels would go to great lengths to whitewash the trees and carry out other activities to make the area visually appealing in preparation for the new season. Brand Jamaica became a fabulous product, attracting both the rich and the famous.
The communities adjacent to the resorts enjoyed increased economic activities every season, and it would be fair to say that those relatively humble beginnings have matured into our largest industry, employing thousands of people and providing a huge market for our agro and other manufactured products, amounting to billions of dollars annually.
If we accept the notion that the community is the bedrock of the tourism experience and people are the repository of that substance, then it follows that the community must be given pride of place; communities must be able to exploit all that is Brand Jamaica.
Unfortunately, no Government has focused on nurturing the community in order that it might optimise the social and economic opportunities that are abound through the gateway of tourism. Governments do not own hotels anymore and have very little responsibility for what happens within the hotel property. However, with regards to everything else, they have significant influence on what obtains.
A visitor who spends 10 days in Jamaica will certainly be appreciative of a well-managed environment. The Jamaican spends 365 days in the same environment and will be even more appreciative. It follows that the smart thing to do is to ensure that we collectively do things that enhance practices which better the environment, including all aspects of security.
Here is the thing. The monies required to pay for these services have already been targeted. What we need are significantly improved investments, in each of the resort areas, that will result in increased employment to further reflect positive and dynamic economic activities. There is no reason the streets in resort areas are unkempt, save for poor management standards. A new awareness means employing new thinking aligned to the kind of public and private usage appropriate for the community.
Again, the point is being made that the industry already provides all the money that is required to effect these needed changes. As we increase our sense of efficiency, we will grow the overall economy and simultaneously improve our contribution to the exchequer.
All the resort areas should have first-class academic institutions. If nothing else, they have paid for it through Pay As You Earn (PAYE), General Consumption Tax (GCT), and the monthly injection for a host of basic services. We cannot expect to produce first-class labour with superior output potential unless we invest in places of learning. We can debate what that means, but a lot of work has already been done in both structure and content.
Additionally, our teachers must be treated like who they are: Extremely valuable people who should be well compensated. After all, they are the ones charged with growing and nurturing our intellectual reservoir. They are the ones who will lead us towards that knowledge-based economy comprising a technically competent labour market. If this is done, it will show that our leaders are on the same page when it comes to fostering a knowledge-based economy.
James Samuels is a tourism consultant and a former president of Jamaica
Hotel and Tourist Association.