challenges of tourism in jamaica

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Resilience through Diversity and Investments the Focus on UN Tourism Visit to Jamaica

19 Feb 2024

UN Tourism put the focus on building a more resilient sector during an official visit to Jamaica.

With the latest UN Tourism data showing international arrivals returning to 87% of pre-pandemic levels at the end of 2023, emphasis has now shifted to protecting the sector from future shocks. The official visit of the delegation led by Secretary-General Zurab Pololikashvili coincided with the second Global Tourism Resilience Day . A series of high-level meetings in Jamaica also advanced shared efforts around ethical, inclusive and sustainable tourism as well as the priorities of education and investment.

Investments and education to build resilience

Every level of tourism must be ready to deal with shocks and emergencies and able to adapt to whatever challenge comes our way

Through the work of UN Tourism, Global Tourism Resilience Day (17 September) was established by the United Nations General Assembly in 2023 with the aim of protecting the sector, including its businesses and workers, from future shocks. The second annual celebration was held in Montego Bay, Jamaica, itself one of the leading destinations in the Caribbean and Americas. UN Tourism Secretary-General Pololikashvili joined Jamaican Minister of Tourism Edmund Bartlett and leaders from the public and private sectors for a special one-day conference on the theme. UN Tourism advanced work for greater resilience through:

Investments: As part of an ongoing collaboration with the Development Bank of Latina American and the Caribbean (CAF), UN Tourism will add to its collection of “ Tourism Doing Business ” investment guidelines with an edition focused on Jamaica. The guidelines will identify opportunities for investors in the country’s tourism sector, with a focus on sustainable and resilient infrastructure.
Education: In Montego Bay, the UN Tourism delegation advanced plans to work with Jamaica’s Centre for Resilience on a number of new, targeted education programmes. UN Tourism will also work with the Ministry of Tourism to explore plans to establish a Tourism Academy in Collaboration with UN Tourism. The Academy would serve the wider Caribbean region.

“Resilience takes many forms,” the UN Tourism Secretary-General said opening the conference. “Every level of tourism must be ready to deal with shocks and emergencies and able to adapt to whatever challenge comes our way. For many developing countries, including the least developed countries, small island developing states, countries in Africa and middle-income countries – we cannot allow the lifeline of tourism to be cut for too long."

Jamaica’s Prime Minister welcomes UN Tourism

On the eve of the Global Tourism Resilience Day celebrations, Prime Minister Andrew Holness, met with Secretary-General Pololikashvili to discuss shared priorities for growing tourism in size and impact across both Jamaica and the wider Caribbean region. The Prime Minister also invited the UN Tourism leadership to join the official opening of Parliament.

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Re-imagining the tourism sector in Jamaica: Lessons from COVID-19 (January, 2021)

Overall, International travel and tourism have been disproportionately impacted by the socio-economic fallout from the COVID-19 pandemic. The global pandemic, the first of its scale in a new era of interconnectedness, has placed at risk 121.1 million jobs in travel and tourism with global GDP losses estimated at US$3.4 trillion. Tourism receipts worldwide are not projected to return to 2019 levels until 2023 as tourist arrivals have fallen globally by more than 65.0 per cent since the pandemic compared with 8.0 per cent during the global financial crisis and 17.0 per cent amid the SARS epidemic of 2003 (IMF, 2020). While many economic sectors are expected to recover once restrictive measures are lifted, the pandemic will probably have a longer lasting effect on international tourism. This is largely due to reduced consumer confidence and the likelihood of longer restrictions on the international movement of people.

The impact of tourism decline in Jamaica has been made worse by the fact that other key sources of revenues such as foreign direct investments and remittances are also at risk, given that primary suppliers—the United States, the United Kingdom and Canada—are also facing economic shock. The undiversified nature of the Jamaican economy also means more pronounced impact for our people, economy and future from prolonged tourism decline.

Amid its disruptive effect, however, this crisis has presented us with a unique opportunity to craft a new vision for the future of the sector—one which will be built around inclusiveness, resilience and sustainability as its defining features. Indeed, the crisis has reinforced the urgency at which we must act to reimagine tourism in order to boost sector earnings, diversify the tourism product, create opportunities for local entrepreneurs and ensure a sustainable and inclusive sector. During this time, it has become important that we adopt a strategic posture by using the downturn to build out, diversify and transform the sector to ensure its recovery in the shortest period, as well as its adjustment to the new demands of the post-COVID-19 era.

In the emerging post-Covid-19 paradigm, we expect that the traditional tourism model that is externally-driven, built around laissez-faire behaviours, an over-reliance on traditional markets, and that emphasizes quantity over quality will be either replaced or superseded by tourism products that emphasize health and safety, adaptability and sustainability. This pandemic has indeed presented us with a unique opportunity to transition towards a greener and more balanced tourism as it is anticipated that more tourists will opt for “sustainable” destinations in the post-COVID-19 era. Sustainable destinations emphasize more responsible, conservationist and wholesome behaviours and practices by all involved in the tourism value chain from tourists to locals as well as take into account the current and future economic, social, political and environmental impacts of tourism by balancing the needs of visitors, the industry, the environment and host communities. Another emerging consensus is that tourism may look inwards in the post-COVID-19 era. In the immediate term, industry leaders and players around the world prioritized domestic tourism throughout 2020, which could mean reconnecting communities and countries with their own culture. As we look to the future, seasonal downturns in international tourist arrivals and volatility in global tourism markets can be offset by sustaining staycation packages that target local residents who have traditionally felt excluded from higher priced all-inclusive vacation packages that are designed to attract international tourists.

In the long-term, this crisis also positions us to harness the potential of digitalization to drive new tourism experiences. Rapid digitalization coupled with emerging technologies, such as virtual and augmented realities, can create new forms of cultural experiences, dissemination, and new business models with vast market potential. With restrictions placed on physical interaction, many public and private providers moved content on-line for free to keep audiences engaged and satisfy the sharply increased demand for cultural content. From the perspective of Jamaica, new tourist offerings and products can be built around creating the digital infrastructure that will allow individuals from around the world to partake in simulated and virtual tourist experiences from the comfort of their homes. The current crisis also calls for more countries to design models of tourism that value and protect the natural and cultural assets of host countries, harness local creativity and talent, harmonize with the environment and involves greater levels of local participation in the tourism value chain.

Finally, the current crisis has reaffirmed the important role of the Global Tourism Resilience and Crisis Management Centre. The Centre represents the primary institutional framework in the region for measuring, forecasting and managing risks to the tourism sector. Its responsibilities include assisting with preparedness, management and recovery from disruptions and/or crises that impact tourism and threaten economies and livelihoods. The Centre has also been charged with the responsibility to lead the recovery of tourism in Jamaica and elsewhere in the region post COVID-19. The Centre’s immediate plans include establishing a Tourism Resilience Fund and introducing various innovations, toolkits and information resources to assist destinations to navigate this difficult period.

Written By: Prof. Lloyd Waller, Executive Director

Global Tourism Resilience and Crisis Management Centre, University of the West Indies

Up Next: Two Lectures: The Role of Academia in National Development Planning (March, 2021)

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G2023 | The year in tourism – A phoenix moment

Industry players on a high as tourism’s remarkable post-covid recovery continues.

Tourists staying at Sandals Properties in St Ann help to wash debris from baby turtles before releasing them into the sea at Gibraltar Beach in St Mary last month.

WESTERN BUREAU:

The year 2023 stands as a testament to the resilience and collaborative efforts that fuelled the remarkable recovery of tourism in Jamaica.

The strength of this recovery can be attributed to the robust collaboration between industry stakeholders and the Government, through the Ministry of Tourism.

During an interview with The Sunday Gleaner , Tourism Minister Edmund Bartlett highlighted the pivotal partnerships forged with airlines, cruise lines, tour operators, and global allies. Jamaica’s role as a thought leader in various tourism sectors has significantly influenced the global perception of the destination, shaping it into a preferred choice for travellers worldwide, he said.

The industry was not merely recovering in 2023; it was thriving in the competitive marketplace that rebounded from the challenges imposed by the COVID-19 pandemic. An atmosphere of excitement enveloped Jamaica as it surpassed its 2019 tourist arrival numbers, reporting an impressive four million stopover and cruise visitors in 2023, with earnings soaring to an impressive US$4.2 billion.

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Bartlett, fuelled by this success, forecasts an even brighter future, projecting that Jamaica will welcome five million visitors by 2025, and a 10 per cent increase in 2024 to receiving 4.7 million.

This optimism is echoed by Robin Russell, president of the Jamaica Hotel and Tourist Association (JHTA), who characterised the past year as “unprecedented”, labelling it as the year of “Recovery, Rebound, and Reconnection”.

Senator Janice Allen, the opposition spokesperson on tourism, lauded the return of rooms to the stock and acknowledged the continuous improvements made by resorts such as Sandals Dunn’s River, Beaches Negril, Grand Palladium, and Royalton Hideaway. However, she voiced concern about the sluggish recovery of the cruise sector, urging targeted efforts in 2024 to revitalise this crucial component of the tourism industry.

Up to September 2023, cruise tourism was projected to end the year 23 per cent below 2019, the island’s largest arrival year ever. Some 1.185 million were expected to visit the island’s shores last year, said Bartlett.

Allen also expressed concerns regarding the ongoing arrival processing issues at the main international airport, Sangster, which still plagues the overall experience for visitors to the island.

“This is something that must be addressed in the short term while the MBJ continues its medium and long-term expansion and improvement plans,” she argued.

There is greater need for seamless arrival processing, especially now that the online acceptance of immigration forms has gone into effect. Yet, there remains bungling in the airport, Allen said, noting that it is imperative that the Passport, Immigration and Citizenship Agency (PICA) works swiftly to make the changes so that airport passengers are not further frustrated.

Looking ahead to 2024, she stressed the need for intensified efforts in major events, suggesting the addition of sporting events to further boost arrivals and stimulate local economic spending.

She spoke of announcements of new developments to come, but was quick to point out that while she welcomes development, she is concerned that there continues to be one type – large all-inclusive hotels. There is a need to broaden the type of tourism development and also look at the supporting areas like attractions, she is suggesting.

“It is important, too, that as we develop, we work assiduously to minimise the impact on the environment, so I look forward in 2024 to see greater effort across the entire government for collaboration in development, especially as it relates to the impact on water supply, waste management, rivers, beaches and coral reefs, sensitive areas that are usually the first to be impacted as a result of development,” said Allen.

JHTA President Russell credited the resurgence of business travel, combined with pent-up demand for leisure travel, which have propelled record numbers of tourists to Jamaica.

In addition to these noteworthy achievements, 2023 saw the JHTA, in collaboration with the Jamaica Tourist Board, successfully staging the annual industry marketplace, the Jamaica Product Exchange in Montego Bay last September.

This event marked a significant step towards face-to-face reconnection with travel industry partners, setting the stage for future business growth, as highlighted by Russell.

The JHTA president expressed encouragement at various developments, including the expansion of the island’s airports and the increased number of carriers serving Montego Bay, Ocho Rios, and Kingston. He emphasised the positive impact of new toll roads and the expansion of the ground transportation network on both local residents and visiting guests.

Beyond infrastructure, Russell celebrated the culinary prowess of Jamaica, emphasising its role as a major differentiator. Collaboration between local farmers, creative chefs, and the hotel sector ensured that the Jamaican brand delivered a unique and authentic experience to visitors. He mentioned meaningful meetings between the JHTA and suppliers of Jamaica-grown food products, projecting continued growth and development in the hospitality and tourism industry.

However, amid these achievements, the industry faced a significant challenge in the form of a labour shortage. Allen highlighted the need for immediate attention to training, better working conditions, and improved benefits to address this pressing issue.

Looking towards the future, Bartlett anticipates robust tourism numbers translating into increased earnings.

He said that Prime Minister Andrew Holness has challenged the country to invest more in the supply side, strengthening linkages between tourism and other critical sectors of the economy.

Holness emphasised the need for the agricultural sector to produce more of the food required by the industry, urging the manufacturing sector to contribute to the production of essential items such as jams, jellies, chutneys, juices, and various liquors.

In the realm of entertainment, Holness called for the creation of more cultural products that visitors can enjoy at entertainment centres. Bartlett added that attractions should focus on providing a greater variety and a more experiential approach to making visits to Jamaica truly one-of-a-kind and highly desirable.

Bartlett envisions a comprehensive build-out to enhance the capacity to absorb tourism in its broadest sense. This involves strengthening road networks, exploring the possibility of an additional airport, establishing more cruise ports, and making substantial investments in human capital development.

The emphasis is on building higher and stronger credible training facilities that provide internationally recognised certifications. This, Bartlett believes, is crucial to improving the promotional capabilities of tourism workers locally and enhancing their value in the international market.

A pivotal aspect of the vision for 2024 is the transformation of the labour market within the tourism industry. This transformation is rooted in training initiatives and the establishment of stackable credentials within the workforce. Additionally, social development for workers is deemed essential, encompassing better housing conditions, improved medical facilities, and a robust pension arrangement.

Bartlett believes that these conditions will be critical in reshaping the labour market, allowing workers to move away from seasonal activities and into a 24/7 employment arrangement. As technology continues to redefine the tourism experience, workers must be equipped to manipulate new technologies provided by the Internet of Things he cautioned.

Bartlett aptly labels 2024 as the “Year of More”, signifying a year in which tourism must give more. This encompasses providing more value, more opportunities for workers, and more significant contributions to the Jamaican economy. The focus is on delivering an unparalleled experience for tourists while ensuring sustainable growth and prosperity for the industry. As Jamaica looks forward to a future marked by increased tourism numbers and earnings, the commitment is clear: the tourism industry in 2024 must be characterised by innovation, inclusivity, and an unwavering dedication to excellence.

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KINGSTON, Jamaica; August 19, 2022 : Tourism Minister, Hon. Edmund Bartlett has underscored that the outstanding performance of the tourism sector as outlined in the latest report by the Planning Institute of Jamaica (PIOJ) highlights the fact that tourism is driving Jamaica’s post-COVID-19 economic recovery.

This as he welcomed the PIOJ’s report which indicates that the tourism sector has contributed significantly to the country’s economic growth in the second quarter of the year. The PIOJ yesterday (August 18) announced that the economy grew by 5.7% during the April to June quarter of 2022, compared with the same period in 2021, with the tourism and hospitality sector contributing substantially.

The PIOJ reported that the Real Value Added for Hotels & Restaurants grew by an estimated 55.4%, reflecting a sharp increase in visitor arrivals from all main source markets, and that for April–May 2022 total Foreign National arrivals was 399,310 visitors, representing an increase of 110.0% relative to the corresponding period in 2021.

Minister Bartlett stressed that “the figures from the PIOJ highlight the fact that the tourism industry is driving Jamaica’s post-COVID-19 economic recovery,” adding that “the results are a clear indication of the resilience of the sector, which is rebounding steadily.”

As he embraced the news Minister Bartlett met with representatives of the Jamaica Hotel and Tourist Association (JHTA) and other industry stakeholders, including members of the Tourism Recovery Task Force, today (August 19), for a mid-year review of the sector.

It was also outlined that visitor spend is currently outpacing 2019 Levels. According to Jamaica Tourist Board figures, length of stay is back to the 2019 levels of 7.9 nights and more importantly the Average Spend per Visitor has increased from US$ 168 per night to US$ 182 per person per night.

Minister Bartlett notes that “this simply means that the tourism sector is generating more foreign exchange per visitor. So, there is more money circulating in the wider economy and this benefits various players in the industry, such as attractions, the transportation sub-sector and artisans, thereby creating greater economic impact.”

During the meeting, it was highlighted that since reopening in June 2020, Jamaica has welcomed over 3.5 million (3,556,394) visitors as at July 2022. Likewise, year-to-date the island has welcomed over 1.7 million visitors (1,714,956), an increase of 139.4% over the same period in 2021.

There was also an estimated increase of 10% in visitor arrivals for July 2022 compared to the same period in 2019. With increased arrivals month-over-month, Minister Bartlett said “we remain optimistic that our performance figures will return to 2019 pre-COVID record levels by 2023.”

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How can the growth of tourism reduce the development gap?

Jamaica Case Study

Jamaica Case Study – How can the growth of tourism reduce the development gap?

Jamaica is the fourth-largest island country in the Caribbean. It has a tropical climate with high temperatures throughout the year. Jamaica is famed for its beautiful sandy beaches and rich cultural heritage. It has excellent communications and is a popular destination for cruise ships.

A cruise ship in Jamaica

How has tourism in Jamaica grown?

Tourism has seen significant growth in Jamaica. The graph below illustrates this.

As you can see, there has been an almost exponential growth in the number of visitor arrivals to Jamaica between 1994 and 2016. However, although visitor arrivals continued to increase in 2009, the change was not in line with previous years due to the recession, which reduced many people’s disposable income.

Total visitor expenditure increased from US$128,706,000 in 1975 to US$3,400,000,000 in 2019.

How has Jamaica reduced the development gap?

Tourism is one of Jamaica’s top sources of revenue. The industry contributes over 50% of the country’s total foreign exchange earnings (approx. US$2b). Thousands of Jamaicans work directly or indirectly in tourism . Tourism employs the second largest number of Jamaicans (approximately 200,000) directly in hotels, transport and attractions and indirectly in trading, manufacturing and banking.

Tourism in Jamaica benefits local farmers through the sale of produce to hotels. For example, Jamaica’s Sandals Resort Farmers Program grew from 10 farmers in 1996, supplying two hotels, to 80 farmers in 2004, supplying hotels island-wide. As a result, in 2018, the hotel chain provided more than $25 million in assistance, starting with the up-front purchase and distribution of $3.5 million of Irish potato seeds to five farmers in Manchester, Jamaica. Under the partnership, the five farmers will be the sole providers of Irish potatoes to the entire Sandals group, which comprises 11 resorts in Jamaica. The purpose is to enable the hotel chain to purchase potatoes locally rather than rely on imports.

There have been considerable investments in infrastructure to accommodate tourists. Port facilities have been expanded, as have airports and road infrastructure. However, the development of roads followed much later as catering for cruise ships was prioritised. Some hotel owners have not been happy with this.

Many people in key tourist areas, such as Montego Bay , have benefited from an improved quality of life due to tourism. However, pockets of poverty still exist.

The environment has benefited from landscaping projects and the introduction of nature parks.

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Jamaica is developing, but at what cost?

Translations

Photos of Montego Bay by Emma Lewis, taken from Doctor's Cave Beach looking towards the lagoon, used with permission.

Several recent announcements about large developments along Jamaica’s idyllic north coast, a popular tourist destination, have local environmentalists concerned. On January 26, CEO of the Jamaica Environment Trust (JET) Theresa Rodriguez-Moodie's Letter to the Editor was published in the Jamaica Gleaner, in which she called for greater transparency and public engagement in such developments.

Noting that although ground has already been broken on The Pinnacle, a series of 28-storey luxury high-rises that sit on approximately 17.5 acres of waterfront property, an Environmental Impact Assessment (EIA) has not yet been done, and community stakeholders have not been engaged in any meaningful way, she added: “According to the development’s website , all government approvals were received as of August 2023. They have already started to market the project to potential homeowners/investors. This approach highlights several recurring issues observed in environmental decision-making in Jamaica […] JET has long argued for mandatory EIAs for projects which pose significant environmental risks.”

EIAs in Jamaica are conducted at the discretion of the National Environment and Planning Agency (NEPA), but it remains unclear why some projects require an EIA and others do not. Rodriguez-Moodie also believes that all types of environmental assessments — not simply EIAs — and environmental permits should be publicly available on NEPA’s website, saying, “Engagement should go beyond simply seeking public acceptance (which is often the method used in EIAs), and should include consensus-based public dialogue aimed at reaching better decisions.”

A critical concern with The Pinnacle location is its proximity to the Montego Bay Marine Park , Jamaica's first marine area which includes a five-square kilometre park and two special fishery conservation areas. While the Jamaica Environment Trust says the project is not located entirely within the Park, some of its amenities, including the marina, are, and “land-based impacts to the marine environment can come from all adjacent lands, whether protected or not.”

The development is driven by LCH Developments, which describes itself as “a significant real estate investment, development and management group […] committed to delivering positive change through sustainable, high-quality developments that improve and enhance the communities in which it operates.”

At the groundbreaking ceremony for the development on January 20, Prime Minister Andrew Holness boasted that the property would contain the tallest buildings in the region. The target market for the purchase of units at the property seems primarily geared toward non-residents, however, again raising the issue of limited beach access for locals.

Writing on Petchary blog , Global Voices contributor Emma Lewis noted that an 800-unit housing development is to be built by the China Harbour Engineering Company (CHEC) in the north coast parish of St. Ann. After a “rather contentious public meeting held by CHEC,” the Jamaica Beach Birthright Environmental Movement (JaBBEM) live streamed a community meeting on January 28 aimed at saving the Roaring River watershed.

Meanwhile, the opposition People’s National Party (PNP) issued a statement expressing concern about the CHEC development’s environmental footprint, saying , “Part of the proposed development will impact critical watersheds for ecologically sensitive areas such as Dunn’s River, Roaring River, Bogue, Mammee Bay and surrounding communities in Ocho Rios. We staunchly oppose the granting of any environmental permit that will harm local residents and jeopardize the delicate environmental balance of the region.”

On X (formerly Twitter), founder of the Jamaica Environment Trust Diana McCaulay expressed worry about another large-scale tourism project, Harmony Cove, which is pushing to break ground this year:

Another soulless rectangle and some palm trees. This is a beautiful place and deserves the most sensitive, low impact, thoughtful approach.. https://t.co/cN80lNJFx0 — Diana McCaulay (@dmccaulay) January 27, 2024

Petchary says the development is a partnership between Nexus Luxury Collection and the Jamaican government, and added , “It will consist of a 26-storey building (just two storeys lower than The Pinnacle — oh my!) as well as a large casino, a golf course, and of course a beach area (none of the above for locals, I am guessing).”

While financial journalist Al Edwards called Harmony Cove “a boon for Jamaican tourism” that would take Jamaica “closer to Monte Carlo, The Bahamas and the Cayman Islands” and “[up] the ante considerably,” Petchary posed several questions that she believes need to be addressed by such developments, including whether Jamaican nationals will have access to the coastline on which these properties will be built, what the carbon footprint of the properties is and who will be living in them, and what benefits — apart from “mostly low-paid jobs” — will these all-inclusives bring to the community.

She also felt the impacts on water supply and traffic to the surrounding communities needed to be addressed, as well as key environmental questions such as how much natural habitat — including important mangrove forests — will be damaged during construction, how many endemic species of birds, plants and animals will be destroyed, and what the effects on beaches and coastal habitats will be, especially for protected environmental areas.

Despite these concerns, an additional three north coast developments appear to be moving ahead, plus another that Jamaica's tourism minister, Edmund Bartlett, is “excited” about, claiming it will bring “more than 700 new rooms and thousands of new jobs” to the island. Like The Pinnacle, these new projects are being primarily funded by foreign entities.

For a few years, there has been discussion over whether the island has become too reliant on international investment, with professor and columnist Paul Golding observing , “The World Investment Report 2018 indicates that Jamaica has had the greatest foreign direct investment inflows regionally since 2012, [attracting] more than USD 4.2b over the six-year period, by far the most in the region.”

To Petchary, all these developments have one thing in common: “These huge lumps of concrete could be anywhere in the world. What happened to the ‘Jamaican vibe'? Isn’t that what visitors come to the island for? What happened to Jamaican-style architecture, and our own special culture? No, these foreign developers are going for the ‘Miami vibe,’ and we seem to love it. How very sad.”

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