I use the term family, because during my tenure as Minister, I have always felt that the interaction among stakeholders in the tourism sector is guided by the principles of mutual respect, fairness and candour ”V even when we disagree”Kwe even manage to enjoy camaraderie while getting on with the business of tackling the thorny issues.
Happily, we can agree today that challenges not withstanding, the sector is in pretty good shape.
The Jamaica Tourist Board team, led by Acting Director Donnie Dawson will share the relevant facts and figures with you in a little while, but I must start by congratulating every one of you for the role you have played in making 2005 the best ever year in terms of visitor arrivals, accompanied by upward movements in several other indicators such as cruise ship arrivals, the number of stopover visitors, total visitor spend, and airlift.
The Government continues to lead the infrastructural development such as the pursuit of a world class road network, and major reconstruction at our two international airports.
I believe that the present situation, while it is the result of many factors, has been largely yielded by the development of the National Industrial Policy that identified Tourism as the engine of growth for the economy.
This was followed in 2002 by the Master Plan for Sustainable Tourism Development ”V a clear road map for the development of this important sector.
The Master Plan reflects the recognition by the Government of Jamaica of the importance of this industry and its ability to increase jobs and prosperity for all Jamaicans.
Although Tourism accounts for just 10% of Jamaica”¦s GDP, and 9% of total employment, it pulls in approximately 50% of the island”¦s foreign exchange earnings. Including indirect benefits, tourism accounts for 32% of GDP and 29% of total employment.
Therefore, we remain committed to working with tourism”¦s private sector, led by the JHTA to enable business winning strategies and create sustainable tourism according to the Plan.
Let me remind you of the five pillars on which the Master Plan rests:
o A commitment to growth based on a sustainable market position;
o Ongoing enhancement of the visitor experience;
o Active promotion of community based development;
o Building an inclusive industry to benefit even the smallest tourism businesses;
o Ensuring environmental sustainability and preservation.
Now in the 4th year of the proposed 10-year implementation period, the return on this significant investment of financial and human resources, is beginning to materialize.
The latest attempt at product expansion is the current formalization of the Host Jamaica Bed and Breakfast Home-Stay. The programme, which was developed after much consultation within the sector and examination of templates from the wider region and beyond, went to market via national print media this week.
The plan is to leverage the development of a new market segment for accommodation to next year”¦s hosting of the Cricket World Cup in the Caribbean.
In order to protect its integrity, TPDCo has implemented a carefully developed set of guidelines for householders who wish to be included in the programme. This includes a requirement to submit proof of ownership of the premises, or in the alternative, formal permission from the owner to sub-let.
The processing period is expected to take 6-8 weeks, AFTER the conclusion of the appropriate security checks. Some persons have expressed concern about the rigours of the process, but we must put emotions aside. I am sure that you will agree that as a government, we cannot endorse any accommodations for commercial consideration without due process.
After the security checks, those who have been accepted will be advised within three days by letter and a schedule of the next steps will be provided to them at that time.
The next steps are:
1. Site Inspection for Health, Fire and Safety
2. Team Jamaica and other Training
3. Cultural Sensitization workshop
4. Business facilitation training
On the ”„carrot”¦ side of the coin, the Ministry of Finance and Planning has agreed to waive the usual room tax, while TPDCo will provide free training in customer service, public health and safety.
The agency has also negotiated a special nominal rate for public liability insurance with Victoria Mutual Insurance Company, benchmarked against a minimum room stock of 500.
In order to reduce direct competition between this new segment and the traditional accommodations, certain conditions will obtain. For instance, there is a cap of four rooms per premises, and the recommended room rate is between US$ 35-$ 60.
We are confident that the development of this segment of the accommodations sub- sector will advance the Master Plan agenda to increase mutual access between our visitors and Jamaican communities.
As you are hopefully aware by now, the Tourism Enhancement Fund was established last year to provide a pool of dedicated funds for the express purpose of improving the tourism product.
The broad areas of interest would include resort development, product development and beautification, with the specific projects targeted for funding satisfying at least two of the following criteria:
o Self sustaining
o Boost economic prosperity
o Increase competitiveness of the tourism product
o Promote resort development
o Focused on Heritage and Culture
In recent months there have been some expressions of concern about the pace at of the disbursement of funds by the TEF”KWell, I have two words for you ”V due diligence. Under my watch, I can guarantee you that public funds will be carefully managed and properly accounted for.
One central guiding principle of the TEF is to manage the funds prudently, carefully assessing requests for financing based entirely on what is in the best interest of Jamaicans and our visitors.
In this regard, we decided to invest the requisite time in assembling the right team ”V a small, experienced and efficient team to ensure high performance and probity.
We now have that team in place, led by Ian Neita, who brings to the table many years of experience in business and financial management.
The board now meets monthly to consider requests for funding, and awards are made according to the criteria I just outlined. Let me hasten to add that the Fund is not meant to duplicate the efforts of any other source available to the sector”V private or public.
I must also stress that the TEF was not meant to take on the responsibilities of any other Agency. As such, the TEF will concern itself primarily with incremental work to add value to the tourism product, and/ or to tackle some special challenges on a one-off basis. The latter would include projects such as the recent clean up work in Montego Bay to welcome the world”¦s largest sea vessel ”V Freedom of the Seas, which made its inaugural call on the port only Thursday of this week.
Whereas public cleansing and road repairs normally fall under other government agencies, the occasion was considered to be of such importance and the scope of work so significant as to warrant funding”Kand I must warn the Parish Councils (not just in St. James, but Westmoreland, St. Elizabeth”Kall of them), NOT to expect the TEF to take on the public works which properly fall within your purview.
This streetscape work in Montego Bay represented an investment of $15 Million in ”V ”„the complete resort”¦.
Just to apprise you that approval for the following projects were also granted at the TEF board meeting in May:
"« $ 20 M towards the renovation of Devon House, which will play a key role in hosting the Caribbean Business Club during the 2007 staging of the Cricket World cup in the Caribbean.
"« $3.5 M for landscaping and beautification works along Main Street in Ocho Rios.
"« $4M towards the construction of a roundabout near Mineral Heights in Clarendon to facilitate traffic flow along the island”¦s southern corridor. Two attractive elements about this project is that it involves a public-private sector partnership, and its execution will include a cutting edge design to facilitate low maintenance. (Please remember that tourism is not just about resort town, but should facilitate ALL that Jamaica has to offer. As we increase and decentralize the attractions, our visitors will need to get there with greater ease.)
This is just the beginning. There are a significant number of projects yet to be considered, including many which seek to take advantage of next year”¦s hosting of the Cricket World Cup.
I must emphasize that none of this is just about spending money to look good for cricket. The strategy is to leverage the development of sustainable projects to that major event, which is expected to bring an inflow of an additional 100,000 visitors to the Caribbean during the 2006-2007 Winter Season. Of this amount, we hope to attract about 10,000 to Jamaica.
There are also other proposals on the table spanning the North Coast and Kingston to address the upgrading and landscaping of parks and other public spaces.
In terms of the major goal of resort development, we have put out to tender the request for an expert to come on board to guide the process, so that the outputs conform to the global standards of what constitutes true resorts.
Tourism Master plan also clearly addresses the issues of brokering support to the small hotel sector by facilitating funding. Well, this year during her inaugural contribution to the budget debate as Prime Minister, the Most Hounourable Portia Simpson-Miller announced a significant injection to the sector, once again the fruit of private-public sector collaboration.
The Bank of Nova Scotia Jamaica Limited last month launched a $600 M fund aimed at providing loans at concessionary rates ranging from 7.875% to 8% to small hoteliers and small farmers in support of the tourism and agricultural sectors. In a sense it all benefits the hospitality sector, based on the inextricable linkages between the two. The actual allocation to tourism is $350 M, supplied to the Development Bank of Jamaica for on-lending to small hotels at the rate of 8% per annum. Since the DBJ does not have the required distribution infrastructure, the loans will be discounted through the Bank of Nova Scotia to the qualified borrowers.
Under this facility, the loans will be for a maximum of the Jamaican dollar equivalent of US$225,000.00 OR J$15M, whichever is less. The funds will be made available specifically for upgrading existing facilities to world class standards, and will require the approval of the DBJ. Borrowers will be expected to maintain all their business with the source bank during the life of the loan.
We have also been fulfilling our mandate of attracting and harnessing Foreign Direct Investment into the sector to boost our room stock and to further diversify the product.
So far, just under one billion US dollars in capital expenditure has been identified to flow into the sector in the five year period 2005-2010. This investment is expected to yield somewhere in the region of 10- thousand, five hundred jobs by 2010, assuming an employee: room ratio of 2:1 for higher-end properties and roughly 1:1 for lower end hotels and condos.
Sustainable Tourism presumes a reliable transportation system, with fully engaged players. In this regard, we are close to producing a final draft of the Tourism Ground Transportation Sub-Sector Policy.
In fact, there is a consultation scheduled for next Friday at the Ministry to discuss the key points of the plan with representatives of the U-Drive group.
While I do not wish to pre-empt those discussions, I believe I owe it to you to share the main principles which guided the formulation of this policy, leaving the door open for additional input if necessary. These principles are:
1. Harmonization of rates to manage visitor expectations
2. Inclusiveness. This means allowing access to all potential players who satisfy certain agreed conditions. Quota systems would therefore me removed in the spirit of fair trading in a free market.
3. Affirmative action to include persons with disabilities through additional incentives on duties for vehicles retrofitted to facilitate them.
4. Increased allowance of luxury cars, bearing in mind that so many new properties are located at the upper end of the scale.
AND”K
5. Incentives for the importation of buses equipped with adequate undercarriage or rear-end stowage space for luggage.
Destination Jamaica is definitely on the rise, but we must be careful not to undermine the source of the fascination with our country through negligence.
I am referring here to all that contributes to the Jamaican experience, HERE in Jamaica. The food, music, speech, movement, habits and products of the hands and of the mind”Kin short, BRAND Jamaica.
The Jamaica Tourist Board has moved to patent our marketing slogan ”V
”„Once you go, you know”¦ as well as the type and style used to write JAMAICA in our promotions. This is to protect our collective intellectual property as a nation. In spite of our many challenges, so many persons worldwide are yielding to the allure of Brand Jamaica ”V often benefiting economically from its value.
While it is said that the sincerest form of flattery is imitation, we would much prefer recognition of the ”„real Mc Coy”¦, leading to even MORE investment and wealth.
What can YOU do to advance this agenda?
One thing that comes immediately to mind is full participation in a seminar on Trade Mark Registration of Jamaican Hotels and Attractions. The prospective date for the seminar is Thursday, September 28. It is proposed that the programme be run for a half day with three presentations:
1. An introduction to Trade Marks (TM) and Intellectual Property
2. The TM registration process and
3. Testimonials from a hotel and an attraction on how TM registration has helped to leverage their business.
In this fiercely competitive global business, it is also very heartening to know that we have a sector locally that has reposed within its ranks, some of the most experienced bodies and finest minds anywhere on the planet.
More importantly, it is very gratifying that we have demonstrated time and time again our collective ability to respond to, and work our way through many crises, including natural disasters.
We got a chance to share these skills with the world just a couple of months ago, receiving high marks from our international partners, after a mishap on a cruise ship heading towards Montego Bay.
The National response was phenomenal. I was on sick leave at the time, but Junior Minister, Dr. Wykeham McNeill who was in charge of the Ministry in my absence, galvanized the support of the appropriate government agencies to provide emergency assistance at the Port of Montego Bay. In fact, I also spoke directly to the President of the Cruise Lines, and he confessed that the when the fire started, the ship was closer to Cayman than to Jamaica, but they felt more confident in the support we would have been able to give. They were by no means disappointed.
Perhaps most encouraging, though was the response at the local level. There was a tremendous response from the Montego Bay community who turned out to render assistance. Specifically, I would like to congratulate and thank the JHTA and its members, who worked very closely with the cruise liner and its handlers to assist the Star Princess to accommodate those guests that were dislocated.
Let”¦s now look to the future:
There are several challenges that lie ahead in implementing the Tourism Master Plan. If we are to succeed in developing sustainable tourism packages that create unique experiences, we need to (and by we I mean the private sector and the government) ”KWe need to make improvements in the five following areas:
First and foremost, we need to improve security and address the perception that Jamaica is not safe for tourists outside of the large hotels. Although crime is an issue in Jamaica, the reality is that tourists are for the most part, not the victims of crime. Tourists that leave all-inclusives ”V including those that visit Bob Marley”¦s Trench Town home have had great experiences and do not have problems with crime. We need to deliver that message that Jamaica is a safe destination to reinforce the goal that tourists can have a great nature and cultural experience here. Of course, there must be continued efforts to reduce crime and to provide economic opportunities in communities. This can be combined with efforts to bring tourists into the mainstream culture of Jamaica ”V and to allow all members of the Jamaican community to share in this vision.
One of the most insidious crimes plaguing the sector globally is that of sexual exploitation of our children in tourism. While Jamaica has taken solid steps since last year”¦s ”„tier 3”¦ ranking by the U.S. State Department to advance to ”„tier 2”¦ watch-list, we all have to remain vigilant.
In fact, we should not need ”„Uncle Sam”¦ to tell us to look out more aggressively for the most vulnerable in our society. After all, prosperity in our sector is predicated on social stability and shared prosperity.
Jamaica is not alone in terms of having many children at risk, but it would be in our best interest individually and collectively to separate ourselves from other major destinations by an active social conscience.
Commenting last Thursday on the recent launch of a pedophile political party in the Netherlands, Gleaner columnist Martin Henry laments about the ”„short-lived song and dance”¦ in the local media about ”„an entrenched feature of Jamaican culture: child sex, child pregnancy, and child prostitution”¦.
Not uniquely Jamaica, however, this is what the World Tourism Organization was attempting to address when it created the Task Force to Protect Children from Sexual Exploitation in Tourism in 1997. Jamaica is an active member of the UNWTO, and therefore fully supports its agenda.
What is your role?
Vigilance
Spot them, and stop them”KJamaicans and visitors alike.
Secondly, we need to increase spend per day. This will require more activities and targeting the right customers that will be interested in cultural and nature experiences.
We need to get better at identifying those customers, and understanding how and where they make their purchase decisions. We need to understand how competitor offerings are improving and how to deliver experiences that can attract customers vs. a Dominican or a Cuban destination. We need to deliver a meaningful experience and follow-up with customers to provide a positive post island experience.
Thirdly, in order to enhance and deliver a meaningful visitor experience, more activities need to be developed outside of the major hotels. These experiences must leverage the cultural nature of Jamaica. For example, this may include visiting the Maroons or focusing on music, which may include the history of Jamaican music while highlighting shows with young artists. To address this, Unique Jamaica has made a good start as their over 30 tour packages highlight the nature, music and culture of Jamaica.
(One such tour is the Jamaica Jerk Trail in Moore Town, which will be launched on June 23, observed by the Maroons as Quao Day.)
Fourthly, the industry must leverage other local businesses. But local businesses must rise to an international level of service and quality. For instance, the local craft industry can benefit greatly from closer collaboration with hotels. Again Unique Jamaica recently voted to have only Jamaican crafts sold at their hotels ”V instead of goods from China and elsewhere. These craft items must however conform to quality standards and the producers must be consistent.
There is also a tremendous opportunity to work with the entertainment industry ”V and market the music experience to the best markets, such as Germany, the US, the UK, France and Japan. This will help to both support artistes and help to differentiate Jamaica”¦s tourism experience.
The vibrant medium provided by artists and artistes provides a portal through which our visitors can experience the other dimensions of the Jamaican people, our culture, heritage and traditions.
This provides added value to the visitors”¦ experience and creates access to markets and to a consciousness that will assist our cultural entrepreneurs to become economically wealthy to complement their artistic wealth. Our museums, galleries, show spaces and similar places of cultural repositories need to be more systematically integrated within our central and more dominant tourism product. This is a natural, readily available and abundant resource that compliments all the features of the properties and attractions represented here at your AGM today. You might even wish to consider a formalized programme, where properties can house exhibitions of our cultural artifacts.
In fact there is currently a fascinating installation captioned: ӤOf Things Sacredӯ now housed at the Museum of History and Ethnography within the Institute of Jamaica. It captures the essence of our unique spirituality manifested in various forms and embracing the influences of all our peoples.
I encourage you t o visit the exhibition of paintings by Michael Lester now on at the National Gallery of Jamaica in downtown Kingston. Lester is a Polish man who visited Jamaica several years ago and never left. He became involved in the work of the Jamaica Tourist Board as he attempted to capture the essence of Jamaica in images. If you live in or around Kingston, I strongly suggest that you go to the National Gallery to see this exhibition.
Here is an example of a golden opportunity to broker a relationship between our visitors and this aspect of Jamaican life while realistically ”V at relatively little cost ”V expanding the menu of Attractions and Events within the sector.
It also directly supports the tenets of The Master Plan by including more of our heritage and culture in the tourism product.
From a tax payer”¦s perspective, it also expands the real space and reach of the Institute of Jamaica and related facilities, reducing its sole reliance on the public purse for sustenance.
Fifth and finally, we must continue to leverage sporting events to support tourism. For instance, the JTB is working with the Cricket World Cup”¦s Local Organizing Committee (LOC) to be certain that there are targeted marketing efforts prior to the event and that Jamaica provides an array of quality experiences in Downtown Kingston combined with entertainment, crafts and other industries.
These are the activities that will make the distinction between simply growing the industry in contrast to delivering a sustainable tourism strategy. The sustainable strategy is one that we all embrace as it can benefit all Jamaicans, including communities, musicians, artists, craftspeople and others.
We will need to continue pursuing partnerships that will allow us to achieve sustainable goals as stated in the Master Plan.
I look forward to the continued privilege of working together with you on important initiatives so that Jamaica can grow and prosper with a sustainable tourism strategy.
One love.
