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Good Going in Tourism but how do we extend this?
The government and operators in the tourism sector ought to be commended for the growth that continues in that industry. The number of arrivals tells a positive story though a better indicator would be to understand from the industry if they continue to discount room prices heavily. If so, are properties able to be profitable at the discounted rates?
The recession in the global economy and the impact it has had on the Jamaican economy will not see things ever returning to what was considered normal. A “new normal” will have to be faced by most businesses. If in the hospitality sector it is showing that 2-3% growth can be sustained at the new service prices at the new advertising and promotions expenditure, then sector interests will have to re-structure and re-organise the business to meet that new norm. Then the growth in earnings will come through higher occupancy levels and lower operating costs. Of course, sustaining 2-3% growth is a challenge when operators have to face, imported, cost-push and devaluation related inflation. The sector will therefore have to pursue a public/private sector driven growth strategy.
We suggest that the strategy should include the following components: 1. Additional “Events Tourism Products”; 2. Retirement Tourism Products; 3. Sports Tourism Products; and Health Tourism Products.
Jamaica Jazz and Blues, Sumfest and the ATI Weekend events are good initiatives that serve the industry well. However, are there others? Can we focus on expanding Calabash on the South Coast or developing a heritage event around Seville or Port Royal or the Maroon celebrations in Accompong, St. Elizabeth?
Retirees are in search of focused attention in facilities with their more leisurely speed, friendly physical facilities, entertainment tailored to them and so on. Are there any takers? Is this the opportunity for St. Thomas to build out its industry around the Bath experience and to build the 50s/60s music and entertainment experience around this?
Sports Tourism has been talked about and elements built around Boys’ and Girls’ Champs, the Jamaica International Track and Field events and the ever dwindling Test and One Day International Cricket Schedule that includes Kingston. But is there more to be done outside that? For these multi-million dollar cricket facilities that get used infrequently – is there a 20/20 cricket festival between Jamaican Diaspora teams from Canada, the US and the UK to be tapped into?
In the present industry, some properties may need to re-organise to be organic food facilities, non- processed food facilities or just healthy food hotels. Clarendon and St. Elizabeth may find opportunities here. So, while the sector should take a bow at present for the growth being shown, a strategy around some of these, or other more viable options need to be drawn for realisation in the next five to ten years, if the growth in the sector is to be propelled and to underpin our economy further.
The government and operators in the tourism sector ought to be commended for the growth that continues in that industry. The number of arrivals tells a positive story though a better indicator would be to understand from the industry if they continue to discount room prices heavily. If so, are properties able to be profitable at the discounted rates?
The recession in the global economy and the impact it has had on the Jamaican economy will not see things ever returning to what was considered normal. A “new normal” will have to be faced by most businesses. If in the hospitality sector it is showing that 2-3% growth can be sustained at the new service prices at the new advertising and promotions expenditure, then sector interests will have to re-structure and re-organise the business to meet that new norm. Then the growth in earnings will come through higher occupancy levels and lower operating costs. Of course, sustaining 2-3% growth is a challenge when operators have to face, imported, cost-push and devaluation related inflation. The sector will therefore have to pursue a public/private sector driven growth strategy.
We suggest that the strategy should include the following components: 1. Additional “Events Tourism Products”; 2. Retirement Tourism Products; 3. Sports Tourism Products; and Health Tourism Products.
Jamaica Jazz and Blues, Sumfest and the ATI Weekend events are good initiatives that serve the industry well. However, are there others? Can we focus on expanding Calabash on the South Coast or developing a heritage event around Seville or Port Royal or the Maroon celebrations in Accompong, St. Elizabeth?
Retirees are in search of focused attention in facilities with their more leisurely speed, friendly physical facilities, entertainment tailored to them and so on. Are there any takers? Is this the opportunity for St. Thomas to build out its industry around the Bath experience and to build the 50s/60s music and entertainment experience around this?
Sports Tourism has been talked about and elements built around Boys’ and Girls’ Champs, the Jamaica International Track and Field events and the ever dwindling Test and One Day International Cricket Schedule that includes Kingston. But is there more to be done outside that? For these multi-million dollar cricket facilities that get used infrequently – is there a 20/20 cricket festival between Jamaican Diaspora teams from Canada, the US and the UK to be tapped into?
In the present industry, some properties may need to re-organise to be organic food facilities, non- processed food facilities or just healthy food hotels. Clarendon and St. Elizabeth may find opportunities here. So, while the sector should take a bow at present for the growth being shown, a strategy around some of these, or other more viable options need to be drawn for realisation in the next five to ten years, if the growth in the sector is to be propelled and to underpin our economy further.
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