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Oh no, Air Jamaica
Shirley Williams
Sunday, May 27, 2007
This past week brought with it serious concerns about two developments in the tourism sector. Firstly, there was the downturn in the performance of the sector for the first quarter of 2007. Then there was the reported sale by the Jamaican government of its landing slots at Heathrow International Airport. Both issues are directly related. I will first examine the reported sale of landing slots.
Shirley Williams
Wikepedia, a free Internet encyclopedia, defines: "Landing slots or Airport slots are rights allocated to an airline by an airport or government agency granting an airline the right to schedule a landing or departure at a specific time. Landing slots at some major airports are controlled by grandfather rights for airlines that were in place when these restrictions were added, for example British Airways at Heathrow Airport."
There were signs of pending announcements concerning landing slots when Stephen Vasciannie, writing as a contributor to the Sunday Gleaner on May 13, informed the country that there were negotiations earlier this month between the British and Jamaican governments "on matters pertaining to the conclusion of a new Air Services Agreement between both countries".
We were further advised that the series of negotiations included other countries, namely Germany, Chile and Brazil.
The article reminded us that Jamaica has an 'open skies' arrangement with the United States which allows carriers designated in the US to enter Jamaica from any point in that country and that there is "full liberalisation between Jamaica and the US".
Interestingly, in respect to the United Kingdom, this full scale liberalisation does not exist, rather, there is an agreement for British airlines to fly on a scheduled basis into Montego Bay and for British Airways to fly from London to Kingston.
Alarming concessions
We are now aware that serious agreements have been made. Firstly, Mr Vasciannie stated that Jamaica has accepted in principle the liberalisation of landing rights by allowing British authorities the right to designate (after May 2010) any European Community airline to come to Jamaica from any part of the European Union.
To compound this, both daily newspapers carried lead stories on May 23rd, of reports in the Telegraph newspaper (UK) that Air Jamaica is scheduled to end its daily flights to London and that Virgin Atlantic has purchased the 'take off and landing' slots of Air Jamaica at Heathrow Airport. Reports further stated that when contracted, Minister Pickersgill, who holds portfolio responsibilities for the airline, was unaware of the details and referred the reporter to the minister of finance.
Disposal of landing rights can have damning repercussions and are often irreversible. Once you have sold them, it is difficult, if not impossible, to retrieve them. Taxpayers of this country own the national airline, Air Jamaica, several times over. They deserve to be involved, through the Parliament, in decisions such as these which can impact on the airline. Is it a fact that the landing slots into Heathrow Airport have been sold? What agreements have been made with Germany, Chile and Brazil?
In recent years, London has become a financial hub of the world. How could it be to the country's benefit to dispose of its landing rights to this vital location? Let us assume that Air Jamaica has decided to terminate this London route due to its unsustainability, why then not lease the slots rather than dispose of them completely?
Is it not possible to sustain the London route through other options? The Government has on many occasions stated its objectives of making Jamaica a transshipment port for cargo, both by sea and air. Have we investigated the possibilities of maintaining the London route for the shipment of cargo, if not now then in the short term? What of having Air Jamaica as a non-scheduled operator into London? Would the slots not then be definitely advantageous?
Who made the decisions to divest the landing slots? We are told that there is an Air Policy Committee comprising members of several state agencies which considers Jamaica's air policy on a monthly basis. Why has there been no public participation in the divestment of landing rights, considering our focus not only on tourism as a mainstay of our economy but the fact that a significant ethnic travelling population uses the London - Jamaica route?
It is my firm hope that Air Jamaica, in collaboration with the Government, has not indeed sold off our valuable landing rights. On behalf of the taxpayers of this country I demand an explanation from the Government as to which rights, if any, have been leased or sold and at what cost.
Downturn in tourism
The tourism sector is very vital to the economic survival of our country and our hopes hang high for its continued growth. The Tourism Master Plan projects that over a ten-year period the industry will grow to 15 per cent of GDP. Critical is it therefore that we ensure that all the linkages and policy frameworks are in place in a timely manner to effect this growth. More particularly, tourism has a 6-7 year cycle which follows the world business cycle. We are becoming more dependent on tourism, so without strong strategic inter-sectoral linkages there is a likelihood of increased poverty if tourism is improperly managed.
The World Economic Forum's First Ever Travel & Tourism Competitiveness Report, on March 1, 2007, revealed the results of a study which ranked 124 countries according to their ability to develop the travel and leisure industry. The ranking, known as the Travel and Tourism Competitive Index (TTCI), listed Switzerland, Austria, Germany, Iceland, United States, Hong Kong, Canada, Singapore, Luxembourg and the United Kingdom as the 10 top countries. These countries were viewed as demonstrating the importance of having:
"Supportive business and regulatory frameworks, coupled with world class transport and tourism infrastructure and a focus on nurturing human and natural resources, for fostering an environment that is attractive for developing the travel and tourism sector."
Jamaica's ranking in the index was 48th, behind Barbados and Costa Rica and just ahead of the Dominican Republic and Trinidad and Tobago.
The following factors were used to measure the Competitiveness Index :
. Policy Rules & Regulations
. Environmental Regulations
. Safety and Security
. Health & Hygiene
. Prioritisation of travel and tourism
. Air transport and infrastructure
. Ground transport infrastructure
. Tourism infrastructure
. Information & Communication Technology
. Price Competitiveness
. Human Capital
. National Tourism perception
. Natural & Cultural Resources.
The successful development of a competitive tourism product dictates that we focus on each of these factors and perfect them to world class standards. The product is not about sun, sea and sand, that is the world of the past.
In addition, Jamaica, by its policy and regulations, ought to ensure that its destination is viewed as a top-class brand. Critical to this is the type of accommodation which it offers. It is my view that we ought to opt for the establishment of more luxury type accommodations facilitated by major improvements of airport facilities for private jets. Now is not the time to be divesting landing slots. The JHTA president supported this position in a television interview on May 23, 2007.
Jamaican investors own a significant number of hotel rooms in Jamaica (Sandals Group, SuperClubs, Couples, Renaissance Jamaica Grande, Courtleigh & Knutsford Court) while in recent times there have been significant investments by European entities such as the Riu Group, which is owned by TUI, a large German conglomerate.
The thousands of hotel rooms recently built and currently under construction by these European investors suggest that there will be the need for airlifts from gateways throughout Europe. Will Air Jamaica not be a beneficiary of this? Is there no link between the Air Policy and Tourism Strategy ?
There is no indication that the major investments by international investors in the hotel sector over the past five years have been done in the context of a planned, co-ordinated, and well constructed framework established by the Government. The lack of linkages between the new facilities and the rest of the economy is blatant and damning. I say to the Government, awake, before it's too late.
Shirley Williams is an Opposition senator
Shirley Williams
Sunday, May 27, 2007
This past week brought with it serious concerns about two developments in the tourism sector. Firstly, there was the downturn in the performance of the sector for the first quarter of 2007. Then there was the reported sale by the Jamaican government of its landing slots at Heathrow International Airport. Both issues are directly related. I will first examine the reported sale of landing slots.
Shirley Williams Wikepedia, a free Internet encyclopedia, defines: "Landing slots or Airport slots are rights allocated to an airline by an airport or government agency granting an airline the right to schedule a landing or departure at a specific time. Landing slots at some major airports are controlled by grandfather rights for airlines that were in place when these restrictions were added, for example British Airways at Heathrow Airport."
There were signs of pending announcements concerning landing slots when Stephen Vasciannie, writing as a contributor to the Sunday Gleaner on May 13, informed the country that there were negotiations earlier this month between the British and Jamaican governments "on matters pertaining to the conclusion of a new Air Services Agreement between both countries".
We were further advised that the series of negotiations included other countries, namely Germany, Chile and Brazil.
The article reminded us that Jamaica has an 'open skies' arrangement with the United States which allows carriers designated in the US to enter Jamaica from any point in that country and that there is "full liberalisation between Jamaica and the US".
Interestingly, in respect to the United Kingdom, this full scale liberalisation does not exist, rather, there is an agreement for British airlines to fly on a scheduled basis into Montego Bay and for British Airways to fly from London to Kingston.
Alarming concessions
We are now aware that serious agreements have been made. Firstly, Mr Vasciannie stated that Jamaica has accepted in principle the liberalisation of landing rights by allowing British authorities the right to designate (after May 2010) any European Community airline to come to Jamaica from any part of the European Union.
To compound this, both daily newspapers carried lead stories on May 23rd, of reports in the Telegraph newspaper (UK) that Air Jamaica is scheduled to end its daily flights to London and that Virgin Atlantic has purchased the 'take off and landing' slots of Air Jamaica at Heathrow Airport. Reports further stated that when contracted, Minister Pickersgill, who holds portfolio responsibilities for the airline, was unaware of the details and referred the reporter to the minister of finance.
Disposal of landing rights can have damning repercussions and are often irreversible. Once you have sold them, it is difficult, if not impossible, to retrieve them. Taxpayers of this country own the national airline, Air Jamaica, several times over. They deserve to be involved, through the Parliament, in decisions such as these which can impact on the airline. Is it a fact that the landing slots into Heathrow Airport have been sold? What agreements have been made with Germany, Chile and Brazil?
In recent years, London has become a financial hub of the world. How could it be to the country's benefit to dispose of its landing rights to this vital location? Let us assume that Air Jamaica has decided to terminate this London route due to its unsustainability, why then not lease the slots rather than dispose of them completely?
Is it not possible to sustain the London route through other options? The Government has on many occasions stated its objectives of making Jamaica a transshipment port for cargo, both by sea and air. Have we investigated the possibilities of maintaining the London route for the shipment of cargo, if not now then in the short term? What of having Air Jamaica as a non-scheduled operator into London? Would the slots not then be definitely advantageous?
Who made the decisions to divest the landing slots? We are told that there is an Air Policy Committee comprising members of several state agencies which considers Jamaica's air policy on a monthly basis. Why has there been no public participation in the divestment of landing rights, considering our focus not only on tourism as a mainstay of our economy but the fact that a significant ethnic travelling population uses the London - Jamaica route?
It is my firm hope that Air Jamaica, in collaboration with the Government, has not indeed sold off our valuable landing rights. On behalf of the taxpayers of this country I demand an explanation from the Government as to which rights, if any, have been leased or sold and at what cost.
Downturn in tourism
The tourism sector is very vital to the economic survival of our country and our hopes hang high for its continued growth. The Tourism Master Plan projects that over a ten-year period the industry will grow to 15 per cent of GDP. Critical is it therefore that we ensure that all the linkages and policy frameworks are in place in a timely manner to effect this growth. More particularly, tourism has a 6-7 year cycle which follows the world business cycle. We are becoming more dependent on tourism, so without strong strategic inter-sectoral linkages there is a likelihood of increased poverty if tourism is improperly managed.
The World Economic Forum's First Ever Travel & Tourism Competitiveness Report, on March 1, 2007, revealed the results of a study which ranked 124 countries according to their ability to develop the travel and leisure industry. The ranking, known as the Travel and Tourism Competitive Index (TTCI), listed Switzerland, Austria, Germany, Iceland, United States, Hong Kong, Canada, Singapore, Luxembourg and the United Kingdom as the 10 top countries. These countries were viewed as demonstrating the importance of having:
"Supportive business and regulatory frameworks, coupled with world class transport and tourism infrastructure and a focus on nurturing human and natural resources, for fostering an environment that is attractive for developing the travel and tourism sector."
Jamaica's ranking in the index was 48th, behind Barbados and Costa Rica and just ahead of the Dominican Republic and Trinidad and Tobago.
The following factors were used to measure the Competitiveness Index :
. Policy Rules & Regulations
. Environmental Regulations
. Safety and Security
. Health & Hygiene
. Prioritisation of travel and tourism
. Air transport and infrastructure
. Ground transport infrastructure
. Tourism infrastructure
. Information & Communication Technology
. Price Competitiveness
. Human Capital
. National Tourism perception
. Natural & Cultural Resources.
The successful development of a competitive tourism product dictates that we focus on each of these factors and perfect them to world class standards. The product is not about sun, sea and sand, that is the world of the past.
In addition, Jamaica, by its policy and regulations, ought to ensure that its destination is viewed as a top-class brand. Critical to this is the type of accommodation which it offers. It is my view that we ought to opt for the establishment of more luxury type accommodations facilitated by major improvements of airport facilities for private jets. Now is not the time to be divesting landing slots. The JHTA president supported this position in a television interview on May 23, 2007.
Jamaican investors own a significant number of hotel rooms in Jamaica (Sandals Group, SuperClubs, Couples, Renaissance Jamaica Grande, Courtleigh & Knutsford Court) while in recent times there have been significant investments by European entities such as the Riu Group, which is owned by TUI, a large German conglomerate.
The thousands of hotel rooms recently built and currently under construction by these European investors suggest that there will be the need for airlifts from gateways throughout Europe. Will Air Jamaica not be a beneficiary of this? Is there no link between the Air Policy and Tourism Strategy ?
There is no indication that the major investments by international investors in the hotel sector over the past five years have been done in the context of a planned, co-ordinated, and well constructed framework established by the Government. The lack of linkages between the new facilities and the rest of the economy is blatant and damning. I say to the Government, awake, before it's too late.
Shirley Williams is an Opposition senator
Diane Abbott 
Branson. snatching the Air Jamaica routes under the nose of British Airways will have given him a great deal of personal satisfaction 
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