Tourism will be Jamaica's biggest driver of economic growth

[Jangle]

Cement sales hit record levels in 2022 despite supply-chain challenges

Caribbean Cement Company Limited, which sells to some 90 per cent of the local market, recorded revenues of $25.8 billion, representing a growth of 8.0 per cent compared with 2021.

After factoring in expenses, the group netted $5.4 billion in profit for its year or about one-quarter more than the $4.3 billion in 2021.

Operationally, management grew its gross profit margin to 44 per cent from 41 per cent in 2021.

This happened: “despite the global supply chain challenges that resulted in increases in freight charges”.

Carib Cement also weathered the disruptions caused by the Russia-Ukraine war, which led to price increases in several commodities, including oil and gas.

https://jamaica.loopnews.com/content...ain-challenges

[Jangle]

FirstRock breaks ground on $2.5-billion apartment tower

Real estate investment company, FirstRock Real Estate Investments, has officially broken ground on a $2.5-billion residential apartment tower on Brompton Road in the heart of New Kingston.

The development, dubbed Bonne Chance, is FirstRock’s second in Jamaica, with another two slated to commence this year.

The Bonne Chance development will feature a 10-storey high-rise building, housing 43 units with 31 studios and 10 one-bedroom apartments.

It will also feature two two-bedroom penthouses, ranging from 1900-3000 square feet.

https://jamaica.loopnews.com/content...partment-tower

[Jangle]

Norbrook investing US$75 million in luxury real estate projects

Norbrook Realty Limited (Norbrook), a real estate company founded by Khary Robinson, has announced three major development projects, creating over 250,000 square feet of luxury commercial and residential properties in Jamaica.

The projects, which will see Norbrook investing over US$75 million across them, will also include a commercial tower in Kingston and two luxury beachfront communities in Ocho Rios.

“For years, we observed the real estate industry and, like any of our other business lines, we spent time and effort to understand the market and identify gaps, said Khary Robinson, executive chairman of Norbrook Equity Partners.

Robinson said Norbrook strategically accumulated parcels of land, formed partnerships with proven industry experts, and developed a unique product set for a niche market.

https://jamaica.loopnews.com/content...state-projects

[Sir X]

Ask Jangle if there has been a downturn in his market, more specific to Jamaica , there has been a downturn,prices have dropped, building has slowed down and sales are not as robust. That said it doesnt mean there will be a recession as predicted and only a fool would rule one out!

Did you rule it out

[Assasin]

So mi nuh think there would be a real estate downturn by now based on the expert prediction and we were headed for recession? LOL!!!

[Sir X]

Yeah , I believe him ,tell him I am waiting for the bridge he sold me 6 years ago

[Jangle]

Holness says J’cans will benefit from economic growth within two years

As Jamaicans continue to complain about not feeling the effects of the country's economic growth, Prime Minister Andrew Holness is forecasting that within the next two years or less, citizens should start feeling those benefits.

"I guarantee that within a year or two, we will start to feel the economic effect of the recovery on the individual household," declared Holness in his remarks at the recent launch of Red Stripe Cellars Expansion for Beer Production (CERS) project at the company’s Spanish Town Road, St Andrew plant.

He gave the assurance that the benefits would flow through the economy so that persons will realise the effects of the Government's economic management and the strong recovery from COVID-19.

https://jamaica.loopnews.com/content...thin-two-years

[Sir X]

If all you have is tourism , then of course it will be the driver , its been doing that from the 60s. God help us if it is for another 60 years. Real estate is a signature sign of the health of an economy, that doesnt mean the masses percieve it to be healthy. E.g the sale of houses might be brisk , but unaffordable to the majority or salaries are not on scale to match it, same for rentals. We need to diversify into.

Jamaica in the low-tech trap

https://jamaica-gleaner.com/article/...-low-tech-trap

https://jamaica-gleaner.com/article/...opmental-state

[Jangle]

Jamaica is at a pivotal juncture in tourism development... a crossroads. Where will Drivah go? The table has been set for an explosion in arrivals and earnings after the current crisis has abated... because of 3 major infrastructural developments.

1. The hotel room stock has increased by 50% in the past 10 years (fastest growth in the region and one of the fastest among major world destinations) and is nearing 30,000.
In addition there are resort proposals on the books totaling US$20B+ ... just for Trelawney! .... nationally project proposals exceed US$30B.
All will not be viable or implemented but if just 50% are completed... a further round of massive expansion is in the offing.

All this enabled by:

2. Sangster airport has been privatized, modernized and expanded... and is on track to accommodate 10m passengers/year. It may become the busiest in the hemisphere outside the US as airlines continue to be attracted to its location and facilities.

3. The North Coast Highway is nearing completion... will connect all the major tourism centers from Negril to Port Antonio with a modern road transport system... not perfect... but very serviceable.

The entire northern belt will be easily accessible... facilitating better planned development.

Water, electricity and telecom services have been modernized in the corridor. Hospitality skills have also been improved and Jamaica continues to enjoy effective marketing.
Housing continues to lag badly however... must be a priority.

If the GOJ does get an offshore financial center going, they should seriously consider locating this in Montego Bay... the synergy with tourism is obvious. Kingston should be used as a back office for this operation.

Bahamas, Bermuda and Barbados use their offshore centers to massively drive tourist arrivals. When the businesspeople fly into those destinations conduct business... they have the hospitality services on hand and are easily led to spend money.
Kingston has the intellectual capital for an offshore center but poor hospitality features... we will lose most of this tourist potential with a KMA location... some may continue on to a yard vacation but many will not.
Not good strategic thinking on GOJ's part.




It's clear that infrastructure will no longer be a limiting factor in developing tourism.

The limiting factor will continue to be social tension and resultant antisocial/criminal behaviour.
This will be the major task of the Golding regime in tourism.. ameliorating the social tensions (police action is NOT the main answer) and ensuring that Jamaica is safe for residents first... and visitors as well.

When Jamaicans feel free to "spread out like carpet"... so will our visitors... then the tourism dollar will multiply throughout the economy.. and not just be creamed off by all inclusives.

That's the only way to maximize the infrastrutural developments and make tourism the major engine it can be... otherwise Jamaica will continue to be a mediocre performer in earnings with tourists warehoused in the gilded garrisons called all inclusives (yes necessary now.. but not a great long term development option) ... even as arrivals rise.

Over to you Drivah... the road is clear.

Kudos to Andrew Holness :

I just returned from Jamaica, and I am impressed by the development that’s taking pace , and I must say if this is the pace and the economy is just opening up, post pandemic then the possibilities are immense ( barring the rise in fuel prices the effects are unknown).

1^st Harbor view , they built up apartments as you exit the round about going west and if you are going east to bull bay, investors are grabbing land in St Thomas for the predictable boom.I went through the garrisons- Mt View /Rockfort, I saw an apartment development in progress on Pembroke road and most of the other houses are well maintained or in the process of redo by the locals who are putting up concrete structures.

2^nd Uptown , driving up ,it’s the same everywhere, until I reached my gated flat off Lindsay crescent. Its central to my escapades to Maxfield ( Mummy and my Aunty advised me not to go there) but I had to look for a distant relative that didn’t have the life’s blessings that I had ( love him to death). He does his own construction hustle doing labor and he is doing great. He has the contract with juicy patties to do whatever fixing up. Then I have the better half in Zadie gardens, Norbrook and Cherry Gardens . The contrast in the community is defined by the roads , in the poor neighborhoods and lower middle class the roads are crap. In the upper middle class , they are well maintained. Again development is the order of the day .

So I linked with old friends, one doing quiet well and I had the pleasure of asking what kinda of business would he recommend I get into, again real estate development in St. Thomas. Said he is building there Wicky Wacky ( tells me don’t watch the garrisons or ghettos) look at the high way route - towns and by the sea.

3^rd Took a trip to Ochi – Hanover and Westmoreland via the north coast, then back to Kingston by the South coast. Inspected the land, as he said – The towns and Seas – development !. I asked who is buying these because the locals cant afford the prices, his response – returning residents. Which seems to be true , I have a girlfriend ( RN ) who is closing on a $ 330k USD gated house in Ochi.

4^th Politics, economy – 1^st politics people are content with the administration because Holness is seen as business driven. Which I admire , his game plan seems to be get the investment in to any and every industry so that jobs can be created , and it is working. Construction, tourism , corporate telemarketing , manufacturing, agriculture, mining etc . He is all about getting more out of less. It ties into the political in that people can see and feel the results , big and small. Crime is an issue and they seem to have a handle on it with the Zoso. Its much needed and should never be disbanded until we have it under control.

That said a lot more is needed to be done in all spheres of the economy, development, tourism, tech, education, crime etc. The opposition is just not credible with all its infighting and is reactionary in ideas, they seem to be a party of critics that have no unified idea or message.

Jamaica is a small Island where every industry is intrinsically linked . They affect each other in one way or the other be it good or bad. The war in Ukraine which is going to raise the price on everything is just starting to have an effect in terms of prices. We should know by January the effect it will have on the economy, if not sooner, again I don’t see people turning against this JLP admin with that factored in. I think this pandemic taught this government what it can do ( get more out of less) when tourism is a non factor. I would give them another term to show and prove the results.

Tourism will be Jamaica's biggest driver of economic growth — Bartlett

Tourism “will be the biggest driver of economic growth and prosperity in Jamaica for years to come,” according to portfolio Minister Edmund Bartlett.

Bartlett made the declaration on Tuesday as he opened the 2023/24 Sectoral Debate at Gordon House.

To support his point, Bartlett pointed to the robust growth in the sector over the past three years, with projections for significant growth in the short and long term.

He highlighted that the tourism sector contributed significantly to the growth in the overall economy and other industries, such as the agriculture, forestry and fishing industry, which was estimated to have grown by 9 per cent.

“This improvement reflected the impact of increased demand, particularly from the tourism sector, which grew consequently on the relaxation of previously implemented COVID-19 measures,” Bartlett said.

https://jamaica.loopnews.com/content...rowth-bartlett