Elizabeth Morgan | Christmas’ contribution to the economy

For the Church, Christmas is about salvation and the birth of Christ, but there is a business side to it. The celebrations, religious and secular, contribute to economies and are worth studying. In Bethlehem in the West Bank of Palestine this year, the usual hustle and bustle were absent as Christmas was cancelled due to the war. It was not only the pilgrims who felt the loss, but the business community in Bethlehem as well.

Studies online examine the contribution of Christmas to economies in the west, looking at the pros and cons. It is a period anticipated by merchants. In the United States, the anticipated commercial period starts from Halloween in late October to Thanksgiving in November, with the big day being Christmas in December. These are all observances grounded in the Christian religion.

Here in Jamaica, it seems that the decorations for Christmas start going up even earlier each year. The merchants are anticipating doing increased business in the last month of the year. They import and buy locally new stock. The Jamaica Manufacturers and Exporters Association (JMEA) has started having the Christmas in July Expo to showcase goods and services which may be available in the Christmas Season.

This year, the Bank of Jamaica has reported that J$300 billion will be in circulation by Christmas, 21% more than in 2022 (possibly due to inflation). J$25 billion will be added in the last 16 days of December. So, even with inflation, Jamaicans are spending money, it seems, contributing to the gross domestic product, and they were spending for Christmas. Hopefully, they had saved some money whether through the traditional partner or in a financial institution.

The Christmas traditions which contribute to the economy here in Jamaica include:

1. The December household makeover – refreshing the house by buying new furniture, making repairs, painting, replenishing bed linens, curtains, rugs, equipment;

2. Shopping for clothes and gifts – this means not only heading to the brick and mortar stores, but shopping online. There are also the outdoor Christmas markets which give artists and craftspeople, as well as small businesses producing hair, cosmetics and skin care products the opportunity to showcase their wares. Christmas markets, such as those at Devon House, would benefit from having available and working card machines. The ATM at Devon House would also be useful if it had cash during these events. Vendors lose business when cards cannot be used and used safely.

3. Food and Beverages – of course, a big part of Christmas is food and beverages which provides not only opportunities for supermarkets and wholesale businesses, but for farmers and small vendors. All the many events, Christmas parties, dinners, lunches, treats and other functions need food and drink with all the traditional items on the menu.

4. Christmas decorations and plants – we may not go over the top, but people still buy decorations and plants for churches, offices and homes;

5. Christmas parties and other festivities – although already mentioned, this is a big contributor to Christmas spending, and some parties may even have an admission fee;

6. The Christmas concerts – it seems every church and choir has a carol service or Christmas concert of some kind. Some charging an entry fee, some sponsored, and others receiving donations – This is the time to make additional money, if well attended;

7. Charities – Christmas is the season of giving – so many people or organizations will be donating to charities or charities will be taking the opportunity to seek contributions. We see the Salvation Army at many locations;

8. Christmas employment and payments – there are government programmes which provide employment and some people might pick up extra work for the season. In years past, employees in profitable businesses used to benefit from the Christmas bonuses. Does this still happen? Recall that the post people, garbage collectors, and other employees also get a little extra for Christmas.

9. Remittances – lines are long at money transfer locations as people collect the Christmas money sent by relatives abroad;

10. Travel and Tourism – especially when Christmas extends a weekend to four days, this is a great opportunity for travel both at home and abroad. Jamaicans are visiting friends and relatives abroad, and friends and relatives are coming here. Christmas is also a high period for tourist arrivals.

CHRISTMAS CARDS – ON THE WAY OUT?

I am addressing Christmas cards separately as a changing industry. Christmas greeting cards were a big industry and gave rise to other greeting cards. In decades past, a must on the Christmas things to do list was buying and sending Christmas cards locally and abroad. Now, I do not think physical Christmas cards are so popular any more. They are being replaced by electronic greetings sent by email and WhatsApp. To further sound their death knell, the postage is exorbitant (J$240 or more per card) and, in addition, one now has to fill out a customs declaration form for each card mailed overseas. Why bother when I can send an electronic greeting or make a phone call! So times are changing for Christmas cards.

So, does Christmas benefit the economy in Jamaica? I have not done an empirical study, but, naturally, it would seem so. Of course, it has negatives in waste and over indulgence. A study might be useful to determine the actual level of benefit.

It does seem on the economic side, that if we did not have Christmas, we might need to invent it as a stimulant to commercial activity. Let’s look at the non-monetary side too. Christmas does promote hope, joy, love, peace, and goodwill which are priceless.

Elizabeth Morgan is a specialist in international trade policy and international politics. Send feedback to columns@gleanerjm.com.