JHTA: Unilateral minimum wage hike could hurt jobs, raise prices

The Jamaica Hotel and Tourist Association (JHTA) wants the Government to hold consultations with key stakeholders before proceeding with its proposed move to double the national minimum wage, arguing that failure to do so risks creating economic shocks for businesses and workers.

"Any shifts in wage policy will therefore have wide-ranging implications for the sector, including employment levels, competitiveness, and the affordability of the Jamaican tourism product in a highly competitive global marketplace," the JHTA said in a statement on Tuesday.

Speaking at a Jamaica Labour Party (JLP) mass meeting in St Catherine on Sunday, JLP leader and Prime Minister Dr Andrew Holness said his party, if re-elected, would move the minimum wage from $16,000 to $32,000 per 40-hour work week on a phased basis.

He said the first adjustment would increase the wage to $18,500 “in our first budget and then gradually after that for the next few years.”

The JHTA is expressing concern.

While recognising the critical importance of ensuring that Jamaicans earn a fair and sustainable wage, the association is strongly urging the Government to engage in meaningful consultation with key stakeholders before finalising any adjustments.

According to the JHTA, tourism accounts for approximately one-third of Jamaica's Gross Domestic Product (GDP) and is one of the country's largest employers.

As such, it said any shifts in wage policy would have wide-ranging implications for the sector.

"Sudden wage increases, without proper dialogue and phased implementation strategies, could inadvertently result in reduced employment opportunities, higher operational costs, and increased prices being passed on to consumers," the association said.

The JHTA said it wants to see structured dialogue that fully considers the realities of the tourism sector, the broader economy, and Jamaica's long-term competitiveness.

"Decisions of this magnitude must be grounded in collaboration, data-driven analysis, and transparency to ensure that policies designed to uplift workers do not inadvertently weaken the industries that sustain them."

It added that the Government should utilise the Minimum Wage Advisory Commission in its undertaking to ensure transparency, fairness, and balance in decision-making.

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