Tourism: the certainty of uncertainty

Andrew Spencer, Contributor

Minister of Tourism Edmund Bartlett's contribution to the 2010-2011 Budget Debate in the House of Representatives was summed up very well when he stated that in tourism "the only certainty is uncertainty". Indeed, tourism has long been referred to as a fragile and volatile industry and the recent world economic crisis has taken its toll in many tourism dependent nations. Very importantly however, Jamaica's tourism continues to compete with the world's best and may have claim to the title "vanguard of tourism initiatives" in the English-speaking Caribbean.

The trajectory of the Jamaica Tourist Board's marketing programme must also be commended as there are now efforts to capitalise on technological tools through website enhancement and social media sites. Indeed, as 'Generation X and Y' join the 'Baby Boomers' as substantial spenders, they must be reached in creative ways such as Facebook, Twitter and YouTube, all of which are available on their smartphones. In a time when tourism distribution systems are evolving and the travel supply chain faces major restructuring, marketers must be prepared to adapt to the consumer behaviour of new markets and supplement traditional methods with contemporary, cutting-edge approaches.

Perhaps while addressing the distribution system a careful look may be taken at developing a more targeted marketing approach that engages in more than basic geographic segmentation, which is by itself an antiquated way of profiling and serving visitors. What is needed is a combination of measures that take into consideration geographic, demographic, psychographic and behavioural variables. I long await the day, for example, when Jamaica can state with clarity and specificity like the Bermudans that the aim is to target US travellers earning over US$150,000 annually. While this only speaks to two of these variables, it is certainly a step away from the ambiguity of claiming, as we do, that we serve the US, UK and Canada with the hope of tapping into new and emerging Asian markets.

I contend that our problems are far greater than issues of demand, however, and extend to grave concerns with our tourism supply. It is very exciting news that attraction expansion is on the horizon through Dolphin Cove and Blue Lagoon developments. This is, however, juxtaposed to announcements of more rooms to be added to the inventory through Spanish chains, Sandals Resorts and other local investments. I must state upfront before I bring upon myself the wrath of special interest groups that I am a proponent of investment in our tourist industry. My fear, however, is that we are embarking on a path of oversupplying hotel rooms while at the same time hotels are closing temporarily due to low-occupancy levels.

Continuous expansion

In empting criticisms of this statement, I concede that the hotels which are expanding continue to enjoy relatively high-occupancy percentages. I therefore do not worry about the closing of their doors, but I am cognisant that continuous expansion of supply without comprehensive protectionist or stimulus initiatives will continue to see the marginalisation of small hotels that struggle to keep their businesses in operation. Indeed, many of these hotels enjoy high occupancy only during special events when there is an undersupply of rooms by major players.

The approach by this tourism administration and the chief salesman has been to create more supply and then work assiduously to match that with demand. The reality, however, is that many of these mega-player private entities have very sophisticated relationships with tour operators and travel agents and depend very little on the centralised marketing campaign to fill their properties. The true measurement of the tourist board efforts should therefore be found in indicators such as attraction patronage and small hotel occupancy.

The reality is that the global tourism pie has not gained significantly in size in the last two years, nor has there been a substantive increase in Jamaica's portion of the pie. It seems that as accommodation supply increases, we will internally compete for this tiny portion of the pie which belongs to us.

While I admire the enthusiasm and drive of our tourism minister, which I have stated in previous articles, the development of Jamaica's tourism product should not so much be an issue of quantity but of quality. This quality will come from investing greater power in the Tourism Product Development Company which will carry more teeth than merely excluding a sub-par property from the JTB website; or from injecting funding into small property enhancement and community projects in tourism concentrated areas.

Short-sightedness

The cry therefore for greater foreign direct investment as the answer to our woes speaks only to short-sightedness and a desire to indulge in tourism development that has high visibility in the short term. Having multinational players in our country is great only to the extent that we get our "pound of flesh", which will contribute to sustainable development programmes that create a solid foundation for an industry which is likely to face many more tests in this uncertain global environment. While we acknowledge that 'the only certainty is uncertainty', we must exert energy on what we can make definite. What seems to be certain is that the Jamaica brand still has popularity and acclaim, hence the task is to solidify the product offering to ensure that consistent quality which can be sustained is made certain.

So I agree, let us invest in tourism. Our campaign should be tourism investment "for Jamaica" and not simply "in Jamaica". The latter will simply yield more of what already exists which is an aesthetically pleasing, fancy shell operation, draped with massive sprawling edifices that belong to someone else and do not provide the depth of a product that can secure a sustainable future.

Andrew Spencer is lecturer in tourism management, Department of Management Studies, University of the West Indies, Mona. Feedback m ay be sent to columns@gleanerjm.com