Tourism blow for Jamaica
Published:Sunday | September 26, 2010 | 12:00 AM
Janet Silvera, Senior Gleaner Writer
WESTERN BUREAU:
The US$10 million in emergency funding approved by the Cabinet for the Jamaica Tourist Board (JTB) was slashed in half by the Ministry of Finance in a bid to meet International Monetary Fund (IMF) stipulations.
In June, the Cabinet approved the money to boost the JTB's budget and to allow the agency to execute an integrated marketing and sales initiative aimed at restoring confidence in the island as a tourist destination in the aftermath of the west Kingston unrest.
However, the marketing arm of the Ministry of Tourism recently received a letter from the Tourism Enhancement Fund (TEF) stating that only US$5 million would be disbursed.
That is in stark contrast to the upbeat pronouncements of Tourism Minister Edmund Bartlett in the aftermath of the Tivoli incursion.
At that time, Bartlett told the media that the Government had asked the IMF to tweak the agreement so it could get extra money to deal with the Tivoli reconstruction and marketing efforts owing to an estimated fallout of US$350 million from the unrest.
Gov't 'lip service'
The decision to cut the emergency funding to the tourism ministry has not gone down well with stakeholders in the industry who have accused the Government of giving "lip service" to the sector.
"The fact that the industry is united around the need to reset the Jamaica brand on a positive footing, we all but set in motion the US$10-million spend that was initially approved by Cabinet," bemoaned Wayne Cummings, president of the Jamaica Hotel and Tourist Association (JHTA).
According to Cummings, this change is jeopardising the financial commitments made to international media partners and the critical rebuilding of the industry.
"The (finance) ministry not approving this money is also telling us that 'lip service' is being paid - despite the fact that tourism is the driver for not only our recovery, but our growth."
Cummings added: "The mixed feelings I have from this must be equal to feeling 'half pregnant'."
The JHTA president charged that in the midst of this situation, the industry is experiencing the worst September since the terrorist attack on the United States on September 11, 2001.
"It's the most challenging month I have ever seen, barring 9/11," revealed Cummings.
Closure better option
He argued that the closure of some resorts has turned out to be a far better option than continued high losses. "Cash flow has all but dried up and is affecting tourism payables."
The JHTA president is of the opinion that people preparing to send children back to school worldwide, amplified by the 'Dudus' matter, severely damaged the excellent momentum the country enjoyed up to May.
"We were set to have a pretty good September at that time," Cummings claimed.
It is generally accepted that marketing for tourism needs to happen three to six months before the season starts.
All the tour operators are now presenting their packages, but this must be accompanied by the marketing pull which will stimulate the demand.
However, Tourism Director John Lynch believes there is enough pull in the marketplace with the programmes already in place.
These include the 2,000 travel agent fly-ins, and the commencement of United States television advertisements to meet the November elections in that country.