Jampro pitches big resort projects on Wall Street
Published:Wednesday | October 27, 2010 | 12:00 AM
Avia Collinder, Business Writer
With an eye on future earnings, the Govern-ment is marketing to potential investors several resort locations across Jamaica which are slated for development.
And to lure them, Jampro is dangling various incentives under the Hotels Incentives Act and the Resort Cottages Incentives Act.
In September, properties including Green Castles Estate in St Mary, White Bay in Trelawny, Cotton Tree Bay in Westmoreland, Laughlands in St Ann, Mahoe Bay in St James, Mosquito Cove in Hanover and San San in Portland, were being paraded to a group of Wall Street investors at an investment forum in New York.
Follow-up discussions are at various stages, Mark Thomas, manager of corporate communications at the investment promotions agency, told Wednesday Business.
"Because of the highly sensitive and confidential nature of these discussions and negotiations, we are not at liberty to divulge any information that could any way impair our work in trying to consummate some of these deals and land investments in Jamaica," said Thomas.
He said the investor group included one major international hotel brand.
The HIA provides income-tax relief and import-duty concessions for up to 10 years for approved hotel enterprises, and 15 years for convention-type hotels with 350 or more bedrooms.
The promotions agency repre-sentative said benefit from the two pieces of legislation would provides resort cottages with income-tax relief for up to seven years and import-duty concessions on imported building materials and furnishings.
Thomas said the Development Bank of Jamaica is currently evaluating proposals from prospective consultants who will be engaged to assist with the identification of suitable operators or developers for the assets.
On the list of resort properties presented to investors, one of them, Greencastle, is privately owned. The proprietors are seeking local and international joint venture partners for the development.
High-end accommodations
Located on 1,591 acres of prime real estate near Annotto Bay, the proposed development includes the construction of high-end sustainable, eco-friendly accommodations. The initial plan involves construction on only 213-400 acres.
The aim, the promoters say, is to create a luxury, low impact mixed used residential resort that will be environmentally, economically and socially sustainable.
Cotton Tree Bay, near Negril, consists of approximately 200 acres with two miles of waterfront starting at the eastern point of Green Island Bay. The location is said to be suitable for a marina, resort and/or residential development, villas, hotels, spa facilities, exclusive residential homes and riding stables.
Laughlands is 124 acres with sea frontage next door to Chukka Cove polo grounds and has two beach locations. It is also being touted as a high-end resort development.
Mahoe Bay is a 38-acre property on which it is proposed to develop three hotels, two of which have already been granted preliminary approval.
The Mosquito Cove property comprises 71 acres on its eastern side, with another 200 acres on the south, which Jampro says can be developed into a golf course. Sections of the property have different titles, and the owners are prepared to sell them individually, Jampro said.
The San San Estate in Portland is also targeted for high-end resort development on 600 acres, including an 18-hole golf course and 10 acres of villas.
At White Bay, a beachfront property, permission for resort development of 30 villas and 40 cottages, or a small hotel with equivalent rooms, has already been granted there.
All this is being pushed against the backdrop of expectations of a travel and tourism boom in the future.
The World Travel and Tourism Council has said the contribution of travel and tourism to gross domestic product in Jamaica is expected to rise from 25.4 per cent in 2010 to 29.3 per cent by 2020.
In 2009, under the hotel incentives law, Jamaica recorded capital investment of J$19.3 billion that build 10 hotels - representing 724 new rooms. Resort incentives also secured J$162 million of investment in four properties that added 43 rooms to the inventory.