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Tourist operators to benefit from 'five-for-five' loan

Published:Thursday | March 3, 2011 | 12:00 AM
Tourism Minister Edmund Bartlett (right) examines a signed agreement with Frank Whylie, general manager of Jamaica National Small Business Loans Limited, at Monday's launch of a loan facility for small and medium businesses in the tourism sector. Looking on are (standing from left) Carrole Guntley, director general in the Ministry of Tourism; Ian Neita, executive director of the Tourism Enhancement Fund; and Earl Patrick, executive director of the Tourism Product Development Company. - Rudolph Brown/Photographer

THE TOURISM Enhancement Fund and the Jamaica National Small Business Loans (JNSBL) on Monday launched the expanded loan scheme to small and medium-size operators in the tourism industry, who will now be able to access loans up to $5 million for five years at an interest rate of five per cent on the reducing balance.

Aimed at improving the capacity and products of the small and medium-size businesses within the tourism sector, the tourism ministry and Jamaica National signed the partnership in 2008.

So far, 79 loans have been granted valued at $186 million from the first $200 million that have been put forward. This additional $100 million, added to the scheme, will make a total of $300 million in the last three years.

Phases

The first two phases were primarily geared at small hotels, attractions and transportation subsectors, at three per cent over three years. This additional $100 million is to mainly target the suppliers at five per cent over five years.

Minister of Tourism Edmund Bartlett said the attractive terms of the loan was what gave value to the objective of the industry to enable a wider group to become involved in the supply chain.

"We are committed to ensure that more jobs are created, and this fulfils a wider policy objective of the Government to create more and more jobs. Tourism must be a critical catalyst in the economy, enabling job creation and poverty alleviation. Five-for-five is intended to enable this. And so we are looking to broaden the base of ownership within the industry, by having people appreciate that ownership doesn't mean owning a hotel, but it means being able also to supply the needs of the visitors," said Bartlett.

The tourism minister added that Jamaica needs to have the capacity to provide key services and goods that the industry needs, which will enable a greater retention of the money earned in the sector.

"We expect that it will be taken up as fully as the first tranches were taken up," said Bartlett.

Frank Whylie, general manager JNSBL, said since the introduction of the loan scheme there has been tremendous growth in the capacity of small businesses operating in the tourism sector.