Tourism head counters World Bank report

WESTERN BUREAU:

President of the Jamaica Hotel and Tourist Association, Evelyn Smith, has come out in defence of all-inclusive hotel operations after a recent World Bank report that sees enclave tourism as a poor contributor to the economy.

"At the same time that you have the all-inclusive, you have the arrivals for the country growing," Smith argued. "Is it a question that there is not significant inflow from all-inclusives back into the country?"

The World Bank's 307-page report titled Jamaica Country Economic Memorandum: Unlocking Growth singled out tourism as one of the two best-performing sectors in Jamaica, but was critical of the myriad foreign-owned all-inclusive properties, which sees revenues repatriated to the owners' countries.

"While Jamaica's tourism sector includes many small and medium enterprises in hotels and restaurants, most of the investments and expansion in accommodations over the past five years have come in the form of larger and all-inclusive hotels," the report read in part.

"Given the predominance of large, foreign-owned hotels, most tourism earnings do not stay in Jamaica."

There are 34 all-inclusive offerings now operational in Jamaica, against 201 European-plan (EP) facilities.

"It so happens that many of the new investments that have come into the country happen to be large and all-inclusive," added Smith. "But we need to bear in mind that the ownership is diverse, our membership includes large and small, foreign and domestic owned ... and our members contribute significantly to the economy in terms of the purchase of goods and services, as well as their returns in terms of taxes."

But Godfrey Dyer, chairman of the Tourism Enhancement Fund, even while stating his appreciation for the all-inclusive concept, sided with the World Bank's viewpoint.

Dyer argued that in EP hotels, the community benefits more because the hotel guests are free to support other local businesses such as restaurants and rent-a-car companies.