Tourism boom! — 2 million visitors expected in JA this year

By Al Edwards

Friday, March 26, 2010

Minister of Tourism Edmund Bartlett is reporting encouraging tourist arrivals and is estimating that the end of the year could see a record high of 2 million visitors coming to Jamaica.

Speaking with Caribbean Business Report from his New Kingston offices Bartlett said: " The tourism year begins from December 15 and currently we have had 600,000 visitors. The winter season ends at the end of April and at that time we could be doing up to 700,000 visitors. That would mean that the airlift we were able to generate which is one million seats has paid off with a 70 per cent load factor. One can clearly see the strategy that we adopted in securing additional airlift is paying off to the benefit of the country. The fact is Jamaica is number one in the region both in terms of growth and connectivity. But all of this began with the American Airlines arrangement."

In 2008, American Airlines took the decision to scale back flights to Jamaica at a time when the global financial crisis was set to severely impact the Jamaican economy. Also the Caribbean was experiencing drastic cutbacks in airlift. In an effort to secure airlift and fortuitously ahead of the closure of Air Jamaica, Bartlett saw to it that Jamaica entered an agreement with the US legacy carrier American Airlines, to guarantee well over 2000 additional seats per week to the island. Under the arrangement, the government did not pay out US$4.5 million to American Airlines but has only provided a guarantee for additional seats. The deal with American Airlines proved beneficial to the country particularly at a time when there were 3,000 additional new hotel rooms to fill.

Bartlett profered an explanation for his decision saying: "The world has changed and the Caribbean must repond. When American Airlines reduced their Eagle hub sevices from Puerto Rico to the Caribbean by 75 per cent in addition to cutbacks in service from JFK and MIA to the Caribbean, premptive action was critical.

"It comes as no surprise that other Caribbean destinations have also had to enter into arrangements to secure their winter airlift. Those who have hesitated may find themselves short of the seat requirements to meet their needs."

The American Airlines arrangement has stirred up a hornest nest with the Contractor-General adamantly maintaining that the Minister and his senior team duped Cabinet and had no right to spend taxpayers money in the way that they did.

The Prime Minister has now lent clarity on the matter and deemed that nothing criminal or untoward took place, in fact the way he sees it the move benefited the country. In his address to Parliament yesterday the Prime Ministewr said: " There is no suggestion in the Contractor-General's report of any corruption in the execution of these arrangements. The Government is satisfied that the arrangements with American Airlines, despite the failure to comply with the required procedures, were undertaken in the best intertest of the country.

"The Minister and his team have worked extremely hard to shield our tourism industry from the ravages of the global recession. This has been especially challenging because of the significant increase in hotel rooms and the need to maintain a level of tourist arrivals that would avdert the likelihood of closures, layoff of workers and loss of foreign currency earnings at a time when inflows from and employment in the bauxite sector had suffered a devasting blow and remittances have declined significantly."

The Prime Minister further added that of the total guarantees of US$4.5 million, the net amount which will have to be paid is US$2.9 million. The passengers would have paid a total of US$744,000 in Tourism Enhancement fees apart from the average expenditure of US$115 per day or an estimated US$51 million in tourism earnings from which the government would have derived significant revenue. In short all's well that ends well and Bartlett and his team made a move that benefited the country.

The way Bartlett sees it, as a result of the American Airlines arrangement Jamaica ended up having US Air, JetBlue , Blue Panorama, Delta and other airlines ramping up their flights to Jamaica. " We are in a very positive position simply because we had the foresight to develop this airlift strategy."

This time last year saw 504,000 visitors but this year as a result of the American Airlines deal an additional 100,000 visitors has been added. The Minister is forcasting a good summer based on current bookings but he is mindful of the fact that the global economic climate has not yet turned the corner with unemployment in the United States still quite high and then there is going to be budgetary constraints at home.

Bu while the country is focused on the Dudus saga, Jamaica is reporting one of the best tourism figures in the world. An IDB representative on the island this week noted that Jamaican tourism is performing exceptionally well. The Spanish hotel Secrets recently opened in Montego Bay and is already full with the second phase of the project (350 rooms) expected to open on the 24th of April. Fiesta with 1054 rooms is so busy that it had to send 300 guests to Kingston. According to the Minister many of the country's leading hotels are pulling back from heavy discounting and are reporting improving yields.

Minister Bartlett proudly points out that last year with tourist arrivals at 1.8 million, it was 13 per cent better than the previous administration's best year which was 2006 with 1.6 million visitors. He is estimating 2 million visitors this year, a new record for Jamaica. The key he sees is picking up other destinations' market share which means aggressive marketing which can be expensive.

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COMMENTS (10)

T G
3/29/2010

I think another key to growing the Tourism Pie and sharing more equitably would be the resuscitation of the Jamaica Railway Corporation.
I think the GOJ should get out of JUTC now, get out of Air Jamaica, try to renegotiate the Toll Roads agreements and put its time and effort in the re-starting the JRC.
....TG....

tina chambers
3/27/2010

when we as Jamaicans go to these hotels ....like in negril do we get discounts..just asking

Ed Parr
3/27/2010

All is well that ends well, however proper protocol should always be followed when spending the peoples money. We must always ask, what If it did not end well? As our elected servants I would just like to point out to our government, and the opposition, that the laws of our country are there for a reason and if the laws are not serving their purpose then let us change the laws, but never, never, never should we compromise the rule of law because that is the start of the slippery slope towards lawlessness.
My question is how much of the profits that was generated from this increased airlift remained in Jamaica? I would foster an educated guess that a significant amount went to Spain and the US because a large number of facilities used by these tourists stayed in hotels that are owned by American and Spanish companies and other foreign entities.
Not being one to criticize with out offering a suggestion I would suggest that if the Jamaican government is going to use the money of the people of Jamaica to secure an increase in the number of visitors to Jamaica that they include some type of incentive for the tourist attracted to stay in Jamaican owed hotels to maximize our revenue.
Additionally the governments focus should be broader in scope as it relates to the movement of air cargo to the US. Seats might be full but what about the cargo bay? Could exporters benefit from more competitive freight rates for their exports? Just as the hotels benefited from this deal so too would manufacturers benefit from a deal that could piggy back on this arrangement for freight being exported.
What are your thoughts?

John Brown
3/27/2010

I work in the tourism industry, one of Jamaica's leading hotels in Montego Bay and the running joke here is that the tourists are all heading to Ed Bartlett's house! We can't see them in the hotels.

T G
3/27/2010

It is obvious that the GOJ is so dependent on Tourism Dollars that Herr Bartlett have become sort of a Demi-God, equal to a Minister of Finance/The DPP and Prime Minster all rolled into one. With the ability to set and break rules at will, all the time making wild pronouncements.
While no one can change this it seems we would be amiss if we don't ask ourselves what are we really trying to achieve? When last have we heard Mr. Bartlett on crime, human rights, the environment and justice?
How can we keep spending millions to attract plane loads (or in Mr. Bartllet's case just the planes, loaded or not) to what is now Jamaica?
If we have as good a product as we think we have, why is it necessary to spend all that cash to attract visitors?
I don't think there is anyone buying a ticket to leave his country for a vacation overseas that has not heard of the wonders of Jamaica.
I think there are many Jamaicans who are ambivalent towards Tourism and even tourists. It for this reason that I propose that we suspend our paid advertising campaign for up to one year. Move to Social Networks (such as Twitter and Facebook) and reroute the hard cash to advertising/educating Jamaicans about the product, our country and the ways we can improve/enhance or in this case stop wrecking the natural beauty of our Islands (yes islands).
Emphasis should be placed on families and communities faraway from the traditional tourists traps, to get involved, create/improve their own attractions, in order to spread the wealth around. The Public Education Campaign should also educate and steer Jamaicans living in the already overburden Tourist Areas to other value added and new forms of employment, so that the tourism have-nots will not feel that they are at a dead end and the only choice left is to eat a food offa the ones that are already gainfully employed in the industry.
There should be Billboards in every Community welcoming Tourists, coffee shops (Existing Rum Bars will do, turn them into Cafes) on every corner with high-speed Internet Service and some organic attraction(s), native to the area.
That is my take on Tourism.
....TG....

R Oscar lofters
3/26/2010

Mr Bartlett is at it again. With gusto he has looked into his crystal ball and seen the promised land filled with record tourist arrivals. How can a supposedly rational man speculate record tourist arrivals for 2010 after a few months . Tourism is a very fragile industry dependent on many unpredictable factors. Perhaps he wants us to believe that he posesses biblical powers. All jamaicans should be alarmed that the Prime Minister has admitted that Mr.Bartlett did not follow procedures in pursuing the contract with American Airlines. One previous Prime Minister told us that the law was not a shackle. Now it seems that legal procedures are also not a shackle. .We are a country now ruled by the whims of politicians.

Paul Lewis
3/26/2010

The majority of these arrivals, are of the "all inclusive " type. Although they are not ideal, with the state of the market, it is better than nothing. The Minister has no choice, he has to be upbeat no matter what. The projected U.S.$115.00 per day tourist expenditure, is at best wishful. The level of crime is our biggest drawback, it has made our tourism product unattractive.The more affluent tourists are drawn to more secure places. When Jamaica, was one of the more desired places, there was greater revenue to the country, per room sold. There was money being made by every sector, Tour buses/cars, In-bond, Craft vendors and the local restaurants/clubs. The place hasn't changed, only the attitude of the people. There are some who may think , I am talking about kissing up to tourists. We need to recognise that, this is a business and we are selling a product. The same way as you walk through the market, the vendors call out to you, hoping you will patronize them. So it is,that we are doing the same, and if the product is not attractive, they will not come. For every one criminal incedent, we lose more than one hundred potential customers.

gods celtic
3/26/2010

I have found any figures quoted by Minister Bartlett need to be taken with a large grain of salt.
btw Where is "Porto Rico"?

george watson
3/26/2010

We have our tourism minister constantly boasting about record tourism arrivals in a period of economic downturn across the globe. If this is true, more power to him and HEARTIEST CONGRATULATIONS.
My question though is where is the proof that we are having these record arrivals? And if so, what is the Minister giving up to achieve them? What is the opportunity cost? Is it a discounted rate and if so to what extent are these rates discounted? In other words what are the economic benefits to the country?
The same question would be applicable to the Minister of Agriculture. We hear of record agricultural production, but I am not seeing this reflected in lower costs to me when I go to the several markets across the Island.
If I am not seeing this then surely it must mean that the increased production is being exported. Show me the proof gentlemen. Over the years I have becoming very cynical.
This is another case where I say we have a very pliant media. Why don’t I hear these questions being asked by the media? Where are the investigative journalists?

Olivier Olivier
3/26/2010

So what the PM is saying is that the end justifies the means. I'm very disappointed to see him stoop so low.
Also, a generalisation like "...apart from the average expenditure of US$115 per day or an estimated US$51 million in tourism earnings from which the government would have derived significant revenue..." is grossly inaccurate and can in no way be proven to be true.

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Tourism boom! — 2 million visitors expected in JA this year