Gov’t expects $44b in hotel developments
GOVERNMENT expects hotel developers to spend nearly $44 billion on current projects aimed at employing over 4,700 Jamaicans, according to finance ministry documents released this week.
Ten properties were listed as contributing to that capital spend, according to Jamaica Government filings sent this month to the US Securities and Exchange Commission.
“Current investment prospects in the tourism sector should result in an increase in number of hotel rooms and employment. There are several hotels in the process of planning expansions or constructing new properties, with projected capital investment of over J$43.8 billion, which is expected to result in approximately 2,300 additional rooms, and approximately 4,710 additional jobs,” stated the document which forms part of annual filings to US investors.
Last year’s filing indicated that $76 billion in hotel investments was in the pipeline.
The current list includes Grand Lady Hamilton Palladium Hotel Phase II by the Fiesta group, with plans to add 800 additional rooms at some $20 billion, which awaits final approvals; Playa Hotel by developer Tourism & Leisure Development International, which aims to add 520 new rooms at $9 billion, currently under construction; Memories White Sands Hotel planning a $2.8-billion expansion for 350 additional rooms; Grand Lido (Negril) by developer Sunwing/TUI Group which plans major refurbishing of 100 rooms and construction of 100 additional rooms at $2.7 billion; and Courtyard by Marriott (Kingston) by developer Carib Hospitality of Jamaica which includes a 130-room development at $1.8 billion.
The document once again spoke of the long-delayed, Government-conceived Harmony Cove project.
“Phase 1 is expected to take approximately three years to complete. Full build-out of all phases of the project is expected to be completed within the next 10 years, based upon demand. At completion of all planned phases, the resort is expected to include several upscale hotels and residences totalling 5,000 units and a full range of amenities,” said the filing.
For the first 11 months of 2014, total visitor arrivals were 3.1 million, an increase of 6.7 per cent compared to the same period of 2013. Tourism contributes some US$2 billion in foreign exchange to the economy.