Tourism Enhancement Fund (TEF) Executive Director Dr Carey Wallace is determined to see local small and medium-sized enterprises become major suppliers to the tourism industry.

Speaking at the fourth staging of Christmas in July, held at the Jamaica Pegasus last Thursday, under the theme ‘Tropical Wonderland”, Wallace said: “While we will always welcome foreign-direct and local entrepreneurial investment in tourism, our aim is to see Jamaican Small and Medium Tourism Enterprises (SMTEs) take ownership of the service side, producing the sheets and pillowcases, the beds and chairs and the paintings on the walls.”

He explained further that for this reason, the TEF has committed $1 billion to SMTEs through the National Export-Import (EXIM) Bank for a revolving loan scheme, in order for businesses to upgrade their operations.

Of the funds reserved, Carey stated that the EXIM Bank has so far approved more than $663.96 million in loan applications and disbursed $470 million to borrowers.

The fund to which the TEF executive director referred is the SMTE Loan Programme launched in September 2016 with an allocation of $300 million, which is being managed by the EXIM Bank. The programme provides concessionary loans to finance development projects for SMTES such as restaurants, sports & entertainment establishments, agro-tourism suppliers, and ground transportation companies, among others.

Last September the TEF allocated an additional $350 million for the programme.

However, just last month the Jamaica Hotel and Tourist Association (JHTA), in a press release, called for local entrepreneurs, agricultural interests and businesses to grasp “untapped opportunities which exist in linkages to the tourism industry”, while quoting the 2015 Tourism Demand Study.

The study noted, among other things, “The prospect for import substitution is great, as there exists a high level of receptivity among tourism sector stakeholders to local goods and services. This could be converted to business opportunities as the projected demand for agricultural products and manufactured goods indicate that there is tremendous opportunity for trade.”

In the release from JHTA, one general manager of an Ocho Rios-based hotel disclosed that 95 per cent of fruits and vegetables used are purchased locally. The other fruits sourced abroad were not produced locally, or not available in the quantity needed.

Another local manufacturer, Aswad Morgan of Therapedic Caribbean, revealed that: “We have been able to win large hotel contracts… [by] developing strong relations with hoteliers [through] satisfying the requirements for quality, price, being flexible enough to meet the quantity requirements, being able to deliver with the agreed timelines, and being able to carry out business with professionalism.”

Having used networking platforms such as the JHTA’s Speed Networking — now managed by the Tourism Linkages Council — and Jamaica Product Exchange, Morgan said the tourism sector now represents the company’s largest and fastest-growing client segment.

JHTA President Omar Robinson reiterated Morgan’s views. He reasoned that networking events and expos afforded entrepreneurs the opportunity to meet purchasing and general managers of hotels and attractions throughout Jamaica.

“[It] also allows businesses to showcase their goods and services not only to local tourism markets, but international travel partners, which brings with it another layer of opportunity,” he pointed out.

In the release the JHTA, while taking note of the increase in purchase of locally produced goods, underscored its support of local businesses, as well as events and opportunities to create linkages between its members and the business community.

In the meantime, Carey’s pronouncements at Christmas in July were endorsed by Minister of Industry, Commerce, Agriculture and Fisheries Audley Shaw, who told the gathering: “We cannot any longer afford to give lip service to linkages.”

The minister announced that he will be collaborating with his tourism counterpart, Ed Bartlett, on a campaign to ensure that hotels on the island, including Spanish chains, embrace more local products in their business models.

Shaw also took the opportunity to acknowledge the efforts of Adam Stewart, chairman of the Tourism Linkages Council and CEO of Sandals Resorts International, as well as his father, Gordon “Butch” Stewart, in ensuring the hotel chain buys local products and supports Jamaica’s agriculture sector.

Last year Sandals consumed 4.9 million pounds of produce — out of a total 5.4 million pounds — from Jamaican farmers

Christmas in July is organised by the Tourism Linkages Network in collaboration with TEF, Jamaica Promotions Corporation, Jamaica Manufacturers and Exporters Association, Rural Agricultural Development Association, and the Jamaica Hotel and Tourist Association. The expo seeks to connect local producers of craft, gifts and souvenirs with stakeholders in the hospitality sector, and by extension corporate Jamaica.

Over 115 local producers participated in the one-day trade show.