The Government of Jamaica is moving to develop the island as a logistics supply hub for the local resort sector and for other tourism nations in the region.

In May, Wilfred Baghaloo, partner: PwC Southern Caribbean Deals, was appointed the new chairman of the a new logistic centre which has conceptualised to tackle supply chain challenges specific to the hospitality sector.

The terms of reference (TOR) for the project is currently being developed by the Ministry of Tourism, the Jamaica Observer was informed.

Baghaloo told the Business Observer that the logistics centre is a natural extension of tourism linkages effort and broader efforts to revive the hospitality sector following the pandemic.

He said, “The idea of the logistic supply hub for Jamaica and the other Caribbean islands came out of the the Tourism Recovery Task Force that I chaired in between March 2020 and September 2020 which resulted in our tourism sector reopening on June 15, 2020 through the creation of a Tourism Corridor and very strong COVID Protocols throughout the industry. These protocols were adopted/recommended by many multilaterals and eventually many other countries.

“In addition to lobbying/recommending to GOJ, the rationale and mechanics to reopen the sector in June 2020 [the earliest in the region, I believe], a report was produced and given to the GOJ addressing a host of issues affecting the sector including need for new laws dealing with harassment and the need to refocus a supply hub for local and regional needs.”

Coordinating the local supply chain

The Ministry of Tourism is now moving ahead with the idea for the supply hub. Baghaloo said, “We already have companies with the necessary base to expand or mold into this role such as Kingston Wharves, Caribbean Producers Jamaica, GraceKennedy, Mussons, Neal and Massy, Lasco, Wisynco, Rainforest, spices companies, suppliers of furniture and other stuff to local hotels, and many of our local farmers and cosmetic producers.”

The business management specialist said, “The basic idea is to improve the linkages in the tourism sector, and by doing so we will be giving Jamaican entities the necessary muscles needed to grow regionally and internationally. It will also enable Jamaica to utilise our assets such as our ports and location.”

He outlined that the creation of the supply hub(s) will allow consistent supply to the sector and minimise any future risk of supply challenges; reduce cost to the sector; and create more local linkages.

He said it is also expected to extract earnings from the sector for Jamaica with both private and public sector expected to benefit; and also, “Hopefully, create an infrastructure that will facilitate making Jamaica a hub or a mini hub for some of the cruise lines.”

Baghaloo noted that the centre will make use of the Special Economic Zone (SEZ) regime in creating these supply hubs, stating, “I think Jamaica is at a stage where we need to stop being afraid to think big and differently and, more importantly, stop being afraid to take calculated risks. We cannot grow the economy in the same mindset for the last 60 years.”

End of fear

He added, “Our younger private sector leaders are well educated and are prepared to take calculated risks and so we need to create that platform for them. Our public sector, Cabinet, and the Parliament must now move to create an expansionary environment for the new breed of young entrepreneurs and stop being afraid by constantly looking over their shoulders.”

In April 2022 Minister of Tourism Edmund Bartlett said a tourism logistics supply centre was being planned under the Special Economic Zone regime. The intent, he said, was to facilitate further recovery in the resort sector.

Bartlett, in a meeting with industry stakeholders in Montego Bay, said the establishment of a tourism logistics supply centre, through the Special Economic Zone, will pull together supplies needed first for Jamaica then the rest of the region.”

In another meeting in Kingston, the minster of tourism outlined how the pandemic has created a stifling challenge in the global demand and supply of goods and services.

He said that creative will was needed “to take Jamaica out of this disruption that has come”.