The roots of Jamaica’s tourism industry trace back to 1943 when Abe Issa motivated his family to purchase the Myrtle Bank Hotel in downtown Kingston. His efforts are credited with catalysing the early development of local tourism.

In 1955, the establishment of Jamaica Tourist Board (JTB), under the Ministry of Trade and Industry, represented a significant step in organising tourism efforts. These early initiatives encouraged Jamaican ownership and development within the tourism sector, resulting in local majority ownership of hotel rooms throughout the country.

Today, however, the landscape of hotel ownership in Jamaica has shifted, with a majority of hotel rooms now owned and operated by overseas or offshore corporations. Despite this change, Jamaica continues to reap significant benefits from tourism, including job creation related to hotel construction, travel and hotel taxes, foreign exchange earnings, and connections to agricultural supplies, along with various services and equipment provided to hotels.

Jamaica attracts an estimated 4.3 million foreign tourists each year. Tourism stands as our second-largest source of foreign income, following remittances. Approximately 50 per cent of Jamaica’s economy relies on services, of which half is generated by the tourism industry.

The tourism sector’s value became particularly evident during the COVID-19 pandemic, when its shutdown led to severe economic repercussions. As we look ahead to 2024, Minister of Tourism Edmund Bartlett has projected that tourism could contribute US$5 billion to the economy by 2025, driven by increased arrivals, more airline seats, new hotel developments, and heightened interest from global travellers.

In recent statements, the minister noted a recovery in December following disruptions caused by Hurricane Beryl, reduced airlift, travel advisories from the US, and adverse weather earlier in the year.

However, he did not address ongoing challenges within the industry or evaluate whether the benefits of tourism are equitably shared among Jamaicans.

Towards the end of last year tourism workers raised their voices through strikes, demanding improved working conditions and salaries. Many reported inadequate pay, excessive hours, withheld tips, and unstable job security. For instance, a housekeeping staff member at a large hotel on the north coast shared that her fortnightly salary was $37,000, equivalent to less than $1 million annually. Contrastingly, the same room would generate over $12,716,000 annually at an average daily rate of $49,769, with a 70 per cent occupancy rate.

The labour requirements at mid-range hotels typically call for one staff member per room. Therefore, considering the annual revenue from a single room, these staff members are earning between 8 per cent to 12 per cent of the income generated.

Given current industry growth, it seems reasonable for workers to expect compensation that reflects a higher standard than the national average. The recent strikes by hotel workers highlight the pressing need for a reassessment of Jamaica’s tourism industry to ensure fair benefits for both the nation and its citizens.

Several critical questions arise. For example:

• Why should the taxes paid by construction and other workers fund the JTB budget that largely supports foreign enterprises?

• Are supply contracts structured to ensure that local operators can take advantage of tourism?

Furthermore, with the Government allocating nearly $14 billion to tourism promotion and development for this year, it prompts consideration about whether hotel workers and other employees, through taxes, are inadvertently subsidising the promotional activities of hotel owners.

When comparing Jamaica to major tourist destinations, like New York, the tax structure differs. In New York, a combination of state and city taxes adds up to approximately 17 per cent on hotel bills, whereas Jamaica applies a daily surcharge of 20 per cent on hotel rates, inclusive of General Consumption Tax (GCT).

This situation becomes even more critical when examining the distribution of funds. While the hotel staff collectively earn only 8 per cent to 12 per cent of revenues, the Government receives 20 per cent, and hotel owners retain the remainder for expenses and profit.

It’s common for international brands to allocate 5 per cent to 10 per cent of their sales for marketing and advertising. This raises an important inquiry: Why isn’t the Ministry of Tourism funded directly through earnings from the tourism sector, rather than relying on taxpayer contributions?

Ultimately, the $14 billion budget for the Ministry of Tourism for 2024 to 2025 constitutes just 1.8 per cent of the industry’s reported US$5 billion (approximately $785 billion) in annual revenue, underscoring the need for a more equitable allocation of tourism revenues.

When all is said and done, we take great pride in our vibrant, world-renowned culture, which is largely created by our people. However, it’s essential that we prioritise their well-being and contributions.

For too long the Government has celebrated record-breaking tourism statistics without adequately recognising and supporting those who make this success possible — the dedicated workers in our tourism sector.

Collaboration is key — just as one hand cannot clap alone, it’s vital that workers and owners join forces to ensure fair treatment for everyone involved.

To achieve this, the Government must establish clear parameters and expectations for tourism investment, promoting equity in the distribution of earnings from this crucial industry.

It is essential for the Ministry of Tourism to acknowledge that its annual expenditure may not be effective if the perception persists that workers in the tourism are not being treated fairly and striking regularly. If employees feel their rights are not respected there is a risk that they may withdraw their services again, ultimately impacting the industry’s global reputation and success.

Let us all work together to sustain our tourism sector and prevent further disruptions.

I want to express my heartfelt gratitude to this newspaper for giving me the opportunity to share my thoughts and to all of you for joining me on this journey and reading my column every Sunday for the past three years. Your support has inspired me. I will be taking a break for January. See you soon. All the best for 2025.

Lisa Hanna is Member of Parliament for St Ann South Eastern, People’s National Party spokesperson on foreign affairs and foreign trade, and a former Cabinet member.

BARTLETT… projected that tourism could contribute US$5 billion to the economy by 2025.

Lisa Hanna