MONTEGO BAY, St James — Arguing that the city of Montego Bay punches well above its weight in bringing in tourism dollars, St James Municipal Corporation Chairman Richard Vernon wants the parish to be given a larger share of revenue generated by the Tourism Enhancement Fund (TEF).

“We deserve — based on the impact that tourism is creating on the local economy and the physical infrastructure of Montego Bay — to get a share of tourism dollars,” Vernon said, referencing revenue largely generated from a portion of air and cruise fees added to central government’s consolidated fund.

The mayor made the argument Thursday evening as he headlined the corporation’s town hall budget presentation held at Montego Bay Cultural Centre, in the heart of the tourist resort city.

Vernon, who is also mayor, laid out the sources of income and the expenditure that will make up the city’s $2.8-billion budget for the 2027-2028 financial year.

The bulk of spending will go to administration, which will receive $709 million.

According to Vernon, this is how much it costs to run the municipal corporation.

“It pays for the people who approve building plans, issue permits, pay the bills, keep the records, and answer when residents call,” a slide from his presentation states.

Other planned expenditure include street lighting, which was listed at $337 million, garbage collection at $476 million, and road repairs at $172 million.

Montego Bay Mayor Richard Vernon addressing the first-ever public presentation of the St James Municipal Corporation’s budget on Thursday.

Vernon put planned capital expenditure for the period at $1.086 billion, with one of the key projects being the long-awaited upgrade of a vendors’ arcade in the city centre.

“To improve conditions for vendors, support business activity, and create an attractive, orderly retail space, we are allocating $200 million for the physical rehabilitation of the Old Shoe Market to get much of our vendors off the streets,” he explained.

The municipal corporation will also undertake work at Charles Gordon Market, with $160 million earmarked for infrastructure upgrades to that facility.

Another $100 million will be allocated for structural repairs and upgrades to the Montego Bay Transportation Centre, with the aim of improving connectivity for thousands of workers and students who use the facility daily.

Vernon also highlighted plans to improve sidewalks, signage, murals, and other infrastructure through the corporation’s Urban Development Programme, which has been allocated $400 million.

He stressed that St James needs additional funding, which he believes could be secured through greater support from the TEF.

A section of the audience at the Montego Bay Cultural Centre listening to the presentation of the St James Municipal Corporation’s 2027/2028 budget Thursday evening.

“While we have good partners, and while we have a good, robust professional relationship with the Tourism Enhancement Fund and Ministry of Tourism, we believe that Montego Bay is entitled,” argued Vernon.

The TEF has generated billions of dollars since it was set up more than 20 years ago, fuelled by fees of US$20 and US$2, respectively, from each incoming airline and cruise passenger.

In the 2023/24 fiscal year, the fund is reported to have collected approximately US$59.2 million.

On Thursday, while justifying his advocacy for an increased slice of the TEF pie for Montego Bay, Vernon said, “We have 30 per cent of all the rooms in the country, we have the largest airport in the English-speaking Caribbean, and we are responsible for 70 per cent of all flights into Jamaica.

Whether they arrive via cruise ships or by air, Montego Bay manages 70 per cent of that.” He argued that additional funding was needed to maintain the city’s infrastructure as visitor numbers continued to grow.

“We have a transient population of approximately two million people annually even though Statin (Statistical Institute of Jamaica) is saying that we are close to 200,000 people.

We have two million because 1.5 million tourists reside in Montego Bay annually in our hotels,” the mayor explained.

“They use the water, they use the sewerage systems, they use the roads, it impacts the local economy.

Therefore, to maintain the pace at which Montego Bay is growing and going re: tourism, we need a share of dollars to ensure we fix up our city properly,” he insisted.

The call for more of tourism- generated revenue to be spent in resort areas is not new.

For years members of the business community and locally elected representatives in Hanover and Westmoreland have made a similar request regarding expenditure for Negril.

For now, faced with the reality of the funds available, the mayor told the town hall meeting how the corporation intends to finance its budget of more than $2 billion.

“Our baseline projections are driven by public taxes, which stands as our largest share at $1.29 billion,” Vernon stated.

“This is supported by central government subvention from the consolidated fund at $650 million, local user fees at $561 million, and motor vehicle licences at $350 million.

When combined, these projected streams fulfil all operational mandates,” he said.

Vernon stressed that there were no new taxes being imposed at the local level for the next fiscal year, while efforts are being made to identify other revenue-generating measures and boost efficiency.

The TEF was established in 2005 to implement recommendations emanating from the Master Plan for Sustainable Tourism Development.

In 2018, it was restructured to operate as a centre for innovation for tourism, with responsibility for strategic and targeted projects that support key activities aimed at realising growth targets.

At the launch of the Montego Bay Chamber of Commerce Expo in 2019, TEF Chairman Godfrey Dyer outlined the numerous projects to which the fund has contributed in Montego Bay.

“I can say with pride that the Tourism Enhancement Fund has done more for Montego Bay than you know,” Dyer said.

He pointed to the construction of a state-of-the-art beach park at Closed Harbour Beach in Montego Bay is one of a number of pioneering initiatives that the agency has endorsed in the city.

Additionally, it contributed $700 million towards the funding of the major development on the 16-acre property commonly known as Dump-up Beach.

The TEF also provided support the National Works Agency and the St James Municipal Corporation’s road improvement programmes over the years, among them the construction of sidewalks and verges on Harbour Street and Jimmy Cliff Boulevard, as well as the paving of Kent Avenue, which leads to the popular Dead End Beach.

The TEF has also funded the municipality’s sidewalk rehabilitation programme and drainage systems along a number of streets throughout downtown Montego Bay.

Dyer also pointed out that the TEF has given the city that Montego Bay Cultural Centre in historic Sam Sharpe Square.

“You must also know that the Tourism Enhancement Fund is responsible for rescuing a historic landmark and the source of Montego Bay’s first case of domestic water supply, the Creek Dome.

The repairs of the dome were done by us,” Dyer said.

Additionally, the TEF has provided support to education, providing hands-on learning for students to develop real-life skills.

Montego Bay Community College, Mount Alvernia High, and Montego Bay High are among the schools that have benefited from TEF’s financial commitments.

Dyer also told his audience that the TEF “has enabled repairs to the St James Municipal Corporation and the St James Parish Church as well as the Burchell Baptist Church…

So we are touching the lives in every area,” Dyer said.

The TEF has reported that for the 2026/27 fiscal year it has dedicated allocations including $1.4 billion for public beach and road attraction maintenance, alongside specific capital allocations such as $456 million toward the St James Municipal Corporation’s urban renewal and capital programmes.