The JTB needs to change its current organisational culture, and become more target specific. - File
THE Jamaica Tourist Board (JTB) was created in 1955 (then known as the Tourist Trade Development Board). Since that time, the product and the competition have changed, which now means that the entire JTB culture including organisational strategy, structure, and operations has to be reviewed.
Currently the JTB markets on an industry wide differentiation strategy. It needs to look at a more focused differentiation based on the product. Becoming more target specific will allow the JTB to identify the unmet needs of a present or potential market; forcing it to prioritise which segments to select from. In addition, this will prevent the "spillover" (waste) effects of advertising. The JTB organisational structure is based on geographic office locations but with the advent of advanced communication technology this is no longer necessary. The structure should be changed to one of a product focus with: Stopover Arrivals, Advertising and Public Relations, Finance, and Local Marketing and Cruise Shipping. A product focus would lessen the number of overseas offices needed and significantly reduce administrative costs.
The JTB should be as efficiently run as any business. With the new organisational structure, the budget could be reduced and re-allocated to better serve the needs of the industry. Based on the JTB's Actual Income and Expenditure Account for year ended March 31, 2000, the proposed budget (with a 10 per cent reduction over 2000) for overseas expenditure only is presented here. Operations would include a bi-lateral approach in which each product department would work collaboratively with the best in the industry (the Bahamas port facilities with cruise shipping, and Puerto Rico with stopovers) to further improve the product. Based on the new culture there would be accountability for performance, with direct responsibility for the expenditure (promotions, advertising etc), of large lump sums of money. Overseas and local events would have pre-established criteria for project selection.
Special projects should complement the new programmes (a consistent theme or integrated marketing communication). Conversion of cruise passengers would be one example: current trends indicate that approximately 10 per cent of cruise passengers convert to a land based stay. The most current study of the passenger cruise industry done by B.R.E.A. (Business Research & Economic Advisors), indicates that "Between July 1999 and June 2000 approximately 13.1 million cruise passengers visited" the Caribbean.
Of this group 907,611 visited Jamaica in 2000 and 840,337 visited Jamaica in 2001. This is a target market right here on our door step. These cruise ship passengers (and crew) could be enticed to a land-based stay by offering a quality "island sampling" at each cruise pier area.
The setting up of an "emergency" fund would prevent the interruption of on-going advertising (critical to promoting the destination) and would minimise damage from economic disruptions (such as the April 2001 gas riots, September 11 etc.). The JTB should have additional sources of income. This organisation should consider getting a portion of ticket (gate) sales for investing in "for profit" events; co-sponsorship of major events could be put to tender (large and/or small businesses). Special edition posters (and other items) could be created and sold.
The JTB needs to change its current organisational culture, and become more target specific. As Amar Bind says, "Strategies for taking the hill won't necessarily hold it".
