By Garwin Davis, Assistant News Editor
CITING WHAT they call the roller-coaster nature of the foreign exchange market, tourism officials have expressed concern about the $1.66 billion Government has earmarked for the industry. They say it is hardly enough to meet "the serious challenges ahead".
They note that although the figure, compared to the 2002/2003 estimates of $1.7 billion, represents only a one per cent cut in the budget, the fact that estimates for tourism are listed in Jamaican dollars "could spell trouble down the road".
"We were in Parliament on Tuesday discussing the estimates," explained Paul Pennicooke, Director of Tourism in an interview with The Gleaner yesterday. "The $1.7 billion we got last year was at a time when the exchange rate was about J$47 to US$1. The estimates are now $1.66 billion when the exchange rate has risen to J$56 to US$1. The majority of our business is done using foreign currency so this in fact represents a significant decrease."
Mr. Pennicooke said there was clearly some merit now for the tourism budget to be tabled in United States dollars, noting that the fluctuating nature of the local currency makes it a critical necessity. "Our marketing and advertising campaigns overseas are based on available resources," he said.
Josef Forstmayr, President of the Jamaica Hotel and Tourist Association (JHTA), agreed. "We have a marketing meeting tomorrow (today) where the budget will be our main focal point," he said. "I don't think I like what I am hearing as it relates to the estimates for tourism. I am fully aware of the constraints we face as a nation but I would like to think that an industry where you will clearly see immediate returns would be given a lot more priority."
He continued: "The challenges we face in the global marketplace are real and its important that our image is splattered all over the place. With all that is happening with the war...the uncertainties about Europe...the SARS flu-like illness in Asia.... Jamaica and the Caribbean is in a unique position to capitalise. We can only do this with strong and aggressive marketing which can only be done with available resources."
For the past several years, tourism interests and the Government have been at odds over what should be put aside for tourism in the annual fiscal budget. Severely hampered by the negative portrayal of Jamaica overseas, industry players have long argued for a strong advertising budget which they say was necessary to counter the negatives about the island.
In 2000, then Minister of Tourism, Portia Simpson Miller, held a series of meetings with hoteliers, attraction owners and others with an interest in tourism to deal with this and other tourism-related issues. An idea for a 10-year 'Tourism Master Plan' was developed with much fanfare but is yet to materialise.
