Dennise Williams, Staff Reporter
STEWART
THERE IS a saying that when the United States sneezes, Jamaica catches the cold.
And Sandals Resorts operator, Gordon 'Butch' Stewart, believes that Jamaica is on the verge of catching pneumonia if 'destination: Jamaica' isn't managed carefully.
In a press conference held Wednesday at his ATL headquarters in St. Andrew, Mr. Stewart spoke about the challenges facing the indigenous hotel sector in the face of a looming U.S. economic recession.
And this is no idle worry as U.S. consumer confidence has dipped to lows not seen in years.
"Hurricane Katrina, coupled with soaring gasolene prices and a less optimistic job outlook, have pushed consumer confidence to its lowest level in
nearly two years and created a degree of uncertainty and concern about the short-term future," says Lynn Franco, director of the Conference Board Consumer Research Centre.
So when the U.S. economy slows down, there will be less money to spend and leisure travel will be one of the first items to be cut back on.
Hence, the Jamaican tourist product, with its heavy reliance on the neighbour to the north, could see continued erosion of its market.
Mr. Stewart said, "When the U.S. economic growth slows, this presents a bigger problem for Jamaica."
CALL TO ACTION
And this is what Mr. Stewart sees as a call to action. He pointed to the Jamaica Tourist Board (JTB) where the annual budget is about US$27 million. After recurrent expenses, they have about $8 million to market the country.
"The current allocation to the marketing of Jamaica is not enough," he said. "I believe that we don't have a strategy to overcome our problems."
And lest the importance of the U.S. traveller is underrated, Mr. Stewart explained, tourist destinations all over the world compete for U.S. tourists because they pay the best rates.
"Europeans, and to a lesser degree Canadians, book the least expensive room category. In fact, Germany and Italy are very rate sensitive," he said. "So we need U.S. travellers."
