Christopher Tufton, Contributor
TOURISM HAS been our largest export activity for some time now. Given our current challenges, the industry represents the biggest opportunity for us to move forward.
According to the Jamaica Tourist Board (JTB), in terms of visitor arrivals, Jamaica recorded its best tourism year ever in 2005 with just over 2.6 million foreign visitors, an increase of four per cent over 2004.
In fact, for the period January to November 2005, total stopover arrivals stood at 1,313,398, a 2.7 per cent increase over the same months in 2004.
POSITIVE PROSPECTS
Cruise passenger arrivals for the same period totalled 1,004,756, a four per cent increase over the same months in 2004.
This is in keeping with the prospects for Caribbean tourism which is projected by the World Travel and Tourism Council (WTTC) which forecast a growth rate of 3.5 per cent over the next few years.
We have also been increasing our accommodation with more to come.
Data published by the JTB in 2004 indicated that we have over 24,000 tourist rooms and over 35,600 tourist beds at the end of 2002, with 169 hotels, comprising 38 all-inclusive and 131 on the European plan.
Over 70 per cent of tourists arrive from the United States, while Europe and Canada arrivals are 15 and eight per cent, respectively.
These numbers must be viewed as positive and demonstrate the potential of this industry.
UNDERESTIMATING POTENTIAL
However, a closer and more in-depth analysis of the industry tells us that we are missing out on too many areas of opportunities in this very important industry.
Again, Madame President, we are using the statistic in a manner that tells a good story but which underestimates the true potential of the industry on wider society. Arrivals are important but it does not tell us the whole story.
Firstly, if we look at how much money we retain from each dollar earned from the industry we see where we can do better.
Currently, we retain approximately 50 cents of every dollar earned from the industry, with the rest considered leakage.
This is a problem for most of the region with some exceptions. Trinidad and Tobago (22 per cent), St. Vincent and the Grenadines (33 per cent), and the US Virgin Island (35 per cent) are territories in the region that have done much better than us. Elsewhere, countries like New Zealand and the Philippines retain 90 and 80 cents of their tourism dollar, respectively.
This tells us that we need to do more to retain more of the revenues that are earned. It means linking tourism with other related opportunities in the local economy.
The need to do this is demonstrated even more when we examine the multiplier effect of each tourism dollar earned on the wider economy.
THE MULTIPLIER EFFECT
The multiplier effect gives us an indication of how much economic activity is generated from every dollar earned from the tourism product.
One study conducted by University of the West Indies (UWI) lecturer, Mr. Ramjesign, concludes that the multiplier effect of tourism activity on the Jamaican economy is less than other countries in the region.
Of every dollar spent on the industry, only 1.1 dollars is generated in final income, compared to Antigua and Barbuda, 1.18 dollars, Barbados, $1.27 dollars and Dominica, $1.18 dollars.
In Europe, the United Kingdom generates $1.96 dollars, while Ireland generates $1.72 dollars.
This again speaks to how we link the industry to other forms of economic activities.
We are also behind in terms of tourism spending, with average tourist expenditure per night being approximately US$90, compared with Antigua and Barbuda at US$169 and Barbados at US$191.
Again, Madame President, this speaks to how much we are able to link this very important industry with related and supporting industries. I am talking here about attractions, suppliers and other opportunities that can create jobs and wealth for our economy.
IMPORTS FOR TOURISM
One only has to visit our hotels to see the many imported inputs, even the most basic supplies. The question begs asking, from a policy standpoint why isn't there a more aggressive linkage programme to better take advantage of our number one export activity?
If we are to truly realise the benefits from tourism, more needs to be done to integrate or link tourism with agriculture and manufacturing. Here, there is a critical role for each stakeholder, including the Government and private tourism interest.
My recommendation would be for these stakeholders to conduct an audit of the purchasing patterns of the industry and to establish a supplier development programme to engage and develop local suppliers. I know JAMPRO is attempting to do this but, clearly, more needs to be done.
This programme should focus on enhancing the capacity of local companies and breeding new entrepreneurs, minimising the leakage from the tourism industry and improving the multiplier effect of tourism on our economy.
This could be an important creator of jobs and facilitate economic expansion.
RESTORE HOPE, CONFIDENCE
Madame President, my thoughts today are based on my belief and conviction that we must be more structured and deliberate in our attempts to enhance the well-being of our people. We are their servants and we must respond to their needs.
To do so effectively, they must be confident that we understand their needs and are sincere in our efforts to work with them to address those needs. We must restore their confidence in us.
We must invest our time and energies in ensuring that the process is engaging, transparent and accountable.
We must invest our time and energies in ensuring that the next generation is empowered to take advantage of opportunities that exist and to create new opportunities for themselves. We must restore hope and confidence in their future.
Anything less would be business as usual and this is clearly unacceptable.
Taken from the Senate State of the Nation Debate in Parliament on February 3. Senator Chris Tufton is also a lecturer in the Department of Management Studies, University of the West Indies, Mona.
