THE EDITOR, Sir:
THIS LETTER is in response to Senator Noel Sloley's recent contribution to the Senate.
Dear Senator:
Firstly, we wish to acknowledge the importance of your call for the Small Hotels sector to be offered special considerations in the face of new competition, a lack of sustainable incentives and ageing physical facilities. No doubt all Small Hotel operators appreciate your call at this time, particularly here in Negril, where the major percentage of our room stock is located in that part of the accommodations sector.
As the new Spanish hotel rooms come on line, the traditional operators of small to medium size hotels, who have long been lobbying government to offer meaningful incentives to allow them to refurbish and generally modernise their operations, are faced with what amounts to unfair competition. While Foreign Direct Investment (FDI) is important to the country, it is no secret that the new hotels coming to Jamaica are of a size and market that adversely affect the struggling small hotel sector.
LEVEL THE PLAYING FIELD
The Negril Chamber of Commerce is of the view that all players in the market place must be offered a level playing field in which to compete. To do this the government has to play a lead role. Specifically, it must seriously offer the smaller players the Tax and Duty Incentive commensurate with a policy that does not seek to favour one group over the other (namely the FDI vs. Local Capital). With the exception of the newer players, the small hotels in Jamaica would have long used up their 10-year Hotel Incentive and are at the stage where their physical plants demand urgent attention just to maintain market focus.
INVESTMENT FRIENDLY
Your call for local banks to provide cheaper money to finance the sector's revival is interesting to say the least, but unfortunately does not adequately deal with the fact that the importance of tourism to the country demands that Government first of all provide the policy framework that is consistent and in
keeping with its suggestions of being friendly to investment, not just for some but for all. To ask small hotels to go out and borrow, even at cheaper (locally sought) interest rates to infuse new standards and amenities, while FDI's come in with capital acquired at low international rates coupled with waivers, is a continuation of an 'unfair advantage' scheme perpetuated by government. It is important to understand that a small operator who is unable to compete effectively will be reluctant to borrow money and risk not only going out of business but likely losing his assets to the lender.
Senator, as a part of the Government, we encourage you and the various technocrats responsible for policy to meaningfully engage all the players (government, hoteliers, attractions, transportation) to analyse the effects of existing taxes, duties and incentives, with a view to putting Jamaica's tourism industry on a path to growth, which is to the benefit of all Jamaicans.
I am, etc.,
WAYNE CUMMINGS
President
Negril Chamber of Commerce
