Janet Silvera, Senior Gleaner Writer

Orlando, Florida:

As an uncertain future grips the tourism sector, experts are convinced that Americans will continue to travel because they are going to "trade down, not out".

The United States market remains Jamaica's strongest, with the island reporting close to 70 per cent of its business from that country. However, with the US recession, credit card debts averaging US$9,900 per household and some 170,000 jobs being lost in September alone, there is much anxiety in the marketplace.

Growth expectations down

In fact, since the US bailout plan was announced, Jamaica's Tourism Minister Edmund Bartlett has revised his growth expectations for 2008 downward from 13 per cent to six to eight per cent.

"Americans are going to be looking for less expensive vacation alternatives," chairman and CEO of Ypartnership, Peter Yesawich, told delegates at the start of the 10th Vacation Ownership Investment Conference (VOIC), in Orlando, Florida, on Tuesday.

According to Yesawich, those not willing to discount at this time were in competitive denial. "This is a buyer's market, people are shopping around and it's the people who deliver the best value who will reap the best profits."

Bold move

Commending the bold move by Sandals Resorts International in offering airfare to Jamaica for its visitors as part of its marketing strategy, Yesawich tagged the promotion, "a very powerful incentive".

He explained the fundamentals of the current marketplace, noting that if someone wants to go to Jamaica, they will still go, but will stay fewer days, or may opt for a three-star resort rather than four.

The marketing strategist, renowned for his well-respected 'National Travel Monitor', cautioned that it was important for hoteliers to offer premiums, offer customers more, and even complimentary dine around at restaurants near them.

Dwindling

"Overall, the Caribbean needs to watch Mexico, which has significantly dropped its rates to attract a dwindling market that has become even more competitive. They are offering better value and so is the Dominican Republic," he said.

The VOIC, which is now on at the Peabody Hotel in Orlando, is the foremost event focusing on successful resort development, branding, financing, marketing, sales and management.

janet.silvera@gleanerjm.com