Setting the record straight on tourism

Dennis Morrison, Contributor

In Jamaica, oft-repeated 'claims' have a way of swiftly becoming 'gospel', and especially in relation to matters that are not closely scrutinised. Generally, many people do not pay careful enough attention to current affairs, and Jamaicans in particular tend to listen to those who shout the loudest, and hence the loudest voices time and again succeed in shaping reality to their own ends.

One instance where the public might be misled has to do with claims as to who originated and facilitated the recent wave of multibillion-dollar tourism investments in Jamaica. I am moved to set the record straight because a vitally important part of the society's reward system is that we give due recognition to dedicated and innovative people who put commitment to country above personal financial reward, and who do not seek after self-serving publicity. They are usually too gracious to blow their own trumpet and are not minded to speak out to correct undeserved claims.

Mine is, therefore, not a churlish inter-vention, but is motivated by the concern that those who give national service should not be discouraged because credit for their contribution is usurped. Lest the public be in any doubt as to who played the 'pivotal role' in mobilising the recent unprecedented tourism investments, the records will show that a Jampro team was at the heart of this success. That trailblazing team of professionals was headed by Patricia Francis, president, who now holds a senior position at the International Trade Centre and operated under the leadership of Joseph A. Matalon, chairman.

It included Michael McMorris, executive director - markets; Adrian Bayley-Hay, manager, investment promotion - including Leisure Industries; and Lisa Bell, manager, facilitation & research (now head of EXIM Bank) who laid the technical groundwork and executed the strategy. These officers waged a daily battle to move projects through the approval process even as the regulatory agencies ran scared as powerful local interests inveighed against the new investors.

Beyond controversy

Paul Robertson, first as minister of industry, investment and commerce, and latterly as minister of development - much ridiculed for his 'pipeline' of projects - had ministerial responsibility for the work of Jampro and was point man in Cabinet to co-ordinate the Government's role. It is beyond controversy that apart from his policy role, P.J. Patterson's prior connection with influential figures in Spain was a key factor, and his contribution has been acknowledged by the current prime minister.

Towards the end of the 1990s, it was recognised that Spanish tourism interests were aggressively expanding their operations in the Spanish-speaking Caribbean region, and this had resulted in a huge influx of investment in these countries. Propelled by the massive expansion of new hotel rooms, the Dominican Republic, Mexico, and Cuba had seen powerful growth in their visitor arrivals. Jamaica's tourism sector, on the other hand, had stagnated, with new investment in tourism facilities being heavily dependent on government coffers.

With the programme of infrastructure modernisation - roadways, water, and sewerage, and airports - gathering momentum, Jamaica, with its powerful brand recognition and closeness to the powerful North American market, had competitive advantages which could attract the Spanish investors. The stage was set for a well-coordinated investment drive. The results are there to be seen: commitments for 10,000 new rooms by the Spanish of which 60 per cent have been built, and the powerful marketing muscle of these new players with their integrated systems.

The resulting record flow of foreign direct investment earned Jampro the top prize for small-state investment promotion agency. The impact was greatest in the construction sector where more than 30,000 new jobs were created, an increase of over 35 per cent over the 2002-2008 period. And the foreign-exchange inflows boosted the country's international reserves. But because of our ambivalence towards foreign investment, this performance is yet to be recognised locally.

Decisive moves

The timing of the entrance of the new players could not have been more propitious as they added fresh products to the destination just when competition became fiercer in the recession. Excitement in the marketplace about Jamaica's new and broader range of rooms was decisive in holding up visitor arrivals and providing some growth.

More than any other factor, this is what accounts for the spectacular near 200 per cent increase in tourist arrivals from Canada between 2005 and 2009.

The boom in tourism investment has been blunted by the global recession and the effects are evident in the huge job losses in the last two years. The fallout is likely to be felt for some time. It is important, though, that Jampro be active, even in this recessionary climate, in developing its portfolio of investment projects and that it be broadened. The targeting of local investors is also critical as the lowering of interest rates makes real-sector investments more attractive.

Ensuring that credit is properly attributed to those who actually do the work is a necessary part of morale building as the quest for the next wave of investments proceeds. The sense of accomplishment is after all a prime motivation for ambitious and talented people who serve in the public sector.

Dennis Morrison is an economist. Feedback may be sent to columns@gleanerjm.com