Madam Speaker, it is my honor to bring to a close the Sectoral Debate for the Fiscal Year 2024-2025. On behalf of the Government, I extend my gratitude to all our parliamentary colleagues for their valuable contributions to this year’s debate. The presentations have been both insightful and thought-provoking. This year, we saw 18 Members of Parliament participate: 11 Government Members and 7 Opposition Members. This broad participation ensures that diverse perspectives on critical issues facing our nation have been thoroughly examined.
Madam Speaker, this year has been marked by our unwavering commitment to building a caring economy for all Jamaicans, both here at home and across our vibrant diaspora. Our focus has been on initiatives that foster inclusive growth, strengthen communities, and create opportunities for every citizen to thrive.
In closing this debate, it is crucial that we reflect on the critical issues raised by our esteemed colleagues on both sides of the House. Their contributions have highlighted the pressing matters that demand our attention and action as we continue to shape an economy that truly serves all Jamaicans.
Later in my address, I will provide this Honorable House with an update on the advancements made in enhancing support services to Parliament. Moreover, I will outline our vision for the future as we work together to build a more prosperous and equitable Jamaica, one that extends its benefits to our brothers and sisters in the diaspora as well.
Our commitment to a caring economy is not just a slogan, Madam Speaker, but a guiding principle that informs every policy and initiative we undertake. It is with this spirit that we move forward, dedicated to the well-being and prosperity of all Jamaicans, wherever they may reside.
Madam Speaker, I begin with the tourism sector, which has demonstrated remarkable resilience and growth during the 2023-2024 fiscal year. When I opened the sectoral debate some two months ago, I highlighted the significant strides we have made and I am pleased to report even more positive developments.
Nevertheless, Madam Speaker, the resilience of the sector was truly tested with the recent passage of Hurricane Beryl, which impacted Jamaica as a Category 4 storm bringing winds of 130 to 150 mph.
Hurricane Beryl impacted Jamaica most severely in southern coastal areas (especially in Clarendon, Manchester and St. Elizabeth) but, for the most part, the tourism industry overall did not experience any major fallout.
As the hurricane bore down on Jamaica, we met with industry partners to ensure all necessary precautions were being taken. The Ministry of Tourism activated the Tourism Emergency Operation Centre (TEOC) on July 2, at the Jamaica Pegasus Hotel, to coordinate emergency response and recovery efforts within the tourism sector during the hurricane. The TEOC, working closely with ODPEM’s National Emergency Operations Centre (NEOC), served as the central communications point for the sector, providing official information and updates on the hurricane.
The TEOC reported that a limited number of visitors required relocation due to blocked roadways or due to precautionary measures. Thanks to the collaborative efforts of our TEOC team and tourism partners, visitors were safely relocated from one location to another.
We are also aware of isolated reports of property damage like at Lover’s Leap, Treasure Beach and other tourism communities. Furthermore, Madam Speaker, I have carried out post-hurricane impact assessments in the resort areas along with the Tourism Product Development Company’s (TPDCo) product quality team and other Ministry officials, which have given us a clearer picture of the steps that will have to be taken to address any concerns that have arisen.
Furthermore, many of our small and medium players in the industry suffered immensely at the hands of Hurricane Beryl. The TEOC will be advising me on the impact on these entities and we will be examining strategies to enable a swift recovery.
Madam Speaker, in an effort to build back these livelihoods and support the recovery of the Jamaican people, the Ministry of Tourism is advising that two million dollars ($2,000,000.00) of your Spruce Up allocation is permitted for use towards relief efforts. That is for the hardest hit constituencies. One million Dollars ($1,000,000.00) of the allocation can be used in other less impacted constituencies. These efforts can include both goods and services geared towards alleviating the effects for those most affected.
Madam Speaker, I must give credit to our Most Honorable Prime Minister, Andrew Holness, and other members of Government for the swift and enormous recovery program. I commend too our tourism partners and representatives of the Ministry of Tourism and its public bodies, including members of the TEOC team, for working closely and tirelessly to mitigate the impact of Beryl, which helped to facilitate a speedy recovery. I also want to express my deepest gratitude to our tourism workers, many of whom went above and beyond the call of duty, working tirelessly during the storm to ensure the safety of our visitors, often at great personal sacrifice.
Building Resilience
Nevertheless, Madam Speaker, while our tourism sector has demonstrated remarkable resilience, we must acknowledge the significant headwinds we face. Hurricane Beryl is just one of several factors impacting our sector in recent times. We are contending with global economic uncertainties, airline capacity issues, and challenging travel advisories such as the United States travel advisory issued in January, which made concerning claims about safety and medical services in Jamaica – all of which pose potential obstacles to our continued growth.
The global economy, Madam Speaker, is characterized by its dynamism and complexity, presenting both challenges and opportunities. While showing overall resilience, inflation and geopolitical issues pose risks to economic stability and may temper travel demand by affecting consumer confidence and spending patterns. These pressures are evident across our key source markets – the United States, Canada, and the United Kingdom – underscoring the need for vigilant monitoring and adaptive strategies in our tourism sector.
Furthermore, the global airline industry is grappling with significant challenges. Issues in acquiring new planes, particularly from Boeing, coupled with staffing shortages, especially of pilots, potentially affect airlift to our island. We are closely monitoring this situation and working with our airline partners to mitigate any potential impact on our visitor arrivals.
Given these challenges, Madam Speaker, we recognize the critical need to bolster our marketing initiatives and implement innovative strategies to maintain and grow our tourism sector. We must be proactive in addressing these issues, enhancing our destination’s appeal and ensuring that Jamaica remains a top choice for travelers despite global uncertainties.
Our focus will be threefold:
1. Market Diversification:We are intensifying our efforts to diversify our source markets, with a particular focus on Latin America and the Middle East. This strategy will help ‘future-proof’ our growth by reducing our dependence on traditional markets.
2. Marketing Enhancement:We will significantly enhance our digital and traditional marketing presence, leveraging cutting-edge technologies and platforms to reach potential visitors more effectively and efficiently.
3. Airlift Improvement:We are working closely with airline partners to maintain and improve airlift to Jamaica. This includes exploring new routes and partnerships to ensure our island remains easily accessible to visitors from around the world.
Additionally, Madam Speaker, we will continue to invest heavily in our tourism infrastructure and product development. Our goal is to offer unique, high-quality experiences that set Jamaica apart from other destinations. We are committed to sustainable tourism practices that not only attract visitors but also benefit our local communities and preserve our natural resources.
Madam Speaker, while these challenges are significant, I stand before this Honourable House confident in our ability to overcome them. With our strategic approach, the innate resilience of our tourism sector and the unwavering spirit of our people, I am certain that we will not only navigate these headwinds successfully but emerge stronger, continuing to grow and thrive in the global tourism market.
Jamaica’s tourism sector has faced challenges before and, each time, we have not just survived, but thrived. This time will be no different. We are Jamaica, Madam Speaker – resilient, resourceful, and ready for whatever comes our way.
Performance
Notwithstanding these recent challenges, our tourism sector has shown its resilience with a remarkable post-Beryl visitor performance. Madam Speaker, I am pleased to share that Jamaica has welcomed over 105,000 tourists since reopening its ports following the passing of Hurricane Beryl.
On July 2 and 3, we had no visitors arriving in Jamaica. But on the Fourth of July, we started receiving visitors again and in just 11 days (July 4-14), I reiterate for emphasis that we have brought in 105,000 stopover visitors. This is what resilience looks like!
Our arrival figures got a significant weekend bump with patrons coming in from overseas for Reggae Sumfest 2024, which is being staged in Montego Bay from July 14 and 20 and is expected to bring in some US$20 million in earnings.
Of course, Madam Speaker, we are building on the successes of last year. Our gross earnings have surged to US$4.38 billion, marking a 9.6% increase over the previous fiscal year. This impressive growth is underpinned by a record-breaking 2.96 million stopover arrivals, a 9.4% rise over the last fiscal year 2022/2023.
Our cruise tourism has also seen a remarkable resurgence, with a 16% increase over 2023. In just the first six months of this year, we have hosted almost 800,000 cruise passengers on our shores.
Madam Speaker, we have already welcomed 2.4 million visitors to our island this year, keeping us well on track to achieve our annual target of 4.3 million.
These figures, Madam Speaker, are not just numbers. They represent jobs for our people, opportunities for our businesses and a stronger, more resilient economy for Jamaica. They affirm our position as a premier Caribbean destination and underscore the effectiveness of our tourism strategies.
Madam Speaker, I must highlight a testament to our resilience and adaptability in the face of challenges. Despite damage to the Ocho Rios port earlier this year, we did not lose a single vessel visit. This was achieved through the strategic use of the Reynolds port and the reallocation of ships to Falmouth and Montego Bay. This quick thinking and flexibility ensured that our cruise tourism remained robust, showcasing Jamaica’s commitment to providing seamless experiences for our visitors even in adverse circumstances.
Madam Speaker, our airports in Kingston and Montego Bay have been instrumental in our tourism success. They collectively generated revenue amounting to US$200 million or approximately J$30 billion.
This revenue boost coincided with an unprecedented 6.96 million passengers moving through these facilities, setting a new record for our aviation sector. Of course, Madam Speaker, the majority of these numbers stem from MBJ Airports Limited, the operator of the Sangster International Airport.
Supply Logistics Hub
As we are on the subject of resilience, Madam Speaker, I am thrilled to announce a groundbreaking development that promises to revolutionize our tourism sector and create unprecedented opportunities for our local businesses. Several major cruise lines, including industry leaders such as Carnival, Royal Caribbean, MSC and Norwegian cruise lines, have expressed keen interest in sourcing more of their global product needs from Jamaica.
This interest, Madam Speaker, is not merely a gesture of goodwill. It represents a strategic recognition of Jamaica’s potential to serve as a key supply logistics hub for the Caribbean cruise industry. The cruise lines have made it clear that they are prepared to significantly increase their procurement of Jamaican products, provided these goods meet their exacting standards for quality, consistency, and reliable supply.
Madam Speaker, this is excellent news for our farmers, manufacturers, artisans, and other small and medium-sized enterprises. It opens up a vast new market for our local products, potentially transforming our economic landscape.
However, Madam Speaker, we are not naive to the challenges this opportunity presents. Meeting the stringent requirements of these global cruise lines demands a level of product sophistication, quality control and supply chain efficiency that many of our local businesses may not yet possess.
That is why I am proud to report that our Tourism Linkages Network, a division of the Tourism Enhancement Fund (TEF), has been working tirelessly to prepare our businesses for precisely this kind of opportunity. Through targeted initiatives, we have been equipping our local enterprises with the skills and knowledge needed to meet international standards.
Madam Speaker, this is more than just an economic opportunity. It is a chance for Jamaica to showcase our products on a global stage, to demonstrate that our goods are not just ‘good enough’ for local consumption but are world-class and worthy of being served to discerning travellers from around the globe.
I must also commend Jamaica Vacations Ltd. (JAMVAC) for their excellent work in marketing Jamaica as a premier cruise destination. Their efforts have not only ensured that Jamaica remains a top choice for cruise lines but have also paved the way for these deeper economic partnerships.
This initiative, Madam Speaker, embodies the very essence of our vision for a caring economy. It creates opportunities not just in tourism, but across multiple sectors of our economy. It empowers our local businesses, creates jobs and ensures that a larger slice of the tourism pie directly benefits Jamaican workers and entrepreneurs.
Tourism Linkages
Madam Speaker, I am particularly proud to highlight two groundbreaking initiatives that exemplify our commitment to inclusive growth and sustainable tourism.
Last week, the Ministry hosted the 10th staging of the Christmas in July trade show. The two-day event, which was held at the National Arena, attracted 205 exhibitors.
Christmas in July provides a marketplace for showcasing authentic local products and services, bringing together buyers and sellers. This premier event brings together corporate Jamaica, the tourism industry, gift shops, pharmacies and the diplomatic community and offers a unique opportunity for exhibitors to display their products to key buyers responsible for selecting tokens and gifts.
Madam Speaker, I want to take this the opportunity to commend the Tourism Linkages Network, a division of the Tourism Enhancement Fund, the main organizers of the Christmas in July initiative, for the significant economic impact of the event.
It has seen substantial growth, from 110 successful applicants in 2018 to 180 last year, Madam Speaker. In 2018, we saw earnings of over $50 million from this event. In 2019, despite challenges, we still achieved over $30 million. Even in 2020, amidst a global pandemic, our resilient artisans managed to generate $4.83 million in just one month after the trade show. Last year, from the 20% of participants who responded to our post-event survey, we recorded $20.3 million in earnings.
I’m delighted to share that, based on last year’s event survey, nearly 90% of participants benefited from direct or indirect sales, with 76% reporting increased brand exposure or sales leads. Behind these statistics are real people, real businesses, growing and thriving because of the opportunities created by this initiative.
In addition, Madam Speaker, the Agri-Linkages Exchange (ALEX), a joint initiative of the Ministry of Tourism, through the Tourism Enhancement Fund and the Rural Agricultural Development Authority (RADA), has been reaping remarkable success. Currently, approximately 1,800 farmers are registered on the platform and between January and December 2023, we saw 4,343,877 kg of produce traded, valued at J$452,777,041. Indeed, Madam Speaker, since its launch in 2020, ALEX has generated some $1 billion in sales for our small-scale farmers. This is excellent news for Jamaica’s farmers!
This innovative online platform, the first of its kind in Jamaica, directly connects hoteliers with farmers, reducing leakages and ensuring that more of the economic benefits of tourism remain within our local communities.
Tourism Worker Welfare
Furthermore, Madam Speaker, I am thrilled to announce a significant development in our commitment to the welfare of our tourism workers. This financial year, we will construct houses specifically for those workers in need in the tourism sector – this, Madam Speaker, is our form of social housing.
This initiative will be a collaborative effort with the Jamaica Hotel and Tourist Association and is part of our broader vision to ensure that those who contribute to the success of our tourism industry can enjoy the fruits of their labor with safe and comfortable housing.
But that is not all, Madam Speaker. In addition to these social houses, I am pleased to report that our hotel investors have committed to providing 3,000 housing units for tourism workers in general. In Green Island, Hanover, the massive Princess Resort development will offer 500 units for workers, while a nearby major resort expansion project will add another estimated 600 units. In St. James and St. Ann too we will see in excess of 1,200 housing units for tourism workers for two major resorts.
These projects represent a significant investment in our workforce and demonstrate the strong partnership between the government and the private sector in addressing the needs of our tourism workers. We have established a Tourism Social Housing Working Group, led by Dr. Carey Wallace, Executive Director of the Tourism Enhancement Fund, to address their needs.
This group includes representatives from the Jamaica Hotel & Tourist Association and tourism workers themselves. Our ambitious goal is to deliver the first six housing units by the end of this year.
CHTA and PAMAC
Madam Speaker, since my address at the opening of the 2024/2025 Sectoral Debate in April, Jamaica has further cemented its position as a leader in Caribbean tourism. We have had the privilege of hosting two major industry events that underscore our commitment to fostering regional cooperation and growth in tourism.
I am particularly proud to report on the resounding success of the Caribbean Hotel & Tourism Association’s (CHTA) flagship event, Caribbean Travel Marketplace 42, held from May 20-23, 2024. This event was truly remarkable, Madam Speaker. We welcomed approximately 1,200 delegates from more than 45 countries, making it the largest staging of this event in its history.
The response from both suppliers and buyers was overwhelmingly positive, and the participation of countries from across the region contributed significantly to the event’s success. With over 12,750 scheduled appointments, the Marketplace buzzed with activity as parties explored contract signings and business opportunities. This unprecedented level of engagement, Madam Speaker, is a clear signal of the full post-COVID-19 recovery of tourism in our region. It not only showcases Jamaica’s capacity to host world-class events but also heralds a bright future for Caribbean tourism as a whole.
Madam Speaker, I am also pleased to report on the resounding success of the Florida-Caribbean Cruise Association’s (FCCA) Platinum Associate Membership Advisory Council (PAMAC) Summit, which we hosted from June 11–14, 2024. This event further solidified our position as a leader in the cruise tourism sector.
The Summit, hosted by Jamaica Vacations Ltd. (JAMVAC) with strong private sector support, showcased Jamaica’s offerings to nearly 270 attendees from across the region, including approximately 30 senior cruise executives. This gathering provided an invaluable platform to highlight our nation’s unique appeal and ongoing developments in the cruise tourism industry.
Madam Speaker, alongside the Port Authority of Jamaica (PAJ), we seized the opportunity to present our ambitious infrastructure plans. We detailed upgrades to our road networks, outlined development strategies for all Jamaican ports, and showcased our enhanced ‘walk-off’ experiences for cruise passengers. These initiatives demonstrate our commitment to providing world-class facilities and experiences for our visitors.
The cruise executives reaffirmed their commitment to Jamaica, despite regional challenges such as the docking limitations for large vessels in Grand Cayman and the unrest in Haiti. Both destinations are crucial in creating attractive itineraries that include Jamaican ports. In response, we engaged in productive discussions about establishing multi-porting itineraries and coordinating with other countries to create competitive cruise offerings.
A key focus of these talks was the cruise lines’ request for tailored tours and attractions, particularly in the western region of Jamaica. This presents an exciting opportunity for us to diversify and enhance our tourism product, creating unique experiences that will set us apart in the Caribbean cruise market.
These developments, Madam Speaker, represent a new chapter in our cruise tourism strategy. By strengthening our infrastructure, tailoring our offerings, and integrating local businesses into the cruise supply chain, we are not just growing our tourism sector – we are ensuring that its benefits reach deeper into our communities and economy.
Tourism Diversification & LATAM
Madam Speaker, I am thrilled to announce here in Parliament a significant development in our air connectivity and tourism markets diversification strategies. Following a successful tourism sales mission in South America last summer, led by yours truly and Jamaica Tourist Board officials, LATAM, the largest airline in Latin America, will resume nonstop flights between Lima, Peru, and Montego Bay, Jamaica, on December 1 this year.
These flights will operate three times per week, utilizing Airbus A319 and A320 aircraft, with capacities of 144 and 174 seats, respectively. This new route will connect Montego Bay’s Sangster International Airport to Jorge Chávez International Airport in Lima.
Importantly, Madam Speaker, these flights are scheduled to facilitate easy connections with Peru’s national network as well as with multiple countries in South America including Argentina, Ecuador, Bolivia, Brazil, Chile, Paraguay and Uruguay. This strategic air link opens up exciting new markets for our tourism sector and strengthens Jamaica’s position as a global tourist destination.
Madam Speaker, these achievements represent real opportunities for our people, growth for our businesses, and a more robust, resilient economy for Jamaica. From our record-breaking visitor arrivals to initiatives like ALEX, from significant investments in worker housing to the expansion of our air connectivity and tourism diversification, these successes embody our vision of a more inclusive tourism sector that benefits our citizens, our stakeholders and our nation.
As we move forward, we remain committed to creating strong linkages across sectors, ensuring that the benefits of our thriving tourism industry are shared widely across our society. Our strategy is clear: to build a tourism sector that not only attracts visitors but also uplifts our communities, preserves our environment, and improves the quality of life for all Jamaicans. With these initiatives and the continued dedication of our people, I am confident that Jamaica’s tourism sector will continue to be a beacon of success and a driver of inclusive growth in the years to come.
