By Garwin Davis, Assistant News Editor 
Forstmayr
JAMAICA'S PATHWAY to economic growth could be further stymied, if the current problems facing the tourism sector are not quickly brought under control, industry players say.
According to them, a lot of the growth projections made by both Prime Minister P.J. Patterson and Minister of Finance Dr. Omar Davies during the recently concluded budget debate, could be deemed meaningless if tourism continues to falter.
They see the weeks ahead as being very critical, noting that everything hinges on how soon the Jamaica Tourist Board (JTB) can get back to promoting the island as a premier holiday destination overseas. The Jamaica Tourist Board (JTB) last week confirmed that it was US$5 million in arrears to a New York-based ad agency. The agency, as a result, had pulled all advertisements for Jamaica from the airwaves.
"My overall business is down 30%, when compared to the same period last year," explained Sanju Chatani, owner of the Taj Mahal Plaza in Ocho Rios. "We have not been seeing much traffic from either the hotels or the cruise ships and based on what is currently happening within the sector, we may be in for even worse times."
Mr. Chatani, whose business ventures make him one of the largest employers of persons in the resort town, said he is disturbed by the fact that Jamaica has not been advertising in the critical overseas markets. "We have to understand the gravity of this situation," he added. "Tourism is the lifeblood of the country's economy and everything that has been projected in the budget debate will be greatly skewed if tourism fails."
Earle Harriott, president of the Cambio Association of Jamaica, agreed.
"If tourism suffers, then it affects everything we do," he said. "The Cambio business is responsible for approximately 48% of the foreign exchange coming into this country. A downturn in the sector would impact greatly on this."
Immediately following the September 11 terrorist attacks on the United States, the Bank of Jamaica (BoJ) predicted a short-term fall off of US$95 million in revenues for the sector. And that was only until December.
REVENUES DIPPED
According to figures from the Jamaica Hotel and Tourist Association (JHTA), revenues dipped even further and to the point where the BoJ's projection, up to the end of the fiscal year ending March 31st, was almost tripled. Arrival figures islandwide through the month of April were down 19.8%, when compared to last year while in the tourism capital of Montego Bay the drop-off was 22.6%.
"Airport arrivals and revenues were down while we were advertising, so imagine the impact when we do not have a presence overseas," JHTA head Josef Forstmayr said.
"The concern that I have is for the island to resume advertising in the main markets of Europe and the United States. The longer we wait, it is the more difficult it will be to create any sort of impression. April, May and June are the ideal times to be out there marketing... nobody watches television in the summer."
Jamaica earned US$317.2 million from tourism revenues for the December quarter of last year. Gross expenditure for the entire year was US$1.33 billion, resulting in a decline of 20 per cent in the tourism sub-sector. The decline in revenues and also arrivals was attributed to both September 11 and the July violence in West Kingston.
But, according to leader of the opposition Edward Seaga, to blame the problems facing the sector solely on what happened in July and September would be "grossly misleading."
According to him, the government continues to view tourism as an industry for the rich thus "the reluctance to make money available for the sector." "The government simply refuses to put the required money into promoting the destination," Mr. Seaga said.
"Take a look at what the Minister of Finance is doing...it's a joke. He is making US$2.5 million available to the JTB, when they need five million to clear their debt with the overseas ad agency. For a while now, the government has been making a mockery of the industry and at the expense of the people of the country. This only shows that they do not have a clue about the industry and I am afraid we are all going to suffer as a result. Inevitably there will be massive layoffs and a resumption of the price undercutting we saw last year among hoteliers," he said.
The Ministry of Finance has been maintaining that the JTB needs to be more accountable in terms of how the agency handles its finances. The Ministry, as expressed by Dr. Davies during his budget presentation, is adamant that the fortunes of the industry can only be improved by a reduction in crime and violence.
But according to tourism sources, it is the Finance Ministry which is responsible for the predicament the country now finds itself in.
"There was a shortfall of US$7.6 million from last year's budget which, if the JTB had got, would have been enough to clear whatever arrears there are with the overseas ad agency," the source said. "The JTB is being made to look bad and inefficient, but the truth is a lot of the blame should fall at the feet of the finance ministry."
