KERR

WESTERN BUREAU:

The United Nations World Tourism Organisation's (UNWTO) Resilience Committee has called for active government support of the tourism sector in the face of the downturn the industry will experience in the next six to nine months.

The challenges posed by the economic scenario were discussed at the 'Conference for the Middle East and Mediterranean Region on Tourism - Responding to a Turbulent Economy' in Sharm El Sheikh, Egypt, last week.

Participants at the conference also underscored tourism's potential to foster growth, exports and employment, particularly in developing countries.

Urgent priority

"The most urgent priority is to deal with the massive macroeconomic uncertainty and the market consequences and making flexibility in response an imperative, while keeping a close eye on the climate agenda," UNWTO's Resilience Committee chair, Zohair Garrana, told the gathering of 175 participants from more than 20 countries.

Garrana is also Egypt's minister of tourism.

One of the significant and creative approaches recommended to governments by the committee was the implementation of economic stimulus, which would include tax moratoria and rollbacks.

Deterioration expected

"However, much the tourism sector has held up in 2008, forecasts suggest that the situation will deteriorate over the next six to nine months," the committee stressed. "Tourism cannot be regarded separately from the turbulence affecting the global economy. Europe, Japan and the United States - three major tourism markets - are experiencing severe economic downturns and major institutions are downgrading expectations."

Jamaican hoteliers remain optimistic that their request - to Prime Minister Bruce Golding over a month ago - for low interest loans, a deferral of the payment of statutories for employers, general consumption tax (GCT) waiver from November 2008 to March 2009, and a review of items that can be brought under duty-free allowance, will bear fruit soon.

"My operating costs have increased by approximately 38 per cent over the same time last year," said Ian Kerr, managing director of the Sunset Group of Resorts, which employs more than 1,000 people.

Kerr pointed out that utilities, particularly water and electricity and food prices have skyrocketed, "And now we are faced with wage increase because our staff are suffering."

He added: "Their wages can't pay their taxi fare."

According to the hotelier, it has become increasing difficult to meet financial obligations and there must be a way that the payment of GCT can be deferred. He added that he met last week with a select group of tour operators in the United States and they revealed that, even though there is a downturn in the industry, Mexico was pacing way ahead of Jamaica.

Aggressive advertising

"Our tour operators are suggesting a more aggressive advertising campaign," he said.

His comments come two weeks after chairman of SuperClubs, John Issa, told The Gleaner that what the industry was seeing now was worse than 9/11.

"That was a short jolt, this will be extended," Issa said.

The SuperClubs chairman said his electricity bill was more than $10 million per month and the cost of providing security in Jamaica far exceeded the prices charged at any other destination.

He stated that if the Government wanted to preserve the Jamaican-owned hotel sector, it must give greater benefits to the island's operators, "much more than what is given to foreign-owned operators".

janet.silvera@gleanerjm.com