TEF primary funding source for first Artisan Village
Published:Wednesday | August 31, 2011 | 12:00 AM
Avia Collinder, Business Writer
Jamaica's plan to develop a network of shopping and cultural centres in five resort towns is expected to cost J$5 billion over five years, backed by the Tourism Enhancement Fund (TEF).
The first 'Artisan Village' is to be developed in Ocho Rios.
But while the state agency leading the project says the business and financing model is still to be finalised, Tourism Minister Edmund Bartlett told Wednesday Business that the Ocho Rios development would be largely state-funded.
"The money will come primarily from the TEF over five years. It's a huge development costing an estimated J$1 billion," Bartlett said on Tuesday.
The TEF, created under the 2004 Tourism Enhancement Act, is the repository for the fees collected from visitors to Jamaica — the current charges are US$10 per incoming airline passengers and US$2 for cruise passengers.
The fund currently stands at J$2 billion, Bartlett said.
UDC General Manager Joy Douglas also said Tuesday that while the concept of the Artisan Village as a centre for Jamaican food, music, heritage and craft is being considered for several resort areas, the UDC is currently focused on rolling out the Ocho Rios leg for which, she said, "very preliminary estimates for phase one puts the cost of the development at over J$1 billion".
Investors sought
The other four artisan villages will be developed in Montego Bay, Falmouth, Port Antonio, and Negril.
In its 2011 investment portfolio plan outline, the UDC proposed a public-private partnership to design, build and sell or operate the Artisan Village.
Douglas confirmed that the TEF would be tapped for funding, but said the UDC was still in the process of packaging the project for pitching to private investors.
"As indicated previously, we will be going to the market in conjunction with the Ministry of Tourism to present the project to investors," she said. "The corporation is presently finalising the business and financing model for the project, and will be moving forward with implementation in conjunction with the ministry."
Bartlett said the villages were conceived as a centre for Jamaican artists and craftsmen to showcase their creativity, while positioning artisans to grab market share from importers of craft items.