Hylton criticises BOJ interest rate hike, pleads for help for small hotels

An urgent solution is needed to help small and medium sized hotels survive problems in the global supply chain and fallout from the COVID-19 pandemic, Opposition Spokesman on Industry, Investment and Commerce, Anthony Hylton has said. 

Hylton argued that the only indication that the government understands the issue was through a proposal by Minister of Tourism, Edmund Bartlett.

Bartlett recommended the establishment of a logistics centre in Jamaica to ensure a consistent supply of goods and services for the critical tourism sector, a key economic driver. 

“The suggestion clearly recognises the nature of the challenges facing the recovery of the sector and the wider economy in the aftermath of the pandemic and seeks to do something about it,” said Hylton this afternoon as he made his contribution to the Sectoral Debate in the House of Representatives. 

"An effective response cannot and will not come from increased interest rates on the mounting debts already owed by the small and medium sized hotels and linked business already heavily impacted by the long shut down of the sector," he argued. 

The Ukraine-Russia war and the COVID-19 pandemic have significantly disrupted the global supply of goods and services, a situation made worse by high levels of inflation in key markets on which Jamaica is dependent. 

Hylton also accused the government of having no specific solution to address the increases in prices for consumer goods and services. 

"The challenges before us, the ministry and Jamaica, go far deeper," he said. 

Hylton further accused the Government of remaining fixed to economic orthodoxy and not pursing measures to counter the impacts of the price increases. 

The most controversial of these, he said, was the recent decision by the Bank of Jamaica to increase its policy interest rate ahead, in what it says is part of a strategy to tamp down imported inflation.

“The opposition and other key stakeholders in the private sector have expressed the view that this orthodox method of fighting supply chain-induced inflation is not likely to achieve its intended results in the short to medium term but will in fact increase pressure on vulnerable businesses and individuals," the spokesman said. 

READ MORE: Manufacturers slam BOJ rate increase, warn of recession and price hikes

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