Janice Allen | New strategy for more just and sustainable industry | In focus

For decades, the tourism industry has been reported as the backbone of Jamaica’s economy. But under the glossy numbers persists a tough reality: the benefits remain disproportionately concentrated among large, often foreign -owned players, while many local businesses are struggling to compete.

Depending vertical integration from foreign investors continue to marginalize local businesses in key sectors such as transport, entertainment and retail. Together with the impact of travel guides from key source markets, Jamaica’s tourism industry is now at a critical time. The question still is, how can we reshape the industry to make it more inclusive, fair and sustainable for all stakeholders?

Hidden crisis

The past year has shown the very real and lasting effects of travel records. Too often, these warnings are dismissed or dismissed from key markets such as the United States and Canada. By 2024, when advisors of these large source markets were issued, many medium-sized and small hotels reported, predominantly Jamaican-owned, sharp decreases in paving levels, average room prices and length of living. While the overall tourist sector continues to show resilience, the reality of these companies is far more challenging.

New mega-property such as Riu Aquarelle and Princess Grand Resort have added over 1,300 rooms, which of course contributed to increased arrival numbers. But when we remove these extensions and look at the performance of existing small and medium -sized hotels, the situation is deep. Many of these characteristics that have long been the cornerstone of Jamaica’s locally owned tourist sector are struggling to remain viable.

Based on feedback from industry practitioners in this category, there has been little targeted intervention to specifically support smaller, original companies that lack the resources to absorb these shocks. These companies are critical not only for their financial contributions, but also for the authenticity they bring to Jamaica’s tourist product. They supply employment, maintain local suppliers and offer the kind of unique, culturally rich experiences that separate Jamaica.

If we look seriously to maintain the diversity and long -term sustainability in our tourist sector, a more conscious and inclusive approach is needed. Targeted strategies such as financial support, specialized marketing campaigns to face negative perceptions and stronger commitment with local operators must be explored. The industry cannot thrive if a significant segment of its players is vulnerable. The viability of Jamaican-owned hotels is not just a business concern, it is a national economic priority.

Rebalance of the tourist economy

A prevailing misconception is that all tourism earnings remain in Jamaica. The truth? Less than 40 cents of every US dollar earned in tourism is preserved. While the government is collecting revenue through the Tourism Enhancement Fund (TEF), space taxes and other taxes, much of earnings does not remain in the local economy. Recently, the tourism minister claimed that $ 43 billion was earned by tourism, which led to many Jamaicans thinking that this amount was pumped into government lines. This is not the case. What is generated by the industry does not match what is earned by the government.

It is important to work to increase this retention to at least 60 cents per day. Dollar, of:

1. Prioritization of local ownership and participation – to ensure that local businesses in retail, transport and entertainment get a fairer proportion of tourist papers.

2. Reducing financial leakage – Strengthening connections with local producers to limit excessive dependence on imports.

3. Generation in tourist cities and infrastructure – redirection of tourism earnings to improve the communities that maintain the industry.

Change in strategy

Jamaica’s tourism industry is no longer in its infant, where the primary focus is rapid expansion, building new hotels, increasing space stocks and marketing aggressively to attract visitors. We are in the mature phase where success is not measured by how many more rooms we can build, but of how much value we extract from what is already found, ensures sustainability and improves the overall quality and competitiveness.

Leading tourist destinations such as Spain, Thailand and the Dominican Republic have recognized this shift and adjusted their strategies accordingly. Instead of focusing solely on adding new hotel stock, they have prioritized:

• For example, upgrading and diversification of existing tourist products-Spain has moved beyond just solar-and-sand tourism, investment in cultural tourism, eco-tourism and heritage experiences to attract higher value visitors.

• Improving infrastructure and local economic integration – Thailand has focused on improving transport, sanitation and local business associates to ensure that tourism benefits a wider segment of its population.

• Handling of visitors density and environmental impact – the Dominican Republic, which is facing over -development in certain areas, has implemented policies to encourage more sustainable tourist growth rather than uncontrolled expansion.

In Jamaica, the current approach remains fixed on hotel expansion without similar investments in people, infrastructure or the environment. This is stupid. New rooms and attractions mean a little if they sit on crumbling roads, face water shortages or are found in cities that are burdened by overload and neglect.

The logical approach to Jamaica’s Tourism-Alde requires a shift in strategy to one that focuses on improving the product, improving efficiency and ensuring long-term sustainability.

This means:

– Upgrade of existing infrastructure – Roads, airports, water supply and waste management systems need to be improved to meet global standards.

– Revitalization of older tourist areas – Negril, Ocho Rios and Montego Bay need significant reinvestment in public spaces, beaches and cultural places to improve visitors.

– Diversification of the tourism offering – We must create stronger local tourist experiences that encourage visitors to engage in Jamaican culture, food, music and society.

Use of growth phase strategies on a mature phase product is a recipe for diminished returns.

Path forward

Jamaica has a choice: Continue with Status quoWhere tourism only benefits from a few, or pursues a more inclusive approach that allows all Jamaicans.

It is critical to advocate policies that provide opportunities for a wide cross -section of Jamaicans with emphasis on local business associates, workers and communities.

Growth without equity is not real progress. Our industry must develop – not only to attract visitors, but to ensure that any Jamaican benefits of the wealth it generates.

Janice Allen is a senator and shadow minister, tourism and connections. Send Feedback to [email protected]