Jamaican tourism industry has been calling for government help due to feeling the disability to continue in the current global economic crisis.
With the Jamaican tourism industry experiencing a crisis which threatens not only the viability of the sector but its ability to continue to be the country's leading foreign exchange earner and a major employer, calls have been made for government intervention to alleviate the stresses and save jobs, reports Jamaicaobserver.
According to Ministry of tourism, tourism has raked in some US$1.6 billion till October 2008 and he expects the figure to reach the US$2 billion target during the upcoming winter season. Also since the start of this year (2008) more than two million tourists have visited Jamaica, 1.5 million in stopover visits and 800,000 in cruise ship visits.
The main reason for the tourism sector decline is that the upcoming winter season looks grim. Bookings are down already and that is conservative. Further this could lead to a cash-flow deficit for many hotels as Jamaica is viewed as a mid-market destination and it is this particular market that will be the hardest hit by the global financial downturn.
Further, the growth of major investment inflows into resort and hotel development which had been anticipated is slowing down and a significant portion may not materialize for quite a while. Meanwhile, the deepening global economic crisis and Jamaica's worsening crime problem are reportedly having a devastating impact on the local tourism sector with reports of some hotels facing closure.
Many of the high-end and low-end hotels should fare well but the mid-market will bear the brunt of the reduction in visitor arrivals. Top-end visitors are unlikely to make severe lifestyle changes and to date hotels that cater to that kind of visitor have not reported significant reduction in bookings. The lower-end hotels are expected to benefit from visitors on the lookout for bargains and those forced to curb their discretionary spend.
According to an analyst at RNCOS the Jamaican tourism sector is feeling heat of global credit crunch. However investment opportunities those are available in the island's tourism sector as the accommodation sector has attracted much foreign investment. Further increasing government spending, through borrowing, may be a way to cushion the impact of the economic crisis.
Related Market Research Reports:
Egypt Tourism Sector Analysis
Indian Tourism Industry Analysis
Opportunities in Malaysian Tourism Industry (2007-2009)
