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Jamaica ranked 13th most tourism-dependent economy in the world

KINGSTON, Jamaica — Jamaica has been dubbed one of the “big three” Caribbean tourism economies, ranking the 13th most tourism-dependent economy in the world, as the Inter-American Development Bank (IDB) highlighted the importance of boosting innovation and supporting transformations that align tourism offerings with post-pandemic global demands.

The island scored 38.7 out of a possible 100 on the latest IDB’s Tourism Dependency Index, which was calculated for 166 countries.

Of the world’s fifteen most tourism dependent economies, eight are in the Caribbean, led by Aruba — ranked first in the world, with a score of 80. Rounding out the “big three” are The Bahamas and Barbados, ranking sixth and 11th, respectively.

According to the latest IDB Caribbean quarterly bulletin, 2020 represented a contraction of international visitor arrivals of 76 per cent for The Bahamas, 69 per cent for Jamaica and 67 per cent for Barbados.

This is in line with the estimate by the UN World Tourism Organization of a 67 per cent contraction for the broader Caribbean region.

The IDB noted that returning to 2019 annual levels of tourism arrivals and expenditures will be gradual, predicting a two to four year recovery period.

“Data are limited, but tourism remained subdued in the first quarter of 2021 in most destinations, and far below the levels of the first quarter of 2020 — the last ‘near normal’ quarter,” it said.

It further stated that: “The evolution of demand for tourism services in key source markets obviously is critical to the prospects for a recovery of tourism in the Caribbean. With respect to source markets, for most countries in the region, the United States represents the most important source of tourism demand.”

The US is followed by the United Kingdom and Canada for the “big three” destinations.

The United States accounts for about 82 per cent of all visitors to The Bahamas, 69 per cent to Jamaica, and 32 per cent to Barbados.

The United Kingdom is the most important source of tourism demand for Barbados, representing about 33 per cent of all visitors, and is also an important source of visitors to Jamaica and Trinidad and Tobago, where it represents about eight per cent of all arrivals, based on the latest available data.

Visitors from Canada represent about 15 per cent of arrivals to Jamaica, and around 12 per cent to both Barbados and Trinidad and Tobago.

“Over the longer term, Caribbean countries must spur innovation and reinvigorate their tourism offerings,” said Olga Gómez, Tourism Lead Specialist at the IDB.

“It is no longer enough to depend on the lure of splendid beaches. Tourism destinations need to invest in improving their competitiveness, aligning their tourism products to the broader local and global economic trends, and exploring new and traditional emerging market segments such as global nomadism or nature-based tourism.”

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how much of jamaica economy is tourism

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Vision 2030

Jamaica’s Tourism Sector is Resilient (September, 2022)

Jamaica’s tourism sector is resilient.

Written By:  Prof. Lloyd Waller, Executive Director

Global Tourism Resilience and Crisis Management Centre, University of the West Indies 

Despite cyclical disruptions such as the current COVID-19 pandemic, Jamaica’s resilient tourism industry continues to be one of the main drivers of the country’s long-term economic development.  It is the largest generator of foreign exchange, a major contributor to the GDP and employment, and has been among the country’s fastest-growing industries for several decades. Tourism directly employs 175 000 Jamaicans and generates indirect employment for another 354000 Jamaicans. It drives 15.0 per cent of construction, 10.0 per cent of banking and finance, 20.0 per cent of manufacturing and 21.0 per cent of utilities, agriculture, and fisheries. Overall, the tourism sector has grown by 36.0 per cent over the past 30 years against a total economic growth of 10.0 per cent. 

 The tourism industry has generally positioned itself as a strong pillar of economic development in Jamaica mainly because of the vital economic linkages it has facilitated within the broader macroeconomic context.  The tourism value chain already incorporates several sectors. Its promotion requires the construction and operation of hotels, restaurants and other tourism-related facilities through backward linkages and the development of basic infrastructure services, such as energy, telecommunications and environmental services, agriculture, manufacturing and other support services. Tourism has also created a wide range of forward linkages with sectors supplying services consumed by tourists. These include financial, telecommunications, retail, recreational, cultural, personal, hospitality, security and health services. In addition, the strengthening of the tourism sector has required the development of other tourism-supporting infrastructure such as airports, proper roads, ports, hospitals and banks, which are essential for providing access to high-quality services and creating a competitive tourism destination.

These preceding data on the tourism value chain in Jamaican confirm the vital importance of tourism to the country’s macroeconomic growth. In fact, it is impossible to have a vibrant Jamaican economy without a strong tourism sector.  This has been further confirmed by the on-going COVID-19 pandemic.  In 2020, the Planning Institute of Jamaica (PIOJ) indicated that an overall year-to-year decline of 18.0 per cent in GDP growth within the Jamaican economy was mainly attributable to a precipitous 87.5 per cent contraction of the hotels and restaurant industry between 2019 and 2020. The impact of tourism decline in Jamaica has been made worse by the fact that other key sources of incomes/revenues, foreign direct investment and remittances, are also at risk, given that primary suppliers—the United States, the United Kingdom and Canada—have also faced severe economic setbacks. The undiversified nature of the Jamaican economy further compounds the adverse economic consequences of prolonged disruption to the tourism industry.

While the COVID pandemic has presented the greatest challenge to the tourism industry in modern history, the strong resurgence of the sector over the last several months has demonstrated the tourism sector’s “tried, tested and proven” adaptability and resilience. Since the tourism sector reopened in June 2020, it has continued to weather the proverbial storm and has remained open for business amid cyclical threats associated with new COVID variants, new waves of outbreaks, tightening travel restrictions and the reintroduction of border closures by some countries. Indeed, with several major hotel construction projects in the pipeline, Jamaica is about to enter its largest wave of tourism development and expansion in recent history. The fast pace of the recovery of the tourism sector from the COVID-19 pandemic mimics the sector’s pace of recovery from previous shocks including the SARS Outbreak 2002–2004; the H1NI Outbreak 2009; the Global Financial Crisis 2007–2009 to name a few.

Globally, there has, however, been disparity in the pace of recovery of tourism across countries and regions. This largely reflects differences in levels of prioritization and investment in building resilient tourism architectures before and during the pandemic. Tourism resilience is defined as “the ability of social, economic or ecological systems to recover from tourism induced stress” (Tyrell, Johnson, 2008). Other interpretations of tourism resilience emphasize the capacity of destinations to not only quickly recover from shocks but also to anticipate these shocks and put in place effective measures and strategies that may either prevent them from happening or mitigate their impact.. Thus, resilience is the catalyst of a country’s ability to not only track disruptions, like a pandemic, an earthquake, a hurricane, cybercrimes, economic downturns, or terrorism, but also to mitigate them, to recover quickly, and continue to thrive.

 From the perspective of the Jamaican tourism sector, recovery has been aided by the continuous building out of a robust tourism resilience architecture that has combined elements such as continuous development, enforcement and monitoring of standards and protocols, strong political leadership, and providing a constant balance between warning and reassurance. It also includes human resource training, research and development, product diversification and segmentation, continuous risk-mapping, the development of sustainable strategies and policies, leveraging the power of transformative technologies, improving internal and external coordination among stakeholders, timely and appropriate fiscal interventions. Notably, a focal point has been established – the Global Tourism Resilience and Crisis Management Centre – for coordinating destination preparedness, management, and recovery from disruptions and/or crises that impact tourism and threaten economies and livelihoods.

The resilience of the tourism industry in Jamaica has unequivocally, over the past two years, remained competitive among the top tourism destinations of the world because of the integrity of the country’s product which has remained safe, secure, and seamless. During the pandemic, the country’s Tourism Ministry took strong and decisive actions to contain the spread of the virus. It collaborated extensively with tourism partners and other stakeholders to develop an even more resilient approach to tourism. To ensure that the industry reopened safely, seamlessly, and responsibly, protocols to ensure destination assurance were developed through partnership among the Ministries of Tourism, Health and Wellness, National Security, and Foreign Affairs and Foreign Trade, and in consultation with a number of international tourism bodies. The protocols were designed to support and maintain consistent standards across all sectors of the industry.

The Ministry of Tourism also introduced its Tourism Resilient Corridors. The resilient corridors, which encompass most of the island’s tourism regions, allow visitors to enjoy more of the country’s unique offerings, as many COVID-19-compliant attractions, located along the areas, are authorized for visits by the health authorities. The Resilient Corridors, which cover more than 85.0 per cent of the island’s tourism product and include less than 1.0 per cent of the population, have recorded an infection rate of less than 1.0 per cent over the past year; demonstrating the clear success of the programme, the only one of its kind in the Caribbean.

Jamaica’s tourism resilience-building framework has also emphasized six pillars that reflect a forward-thinking vision for the sustainable growth of the tourism industry in the post-COVID era. They are facilitating investments; strengthening linkages; investing in human capital development; diversifying the tourism product; building out a supportive tourism infrastructure; and creating a Destination Assurance Framework that assures an authentic, safe and seamless visitor experience.

In conclusion, Jamaica’s resilient tourism industry is indispensable to the country’s economic recovery from the COVID-19 pandemic.  It is also a catalyst of the country’s path to sustainable development because of its potential to unlock opportunities in key areas of sustainability such as inclusive and sustainable economic growth; social inclusiveness, employment and poverty reduction; resource efficiency, environmental protection and climate change mitigation and adaptation; cultural values, diversity and heritage and mutual understanding, peace and security.  Accordingly, sustained and dedicated efforts are required by all stakeholders to ensure that the sector maximizes its full economic potential and remains resilient and competitive.

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The World Bank

The World Bank In Jamaica

As its neighbors across the Caribbean, Jamaica is vulnerable to extreme weather events and climate change. Over the last 30 years, Jamaica suffered high debt and low growth. As the country continues implementing an ambitious program of economic reforms, Jamaica’s economy has begun to revive.

After decades of weak macroeconomic performance, Jamaica implemented an austerity program in 2013 which helped to reduce the public debt-to-GDP ratio by more than 50 percentage points. Fiscal discipline and prudent macroeconomic management sped up post-pandemic recovery amidst the challenging external environment of inflationary pressures and tightening global financial conditions. The social protection system has been strengthened, which has contributed to increased equity, social resilience, and poverty reduction. Notably, during the peak of the pandemic, the government was able to provide temporary assistance to vulnerable households and businesses to offset income losses, protect jobs, and stimulate demand. Additional assistance was provided to vulnerable households to mitigate the potential impact of rising prices. The public debt to gross domestic product (GDP) ratio increased by 15 percentage points to 110 percent of GDP in FY2020/21 but has since declined to 79.7 percent of GDP in FY2022/23 and is expected to gradually fall below 70 percent over the medium term. In this context, Jamaica improved its credit rating from Standard & Poor’s (BB-) and maintained its high rating from Fitch (B+).

The government has demonstrated the capacity to break the cycle of indebtedness, with broad public support, and is committed to continuing its program of fiscal consolidation and reform. However, debt-service costs remain relatively high, crowding out other government spending, including capital investment, which is critical to boost growth. Jamaica has been among the slowest growing economies in Latin America and the Caribbean given its concentration in low productivity services, limited technology adoption and innovation,  high connectivity costs, a weak business environment, and pervasive crime. Disruptions in learning during the pandemic will have longer-term effects on growth and human capital and the future earning potential of students, if not addressed adequately.

Furthermore, Jamaica is highly vulnerable to external developments given its reliance on imports and tourism. Tourism and agriculture, which account for more than a third of available jobs, are vulnerable to external shocks, especially climate related, which could undermine economic growth and poverty reduction efforts. While the financial sector is well-capitalized and liquid, it remains susceptible to various shocks. To strengthen fiscal, financial, and social resilience to climatic shocks, Jamaica has gradually integrated climate change adaptation into its policy framework. Progress on addressing anti-money laundering and counter terrorism financing, combined with improved financial supervision is necessary to attract private investments.

Economic Recovery

Jamaica’s real GDP is estimated to have expanded by 2.9 percent in the first half of 2023, reaching its pre-crisis level. Growth was driven by net exports from an expansion in tourism and mining, whilst agriculture declined due to an extended drought. Rising economic activity brought the unemployment rate to 4.5 percent in April 2023 – the lowest level in history. The national poverty rate is estimated to have declined to 12.6 percent in  2022. Nevertheless, the quality of employment remains a concern given high informality and fewer average hours worked relative to pre-pandemic levels.

Annual inflation decelerated to 6.6 percent in July 2023 – down from its peak of 11.8 percent in April 2022, approaching the Bank of Jamaica (BOJ)’s reference range (5 ±1 percent). Inflation was influenced by lower global commodity prices, as well as the effects of tight monetary and fiscal policies. Nonetheless, food inflation remained elevated at 11.3 percent in July 2023 amid droughts, undermining household purchasing power. According to the Food Insecurity Experience Scale, 33 percent of Jamaicans were severely food insecure in May 2023. The BOJ has kept its key policy rate at 7.0 percent since end-2022 and announced it would maintain that rate for the rest of the year amid seasonal increases in agricultural prices.

The fiscal deficit of 0.9 percent of GDP in the Q1 of 2023 brought fiscal account to a surplus of 0.3 percent of GDP in FY2022/ 23 – smaller relative to a surplus of 0.9 percent of GDP in FY2021/22. This was a result of increased spending on wages and salaries, consistent with the recently approved three-year compensation cycle. Higher spending also reflected transfers (0.25 percent of GDP) to vulnerable families to counter inflation pressures, and fuel, and food subsidies.

The current account recorded a deficit of 0.8 percent of GDP in 2022 as high commodity prices offset increasing earnings from tourism and remittances. Reserves remain adequate, at US$4.1 bn (about 6 months of imports and 24 percent of GDP) as of July 2023. In this context, the exchange rate remained relatively stable.

Real GDP growth is expected to average only 1.8 percent over the medium term as global growth weakens.  Manufacturing on the supply side and consumption and net exports on the demand side are expected to drive growth. Higher public wages, a historical increase in minimum wages, and increases in communication services are anticipated to generate inflationary pressures. Monetary policy is expected to remain supportive of growth, ensuring adequate liquidity in the financial system; minimizing pressures on the currency, and returning inflation to its target range by end-2023. Poverty is projected to decline to or below pre-pandemic levels by 2024 as incomes improve with the economic recovery.

The fiscal account is expected to record an average annual surplus of 0.6 percent of GDP over the medium term, with stronger revenues underpinned by continued economic recovery. Spending is expected to decline slightly due to lower interest payments. As such, public debt is projected to remain on a downward trajectory with an expected 74.5 percent of GDP for FY2023/24, declining to 71.3 percent of GDP by FY2025/26. External account balances are expected to slightly deteriorate due to deceleration in remittance inflows and tourism amid weaker economic conditions in the US and UK, partially offset by the reduced spending on imports given lower commodity prices. Gross reserves are expected to remain at healthy levels, averaging more than 5 months of imports.

There are significant downside risks to the economic outlook including a possible deeper-than-expected slowdown in the global economy. Further tightening of financial market conditions could raise the cost of borrowing, curtail private investments, and derail longer-term growth, climate change, and debt objectives. Worsening crime, social unrest, and potential natural hazards could also impair growth and poverty reduction efforts.

Last Updated: Oct 09, 2023

The World Bank’s engagement in Jamaica is guided by the Fiscal Year  14-17 Country Partnership Strategy. A new Jamaica Country Partnership Framework (CPF) for 2024 – 2027 is under preparation and will be launched in January 2024.

The new CPF will promote green, resilient, and inclusive development in the context of the country’s continued commitment to debt reduction and fiscal responsibility. It will do so by contributing to the following three objectives: (i) improved human capital; (ii) more and better-quality jobs; and (iii) reduced vulnerability and enhanced resilience to climate shocks. Youths comprise 38 percent of the working population, so the CPF supports strengthening education and skills (including digital) and creating more opportunities for youth.

The CPF comes at a time when Jamaica continues to recover from COVID-19 and implement a robust fiscal consolidation program to build the foundations for higher growth.

World Bank Group Pipeline

The current International Bank for Reconstruction and Development (IBRD) portfolio consists of seven (7) projects and amounts to $196 million. The projects support the critical areas of disaster and climate resilience; finance, competitiveness, and innovation; rural development and the environment, natural resources, and the blue economy.

The Jamaica Education Project aims to improve teaching practices and learning conditions in secondary education, and the use of information for decision-making in the education system. The Project will improve (i) teaching and learning in secondary education and the integration of STEAM approaches across subjects.; (ii) access to resilient school infrastructure through the construction of one secondary STEM school; (iii) overall management of the education sector and strategies to support student retention; (iv) strengthening aspects of the education system’s performance, including the enabling environment for STEAM education. The  Promoting Community-Based Climate Resilience Fisheries Sector  Project seeks to increase the adoption of climate resilient practices among targeted fishing and fish farming communities in Jamaica, through a Strategic Climate Fund Grant amounting to $4.88 million. The project will provide training, increase capacity and awareness and support marine protected areas. The Bank is also supporting Jamaica’s bid to increase its climate resilience through the  Jamaica Catastrophe Bond for Increased Financial Resilience to Natural Disasters and Climate Shocks . This project expands Jamaica's financial protection against losses arising from severe tropical cyclones-wind. This project has one component that is to develop and implement risk transfer transactions against tropical cyclones-wind effects, including through the financing of transaction costs and premiums. Another project which seeks to reduce Jamaica’s climate and disaster risk is the  Jamaica Disaster Vulnerability Reduction Project . The project provides technical assistance for improved disaster and climate resilience, retrofits or constructs key infrastructure and supports emergency preparedness and response capacity.

Supporting the strengthening of Jamaica’s business environment for private sector investment is the IBRD-financed  Jamaica Foundations for Competitiveness and Growth Project . The project facilitates urban and rural development, supports financial infrastructure and access – including micro, small and medium enterprises (MSME) finance – and private sector development. The  Access to Finance for MSMEs Project  is also working to improve access to finance for MSMEs through enhancing the Credit Enhancement Facility, supporting the establishment of SME fund and, improving the enabling environment for access to finance and business development services.

The  Second Rural Economic Development Initiative Project  for Jamaica aims to enhance access to markets and to climate resilient approaches for targeted beneficiaries via climate resilient agricultural and community tourism investments for rural enterprises and, institutional strengthening and capacity building for public entities.

The current International Finance Corporation (IFC) portfolio in Jamaica supports the financial and technology sectors. The  Country Private Sector Diagnostic  (CPSD) for Jamaica was published in May 2022 and identified two sectors for unlocking income-generating opportunities for growth. The first is agriculture with a focus on high-value goods and the second is outsourcing, with a focus on evolving towards higher-value services.

World Bank’s Rural Economic Development Initiative (REDI) project promoted the restoration and rehabilitation of Jamaican mined lands, breathing new life into the region while supporting livelihoods and fostering economic growth. The first phase of the project benefitted over 1,300 individuals, either through direct training or job creation. It helped participants boost sales, increase agricultural productivity, and improve revenue.  Through REDI, 86 percent of the project's rural enterprises expanded their market access. The project enabled small-scale agricultural producers to fulfill the demands of large-scale tourism establishments by replacing international agricultural imports with domestic production. Further, the project played a pivotal role in empowering community tourism providers to develop and execute business plans while adopting modern business practices such as planning, record-keeping, and marketing.

·       REDI’s productive investments in small-scale agriculture and community tourism delivered significant benefits for participating rural farmers and community tourism service providers, increasing agricultural productivity and tourism sales, raising revenues for rural enterprises, and improving the incomes of farming and tourism members.  The project’s design included a component for financing small-scale investments aimed at increasing productivity and incomes for farmers and tourism providers. The increases in agricultural productivity were most clearly demonstrated in the crop (as opposed to animal-raising) agriculture subprojects, where investments in modern agricultural technologies and practices increased yields by as much as 50 to 400 %, resulting in farm income gains of five to ten times pre-REDI levels. Subproject investments in upgrading tourism infrastructure and facilities contributed to roughly doubling tourism traffic and increased tourism income from twice to ten times pre-REDI levels.

·       REDI’s investments in innovations and new technologies likely contributed to changes in the demographic composition of small rural agricultural producers.  More young people and women entered the agriculture sector, likely due to changes in perspective and the increased use of labor-saving technologies. The project contributed to changing  perceptions of agriculture from a subsistence activity to a business, which in turn attracted more young people into the field (at least in the targeted areas); new technologies that rendered the work less physically arduous encouraged women to take part as well. Data from REDI’s results framework indicate that the project exceeded its targets for participation by youth (22 % versus a target of 11 %) and women (51 % versus a target of 30 %); these results also exceed Jamaica’s national averages for youth and female participation (9 % and 30 %, respectively).

·       REDI provided technical assistance and training that strengthened the technical and business management capacities of small-scale farmers and community tourism providers . The assistance and training were equally important as the productive investments they accompanied. In the agricultural subprojects, REDI-trained subsistence farmers learned to install, operate, and maintain drip irrigation systems (more than 600 acres), construct and maintain greenhouses (50 % more greenhouses and 40 % greater area under protected cultivation), and employ good agricultural practices. In the community tourism subprojects, REDI training enabled community tourism providers to prepare and implement business plans, employ modern business practices (e.g., planning, recordkeeping, marketing), and, eventually, compete in the tourism market with large-scale tourism operators. This included preparing tourism enterprises to make sales calls and participate in fairs where they could showcase their products.

·       REDI supported business development, including improving access to markets, significantly expanding rural agricultural producers’ and community tourism providers’ commercial opportunities.  REDI enabled 86 % of project rural enterprises to increase their access to markets. REDI assisted small-scale agricultural producers to meet the needs of large-scale tourism facilities, replacing their international agricultural imports with domestic production. REDI facilitated access to these agricultural markets by helping producers identify relevant market opportunities for their produce and by connecting producers with purveyors, wholesale marketers, and large-scale tourism buyers. REDI assisted small-scale tourism providers in building their capacity to offer cultural, ecological, and community tourism opportunities to domestic and international tourists — “the real Jamaica” experience, as an alternative to traditional “sun and sand” resort tourism.

·       REDI showed the potential for economic contributions from small-scale agriculture and community tourism, leading to the government’s increased willingness to support investments in these subsectors.  REDI activities helped increase productivity and rural incomes in otherwise stagnant rural subsectors of the Jamaican economy.

Building on REDI's experience, a second phase of the project has kicked-off, prioritizing the strengthening of value chains and tourism clusters; emphasizing linkages between producers/service providers and buyers. It aims to scale small agricultural and tourism businesses, while promoting climate resilience.

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Jamaica PM Andrew Holness: How Tourism Can Boost Economic Recovery

Building resilient supply chains in the americas, leaders from americas business dialogue discuss the power of partnerships, fostering integrity and fighting corruption through technology, colombia president iván duque: improving regional integration in the americas, ceo summit: solutions for a brighter future for the americas (day 1).

June 8, 2022

Featured Guest

Andrew Holness Prime Minister, Jamaica

Tourism has changed since the pandemic hit in 2020, but it remains a strong stimulant for the American economy. The travel industry plays an important role in the reactivation and recovery of the economy in the Western Hemisphere.

Government and business leaders from across the Western Hemisphere gathered at the 2022 IV CEO Summit of the Americas , hosted by the U.S. Chamber of Commerce and the U.S. Department of State, to discuss strategies for moving forward with sustainable tourism while maintaining innovation and growth in business. Andrew Holness , the Prime Minister of Jamaica, spoke on Day 1 of the Summit to highlight the role tourism plays in economic reactivation and recovery across the Americas.

Lessons for Leaders from the Pandemic’s Impact on Tourism

Tourism plays an important role in the Caribbean economy. Thousands of tourists visit the islands each year which, according to Holness, brings in approximately $60 billion in GDP and generates 2.8 million jobs. Approximately 15.2% of employment in the region falls within the tourism sector, he said.

The COVID-19 pandemic travel restrictions have placed a strain on the Caribbean’s economy. However, despite the challenges the pandemic caused, Holness maintains that leaders in the area learned many valuable lessons on the road to recovery.

“I think there are some things that the pandemic would’ve taught us, not just the region, but globally,” Holness said. “One, there needs to be a stronger partnership between governments and private sector partners in tourism to plan and manage crises in our region. In Jamaica’s case, this stronger partnership, [and] coordination emerged into what we call the ‘resilient corridor’ by the nature of Jamaica’s tourism.”

Securing the Supply Chain Through Local Connections

In addition to a decrease in tourism, supply chain disruptions have been on the rise throughout the region. Speaking for Jamaica, Holness insists leaders need to “protect the industry and ensure that we are actually able to deliver high-quality service to our guests and to the people who visit our shores.”

“There need to be greater linkages between the tourism sector and the rest of the economy, particularly agriculture,” he said.

Holness added that leaders should ask themselves several key questions to support a healthy supply chain economy.

“How can the industry be the catalyst for the development of the local capacity to supply your needs?” said Holness. “How do we ensure that we keep our supply chains safe? How do we build local redundancy so that we can continue to deliver a high-quality product?”

Looking Forward: Trends and Obstacles in Tourism

Tourism will continue to evolve post-pandemic, and there will be more challenges and opportunities that arise. One such opportunity is sustainability in the tourism industry. “There is a change in consumer consciousness, and that will affect consumer demand as more consumers incorporate not just monetary value in their consumption decisions, but ethical values, [which] will begin to play an even greater part in their consumption patterns,” Holness explained. “[This] actually build[s] the capacity of the local economy in a more ethical way to provide the goods and services in the supply chain.”

Overall, Holness is optimistic about the future of tourism — and its positive impacts on the American economy.

“I believe that we will have a strong recovery in tourism,” he said. “I believe that the industry is strong enough, wise enough, intelligent enough, learning from the challenges to put in place the measures that will overcome those risks, make us more resilient and ensure that we will have a robust, resilient, and profitable tourism industry.”

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how much of jamaica economy is tourism

On the heels of the island’s strong recovery from the COVID-19 pandemic fallout, the forecast for 2023 is that the destination is on track to achieve eleven percent growth. Gross foreign exchange earnings for the destination for the 2023 calendar year are also forecasted to reach US$4,122.4M, an estimated 13.3% increase on the previous year’s earnings.

The announcement was made at FITUR, the largest tourism trade show held annually in Spain. With thousands of participants each year, the fair is the global meeting point for tourism professionals and the leading trade fair for inbound and outbound markets in Latin America .

“Jamaica’s tourism is back, and our recovery continues to outpace our earlier projections. We are now in growth mode and to achieve this in double digits for this year is huge. It will mean more jobs and more earnings for workers and the island’s economy. Tourism is Jamaica’s lifeblood and driver of economic growth and the industry’s growth means the country’s growth,’ said Minister of Tourism, Hon Edmund Bartlett .

Jamaica Tourist Board on Track for Eleven Percent Growth in 2023

The projected growth is based on the island’s primary markets registering growth over the previous period, with the USA showing steady growth of 7%, Canada strengthening its position to deliver 38.7% growth and UK/Europe primarily demonstrating growth of 5.3% through the Eastern European markets.

“We could not achieve these successes without our partners. Our airline partners, tour operators, travel agents and so many more have contributed to the destination remaining top of mind and accelerating our recovery. The Jamaica Tourist Board ’s focus on an integrated sales and marketing strategy which is embedded in the pervasive use of new technologies along with a focus on new and emerging markets, has allowed the destination to leapfrog its own projections for growth,” said Donovan White, Director of Tourism.

Last year, Jamaica welcomed 3.3million visitors and registered a remarkable recovery of earnings compared to pre-covid earnings of 2019, with total estimated revenue of $3.636B. As the destination recovery has outpaced earlier projections there is a high possibility that full recovery could be realized a year earlier than predicted.

For more information about Jamaica, please visit www.visitjamaica.com.

About Jamaica Tourist Board The Jamaica Tourist Board (JTB), founded in 1955, is Jamaica’s national tourism agency based in the capital city of Kingston. JTB offices are also located in Montego Bay, Miami, Toronto and London. Representative offices are located in Berlin, Barcelona, Rome, Amsterdam, Mumbai, Tokyo and Paris.

In 2021, the JTB was declared ‘World’s Leading Cruise Destination,’ ‘World’s Leading Family Destination’ and ‘World’s Leading Wedding Destination’ for the second consecutive year by the World Travel Awards, which also named it the ‘Caribbean’s Leading Tourist Board’ for the 14th consecutive year; and the ‘Caribbean’s Leading Destination’ for the 16th consecutive year; as well as the ‘Caribbean’s Best Nature Destination’ and the ‘Caribbean’s Best Adventure Tourism Destination.’ In addition, Jamaica was awarded four gold 2021 Travvy Awards, including ‘Best Destination, Caribbean/Bahamas,’ ‘Best Culinary Destination –Caribbean,’ Best Travel Agent Academy Program,’; as well as a TravelAge West WAVE award for ‘International Tourism Board Providing the Best Travel Advisor Support’ for a record-setting 10th time. In 2020, the Pacific Area Travel Writers Association (PATWA) named Jamaica the 2020 ‘Destination of the Year for Sustainable Tourism’. In 2019, TripAdvisor® ranked Jamaica as the #1 Caribbean Destination and #14 Best Destination in the World. Jamaica is home to some of the world’s best accommodations, attractions and service providers that continue to receive prominent global recognition.

For details on upcoming special events, attractions and accommodations in Jamaica go to the JTB’s Website at www.visitjamaica.com or call the Jamaica Tourist Board at 1-800-JAMAICA (1-800-526-2422). Follow the JTB on Facebook, Twitter, Instagram, Pinterest and YouTube. View the JTB blog at www.islandbuzzjamaica.com .

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Tourism: jamaica’s driver for economic growth and prosperity.

Salutations…

·         Let me first extend my congratulations to the Minister of Foreign Affairs and Foreign Trade and her phenomenal team for the dedicated and focused work that they continue to do in protecting and advancing the best interest of our nation.

TOURISM THE MAIN DRIVER

·         My friends, colleagues - Tourism will be the biggest driver for economic growth and prosperity in Jamaica for years to come and it is absolutely important that you are made aware of the work that we have been doing over the last year in repositioning the sector to achieve higher growth rates, a better spread of the benefits of tourism to each and every Jamaican and a stronger linkages through the economic fabric of this beautiful island nation.

·         The latest figures show that from January to December 2016, we recorded total tourist arrivals of 3.84 million up by roughly 4 percent, with 2.2 million stopovers up 2.8% and 1.66 million cruise passenger arrivals up 5.5%.

·         Estimated Gross Foreign Exchange Earnings for the period Jan. - Dec. 2016 :- US$2.55 billion up 6.2 percent, with Stopover arrival earnings of US$2.4 billion up 6.1 percent and Cruise passenger earnings of US$148.6 million up 8 percent

·         Investment in the tourism sector is booming which includes the renovation and upgrading of several properties. Over 3000 rooms are now available which we never had the winter before. Of that amount close to 2000 have and are coming on stream in coming weeks and months.  

·         Things are looking pretty good so far...we are talking about investments in excess of US$1 billion actively engaged. Among the Hotels that have recently completed or just commenced development projects and or plan further expansion in room stock or are now putting new rooms on the market are Excellence Group, Sandals, RIU, Bahia Principe, Royal Decameron, Royalton, Spanish Court, Moon Palace, the Hendrickson owned Wyndham, Half Moon,  Karisma, Hilton Rose Hall, Secrets, China Harbour, the Renfrew and others that prefer not be named at this time.

·         On top of those developments, increasing investments are coming on stream in the attractions sector including a near US$10 million investment into the Appleton Estate Rum Tour in St. Elizabeth by J. Wray and Nephew which is owned by Italian powerhouse, Campari.

·         Beyond that, the Ministry currently has 15 projects under its Shovel Ready Initiative. The Shovel-Ready Initiative has been undertaken jointly by the Tourism Enhancement Fund (TEF), Jamaica Promotions Corporation (JAMPRO), the National Environment and Planning Agency (NEPA), the Urban Development Corporation (UDC) and Commissioner of Lands to pre-package a number of investment offerings.

·         The initiative also seeks to directly assist investors by obtaining tacit development approvals, conducting carrying capacity studies, assessing appropriate land utilization and installing preliminary infrastructure. By doing this, the process of investing in Jamaica's tourism industry is streamlined and expedited.

·         Ladies and Gentlemen, we are off to a solid start...

·         Tourism is a sector that has the potential to stimulate wide-scale economic activity, foster new growth in our communities, generate the jobs we need so badly and earn billions of dollars in foreign exchange.  We are absolutely focused on positioning tourism to become a powerful catalyst for improving the socio-economic conditions of our people.

OUR TARGETS

·         Our targets are clear - secure 5 million visitors by 2021, by that timeline we also intend to generate US$5 billion in tourism earnings, increase the total direct jobs to 125,000 and add 15,000 new Hotel rooms.

·         Now, how do we plan to achieve this?  I have spoken of the Five Pillars of Tourism Growth, which my Ministry and our agencies are focusing on, as we seek to transform the island’s tourism sector, deepen linkages and achieve significant growth. These Pillars are:

o   Tapping into new markets

o   Developing new products

o   Promoting investment

o   Building new partnerships, and;

o   Developing human capital

·         Underscoring these five pillars of growth, are five networks, incorporating several key sectors, that will better integrate tourism with the wider society and thereby better spread the benefits to all Jamaicans. These five networks are:

o   Gastronomy

o   Sports and Entertainment

o   Health and Wellness

o   Shopping, and;

o   Knowledge

  • Each network, which is chaired by a member of the Tourism Linkages Council, has already prepared detailed programmes and projects which were specifically chosen to add value to the Jamaican tourism sector, particularly as it relates to increasing visitor arrivals and spend.

·         Together, that renewed architecture of pillars and networks will be enveloped by the need to strengthen and expand linkages with our local agriculture, manufacturing and the service sector and importantly, encourage us to aggressively push multi-destination tourism as a response to the new global geo-political realities.

SPRUCE UP PROGRAM

·         Now beyond this, in recognition of the need to incorporate as many Jamaicans into tourism and spread its benefits, our recently media launched Spruce Up Jamaica program will aide greatly in that effort. This programme was an initiative of the Ministry of Tourism while I served as Minister from 2007 to 2011. Its emphasis was on the Physical Environment, Mind, Body & Spirit, Community Development, Partnerships through Entrepreneurship and Promoting Heritage. 

·         It is against this background that the programme is being revitalized with modifications geared at: changing attitudes, fostering inclusiveness, strengthening implementation and monitoring for greater impact. It is geared towards the country’s growth and prosperity agenda with a focus on creating integration among industries and programmes that impact the tourism industry. It seeks to facilitate sustainable livelihoods through job creation, sound environmental practices, the participation of communities in local area development, facilitation of small and micro tourism enterprises (SMTEs) and effective integrated marketing communications — a vehicle for building out an inclusive industry.

GLOBAL RECOGNITION/ UNWTO CONFERENCE

·         Many of you in this room are aware of the unprecedented number of awards we have been scooping up across the globe recognizing the amazing work we are doing in tourism here.

·         Inarguably, the most significant development in global tourism is recent weeks occurred last month when we signed an agreement at the Palacio Neptuno in Spain, to host a major global conference to commemorate the 2017 United Nations World Tourism Organization’s (UNWTO) International Year of Sustainable Tourism for Development.

·         The event, which is a collaborative effort between the Government of Jamaica, international development firm Chemonics International and the UNWTO, will be staged from November 27 to 29 at the Montego Bay Convention Centre, St. James. The agreement is of great historical importance because it signals the first time that the UNWTO will stage a world conference on tourism in the Caribbean or the Americas. 

·         Jamaica will have an international conference of great magnitude and importance to global tourism. We look forward to showcasing our destination but more so within the context of sustainability and the building of public-private-partnerships.  

·         As the Chairman also of the Board of Affiliate Members of the UNWTO, this is a very unique opportunity, as it will also allow the world’s spotlight to be on Jamaica, and by extension the Caribbean, which is heavily dependent on the economic power of tourism.

·         Ladies and Gentlemen, Jamaica is a part of the Caribbean archipelago of states which is the most tourism-dependent region on earth. It means therefore, that to be positioned to invite the world to see us in practice of sustainability tendencies, embracing best practices, and showcasing how we have been able to manage, and grow and build the economic well-being of our people is something, that for us is a once in a lifetime opportunity.

·         Two of the expected deliverables from this conference will be an Outcome Declaration and the publication of the second UNWTO Affiliate Members Global Report on Public-Private-Partnerships. The UNWTO will also present a report to the UN General Assembly in 2018, with regards to the activities of the International Year of Sustainable Tourism for Development, of which the conference will play a major role.

2017 will be a stellar year for tourism in Jamaica and I am confident that you will assist us in our efforts to make better our tourism product and see to it that we achieve the substantive economic and social growth and development needed to make Jamaica the place of choice to live , work , raise families and do business.

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Jamaica’s economy progressed in 2022

THE EDITOR, Madam:

As we look back on the year 2022, it is clear that Jamaica’s economy made significant progress.

One of the major highlights of the year was the continued growth of the tourism industry. The country saw a record-breaking 4.3 million visitors in 2020; this trend continued in 2022 as more and more people were drawn to Jamaica’s beautiful beaches, vibrant culture, and friendly locals. Tourism accounted for a significant portion of the country’s GDP and provided a boost to many other sectors of the economy, such as transportation, hospitality, and retail.

In addition to the strong performance of the tourism industry, Jamaica’s economy also benefited from the Government’s efforts to reduce its fiscal deficit. The Government implemented a number of measures, including tax reform and spending cuts, to bring down the deficit and stabilise the country’s debt-to-GDP ratio. These efforts helped to improve the business environment and increase investor confidence, which in turn contributed to economic growth.

Another major development in 2022 was the implementation of a number of programmes to support small and medium-size enterprises (SMEs). These programmes provided access to finance, training, and other resources to help SMEs grow and create new jobs. This helped to diversify the economy and reduce reliance on a few key industries, such as tourism and bauxite/alumina exports.

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Overall, 2022 was a positive year for Jamaica’s economy, with GDP growth projected to be around one to two per cent. While the country still faces challenges, such as a high debt burden and reliance on a few key industries, it has made significant progress in recent years and is well-positioned to continue this growth in the coming years.

JANIEL MCEWAN

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How can the growth of tourism reduce the development gap?

Jamaica Case Study

A cruise ship in Jamaica

Jamaica Case Study – How can the growth of tourism reduce the development gap?

Jamaica is the fourth-largest island country in the Caribbean. It has a tropical climate with high temperatures throughout the year. Jamaica is famed for its beautiful sandy beaches and rich cultural heritage. It has excellent communications and is a popular destination for cruise ships.  

A cruise ship in Jamaica

A cruise ship in Jamaica

How has tourism in Jamaica grown?

Tourism has seen significant growth in Jamaica. The graph below illustrates this.

As you can see, there has been an almost exponential growth in the number of visitor arrivals to Jamaica between 1994 and 2016. However, although visitor arrivals continued to increase in 2009, the change was not in line with previous years due to the recession, which reduced many people’s disposable income.

Total visitor expenditure increased from US$128,706,000 in 1975 to US$3,400,000,000 in 2019.

How has Jamaica reduced the development gap?

Tourism is one of Jamaica’s top sources of revenue. The industry contributes over 50% of the country’s total foreign exchange earnings (approx. US$2b). Thousands of Jamaicans work directly or indirectly in tourism . Tourism employs the second largest number of Jamaicans (approximately 200,000) directly in hotels, transport and attractions and indirectly in trading, manufacturing and banking.  

Tourism in Jamaica benefits local farmers through the sale of produce to hotels. For example, Jamaica’s Sandals Resort Farmers Program grew from 10 farmers in 1996, supplying two hotels, to 80 farmers in 2004, supplying hotels island-wide. As a result, in 2018, the hotel chain provided more than $25 million in assistance, starting with the up-front purchase and distribution of $3.5 million of Irish potato seeds to five farmers in Manchester, Jamaica. Under the partnership, the five farmers will be the sole providers of Irish potatoes to the entire Sandals group, which comprises 11 resorts in Jamaica. The purpose is to enable the hotel chain to purchase potatoes locally rather than rely on imports.

There have been considerable investments in infrastructure to accommodate tourists. Port facilities have been expanded, as have airports and road infrastructure. However, the development of roads followed much later as catering for cruise ships was prioritised. Some hotel owners have not been happy with this.

Many people in key tourist areas, such as Montego Bay , have benefited from an improved quality of life due to tourism. However, pockets of poverty still exist.  

The environment has benefited from landscaping projects and the introduction of nature parks.  

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Jamaica

Jamaica Caribbean Economies in the time of Coronavirus

Author:  Henry Mooney

T he COV I D-19 shock wi ll have s i gn i f i cant i mp li cat i ons for Jama i ca’s economy , particularly for tourism and external financial flows including remittances.

  • The crisis will have profound implications for Jamaica’s economic performance in 2020 and beyond. Prior to the crisis, real GDP growth for FY2020/21 was projected to be about 1 percent, set against the backdrop of expected strong domestic conditions and buoyant external demand for tourism and commodities. The nature of the unfolding crisis is such that it will likely affect key sectors, particularly tourism, that accounts for 34 percent of total economic output and 31 percent of employment. Jamaica ranks 16th globally in terms of countries’ economic dependence on the tourism sector. 
  • In addition, a large proportion of tourism arrivals to Jamaica originate from the United States, Canada, and the United Kingdom—all of which have imposed unprecedented travel restrictions. In this context, implications for Jamaica’s most significant economic sector are without historical precedent. Simulations presented in the report suggest that a prolonged crisis could reduce output relative to pre-crisis expectations by an appreciable magnitude, particularly if the crisis persists through to the end of the year. 
  • Successful debt reduction and macroeconomic stabilization in recent years have reduced Jamaica’s external imbalances, with the current account deficit falling from about -10 percent of GDP as recently as 2012, to about -3 percent in 2019. While this has allowed the central bank to build strong reserves buffers, Jamaica remains highly dependent on private capital transfers from abroad—particularly remittances. 
  • Remittances accounted for about 16 percent of GDP in 2018, which was the equivalent of three times the volume of foreign direct investment (FDI) from abroad; twice the magnitude of external debt service; and, equal to about 41 percent of the value of exports. 
  • Remittances also serve as an important source of income for the most vulnerable populations. In this context, the report highlights the risk that a shock to employment in advanced economies that are the main sources of Jamaica’s remittances—i.e., the United States, Canada, and United Kingdom—could adversely affect these flows, which could weaken the balance of payments, and have serious implications for poorer and more vulnerable citizens that depend on these funds as a key source of income.

The Coronavirus and Government Actions to Prevent Transmission

As of April 8, 2020, 63 cases of COVID-19 had been confirmed in Jamaica. Despite concerted efforts by the government to stem transmission of the virus from abroad, as well as domestic measures to slow transmission within the country, it is widely expected that more cases will be identified over the coming days and months.  

The government has taken an active stance in responding to the crisis. This stance can be broken down into three general categories: (1) efforts at the border; (2) measures to stem transmission domestically; and (3) policies to mitigate the impact of the shock (both in terms of health services and economic stimulus for affected sectors).  

Border measures: On March 16, 2020, the government advised that all travelers from countries where there is local transmission of COVID-19 would be required to self-quarantine for up to 14 days. On March 21, the government took a more proactive step by closing Jamaica’s air and seaports to incoming passenger traffic, though outgoing passengers and cargo would continue to be allowed.  

Domestic measures: The government has mandated that any person displaying symptoms of the virus will be immediately isolated in facilities at a public hospital. On March 28, 2020, the government issued a public health emergency and imposed a curfew between 8 pm and 6 am through at least April 14. Only essential services have been permitted to remain open, and all other residents have been urged to stay indoors with the exception of necessary movements. Other measures include the deployment of additional isolation facilities for moderate cases, and enhanced public security measures.  

Economic Growth Prospects: Then and Now

While still in its early days, the COVID-19 shock will have significant implications for Jamaica’s economic performance in 2020 and beyond. Prior to the crisis, real GDP growth for FY2020/2021 was projected to be about 1.1 percent, set against the backdrop of expected strong domestic conditions and buoyant external demand for tourism and commodities (e.g., bauxite). The nature of the unfolding COVID-19 crisis is such that it is likely to affect a number of key sectors of Jamaica’s economy. First among these is the tourism sector, which accounts for a very large share of both total economic output and employment (34 percent and 31 percent, respectively) (Table 1)—Jamaica ranks 16th globally in terms of countries’ economic dependence on the sector (Figure 1). Tourism receipts also account for about 53 percent of total exports, or the equivalent of some 20 percent of GDP. Of the 4.3 million tourist arrivals in 2017, about 43 percent were from cruise ships—the sector most directly and profoundly affected by the crisis. In addition, a large proportion of tourism arrivals to Jamaica originate from the United States, Canada, the United Kingdom, and other European countries—all of which have been hard hit by the crisis, forcing them to invoke unprecedented travel restrictions. In this context, this crisis and its implications for Jamaica’s most significant economic sector are without historical precedent. Given the weight of the sector, our simulations suggest that a prolonged crisis could reduce output relative to pre-crisis expectations by an appreciable magnitude. 1

Figura 15

Other shock transmission channels will also affect Jamaica’s economy. Beyond tourism, Jamaica’s economy is likely to be adversely affected by shocks to trade and financial flows, as well as the costs associated with mitigation efforts at home (e.g., forced closures of businesses). Revenue implications of shuttered businesses and sectors, as well as costs associated with mitigation efforts, will also have adverse implications for budgetary outcomes, forcing the government to run higher deficits than originally expected. This may also require higher levels of domestic and external financing, with potential implications for the medium-term public debt reduction target set out under the fiscal responsibility law (i.e., a public debt-to-GDP ratio of less than 60 percent by 2026).  

Other potential implications of the crisis relate to external financing, the availability of foreign exchange, and the balance of payments. Successful debt reduction and macroeconomic stabilization efforts in recent years have helped reduce Jamaica’s external imbalances, with the current account deficit falling from about -10 percent of GDP as recently as 2012, to about -3 percent in 2019. While this has helped support exchange rate stability and allowed the central bank to build strong reserves buffers, Jamaica remains highly dependent on private capital transfers from abroad in the form of migrant remittances. These remittances accounted for about 16 percent of GDP in 2018, which is the equivalent of three times the volume of foreign direct investment (FDI) from abroad, twice the magnitude of external debt service requirements, and equal to about 41 percent of the value of total exports (Figure 2). Migrant remittances also serve as an important source of income for the most vulnerable populations. In this context, there is a significant risk that the shock to employment in advanced economies that are the main sources of Jamaica’s remittances—the United States, Canada, and United Kingdom—could adversely affect these flows, which could weaken the balance of payments position, put downward pressure on the exchange rate, and have serious implications for poorer and more vulnerable citizens who depend on these funds as a key source of income.

Figura 16

Government Policy Response

The Bank of Jamaica and the government of Jamaica have undertaken a number of economic measures to dampen the impact of the crisis on key sectors. These measures continue to evolve in light of developments, and so far have included a broad spectrum of fiscal, financial, and other measures aimed at supporting the key sectors most directly affected. Key actions announced thus far include (1) broadbased tax cuts and related subsidies; (2) financing and grant facilities to support the most affected sectors (both businesses and persons); and (3) the suspension of import taxes for critical medical and other supplies. With respect to monetary policy, the central bank has chosen to maintain its policy rate at the pre-crisis level of 0.5 percent, and to focus instead on measures aimed at supporting domestic financial institutions, including the relaxation of rules regarding both the volume of liquidity that can be provided by the central bank (e.g., via the discount window and short-term repo facilities) and the types of assets that can be used as collateral for related transactions. Both the central government and the central bank have stated that they will continue to adapt their policy response to evolving conditions, making it likely that more stimulus and support measures will be undertaken before the crisis dissipates.

1 For a broader discussion of potential implications of the crisis for the region, see: https://blogs.iadb.org/caribbean-dev-trends/en/covid-19-tourism-based-shock-scenarios-for-caribbean-countries/

Henry Mooney

Henry Mooney

Henry Mooney serves as Economics Advisor with the IDB’s Caribbean Department, and was formerly the Bank's Lead Economist based in Jamaica.

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How Much Money Does Jamaica Make From Tourism?

By Robert Palmer

Jamaica is a beautiful island country located in the Caribbean Sea known for its stunning beaches, reggae music, and delicious cuisine. It’s no surprise that tourism is a vital part of Jamaica’s economy. In this article, we will explore how much money Jamaica makes from tourism.

Overview of Jamaica’s Tourism Industry

Tourism has been an essential source of revenue for the Jamaican economy for decades. In 2019, Jamaica welcomed approximately 4.3 million visitors, generating over $3.7 billion in revenue.

The Importance of Tourism in Jamaica’s Economy

Tourism plays a significant role in Jamaica’s economy, contributing to approximately 10% of the country’s gross domestic product (GDP). The industry also provides jobs for thousands of Jamaicans. According to the World Travel & Tourism Council, the tourism industry in Jamaica provided employment opportunities for over 300,000 people in 2019.

Where do Tourists Come From?

Jamaica attracts tourists from all over the world. In 2019, most visitors came from the United States, Canada, and Europe. The island also attracts visitors from other Caribbean countries and Latin America.

The Impact of COVID-19 on Jamaica’s Tourism Industry

The COVID-19 pandemic has had a devastating impact on the global tourism industry, including Jamaica. In March 2020, the Jamaican government closed its borders to international travelers to control the spread of COVID-19. As a result, many hotels and tourist attractions were forced to close temporarily.

According to data from the Jamaica Tourist Board (JTB), visitor arrivals declined by more than 70% between March and December 2020 compared to the same period in 2019. This decline resulted in a loss of billions of dollars in revenue for Jamaica’s tourism industry.

Tourism is a crucial part of Jamaica’s economy, providing jobs and generating billions of dollars in revenue. Despite the challenges posed by the COVID-19 pandemic, Jamaica remains a popular destination for tourists from around the world. As travel restrictions ease, we can expect to see the country’s tourism industry rebound and continue to thrive.

  • Key Takeaways:
  • Jamaica generated over $3.7 billion in revenue from tourism in 2019.
  • Tourism contributes to approximately 10% of Jamaica’s GDP.
  • The industry provided employment opportunities for over 300,000 Jamaicans in 2019.
  • Visitor arrivals declined by more than 70% between March and December 2020 due to the COVID-19 pandemic.
  • Jamaica Tourist Board
  • World Travel & Tourism Council

2 Related Question Answers Found

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IMAGES

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COMMENTS

  1. Tourism Driving Jamaica's Economic Recovery Since Reopening

    Tourism Ministry Projects US$1.93 Billion in Earnings from 1.61 million visitors in 2021. KINGSTON, Jamaica; June 22, 2021: Tourism Minister, Hon. Edmund Bartlett has revealed that since its reopening in June 2020, the tourism sector has been driving the economic recovery of Jamaica's economy, through a steady increase in arrivals and tourism earnings.

  2. Tourism share of GDP in Jamaica 2021

    Leading countries in the MEA in the Travel & Tourism Competitiveness Index 2018; International tourist arrivals in Europe 2006-2023; Annual revenue of China Tourism Group Duty Free 2012-2022

  3. Jamaica ranked 13th most tourism-dependent economy in the world

    May 17, 2021. Jamaica ranked 13th most tourism-dependent economy in the world. KINGSTON, Jamaica — Jamaica has been dubbed one of the "big three" Caribbean tourism economies, ranking the ...

  4. Jamaica

    Jamaica - Economy, Agriculture, Tourism: Jamaica's economy is mixed but increasingly based on services, notably tourism and finance. Since independence in 1962, the country has developed markedly but unevenly. Mining and manufacturing became more important to the economy in the latter part of the 20th century, while the export of agricultural commodities declined. Starting in the 1980s, the ...

  5. Jamaica's Tourism Sector is Resilient (September, 2022)

    In 2020, the Planning Institute of Jamaica (PIOJ) indicated that an overall year-to-year decline of 18.0 per cent in GDP growth within the Jamaican economy was mainly attributable to a precipitous 87.5 per cent contraction of the hotels and restaurant industry between 2019 and 2020. The impact of tourism decline in Jamaica has been made worse ...

  6. Jamaica Earned US$3.64 Billion From Tourism In 2019, Welcomed 4.3

    Jamaica welcomed approximately 4.3 million visitors in 2019, comprising 2.7 million stopover arrivals and 1.6 million cruise passengers, whose combined spending contributed to the destination earning US$3.64 billion. ... "As I also believe that earnings are the most important metric of ensuring that tourism promotes national economic ...

  7. Jamaica Overview: Development news, research, data

    Growth was driven by net exports from an expansion in tourism and mining, whilst agriculture declined due to an extended drought. Rising economic activity brought the unemployment rate to 4.5 percent in April 2023 - the lowest level in history. The national poverty rate is estimated to have declined to 12.6 percent in 2022.

  8. Jamaica Poised to Generate Record Tourism Earnings of US$5 Billion in

    The Planning Institute of Jamaica (PIOJ) April to June 2022 Quarterly Report indicates that tourism continues to drive the country's post-COVID-19 economic recovery. The economy grew by 5.7 per cent during the period, relative to the corresponding period in 2021, with the tourism and hospitality sector contributing substantially.

  9. Resurgence in Tourism Spurs Economic Growth in Jamaica

    The Full Story. Jamaica's resurgent tourism industry continues to largely spearhead the country's gradual recovery from the COVID-19 pandemic economic fallout. The Statistical Institute of Jamaica (STATIN) reports that the 'Hotels and Restaurants' category dominated the sector outturns fuelling third quarter 2022 calendar year growth of ...

  10. Tourism is Driving Jamaica's Post-COVID-19 Economic Recovery

    Monday, September 5, 2022 - 11:30. KINGSTON, Jamaica; August 19, 2022: Tourism Minister, Hon. Edmund Bartlett has underscored that the outstanding performance of the tourism sector as outlined in the latest report by the Planning Institute of Jamaica (PIOJ) highlights the fact that tourism is driving Jamaica's post-COVID-19 economic recovery.

  11. Jamaica

    Jamaica: Share of economic sectors in the gross domestic product (GDP) from 2012 to 2022 Basic Statistic Employment by economic sector in Jamaica 2021 Employment by economic sector in Jamaica 2021

  12. Jamaica PM Andrew Holness: How Tourism Can Boost Economic Recovery

    Thousands of tourists visit the islands each year which, according to Holness, brings in approximately $60 billion in GDP and generates 2.8 million jobs. Approximately 15.2% of employment in the region falls within the tourism sector, he said. The COVID-19 pandemic travel restrictions have placed a strain on the Caribbean's economy.

  13. PDF Market Performance

    revenues, which translates into an economic loss of US$2 trillion in direct tourism gross domestic product, more than 2% of the world's GDP. The crisis has put 100 to 120 million direct tourism jobs at risk, many of them in small and medium-sized enterprises and with a high share of women and youth.

  14. Jamaica on Track for 11% Tourism Growth in 2023

    Tourism is Jamaica's lifeblood and driver of economic growth and the industry's growth means the country's growth,' said Minister of Tourism, Hon Edmund Bartlett. Pictured: Minister of Tourism, Hon Edmund Bartlett (C) is joined by senior members of his tourism team at the Jamaica stand at FITUR, being held in Spain January 17-22, 2023.

  15. Development and importance of tourism for Jamaica

    By putting the tourist numbers in relation to the population of Jamaica, the result is much more comparable picture: With 0.52 tourists per resident, Jamaica ranked 41st in the world. In Caribbean, it ranked 13th. In 2021, Jamaica generated around 2.12 billion US dollars in the tourism sector alone.

  16. Tourism: Jamaica'S Driver for Economic Growth and Prosperity

    2017 will be a stellar year for tourism in Jamaica and I am confident that you will assist us in our efforts to make better our tourism product and see to it that we achieve the substantive economic and social growth and development needed to make Jamaica the place of choice to live, work, raise families and do business.

  17. Jamaica's economy progressed in 2022

    As we look back on the year 2022, it is clear that Jamaica's economy made significant progress. One of the major highlights of the year was the continued growth of the tourism industry. The country saw a record-breaking 4.3 million visitors in 2020; this trend continued in 2022 as more and more people were drawn to Jamaica's beautiful ...

  18. Jamaica Case Study

    Tourism is one of Jamaica's top sources of revenue. The industry contributes over 50% of the country's total foreign exchange earnings (approx. US$2b). Thousands of Jamaicans work directly or indirectly in tourism. Tourism employs the second largest number of Jamaicans (approximately 200,000) directly in hotels, transport and attractions ...

  19. Jamaica

    The crisis will have profound implications for Jamaica's economic performance in 2020 and beyond. Prior to the crisis, real GDP growth for FY2020/21 was projected to be about 1 percent, set against the backdrop of expected strong domestic conditions and buoyant external demand for tourism and commodities.

  20. Economy of Jamaica

    The economy of Jamaica is heavily reliant on services, accounting for 71% of the country's GDP. Jamaica has natural resources and a climate conducive to agriculture and tourism. The discovery of bauxite in the 1940s and the subsequent establishment of the bauxite-alumina industry shifted Jamaica's economy from sugar, and bananas.. Weakness in the financial sector, speculation, and lower levels ...

  21. How Much Money Does Jamaica Make From Tourism?

    In this article, we will explore how much money Jamaica makes from tourism. Overview of Jamaica's Tourism Industry. Tourism has been an essential source of revenue for the Jamaican economy for decades. In 2019, Jamaica welcomed approximately 4.3 million visitors, generating over $3.7 billion in revenue. The Importance of Tourism in Jamaica ...

  22. Tourism Earnings Of US$1.87 Billion, 1.6 Million ...

    Minister of Tourism, Hon. Edmund Bartlett, says the estimated gross earnings from the tourism industry for fiscal year 2021/2022 are projected at US$1.87 billion, with corresponding visitor arrivals of 1.6 million. ... "We have been crafting the landmark Jamaica Cares Programme, which will be a huge marketing tool for us, but also an ...

  23. Farmers Are Destroying Their Vineyards Because the World Has Too Much

    March 8, 2024 at 5:00 PM PST. Listen. 5:25. Australian grape-grower Tony Townsend destroyed half his 14-hectare vineyard last year. The fields were healthy and vibrant, but he estimates he would ...

  24. Unlike Singapore, Hong Kong would not be able to pay for Taylor Swift

    'I don't think the Hong Kong government can get away with paying taxpayers' money, whatever the cause is, without telling people how much,' ex-city leader CY Leung says.

  25. Region Earns US$27 Billion from Tourism

    The Full Story. Minister of Tourism, Hon. Edmund Bartlett, says tourism remains the most vital source of earnings and economic activity for the majority of Caribbean islands, with region-wide revenues estimated at more than US$27 billion. "Tourism is the single largest generator of foreign exchange in 16 of the 28 countries in the Caribbean ...