Today, Jamaica Tourism Minister Hon. Edmund Bartlett presented the closing Sectoral Debate for Fiscal Year 2021-2022 at Gordon House in Kingston, Jamaica, on June 15, 2021. The theme was Recovering Faster, Stronger and Better.
Introduction
Madam Speaker, my task and my honor, today, is to close the Sectoral Debate for Fiscal Year 2021-2022.
I think we will agree that the presentations and discussions have been robust and that our democracy is very much alive and well.
Madam Speaker, on behalf of the Government, I wish to thank all our parliamentary colleagues for their contributions to this year’s debate. These are extraordinary times, Madam Speaker, as this government continues to steer the ship of state through the ravages of the COVID-19 pandemic.
The COVID-19 pandemic, also known as the coronavirus pandemic, is caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The virus was first identified in December 2019 in Wuhan, China.
The World Health Organization declared a Public Health Emergency of International Concern regarding COVID-19 on January 30, 2020, and later declared a pandemic on March 11, 2020. As of June 10, 2021, more than 174 million cases have been confirmed, with more than 3.75 million confirmed deaths attributed to COVID-19, making it one of the deadliest pandemics in history.
Madam Speaker, as the Prime Minister pointed out, the COVID-19 pandemic has had a profoundly negative impact on our country. We have lost just over 1,000 lives. Every life lost is one too many and I offer deepest condolences to all families, friends and colleagues who have lost loved ones.
The pandemic and the measures designed to tackle it have had dramatic effects on economic activity. The Planning Institute of Jamaica’s (PIOJ) projections are that the economy contracted by approximately 10.2% for the calendar year 2020 and 12% for fiscal year ending March 31, 2021.
This is the largest annual decline on record and was the first annual contraction since 2012. The economic decline in 2020/21 was driven by a massive 70% contraction in our tourist industry.
The pandemic has decimated our foreign exchange inflows from tourism which are projected to fall by 74% or US$2.5 billion in 2020/21. Again, this level of fallout is unprecedented in our history.
Madam Speaker, after performing phenomenally well on this Prime Minister Andrew Holness led administration’s 2016 Manifesto, we followed up with a 2020 Manifesto, setting out a clear way forward, as we continue to battle the pandemic.
Madam Speaker we are keen on recovering stronger, faster and better.
We are committed to ensuring an accountable government that promotes unity and partnership while faithfully serving all Jamaicans.
Madam Speaker, our focus is on the following:
1. Recovering Stronger – ensuring that our economic output is restored to pre-COVID levels in the shortest period of time and that our recovered economy is more diversified and even more resilient.
2. Ensuring that Jamaicans are working again at the same record levels or better, through a consistent and cross – cutting drive for job creation with supporting elements of innovation, training and apprenticeship.
3. Transforming our education system to provide our children with access to quality care, education and training so they all have the best start in life.
4. Building the safe, secure and just Jamaican society for which we all yearn.
5. Improving access to healthcare and promoting healthy lifestyles.
6. Investing in our people so they can realize their full potential.
7. Enabling and empowering all Jamaicans through the provision of national identification, access to the Internet, and a more effective and simplified delivery of services using technology.
8. Supporting our most vulnerable by strengthening the social safety net.
9. Taking Climate Action locally and globally, by promoting and implementing clean and green policies to secure sustainable development and a healthy environment for our future generations.
In closing this debate, Madam Speaker, it is important that we recall and highlight some of the critical issues that were raised by respective Parliamentary colleagues. Despite the pandemic, I’m happy to say the work goes on and we continue to be in full alignment with our Manifesto commitments.
Labor and Social Security
Madam Speaker, as we recover faster, stronger and better, we begin with the work of the Ministry of Labor and Social Security, which has:
• Allocated $800 million to implement the Social Pension Program this fiscal year.
• The program is the first of its kind in Jamaica and is the largest social protection initiative to be implemented by the Government since the introduction of PATH almost 20 years ago.
• The Honorable Minister of Labor and Social Security, Karl Samuda also announced that his Ministry has allocated $100 million for Members of Parliament (MPs) to provide greater assistance to their poorest and neediest constituents.
• Madam Speaker, we are happy to once again share that the National Insurance Scheme (NIS) also had an increase of $476.2 million as at February 28, 2021, moving from a negative $245.06 million as at February 28, 2020.
Economic Growth and Job Creation
Madam Speaker, as we recover faster, stronger and better, Minister without Portfolio in the Ministry of Economic Growth and Job Creation, Hon. Everald Warmington highlighted that the National Works Agency (NWA) is projecting to spend:
• $4.7 billion this fiscal year (2021/22) to undertake recurrent activities, which is a marginal increase over last year’s budget of $4.5 billion.
• These activities include emergency repairs to roads, river-training activities, the cleaning of gullies, island wide disaster mitigation, bridge development and construction, the maintenance of secondary roads as well as traffic management and control.
• Construction is also to commence on several projects during the 2021/22 financial year, which will provide approximately 400 acres of additional special economic zone (SEZ) space at an estimated value of more than US$1.3 billion.
• We are also working to improve water supply to more than 150,000 residents at a cost of $8.8 billion. Under the project, being pursued through a Water Purchase Agreement (WPA) among the National Water Commission (NWC), Vinci Construction Grand Projects (VCGP), Eppley Limited (Eppley) and Jamaica Producers Group Limited (JP), a water treatment plant will be established in Content, St. Catherine, which will deliver an additional 15 million gallons of water per day for customers in the Corporate Area as well as Portmore and Spanish Town in St. Catherine.
Justice
Madam Speaker, the Honorable Justice Minister, Delroy Chuck in his presentation as we recover faster, stronger and better stated that the Government is working to revise and modernize several pieces of key legislation during the 2021/22 fiscal year:
• They include the Judicature (Parish Courts) (Amendment) Act and Judicature (Appellate Jurisdiction) (Amendment) Act, to grant limited right of appeal to the Prosecution; the Criminal Records (Rehabilitation of Offenders) Act, which will expand the powers of the Criminal Records (Rehabilitation of Offenders) Board to consider applications for expungement; and the Mediation Act.
• Madam Speaker, the advent of COVID-19 forced us to pivot and change the way the court system operated. We were very happy to update the country that all hearings from the Court of Appeal are now conducted remotely using video and teleconferencing, and at the Supreme Court, bail hearings and mention matters were moved into the virtual space.
This allowed for adherence to the necessary distancing protocols and resulted in greater convenience for court users and more efficient use of court resources.
Attorney General’s Chambers
Madam Speaker, the Attorney General’s Chambers continues to fast-track and streamline the processing of files on matters being handled through its General Legal Advice Division. Efforts are being made to address, in a timely manner, the backlog of matters pertaining to pension benefits, in general, and those for beneficiaries of deceased members of the security forces:
• Additionally, between February 1, 2020, and March 31, 2021, the Motor Vehicle Accident Backlog Project team successfully negotiated and settled matters that saw payments being made by the Ministry of Justice amounting to over $12 million.
• The Attorney-General Marlene Malahoo-Forte, in her presentation on April 28, also shared with the House that a cadre of Paralegal officers has been created with the support of the Justice Training Institute.
I note, with interest, the Ministry of Finance and the Public Service’s recent approval of the organizational structure for the centralization of legal services.
Industry, Investment and Commerce
Madam Speaker, as we recover faster, stronger and better, we continue to recognize the critical and strategic role of the investment sector, led by Minister Audley Shaw, in the growth and development of our country. We further recognize that this sector needs all the support from the government in order to realize its potential and alleviate the impact of COVID-19 on the Micro, Small, and Medium size Enterprise (MSME) sector.
• Through the EXIM Bank, 444 loans valued at approximately J$4.5 billion were disbursed to some 100 MSMEs.
• Furthermore, over 60 of EXIM’s clients were provided with the opportunity to save their businesses through loan restructurings and payment holidays to the tune of J$973 million.
• The Ministry has also earmarked $600 million to be transferred to the EXIM Bank to provide financing for productive MSMEs during the 2021/2022 financial year.
• In response to the COVID-19 pandemic, support was provided to the business process outsourcing sector (BPO) to allow for adjustments to business models, including the institution of work from home arrangements, in meeting social distancing protocols.
• Madam Speaker, despite early job losses, with the support provided, the sector rebounded with JAMPRO facilitating the expansion of 5 companies with the potential to add 3,000 new BPO jobs to the sector.
• In further support of the sector the Investment Ministry is moving ahead to implement the National 5-year Global Digital Services Strategy that will see to the further expansion of this industry. The strategy aims to increase the sector’s employment, towards achieving 70,000 jobs by 2025, up from the current 40,000.
• We are also happy to announce that 11,000 new jobs were created in the Financial Year, up from the 6,500 reported in the Sectoral Presentation; and US$755 million in export sales were facilitated.
Agriculture and Fisheries
Madam Speaker, as we recover faster, stronger and better another very critical industry is Agriculture.
• In fact, in 2020, Minister Floyd Green noted that the sector saw an 8.4 per cent increase in export earnings valuing US$238 million, which is up from US$216 million in 2019.
• The agriculture sector also recorded the highest level of output last year with a growth of 1.2 per cent for the period.
• The sector produced 697,679 tons in 2020, in comparison to 689,080 tons in 2019.
The sector will soon benefit from more than $350 million in new investments that have been made by a number of business entities. These include:
– A $250-million new agro-processing factory in Innswood, St. Catherine, by Shavot and a;
– $100 million agro-processing facility by Spur Tree Spices Limited at the Holland Estate in St. Elizabeth.
These investments are in addition to $15 billion by Caribbean Broilers to expand its poultry and related operations; Rainforest Seafood’s opening of a newly built bammy-making factory; Seprod Limited’s exportation of cassava flour; Salada Foods Jamaica Limited’s production of turmeric and ginger tea; and B & D Trawling Limited’s manufacturing of escovitch sauce.
• Madam Speaker, the Government will be spending $605 million this year to lay irrigation pipelines and strengthen capacity-building initiatives within the agriculture sector.
• We have also allocated another $300 million to dig wells in Parnassus in Clarendon.
• To further boost the capacity of the farmers and fishers of this critical sector, we have also allocated a sum of $1.02 billion under the Production Incentive Program for the 2021/22 financial year. This will be used to facilitate crop and livestock support, climate change adaptation and mitigation, infrastructure support, grant assistance/agricultural promotions, buy-back program and equipment.
Education, Youth and Information
Madam Speaker, it goes without saying that we cannot grow and advance our society without an educated and well-trained workforce. It was therefore very important for us to quickly implement measures that would ensure that no child gets left behind, despite the challenges presented by the pandemic.
It is against that background, we note the plans and programs led by Minister Fayval Williams at the Ministry of Education, Youth and Information as we recover faster, stronger and better, which include:
– The creation of an online repository of lesson plans for teachers. This central repository of lesson plans will promote collaboration among teachers all across the education sector and make the sector more efficient
– Introduction of character education, which seeks to instill good moral values in students
– Provision of $720 million to the Own Your Own Device (OYOD) initiative, which grants students who do not benefit under the Program for Advancement Through Health and Education (PATH) program the opportunity to access a $20,000 voucher to purchase a tablet or laptop from an approved vendor
For the Information portfolio, our goal is to see the full implementation of the digital switch over from analog free-to-air television to fully digital free-to-air television. Approximately eighty-three-point seven percent (83.7%) of Jamaicans still use analog free-to-air television service with very limited choices in terms of channels. Fully digital free-to-air television service will significantly improve the number of channels, thus allowing Jamaicans wider access to information. We have begun the process to transition and expect that by 2023 the process will be completed.
Housing, Urban Renewal, Environment & Climate Change
Madam Speaker, as we recover faster, stronger and better we also note the strides being made to make housing solutions accessible to more Jamaicans.
• We are still on target to provide 70,000 houses within the next five years, and we are working with developers to bring down the price point average of $5 million for a standard one-bedroom unit and $8 million for a two-bedroom unit.
• Minister Pearnel Charles Jr. shared that there is also a need to not just build, but to design the framework for a housing sector that is sustainable and resilient. Therefore, a comprehensive National Housing Policy, will be placed before Parliament, to address the complex housing challenges.
• Madam Speaker, Jamaicans will also have access to a US $1.1 Million grant from the Green Climate Fund (GCF) to commence preparation of Jamaica’s first National Adaptation Plan (NAP). This plan will include a private sector engagement strategy, a finance strategy and an investment plan for adaptation.
Another highlight happened on April 22, 2021, Earth Day, when forty (40) World Leaders, including our Prime Minister, participated in a Leader’s Summit on Climate hosted by the U.S President, Joe Biden. During the Summit, the Prime Minister highlighted that the need for meaningful climate action has never been greater.
Local Government
Minister Desmond McKenzie in the Ministry of Local Government and Rural Development as we recover faster, stronger and better will this year roll out a $650 million program aimed at improving the lives and economic well-being of rural areas. The Rural Development Program will begin in Chambers Pen, Hanover during the first half of the 2021/2022 fiscal year.
During his presentation, the Portfolio Minister said that the program will involve the installation of water, electricity, Internet access, roads, sidewalks, community parks and indigent housing.
He also said that the program will give new life to our rural communities over the next two years. It will also create temporary and permanent employment opportunities.
Science, Energy and Technology
The Science, Energy and Technology portfolio has a strategic role to play in repositioning the country for a bold and brighter future for the Jamaican people as we recover faster, stronger and better.
• Minister Daryl Vaz highlighted that his team will connect four hundred and sixty-one (461) public entities including one hundred and ninety-six (196) schools in response to the pandemic under the first phase of the National Broadband program called the Last Mile Initiative. This is expected to generate eight hundred million dollars (JD 800 million) in economic activity annually.
• In addition, Madam Speaker, the Government will spend more than one point two five billion (J$ 1.25 billion) to provide ICT assets to some twenty-seven thousand (27,000) students and teachers.
• The Ministry has also allocated $550 million from across its portfolio to support the move to have the National Broadband Initiative designated as a national development project. The initiative aims to have every household and every community connected to the Internet by 2025.
• This is in addition to the $177.6 million to be provided by the World Bank/Planning Institute of Jamaica (PIOJ) and just over $80 million to be provided by GovNet and other existing information and communications technology (ICT) projects funded by the loan arrangements with the Inter-American Development Bank (IDB).
• Approval was also granted for a third service provider, Rock Mobile, to be granted a license to operate in Jamaica.
Health and Wellness
Madam Speaker, it is important to acknowledge the yeoman’s work of Health Minister, Dr. Christopher Tufton and the teams at the Ministry of Health and the wider public and private health systems as we continue to fight the scourge of COVID-19. Jamaica, despite the challenges, has managed to keep a reasonably successful lid on COVID-19 and this is testament to strong and effective leadership.
Madam Speaker, despite the challenges our health system continues to face during this pandemic, as we recover faster, stronger and better we are still on target to complete the objectives of our ten-year strategic plan, which we began in 2018, for the renewal and rebuilding of public health.
Minister Tufton and his team will be conducting a number of upgrades to hospitals across the country. This includes, but is not limited to:
– $4.9 billion upgrade of buildings and equipment at The University Hospital of the West Indies
– $2.3 billion upgrade, now in the design stage, at the Spanish Town Hospital
– $545 million upgrade, also in the design stage, at the St. Ann’s Bay Hospital
We have also invested in US$8.5 million in a digitized integrated health information system to improve patient care and efficiency.
National Security
Madam Speaker, Deputy Prime Minister and National Security Minister Dr. Horace Chang noted that we will be placing special focus on the modernization of the Jamaica Constabulary Force. They will adopt a holistic, modern and integrated strategy to combat criminal violence.
• The drive towards a sustainable reduction in criminal violence demanded the aggressive reorganization and modernization of the Jamaica Constabulary Force.
• Madam Speaker, patrol cars are now equipped with a JCF smart check system, this provides officers with real-time access to various databases. This allows officers to ascertain details on drivers and vehicles.
• A new Station Records Management system, a Case Management system and an Asset Management system are also a part of the improved efficiency of the internal business process and customer service of the Jamaica Constabulary Force.
• Madam Speaker, the Ministry of National Security is also procuring an Electronic Jail Management system to digitize custodial management operations and the long-awaited electronic Traffic Ticketing Management System (TTMS) will be launched this month.
• Under Project Rebuild, Overhaul and Construct, 202 police facilities were renovated, and five new stations were constructed. We also expanded the capacity of the police force to train up to 1,500 new recruits per year at improved training facilities.
• Ground will also be broken soon, in Kingston, for Jamaica’s first autopsy suite. Upon completion, it will give us a forensic pathology unit that is comparable to any in the world.
Transport and Mining
As we recover faster, stronger and better Transport and Mining Minister Robert Montague highlighted in his presentation that the Government, through the Mining Training School, is providing training for Jamaicans working in the sector. The training is being delivered with the assistance of the Council of Community Colleges of Jamaica, with the hopes of lifting the standards and transforming mining into a more sustainable industry.
• Madam Speaker, we are also continuing the $13 billion airport development program, which includes the Sangster International Airport runway expansion, shoreline protection works and expansion of the arrivals terminal. Works have also been completed at the Negril, Port Antonio and Tinson Pen aerodrome facilities.
• Our students in St. Catherine will also have access to trains when school re-opens in September. This is as a result of the Jamaica Railway Corporation (JRC) entering into a partnership with the Jamaica Urban Transit Company (JUTC) and the Ministry of Education, Youth and Information (MoEYI) to transport students via the railway from Old Harbour and Linstead into Spanish Town.
Culture, Gender, Entertainment and Sport
Madam Speaker, as we recover faster, stronger and better, I am positive our local entertainment practitioners were happy to learn about our preparations for the reopening of the wider entertainment sector announced by Minister Olivia Babsy Grange.
• We have revealed our proposed list of approved venues that will be made available at subsidized rates as a stimulus for the sector, including the facilities at Independence Park, Trelawny Stadium, the Port Royal Entertainment Zone, including Fort Rocky and Fort Charles, as well as Seville Heritage Park.
• Consideration is also being given to reducing the fees charged by municipal corporations to stage events, in anticipation of the reopening of the entertainment sector.
During her sectoral presentation, the portfolio minister also shared that the Ministry is in the final phase of developing an app that will allow more members of the entertainment, culture and creative industries to register via the e-Registry and apply for grants. The government has allocated $50 million towards this initiative.
Opposition spokesperson on Foreign Affairs and Foreign Trade
Madam Speaker, I also wish to highlight suggestions made by our opposition. I will begin with contributions from the Opposition Spokesperson on Foreign Affairs and Foreign Trade, Lisa Hanna who in her presentation to the house urged the Government to join hands with the Opposition and the private sector to seek growth solutions by pushing a foreign policy which focuses on economic development. This is noted.
Member Hanna also suggested that the Government should expand trade with China and make Jamaica more consumer-friendly to Asian markets as a whole.
Opposition Spokesperson on Health & Wellness
Madam Speaker, we also acknowledge the contribution of Dr. Morais Guy who urged the government to:
Increase the number and access to the specific and overly sensitive antigen testing kits as a deliberate strategy to lowering the cost, especially for persons on low to moderate incomes; open the market for more players to bring in these tests; and maintain the requirement that all persons arriving at our ports of entry have a COVID-19 negative test at most 72 hours old, whether visitors (tourists), returning nationals or Jamaican residents. These are also noted.
Opposition Spokesperson on Local Government and Community Development
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Madam Speaker, finally we highlight the contribution of the Opposition Spokesperson on Local Government and Community Development, Denise Daley, who discussed the challenges and risks created by those who continue to dump garbage in our gullies and underscored that we must hold people accountable. She recommended that there be an established municipal court and ticketing system, employment of more litter wardens, employment of enforcement officers, and a public awareness campaign to engage communities about proper garbage disposal. These are also noted.
TOURISM SECTOR UPDATE
Madam Speaker, I now turn to the tourism sector. The Ministry of Tourism and its public bodies remain focused on laying a firm foundation to enable the tourism sector to thrive in the post-COVID-19 era. This objective has guided several strategic steps taken since I last updated this honorable House on our efforts to rebuild the industry when I opened the Sectoral Debate in April.
I am pleased to share, Madam Speaker, that there have been many positive developments since then that are certainly worth highlighting, as I bring the curtains down on what has truly been a very stimulating, insightful and spirited Sectoral Debate.
Tourism Workers’ Pension Scheme
Madam Speaker, I begin with an update on the Tourism Workers’ Pension Scheme. I would like to inform this honorable House that Mr. Ryan Parkes has been appointed as the new Chairman of the Tourism Workers Pension Scheme and will replace Mr. Richard Powell who is no longer able to serve. The Fund Administrator, Guardian Life, is now in a position to accept applications for membership in the Pension Scheme. These applications may be done virtually or in person.
Madam Speaker, my Ministry recognizes the challenges that the COVID-19 pandemic has presented to employers in the tourism sector and in light of this, we have decided to revisit the timeline for the start of employer contributions.
Employers will commence contributions in January 2023 at a rate of five per cent (5%) per annum. We will be tabling the necessary legislative amendments in short order to facilitate this.
Investments
Another key update as we recover faster, stronger and better is the recent ground-breaking for Sandals Dunn’s River, which will create thousands of new jobs, thereby providing well-needed employment for so many of our tourism workers who have been furloughed due to the COVID-19 pandemic. This development will also provide additional jobs along the tourism value chain and a well-needed economic boost in these challenging times.
Madam Speaker, Sandals Dunn’s River forms part of a major plan that will see the transformation of the former Jewel Dunn’s River Beach Resort & Spa and Jewel Runaway Bay Beach Resort & Waterpark into three distinct ultra-modern properties under the Sandals and Beaches brands. The new Sandals Dunns River hotel development will cost approximately US$230 million. It will add just over 500 additional rooms and will be a welcome addition to our tourism product.
Additionally, Madam Speaker, not to be left behind, the city of Kingston will see the development of a welcomed new luxury 14-storey resort residential complex, which will provide 400 jobs during the construction phase, and long-term employment upon completion.
Adjacent to the Terra Nova All-Suite Hotel, on Waterloo Road, this development represents a dynamic touch to the tourism product in the capital city. The project is being undertaken by the Hussey family, which also owns and operates the Terra Nova All-Suite Hotel.
This is only but a glimpse of what is to come, Madam Speaker, as ground is to be broken for over 4,000 hotel rooms in the coming months to include Hard Rock’s International resort development in St. James, the Princess Hotels and Resorts in Hanover and a new development by Secrets in St. Ann and expansion in Montego Bay, St. James among others.
Comprehensive Upgrading Program for the Montego Bay Hip Strip
Madam Speaker, as we recover faster, stronger and better, I am pleased to announce that the Tourism Enhancement Fund (TEF) and the Tourism Product Development Company (TPDCo) will be embarking on a major upgrading program for the Montego Bay Hip Strip. The plan includes physical improvements, new product development and substantial cooperation with the business community and other essential government Ministries and agencies. There are also specific concepts being developed to address safety and security, visitor access and mobility, as well as themed entertainment and recreation.
Madam Speaker, we have already seen the result of a very successful partnership between the TEF and the Urban Development Corporation (UDC) in the development of the Harmony Beach Park in Montego Bay which will soon be complemented by private and public sector led development throughout the area including Catherine Hall. This Hip Strip project will elevate Montego Bay to the level of first-class destinations around the world and when completed will rival the likes South Beach, Miami. Madam Speaker, this project once completed, is expected to generate hundreds of jobs and a long-term multiplier effect for the benefit of Montego Bay and the wider Jamaica.
Visit to Spain and Saudi Arabia
I am pleased to inform this honorable House that during my recent trip to Spain, my colleague, Minister without Portfolio in the Ministry of Economic Growth and Job Creation, Senator, the Hon. Aubyn Hill and I met with some of the most powerful players in the global tourism industry.
Among the power brokers that we met with were some of our largest local tourism investors, including the owners of Iberostar Hotels & Resorts, the RIU Hotels & Resorts chain and Grupo Piñero – operators of the Bahía Príncipe Hotels & Resorts.
Madam Speaker, during our discussions we were successful in concretizing arrangements for another 1,000 rooms, with 700 slated for construction in Richmond and 280 in Montego Bay by Secrets Resorts.
Madam Speaker, we welcome this continued show of confidence in Jamaica by our local and international investment partners, who remain committed to destination Jamaica despite the challenges faced by the industry due to COVID-19.
As we recover faster, stronger and better our investment climate remains positive with the goal to dramatically increase the number of hotel rooms still on track, and 90 per cent of the planned investments remaining on target. Rest assured, Madam Speaker, despite the challenges, the future of tourism remains promising. Already for this year, we have welcomed just over 422,000 visitors and we have earned some US$500 million for the country. As a result of this uptick in visitor arrivals, 80 percent of our tourism workers are now back on the job.
Madam Speaker, while in Spain we also met with the United Nations World Tourism Organization’s (UNWTO) Secretary-General, Zurab Pololikashvili to discuss strategies to foster the rebound of the global tourism industry and finalized plans for Jamaica to host the UNWTO’s Regional Commission for the Americas (CAM) meeting later this month, from June 23-24. Jamaica currently chairs the CAM and will relinquish its position at the General Assembly in Morocco in October.
Madam Speaker, Cabinet recently approved Jamaica’s candidacy for the UNWTO Executive Council for the period 2022-2026.
I am also pleased to inform you that the Secretary-General is set to visit Jamaica for the CAM meeting in June as well as an official tour of the Global Tourism Resilience and Crisis Management Centre. This visit is significant on many levels, as it will be the first time Mr. Pololikashvili will be visiting the English-Speaking Caribbean.
I am also pleased to report, Madam Speaker that Minister Hill and I also travelled to Saudi Arabia where we participated in the UNWTO Tourism Recovery Summit as well as the 47th Meeting of the UNWTO Regional Commission for the Middle East, held on May 26 and 27, respectively.
Finally, we also met with various private sector leaders as well as Saudi Arabia’s Minister of Tourism, His Excellency Ahmed
Al Khateeb, and discussed possible areas of collaboration and investment between Jamaica and Saudi Arabia, strengthening resilience and developing renewable energy resources. Saudi Arabia is known to be among the largest oil producing nations in the world and is making a big pivot to tourism and is expending big bucks on the development of their tourism product including the multi-billion-dollar Red Sea project.
Madam Speaker, this trip was very successful, as we were able to further solidify Jamaica’s position as a major player on the global stage and as a premier location for foreign direct investment. Madam Speaker, I am pleased to announce that Minister Al Khateeb will be joining the UNWTO Secretary-General in visiting Jamaica in June so that we can further our investment discussions.
THE WAY FORWARD
Jamaica has emerged as a world leader in developing innovative responses to the COVID-19 crisis, which have successfully guided the safe and seamless reopening of the tourism sector. Madam Speaker, we recognize that it is imperative that the sector survives during and beyond the current crisis so that it can continue to fulfil its vital role as a significant catalyst of global economic recovery and growth.
A key aspect of our strategy moving forward will be to target GEN-C travelers. That is, travelers whose experiences and expectations have been shaped by the health and safety risks of the pandemic, and who are seeking destinations that have strong health security properties. We must therefore use this pandemic, and the ensuing changes in the sector, as an opportunity to better facilitate the needs of the GEN-C traveler.
Blue Ocean Strategy
Madam Speaker, the strategic framework for resetting Jamaica’s tourism will be guided by the Blue Ocean Strategy, which will allow us to meet our growth targets of five million visitors, five billion dollars in earnings and five thousand new rooms by 2025. It will require a shift in mind-set as we seek to uncover hidden opportunities in the tourism industry amid the COVID-19 era economic crisis.
A Blue Ocean Strategy calls for the creation of business models that depart from traditional models based on head-to-head competition and gaining market share. Instead, it will see our Ministry pursuing enhanced value-creation, through product differentiation and diversification.
Resetting Jamaica’s tourism will identify and establish innovative policies, systems, protocols and standards that assure our visitors a safer, secure and seamless experience while building out a new tourism model based on a diverse portfolio of unique and authentic attractions and activities, which draw heavily on Jamaica’s natural and cultural assets.
Mocha Fest Jamaica 2021
This tourism model can only work if the protocols that we have established since the onset of the pandemic, are strictly enforced, for the protection of Jamaicans and our visitors. Recently, our sector’s reputation for strict enforcement of our protocols was inked by the hosting of the now infamous Mocha Fest series of parties in Negril. We moved quickly to investigate the matter and determined that, based on the videos circulated, the promoters and the venue in question were in clear breach of COVID-19 guidelines.
Following the investigations, a fulsome report was prepared and disseminated to Prime Minister Holness. We then moved quickly to take the necessary actions under the law to penalize and ensure strict adherence to the established COVID-19 Health and Safety Protocols.
Specifically:
1. TPDCo revoked Rick’s Café’s COVID-19 compliance certification, forcing, them to undergo a recertification exercise before being allowed to re-open.
2. The Ministry of Local Government and Rural Development ordered Rick’s Café closed for seven days and met with the management of the establishment.
3. Our Director of Tourism reached out to Mocha Fest organizers to urge them to curtail their activities to be compliant with protocols.
4. Mocha Fest organizers cancelled the event and the Westmoreland Police later charged Rick’s Café’s manager with breaches of the Spirit License Act and the Municipal Corporation Act.
The Ministry of Tourism’s COVID-19 Health and Safety protocols were developed to ensure the safety of Jamaicans and visitors. Reports of breaches of these protocols and the Disaster Risk Management Act are taken very seriously. Appropriate sanctions are already being put into full effect.
Madam Speaker, we will be strengthening our efforts to ensure that there are no other major breaches and work closely with the Ministry of Health and Wellness and other authorities to increase our surveillance. We will also be working closely with the Jamaica Hotel & Tourist Association (JHTA) and partners to be clear that ANY deviation from the stated health and safety protocols will have severe consequences in the offending party’s ability to continue to conduct tourism business.
Health and Safety Protocols
Jamaica has been a pioneer in resilience and sustainability with the commendable work being done by the Tourism Linkages Network, as well as the Global Tourism Resilience and Crisis Management Centre (GTRCMC), which focuses solely on the constant development of resilience strategies.
Key among them was the implementation of The Resilient Corridors, which encompass the majority of the island’s tourism regions. They provide visitors with the opportunity to enjoy more of the country’s unique offerings, as many coronavirus (COVID-19) compliant attractions, located along the corridors, are authorized for visits by the health authorities.
This model has proven to be highly effective, with very few reports of the virus being transmitted. In fact, the positivity rate has been less than 1% and has proven to be a significant measure in mitigating community pandemic spread.
Our top priority was and still is instilling traveler confidence. We want our travelers to feel safe and confident in visiting us, and at the same time, we want to ensure their experiences are enjoyable.
I am happy to announce that as a result of this successful model, we have also been able to earn $8 billion in direct tax revenue from tourism for the 2020-2021 fiscal year.
Rediscover Jamaica
These earnings were not only accredited to our visitors experiencing the destination, but also due in part to an increase in domestic tourism.
I must therefore use this opportunity to congratulate the Jamaica Tourist Board, who have led a very successful domestic tourism campaign called Rediscover Jamaica.
Our local hotels readily embraced the campaign and offered special rates to locals, which resulted in 50% to 60% occupancy from local bookings.
The initiative helped us to significantly reduce the impact caused by the fallout from an initial decline in international tourism receipts and ensured continued buoyancy of the sector as we continue to put measures in place to build back stronger.
Madam Speaker, we are therefore happy to share that this campaign will continue and the JHTA has also confirmed that our hotels have committed to provide even more competitive rates to the people of Jamaica.
JAMAICA CARES
Madam Speaker, visitor safety will also be strengthened when we introduce our ground-breaking initiative dubbed JAMAICA CARES, which amplifies themes of safe and seamless travel. JAMAICA CARES is an innovative end-to-end travel protection and emergency services program that provides visitors with cost of medical care, evacuations, field rescue, case management and patient advocacy in all circumstances up to and including natural disasters. As it relates to COVID-19, the protection plan also covers testing for symptomatic travelers, quarantine/isolation in a medical facility or sanctioned quarantine facilities and evacuation, if necessary.
Madam Speaker, it will provide health protection, emergency medical and crisis response services as one suite of offerings from a globally recognized firm or firms collaborating with local insurance and other service providers.
BUILDING FORWARD STRONGER – A NEW APPROACH TO RESETTING TOURISM
Madam Speaker, as we recover faster, stronger and better the marketing and promotional challenges created by the pandemic have provided an opportunity to recalibrate strategies already in motion. Indeed, Madam Speaker, COVID-19 presents an opportunity to Build Forward Stronger through the application of our Blue Ocean Strategy, so that we can:
• Attract a diverse set of visitors seeking a uniquely Jamaican experience,
• Leverage local linkages for the supplies and tourism experiences, and
• Build a future that is even more resilient, safe and sustainable.
We have created a six-step plan to achieve this, which includes:
1. Expanding markets and go-to-market channels
2. Developing new tourism products
3. Expanding our community tourism focus
4. Maximizing linkages across all local Industries
5. Promoting resilience and sustainability
6. Providing destination assurance
Expanding Markets
Madam Speaker, the global recovery campaign will be twinned with a robust domestic recovery initiative targeting local residents and the Diaspora community. We will be capitalizing on the many benefits to be had from long-standing relationships with key tourism partners and strategic alliances with the largest wholesale travel planners.
However, it will also focus on marketing to our traditional visitors, who seek an ideal location to bask in sun, sea and sand.
We will be creating special campaigns appealing to nature tourists and experientialists as well as our boutique luxury visitors. We will engage all forms of media, prioritizing digital marketing, as it allows us to reach a broader and more diverse audience.
New Products
Our research has shown that the GEN-C traveler will crave new products in destinations that can ensure safe yet memorable experiences. We will first focus on attracting a wider and more balanced range of high-quality investments in accommodation, attractions and activities that cannot be replicated by our competition, so that we can return the tourism sector to a growth trajectory.
Madam Speaker, we must utilize locally sourced products and increase our local capacity to deliver them with superior quality and consistency, to ensure they will continue to keep Jamaica top-of-mind for upcoming vacations.
We will therefore be seeking to develop community spaces for Jamaicans and visitors alike to gather safely to experience our locally handcrafted products, food and entertainment. One such center will be our first artisan village, which is set to open later this year in Falmouth. Our goal is to establish one artisan village in each destination area by 2025.
Tourism Incubator and Funding
Madam Speaker, we intend to establish a tourism incubator to nurture new and start-up tourism enterprises. We will initiate discussions with potential partners, such as the University of Technology Jamaica, the University of the West Indies (Mona), Jamaica Business Development Corporation (JBDC) and Jamaica Promotions Corporation (JAMPRO) and take decisive steps by 2023 to foster innovative ideas on how we can differentiate our sector from our competition, in keeping with our Blue Ocean Strategy.
We will also be seeking partnerships for the provision of grants and loans to support the development and commercialization of ideas generated from the incubator.
The Innovation-Based Tourism Incubator (ITI) will accept ideas that meet the following criteria:
• The ITI will only accept ideas that enhance the tourism sector. This may be directly, through the development of the tourism product (e.g., accommodations, restaurants and attractions) or the tourism value chain.
• The idea must be an innovation. These ideas may fall in the categories of new products, new services, new production methods, new forms of organization and new markets.
• The ITI will support original ideas that are useful, or practical in nature from its function to its design. This criterion emphasizes the difference between ideating and ideating for a purpose. Usefulness can be determined by identifying gaps in market research and looking at market demand, and then seeing how the idea responds to this.
• The idea must have a significant effect on the tourism industry.
A panel will conduct a review of these submissions and successful candidates will be invited to a boot camp, which will provide participants with the training and support needed to develop their business idea, business model and business plan, minimum viable products (MVPs) etc., to boost the chances of arriving at an effective start-up.
The ITI will operate virtually and execute its mandate for each entrepreneur over a 2-year period.
Investment Facilitation Framework and Strategy
These products and services will require targeted investments and provide an opportunity to bring more Jamaicans into the tourism value chain as producers. We will therefore work with the Ministry of Industry, Investment and Commerce, JAMPRO and JBDC to develop a fulsome Tourism Investment Strategy to generate greater investment in attractions, entertainment and niche accommodation.
EXIM Bank SMTE Loan Update
The Tourism Enhancement Fund (TEF) crafted a $1 billion revolving loan facility, through the EXIM Bank for Small and Medium Tourism Enterprises (SMTEs) in 2016 to enable continued growth and sustainable development. This loan facility provides SMTEs access to between $5 million and $25 million with a 4.5 per cent interest rate and five years to repay.
As at May 31, 2021, the EXIM Bank has approved and disbursed loans amounting to 1.3 billion dollars to businesses in sectors such as: Accommodations, attractions, gastronomy, linkages, manufacturing, services, shopping, spa and wellness, water sports, transportation and medical. The amount available in the pool for unlending during that period is $461 million.
Assistance for Tourism-Transportation Sector
Madam Speaker as we recover faster, stronger and better I am also pleased to announce that the TEF has already put in motion an injection of J$70 million to support tourism ground transportation operators who have suffered tremendously from the ravages of the COVID-19 pandemic and the massive downturn in tourism over the last year.
The Default Clearance Loan, which can be accessed from Jamaica National Small Business Loans, will allow borrowers to receive up to a maximum of J$1 million in monthly instalments for up to 12 months. They will be given an 8-month moratorium on the principal and a maximum repayment period of three years. Madam Speaker, the loan will be given at 0% interest.
It was agreed that the loans will be unsecured, as the challenges surrounding collateralizing the loans will prevent some operators from accessing the facility, especially those who are in the greatest need of this form of aid to remain sustainable.
Community Tourism
During this post-COVID-19 era, we want to introduce our visitors to more community tourism experiences. Madam Speaker, our new marketing packages will encourage our visitors to take excursions to local shopping establishments, restaurants, entertainment facilities and bars. We will also encourage them to wander along our beaches, rivers or a local fishing village.
Critical to our shift to increased awareness of our community tourism offerings will be targeted campaigns focusing on our many cultural and heritage assets.
Increased Linkages
Madam Speaker, as we recover faster, stronger and better our linkages network has proven to be a successful model. However, there is so much more that we can do to ensure that more Jamaicans benefit from our industry and that tourism earning retention is increased from 40 per cent to 45 per cent by 2025. Our robust plans will focus on a complete revamping of our linkages network to accomplish this goal. We will:
- Implement projects that increase the commercial linkages between tourism and non-tourism enterprises
- Implement projects that increase the contribution to GDP from non-accommodation tourism sub-sectors
- Infuse more tourism spend directly into the local economy
- Establish Jamaica as a regional hub for tourism supplies and services
Madam Speaker, whilst I empathize with everyone including the tourism sector that have suffered terribly from the ravages of the COVID-19 pandemic, the players in the sector, have slowly but surely been returning to work. I am happy to restate that local players in the entertainment sector have earned some J$500 million for the provision of services to hotels over the first five months of this year.
So, Jamaican musicians, Jamaican artistes, Jamaican singers, Jamaican bands, and so on are a major part of this. This is linkages at work, Madam Speaker.
Parliamentary Reforms
Madam Speaker, before closing, in my capacity as Leader of Government Business, I would like to provide the House with a brief update on a few parliamentary reforms.
Firstly, we are awaiting approval from the Ministry of Finance and the Public Service to contract a consultant to undertake a year-long review of the human resource capabilities required for the Parliament.
The review will enable us to justify reclassification of current positions, creation of additional positions and for the attraction and retention of other hardworking, capable and qualified individuals. In the interim, exploring solutions such as contracted consultancies to boost capacity in some areas, e.g., the Committee Division.
Madam Speaker, the Parliament in partnership with the Cabinet Office and e-Gov Jamaica is also working on the formulation and implementation of an Information and Communication Technology (ICT) development plan for the Houses of Parliament in order to improve efficiency in all the operations of the Parliament.
Additionally, the Parliament is in the process of acquiring Speech to Text Technology for real-time reporting of the proceedings of both Houses and their Committees. The Parliament is also in the process of securing approval from the Public Procurement Commission.
Finally, Madam Speaker, I am pleased to report again, as highlighted by the Prime Minister in his budget presentation, that detailed designs and drawings for the new Parliament are complete and building approvals have been granted by the various authorities. The project is now going through the public investment process. Thereafter, we expect to enter the procurement phase after which construction is projected to start early in the 2022/23 Financial Year.
Conclusion
Madam Speaker, to conclude my presentation his afternoon, I affirm that the future of tourism in Jamaica is looking bright, despite the challenges we continue to face because of COVID-19. As you have heard, our vision speaks to strategic initiatives and partnerships that will diversify our product, build human capital and expand linkages with other sectors, target new markets and drive a more collaborative approach to our tourism sector, while ensuring that the growing tourism industry benefits all Jamaicans.
And as I close, I have to give commendation to what is without a doubt a government that functions with a zeal and laser like focus on problem solving whilst not allowing ourselves to be distracted in our efforts to implement and achieve our manifesto commitments under the leadership of our Prime Minister, the Most Honorable Andrew Holness.
As we recover faster, stronger and better we will therefore continue to push forward with a spirit of hope for a brighter future, which is prosperous for every Jamaican.
Thank you, stay safe and God bless you.
#rebuildingtravel
MEDIA CONTACT: Corporate Communications Division, Ministry of Tourism, 64 Knutsford Boulevard, Kingston 5, Telephone: 920-4924, Fax: 920-4944 – OR – Kingsley Roberts, Senior Director, Corporate Communications, Ministry of Tourism, 64 Knutsford Boulevard, Kingston 5, Tel: 920-4926-30, ext.: 5990, Cell: (876) 505-6118, Fax: 920-4944
