The Uneven Landscape of Jamaica’s Tourism Industry
For decades, the tourism industry has been heralded as the backbone of Jamaica’s economy. However, beneath the glossy numbers lies a harsh reality: the benefits of this thriving sector remain disproportionately concentrated among large, often foreign-owned players. Many local businesses struggle to compete, facing challenges that threaten their viability and the authenticity of Jamaica’s tourism experience.
Hidden Crisis
The past year has starkly illustrated the lasting effects of travel advisories on Jamaica’s tourism sector. Warnings from key markets, particularly the United States and Canada, have often been dismissed or downplayed. However, when advisories were issued in 2024, many medium and small hotels—predominantly Jamaican-owned—reported sharp declines in occupancy levels, average room rates, and length of stay. While the overall tourism sector continues to show resilience, the reality for these businesses is far more challenging.
New mega-properties like RIU Aquarelle and Princess Grand Resort have added over 1,300 rooms, contributing to increased arrival numbers. Yet, when we strip away these expansions and examine the performance of existing small and medium-sized hotels, the situation becomes deeply concerning. Many of these properties, which have long been the cornerstone of Jamaica’s locally owned tourism sector, are struggling to remain viable.
Feedback from industry practitioners indicates that there has been little targeted intervention to support smaller, indigenous businesses that lack the resources to absorb these shocks. These businesses are critical not just for their economic contribution but also for the authenticity they bring to Jamaica’s tourism product. They provide employment, sustain local suppliers, and offer unique, culturally rich experiences that set Jamaica apart.
If we are serious about preserving the diversity and long-term sustainability of our tourism sector, a more deliberate and inclusive approach is needed. Targeted strategies such as financial support, specialized marketing campaigns to counter negative perceptions, and stronger engagement with local operators must be explored. The viability of Jamaican-owned hotels is not just a business concern; it is a national economic priority.
Rebalancing the Tourism Economy
A prevailing misconception is that all tourism earnings stay in Jamaica. In reality, less than 40 cents of every US dollar earned in tourism is retained within the local economy. While the government collects revenue through the Tourism Enhancement Fund (TEF), room taxes, and other levies, much of the earnings do not remain in Jamaica. Recently, the minister of tourism claimed that US$43 billion was earned by tourism, leading many Jamaicans to believe that this amount was pumped into government coffers. This is misleading; what is generated by the industry does not equate to what is earned by the government.
To increase the retention of tourism earnings to at least 60 cents per dollar, several strategies must be prioritized:
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Prioritizing Local Ownership and Participation: Ensuring that local businesses in retail, transportation, and entertainment receive a fairer share of the tourism pie is essential for economic equity.
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Reducing Economic Leakage: Strengthening linkages with local producers can limit excessive dependence on imports, allowing more money to circulate within the local economy.
- Reinvesting in Tourism Towns and Infrastructure: Redirecting tourism earnings into improving the communities that sustain the industry is crucial for long-term sustainability.
Shift in Strategy
Jamaica’s tourism industry is no longer in its infancy, where the primary focus is rapid expansion, building new hotels, and aggressively marketing to attract visitors. We are now in a mature phase, where success is measured not by how many more rooms we can build, but by how much value we extract from what already exists, ensuring sustainability, and improving overall quality and competitiveness.
Leading tourism destinations like Spain, Thailand, and the Dominican Republic have recognized this shift and adjusted their strategies accordingly. Instead of focusing solely on adding new hotel stock, they have prioritized:
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Upgrading and Diversifying Existing Tourism Products: Spain has moved beyond just sun-and-sand tourism, investing in cultural tourism, eco-tourism, and heritage experiences to attract higher-value visitors.
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Improving Infrastructure and Local Economic Integration: Thailand has focused on enhancing transportation, sanitation, and local business linkages to ensure that tourism benefits a broader segment of its population.
- Managing Visitor Density and Environmental Impact: The Dominican Republic has implemented policies to encourage more sustainable tourism growth rather than unchecked expansion, addressing the challenges of overdevelopment.
Yet, in Jamaica, the current approach remains fixated on hotel expansion without equivalent investment in people, infrastructure, or the environment. This is a misguided strategy. New rooms and attractions mean little if they sit on crumbling roads, face water shortages, or exist in towns burdened by congestion and neglect.
The logical approach to Jamaica’s tourism woes requires a shift in strategy to one that focuses on enhancing the product, improving efficiencies, and ensuring long-term sustainability. This means:
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Upgrading Existing Infrastructure: Roads, airports, water supply, and waste management systems must be improved to meet global standards.
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Revitalizing Older Tourism Areas: Negril, Ocho Rios, and Montego Bay need significant reinvestment in public spaces, beaches, and cultural sites to enhance visitor experiences.
- Diversifying the Tourism Offering: Creating stronger local tourism experiences that encourage visitors to engage with Jamaican culture, food, music, and communities is essential for a richer tourism product.
Applying growth-phase strategies to a mature-phase product is a recipe for diminishing returns.
Path Forward
Jamaica has a choice: continue with the status quo, where tourism benefits only a select few, or pursue a more inclusive approach that empowers all Jamaicans.
It is critical to champion policies that offer opportunities to a wide cross-section of Jamaicans, with an emphasis on local business linkages, workers, and communities. Growth without equity is not real progress. Our industry must evolve—not just to attract visitors, but to ensure that every Jamaican benefits from the wealth it generates.
Janice Allen is a senator and shadow minister for tourism and linkages. Feedback can be sent to columns@gleanerjm.com.
