TOURISM SECTOR AT A GLANCE
As a tourist destination, Jamaica offers a unique blend of vibrant culture, natural beauty and a wide offering of facilities spanning hotels, attractions and shopping.
ACCOMMODATIONS
Accommodation on the island ranges from the economical to the 5-star, and attracts a high level of foreign direct investment. Market leaders such as Sandals, AM Properties, RIU, Iberostar, and Bahia Principe (Groupo Pinero) run a number of sites on the island, and with the additional increase in 'boutique' hotels, it is expected that an extra 10 000 rooms will be created by 2012, on top of the 24000 already available.
The impending growth in the tourism sector will lead to additional investments in multiple sub-sectors including infrastructure, shopping, health care services, and agriculture/agro-processing.
POSSIBILITIES
DUNNS RIVER FALLS, OCHO RIOS
Opportunities abound in specialized areas such as ecotourism, health, heritage, attraction, and entertainment or cultural tourism. The Jamaican destination provides an excellent platform for the development of any and all of these segments, all of which act to create a more diversified tourism product as well as induce an upward movement along the industry product cycle.
THE CRUISE INDUSTRY
Jamaica welcomes port visits from a number of the world’s premier cruise lines such as Carnival Princess Cruises, and Royal Caribbean from North America as well as European lines such asAida Cruises (Germany) and Sun Cruises (Britain). The cruise industry forms a crucial part of the tourism income for Jamaica, and this island remains one of the world's most popular destinations. In the first quarter of 2008, over half a million cruise passengers visited Jamaica, a year-on-year increase of 0.6%. Whilst the number of visitors is expected to stay strong, the key is now to maximize the income from these passengers, by providing more and better reasons for them to leave the ships. Therefore, an integrated tourism system is being encouraged whereby cruise line operators, accommodation and activity providers work together to attract as many tourists as possible.
Belize is Jamaica’s prime competitor, as the culture and distance from Mexico are very similar to Jamaica's. This is noteworthy, as Jamaica is a part of what is known as the western Caribbean run, an area that has been expanded in recent years. Cruise lines have a propensity to package a number of similar locations together, for example the Cayman Islands, the Bahamas and Jamaica. Belize is very comparable to Jamaica as it is a fertile destination, is English-speaking, and is in close proximity to Mexico, which is very important to the western run. The question, then, is how can Jamaica gain competitive advantage? The answer is: by creating a unique product.
DOLPHIN COVE, OCHO RIOS
One of the chief motivating forces in cruise shipping is profiting from the attractions of each destination visited. The Vice President of the Port Authority of Jamaica is working in tandem with the private sector to improve and pioneer new attractions. Thus far, there have been a number of expansions in this area with the creation of attractions such as Dolphin Cove in Ocho Rios, the Chukka Group in Montego Bay, the Zion Bus Tour, and the Canopy Tour.
Whilst the linkage between the cruise shipping industry and attractions is clearly defined, there are also linkages between the cruise shipping industry and the hotel sector. The cruise line is fundamentally a floating hotel which provides services and entertainment; however there has been some attempt to formulate alliances in areas of commonality such as training and purchasing, which should result in a reduction of the overall cost for the industry through the purchasing of goods such as fruits and vegetables. Direct linkages can also be made for home porting, as when a liner docks in Jamaica, a ‘sail and stay’ program is implemented, where visitors stay one week on the island and another week on the ship.
According to the terms of a recently made contract with the Port Authority, the Carnival Corporation, operators of Carnival Cruise Lines, will transport a minimum of 2.5 million passengers over a stipulated period which goes from January 1, 2004 to December 31, 2008. This agreement is only a fraction of the recent interest that has been expressed in the island, not only in the cruise shipping industry, but also in the hotel sector.
SHOPPING & ATTRACTION DEVELOPMENT
Already, unique attractions such as Dolphin Cove and Mystic Mountain have been developed, and the implementation of facilities that offer a taste of Caribbean “past times” is touted as a priority of industry officials. Other opportunities emanate from the limited sports and recreation facilities available in resort towns which currently concentrate on water sports, particularly boat hire and jet skis and, to a lesser extent, diving. Apart from water sports, only golf is catered for.
With the expansion of room stock particularly in resort towns, there is scope for the creation of additional sports and recreation facilities. The development of marinas, for instance, could play an important role in increasing the market for sailing and yachting. The need for shopping facilities in particular is immense, and the prevailing synergy with Jamaica’s booming creative industry will propel the success of any development. One such development which is in the construction phase is the Shoppes at Rose Hall which proposes a 70,000 upscale shopping (duty free), dining and entertainment complex. In addition, investments in these areas would capitalize on the increase in Jamaica’s stopover arrivals out of existing and emerging markets.
St. James will also see development through the Montego Bay Freeport, which will be similar in concept to Island Village (Ocho Rios), which targets cruise ship passengers. This development will constitute a total experience package where casinos, restaurants and shopping will be integrated. Also in Westmoreland, there is the planned construction of a plaza on the Negril strip. A diverse product is needed to cater to the large cross-section of expected visitors to these towns, and opportunities abound for gaming, dining and live entertainment. The recent establishment of a number of gaming facilities only caters to a minute segment of the market.
HEALTH TOURISM
Health tourism is also a fast growing sector internationally with medical tourism averaging five percent (5%) of world exports (US140m) and a growth rate of six percent (6%) annually. Jamaica seeks to capitalize on this trend and hopes to promote the development of spa facilities, retirement village communities, etc. Spas are particularly relevant to today’s traveler and are now more affordable. Cosmetic treatments were the trend in the onset, but over the past few years, this has been replaced by a thriving health and medical tourism industry.
Health and wellness tourism is a global trend for the health conscious consumers seeking to enhance their well being through their travel experiences. A distinction is made between the health and the wellness aspects. Health tourism involves those visitors with medical conditions that travel to experience healing remedies. A person who travels for wellness is generally healthy, but seeks therapies to maintain his or her well being. In Jamaica, upscale hotels have extended their services to accommodate guests who use spa therapy facilities as the deciding factor in choosing a resort vacation, rather than viewing it as just an additional amenity. Jamaicans are also taking heed of this form of recreational/health activity, resulting in an abundance of day spas, especially in Kingston. The increasing demand for this type of activity shows immense possibility for potential investors in tourism.
Two of Jamaica’s mineral springs, Bath Fountain Hotel and Spa in St. Thomas and Milk River Hotel and Spa in Clarendon, are renowned as being among the most potent and therapeutic springs in the world. They now play a considerable role in Jamaica’s health tourism. Jamaicans at this time are the largest client base for these facilities, however the effectiveness of these springs has lured a steady flow of overseas visitors over the years. The Milk River Spa is said to be one of the most radioactive in the world and is similar to the Lucerne Spa in Switzerland. Maintenance is being done to both facilities, but they will need considerable capital injections to raise them to global standards. The Milk River improvement venture is part of the Government’s Millennium project, which is noted for assistance; the Bath Hotel and Spa however, is being considered for divestment.
Other infrastructural improvements, such as the construction of Highway 2000 which links the south and north coast of the island, as well as the revamping of the island's airports and seaports, have created a number of investment linkage opportunities in the area of transportation, tour operations and professional services
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