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'Gov't must spend more on small hoteliers'
published: Thursday | May 13, 2004


Bartlett

Leonardo Blair, Staff Reporter

OPPOSITION SPOKESMAN on Tourism, Edmund Bartlett, called on Government Tuesday to do more to help small hoteliers survive in an increasingly competitive tourism industry.

In his two-hour long contribution to the Sectoral Debate at Gordon House, the Jamaica Labour Party (JLP) spokesman explained that despite the praises about the gains made by the industry post-9/11, the sector needs a lot of help, particularly the small hoteliers.

"I can see the need for a special fund to assist on product enhancement and particularly to help the small to medium size enterprises who will and are being marginalised as a result of heavy price discounting and strong competition from low-priced all inclusive properties," said Mr. Bartlett.

He explained: "The impact of price discounting, high operating costs, weak management and high cost of credit have all but crippled this important sub-sector."

"One way to respond is to establish a small hotel revolving fund from the fee to be added to the departure tax," said Mr. Bartlett. This fund he explained should be managed by an independent financial entity with input from the sector to create a comprehensive development plan.

Mr. Bartlett, who also cited a plethora of problems currently plaguing the industry, such as a weak marketing plan, argued that gains being heralded by tourism officials using post-9/11 figures as a benchmark did not give a true picture of the gains being experienced.

Using figures from 2000 before the September, 2001 terrorist attacks on the United States, the opposition spokesman explained that growth in the industry was just over two per cent and not really six per cent when compared with the year 2000.

He also called on the government to quickly settle a US$7 million debt with a New York-based advertising firm and questioned the Jamaica Tourist Board's (JTB) ability to adequately fund its global marketing campaign with a reduced budget.

He pointed out that with a 25 per cent reduction in the advertising budget this year along with the US$7 million debt, only US$7 million will be available for advertising.

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