Sheena Gayle, Gleaner Writer

WESTERN BUREAU:

Tourism stakeholders in Jamaica are asking the Government for a stimulus package in light of the global financial crisis, which threatens the viability of the country's major income-generating industry.

"We are not asking for a handout, we want low-interest loans that we can easily access," argued general manager of Point Village, Evelyn Smith, during a Gleaner Editors' Forum held at the newspaper's Western Bureau offices in Montego Bay.

Platform for stakeholders

The forum was hosted to provide a platform for tourism stakeholders to highlight the issues that will impact the future of the industry.

Smith said low-interest loans could assist industry players with their operations and consider deferring statutory deductions for employers within the tourism industry during the current world crisis.

Smith, who is also first vice-president in the Jamaica Hotel and Tourist Association (JHTA), said, "The small and the independent properties in this country have been struggling for a long time and those properties are in a worse cash bind now more than ever and it's critical that we receive a response that makes sense."

The Gleaner understands that, over three weeks ago, stakeholders in the industry sent a letter to Prime Minister Bruce Golding stating their concerns and raising issues such as deferment of general consumption tax payments from November 2008 to March 2009.

Decrease in stopovers

The United States accounts for 70 per cent of tourist arrivals to Jamaica. With the financial downturn in that economy, president of the JHTA, Wayne Cummings, has already indicated that the island will see a 30 per cent decrease in stopover arrivals for the upcoming winter tourist season, which officially begins on December 15.

Considering the projected fall-off, managing director of Round Hill Hotel & Villas, Josef Forstmayr, is not convinced that persons understand the likely impact on the local economy if the industry is not rescued.

"There is a lot of misunderstanding out there whenever this industry asks for something. We need to understand that this is one of the most capital-intensive industries in the world," he stressed.

Cost-effective measures

In an effort to be cost-effective during the current off-peak season, Forstmayr revealed that his property has had to rotate its staff, cut operational costs and restructure the hotel's operations in order to eliminate waste of resources.

His resort is not alone. At least one property in Ocho Rios has closed its doors, while a small hotel in the tourism capital, Montego Bay, has been forced to send home its staff for the last three months. That hotel will re-open in time for the winter season.

sheena.gayle@gleanerjm.com