Supporting more small and medium-sized tourism enterprises
JamaicaTourism Minister, Hon. Edmund Bartlett, says that his ministry has made it a priority to re-imagine the local tourism sector by creating strategic policies, programs, and initiatives that can aid in building resilience and increasing the capacity of local small- and medium-sized tourism enterprises (SMTEs) to earn more.
Speaking yesterday (June 8) at the Tourism Enhancement Fund’s Business Development Information Session for SMTEs at the Jamaica Pegasus Hotel, the Minister said, “We called this gathering and brought all these stakeholders here today to understand the need that we see for building resilience and capacity for our small and medium-sized players who are at the heart of tourism.”
“Eighty percent of the value of tourism experiences worldwide is driven by small and medium enterprises. The unfortunate fact is that less than 20% of the returns from tourism go to this sector. So, as we rebound and reimagine, we are bringing a new dynamism to the process, and we are trying to rebalance that anomaly. We want you [SMTEs] to get a larger share of the tourism dollar,” he added.
Bartlett noted that the Ministry and its public bodies are offering support to the SMTEs and hospitality workers using three pillars: international certification through the Jamaica Centre of Tourism Innovation; financial support through businesses such as the Jamaica National Bank and the EXIM Bank; and marketing through the Jamaica Tourist Board.
In providing an update on the lending arrangements with the EXIM Bank and Jamaica National, the Minister stated that, “we put $1 billion into the EXIM Bank. They have unleaded $1.5 billion to 620 partners who have taken up loans, and they still have $500 million to unlend because it’s a revolving scheme. What it means is that you pay back, and that’s good. We also put $200 million with Jamaica National with the menu of products that they offer, including the TEF 5x5x5, and that has produced results where $900 million has been unleaded, and they still have the capacity to lend again because it revolves.”
As part of increased efforts to boost the competitiveness of the local tourism product and to offer support to budding SMTEs, Bartlett shared that the Ministry of Tourism will be developing an innovation-based tourism incubator (ITI). The initiative, led by the Tourism Enhancement Fund, will support entrepreneurs in converting innovative ideas into viable businesses.
“We are investing in ideas through the innovation incubator that we have established.”
“We have $31 million in this year’s budget to do just that – to go and mine ideas and find young people all across Jamaica with ideas because tourism is driven by ideas,” said the Minister.
The Business Development Information Session for SMTEs is an initiative of the Tourism Linkages Network, a division of the TEF, which was executed with key partners such as the Development Bank of Jamaica (DBJ); EXIM Bank; Jamaica Manufacturers & Exporters Association (JMEA); Jamaica Business Development Corporation (JBDC); Jamaica National Bank Small Business Loans; and the Companies Office of Jamaica.
The session brought together key business development experts in collaboration with the TEF, and will highlight the products and services available to SMTEs to facilitate their expansion, such as: competitive business loans; GOJ Financing Facilities; Vouchers to assist SMTEs with technical needs; Effective business marketing; Business Development Grants; Product testing services (to ensure products meet market requirements); and Product standardization services (to ensure products meet market requirements).