At the Jamaica Sectoral Debate Presentation, the Hon. Edmund Bartlett, Jamaica’s Minister of Tourism, delivered the closing presentation under the theme of “Providing inclusive growth, prosperity and hope” on May 30, 2017.
Here, his presentation is shared:
It is my honor to bring down the curtain on the Sectoral Debate for the Fiscal Year 2017-2018.
Tourism is undoubtedly the nation’s foremost sector in driving job creation and prosperity. However, this cannot be done without the critical support of each and every member of this Government.
In that regard, our joined-up government is working to ensure that Jamaica is positioned as not only a premier destination but a prosperous nation where every Jamaican is given an opportunity to share the benefits of economic growth.
This is not an overnight effort and will require continuous zeal-like focus to ensure we achieve our mandate for inclusive growth, prosperity and more importantly, HOPE.
The Sectoral Debate illustrated to us all a Cabinet and Ministers of State focused, organized and committed to elevating the bar and achieving the objectives of this administration.
Further, there were also some very noteworthy contributions by members on the Opposition benches. In line with our enviable democratic traditions rooted in our Westminster Parliamentary system, we take fully into account the more constructive and development-oriented recommendations of our Opposition colleagues.
I cannot go any further without highlighting that one of our proudest achievements to date came into effect on April 1, 2017, with the personal income tax threshold increased from $1 million to $1.5 million; honoring our campaign promise to allow Jamaicans to save and invest more of their incomes.
Under this new $1.5 million threshold, 397,083 persons – almost 400,000 persons of that entire PAYE cohort of taxpayers – will now be exempt from paying taxes because they are now completely below the $1.5 million tax threshold.
Kudos to Prime Minister Andrew Holness, Finance Minister Audley Shaw and Ministers of State Fayval Williams and Rudyard Spencer and their teams for their tireless work to deliver on this important initiative.
I will now in the interest of time present to you an abridged scorecard of achievements announced in the sectoral presentations by our Ministers and Ministers of State.
ECONOMIC GROWTH AND JOB CREATION
Upon taking office in March 2016, the Prime Minister announced the formation of the Ministry of Economic Growth and Job Creation (MEGJC), which is charged with drafting the blueprint to drive economic growth and sustainable development.
The Ministry brings together seven critical portfolio areas: Land, Environment, Climate Change, Investment, Water and Wastewater, Housing and Works. Led by the Prime Minister and Ministers Horace Chang, Daryl Vaz and Warmington, the Ministry has shown the way in leading its 48 agencies, departments and divisions, which are responsible for approximately 68 subject areas.
They have:
• Advanced positively on several road, water and other infrastructure projects, including finalising arrangements for important highway developments on the south-eastern and south-western sections of the island costing approximately US$384 million; the widening and improvement of the Mandela Highway from four to six lanes under the Major Infrastructure Development Programme (MDIP); the Marcus Garvey Drive widening and improvement project; the Grange Lane and Municipal Boulevard project; the Harbour Head Bridge in Port Morant and a litany of other improvements across the island.
• Embarked on Business Processing Outsourcing Projects, including the ground-breaking of a 63,000-square-foot office space in the Montego Bay Free Zone; officially opening the IBEX Global facility in Portmore, employing 550 persons; the approval of US$37 million in loan for BPO office space in Kingston and Montego Bay and further loans of US$58 million for further building out of over 770,000 sq. ft. of space to provide over 16,000 jobs.
The successes and direction of this super Ministry are significant.
NATIONAL SECURITY
Now, no one doubts that crime has ranked as one of our nation’s most serious challenges over many years. It is also inarguably the most difficult portfolio for anyone to manage. Minister Montague has, however, hit the ground running knowing full well that citizen security and safety is vital to prosperity.
Under a five-pillar strategy to fight crime, the Ministry is focusing on swift and sure justice; crime prevention through social development; situational prevention; effective policing; and redirecting re-offending.
LABOR AND SOCIAL SECURITY
Of course, protecting our nation’s poor and vulnerable while giving them hope and putting them on track for prosperity is absolutely critical to addressing our crime problems. Minister Shahine Robinson has been diligent in executing this very important agenda.
• In the region of $4 billion has been provided to beneficiaries of the Program of Advancement Through Health and Education (PATH). Additionally, thousands of students are to benefit from the extension of the Transportation Allowance Grant (TAG). Beyond that, 3,000 students in 30 schools across the island will be engaged by 16 PATH Youth Ambassadors.
• Understanding the importance of building out micro and small businesses, money set aside under the National Insurance Fund (NIF) for on-lending to the small business sector is to be increased to $3 billion, up from $1.5 billion.
TRANSPORT AND MINING
Transport and Mining Minister Mike Henry continues to blaze a trail in the resuscitation of the mining sector and careful approaches to implementing a truly multimodal transportation sector and improving its state of affairs.
• The Alpart alumina refinery has reopened and will create thousands of jobs over the next three years. Chinese controlled Jiuquan Iron and Steel Company (JISCo) will be investing US$2 billion to establish an industrial zone at Nain, employing 3,000 Jamaicans. The Government was also able to keep the doors of the former Noranda plant open.
• Significant progress has also been made in the development of the minerals industry with investor interest high and some activated.
INDUSTRY, COMMERCE AND AGRICULTURE
On the Industry, Commerce, Agriculture and Fisheries front Ministers Karl Samuda and JC Hutchinson have gone out of their way to drive these critical production Ministries as part of the Government’s thrust to increase employment and economic growth.
• The nation is fully aware of the double-digit growth in the agriculture sector and the Ministry’s efforts to foster further development and growth through the provision of loans, grants, technical assistance and capacity building.
• The Ministers have shown seriousness about advancing the growth of business and industry, including the Micro, Small and Medium-sized Enterprise (MSME) sector.
• An example of the Ministry’s phenomenal efforts is its marriage with Red Stripe. Just recently one of its agencies, SCJ Holdings Limited, signed another lease under Red Stripe’s Project Grow initiative, providing an additional 600 acres of land to Red Stripe for the cultivation of more cassava to enable them to reach their goal of brewing 40 per cent of their beer utilizing local cassava. This collaborative effort is providing opportunities for our farmers, employment and training for our youth, expanded export earnings, and it is showing what is possible as we create linkages between agriculture and manufacturing.
HEALTH
There is no doubt that the Minister Dr. Christopher Tufton, is repositioning the sector following years of poor management. His practical and hands-on policy initiatives are sensible and long overdue.
• In the area of health prevention, Minister Tufton launched the Jamaica Moves campaign to promote increased physical activity along with proper nutrition as a preventative measure against Non-Communicable Diseases (NCDs).
• And, probably one of the most significant achievements is the public private partnership for Drug Serv windows which has seen 17 private pharmacies now dispensing drugs against prescriptions written for public health patients. To date over 7000 prescriptions have been filled, reducing the need to wait, in some cases for hours, to get prescribed drugs.
This is just some of the promising news coming from the Health Minister.
SCIENCE, ENERGY AND TECHNOLOGY
The Minister of Science, Energy and Technology Dr. Andrew Wheately has taken off at rapid speed and already has under his wings a series of successes and very promising project initiatives that will have a far-reaching impact on the lives of each and every Jamaican.
• We have seen the commissioning of renewable energy plants, increased savings from energy efficient initiatives, the accessibility of free Government data online, the establishment of Public Wi-Fi areas in several towns around the island and a raft of other initiatives.
• We are no doubt impressed by the Minister’s commitment to a 10-point Energy Priorities plan. This includes creating a competitive energy environment, modernization of the nation’s power generation facilities and overhauling the regulatory framework, among other points.
LOCAL GOVERNMENT
Local Government and Community Development Minister like Desmond McKenzie is delivering. 2,560 new construction applications were approved between April and December 2016, at an investment value of J$39 billion. This also represents over 51,000 indirect jobs within the construction industry. All major pillars of the economy depend on the efficient participation of local government.
The Minister is undoubtedly driving Local Government in the direction of prosperity.
• Importantly, $700 million will be spent on Social Protection through Local Authorities this financial year. This will go a far way in alleviating some of the stressful situations faced by some of our most vulnerable citizens.
CULTURE, GENDER, ENTERTAINMENT AND SPORT
Our Culture, Gender, Entertainment and Sport Minister, Olivia ‘Babsy’ Grange, continues to execute her functions in true iconic style.
• The Minister has done a great job at promoting sport, entertainment and culture as vehicles of development as well as adopting initiatives to seriously address gender-based violence and empower women.
JUSTICE
Our Justice Minister, Delroy Chuck has been clear about where to take our Justice system and overhauling it for the better.
Minister Chuck’s vision for justice is for Jamaica to have a modern, people focused justice system that engenders trust and confidence. That is, a justice system that works for all our citizens, the business and commercial sectors and for the wider international community.
In one fiscal year, we have done more to change the face of justice than has been done in decades. Justice services are getting closer and closer to the ground.
CHILDREN/YOUTH
Our young Minister of State in the Education, Youth and Information Ministry, Floyd O’brian Green, has excelled at placing focus on youth development and the protection of our children.
• The Government’s Ananda Alert secretariat has partnered with international social media company Facebook to share broadcasts of missing children on the pages of Jamaican users. This is solid modern thinking that we are so proud of.
• Also, HEART Trust/NTA has increased its provision to the Student Loan Bureau (SLB) to provide support for students pursuing technical, vocational, education and training programs at the tertiary level from $100 million provided last year to over $200 million.
TOURISM
Of course, the tourism industry will continue to play its lead role in driving Jamaica’s economic transformation.
Let me first, however, address some matters raised by the Opposition Spokesman on Tourism.
(KINGSTON) EASTERN ENTRANCE ROADWAY BEAUTIFICATION
PENSION FOR TOURISM WORKERS
For our hardworking employees in the tourism industry, I am happy to announce that we have the draft Tourism Workers Pension Bill in hand and it is being reviewed by our high level technical team.
This Bill will facilitate the creation of the much-needed pension scheme to benefit all tourism workers, including Red Cap Porters, craft vendors, ground transportation operators and hotel workers.
In addition, the requisite steps are being taken to amend the TEF Act to allow for the disbursement of $1 billion to facilitate the seeding of the pension scheme.
The pension fund will attract the same kind of fiscal arrangement as other established pension funds and contributions will be tax free.
UNWTO CONFERENCE
Let me put on record that a true indication of the high regard for Jamaica in international tourism circles is our selection to host the UNWTO, Government of Jamaica and World Bank Group Conference on Jobs & Inclusive Growth: Partnerships for Sustainable Tourism, which will be held at the Montego Bay Convention Centre from November 27 – 29, 2017.
This is a historic event as this will be the first time that the UNWTO and its affiliate members will be staging a world conference on tourism in the Caribbean or for that matter the entire Western Hemisphere. The conference is attracting many leaders from government, multilateral organizations, international financial agencies, Non-Governmental Organizations, cruise lines, other tourism entities and, of course, local businesses including small and medium tourism enterprises.
Jamaica is pleased to be a part of history, as this conference signals the first time that the UNWTO and its affiliate members will stage a world conference on tourism in the Caribbean or the Americas.
MULTIDESTINATION TOURISM
Last year I noted that the time has come for a critical rethink on how we treat tourism in the Caribbean. I believe then as I do now that we must review current methods and practices or, better yet, examine our tourism model in its entirety.
A model which emphasizes going it alone, fierce competitiveness and nationalism while our share of the global tourism market grows smaller and smaller no longer makes economic sense.
There is a need then for new thinking and revamped tourism model in the Caribbean which emphasizes a collaborative approach and involves convergences of consumption and production patterns within our geographic space.
In that vein, I recommended a push for multi-destination tourism, which is the marketing of a variety of experiences and locations under one umbrella.
I noted then that a very good start to multi-destinational tourism could be Cuba, Jamaica and the Dominican Republic, three of the larger countries with total annual visitor arrivals of around 12 million and earnings of around US$12 billion.
I am pleased to state that I have just returned from an official visit to the Dominican Republic with Prime Minister Andrew Holness and Foreign Affairs and Foreign Trade Minister, Senator Kamina Johnson Smith where we discussed the signing of an MOU with our sister Caribbean island to push this initiative.
This follows our signing of a similar MOU with Cuba, our neighbor. We are also working on a similar MOU with Mexico.
We will be looking at the critical implications in terms of harmonizing key policies to enable greater access to the region and greater access to each other’s destinations. This is the future of Tourism.
SPRUCE UP JAMAICA/PON DI CORNER
As part of our revived Spruce Up Jamaica initiative and more specifically our Pon di Corner program within it, I am pleased to announce that approximately 250 million will be spent in constituencies island wide.
Each of the 63 constituencies will have access to $4 million in support of development projects. Funds already drawn down, per constituency, will be deducted from the cap of $4 million.
The new program is geared towards the country’s growth agenda with a focus on creating integration among industries and programs that impact the tourism industry.
It aims to facilitate sustainable livelihoods through job creation, sound environmental practices, the participation of communities in local area development, facilitation of small and medium tourism enterprises (SMTEs) and effective integrated marketing communications – a vehicle for building out an inclusive industry.
AIRLIFT
Our tourism product will not expand without sufficient airlift to bring our tourists here. We have been working nonstop to get it right and in that vein. I am pleased to announce that:
• Southwest Airlines will commence nonstop flights between Fort Lauderdale, Florida and Montego Bay, Jamaica, starting this weekend thereby adding 52,000 new seats over the year in and out of Jamaica and increasing connectivity to other US cities as Jamaica’s tourism industry continues to grow. Southwest is a major U.S. airline and the world’s largest low-cost carrier already with daily nonstop service into Montego Bay from Orlando Florida; Houston, Texas; Chicago, Illinois and Baltimore, Maryland.
• Weekly charter flights between Spain, Portugal and Jamaica will also begin in June of this year, sold by the Barcelo Group under their tour operator brands. The Portugal flights will be operated by Orbest from June 9 to September 29 and goes out of their capital city Lisbon, with an Airbus 330 aircraft that seats 388 passengers representing above 6000 new seats. Meanwhile, the Spain flights will be operated by Evelop non-stop out of their capital city, Madrid, into Montego Bay from June 4 to October 28 with an Airbus 330 aircraft that seats 388 passengers representing over 8,000 new seats.
• One of Europe’s leading airlines, Eurowings, a subsidiary of Lufthansa, will begin operating twice weekly scheduled service between Germany’s largest populated metropolitan region (Bonn/Cologne) and Montego Bay, beginning July 3 this year. That amounts to over 33,000 new seats over the period of a year.
There is more to come.
POLICY PAPERS
Our policy papers on Water Sports, Craft and Tourism Linkages are ready for submission to Cabinet. These policies, which represent a new way of thinking for the operation of these sub-sectors, will be tabled in Parliament shortly and will provide the framework for a clear course of action in these sub-sectors.
THE 5 NETWORKS
I am proud of the excellent work being done by our five networks as we work to better integrate tourism with the wider society and thereby better spread the benefits to all Jamaicans.
These five networks are:
• Gastronomy
• Sports and Entertainment
• Health and Wellness
• Shopping
• Knowledge
The objective ultimately is to increase the consumption of local goods and services, creating employment, and generating and retaining more of the country’s foreign exchange earnings.
Already we have, to name a few initiatives:
• Established Jamaica’s first Gastronomy Centre at Devon House
• Launched the Blue Mountain Culinary Tour
• Coordinated one of Jamaica’s biggest and best carnivals ever
The fruits of these Networks are already coming to life and, in the interest of more aggressively piloting their goals and objectives, a major reworking of how they function will come to the fore in short order.
In that vein, the Tourism Enhancement Fund will in short order become the home our Linkages Networks and innovation centered initiatives such as the Craft Development Institute and the Jamaica Centre for Tourism Innovation.
As I have noted recently:
• Tourism is and will continue to be the biggest driver for economic growth and prosperity in Jamaica for years to come. And as we build up for more significant growth, we are keen on repositioning the sector to achieve higher growth rates, a better spread of the benefits of tourism to each and every Jamaican and a stronger linkage through the economic fabric of this beautiful island nation.
• We have already raked in a record US$1 billion over the past four months representing a 6.5 per cent increase over the same period last year.
• We had a total 1.58 million visitors between January and April this year representing approximately 795,000 for stopover arrivals and 784,000 from cruise shipping most keen on having happy and unique experiences.
• As stated earlier we did well last year 2016, for we recorded total tourist arrivals of 3.84 million up by roughly 4 percent, with 2.2 million stopovers up 2.8% and 1.66 million cruise passenger arrivals up 5.5%.
• Estimated Gross Foreign Exchange Earnings for 2016 amounted to US$2.55 billion up 6.2 percent, with Stopover arrival earnings of US$2.4 billion up 6.1 percent and Cruise passenger earnings of US$148.6 million up 8 percent.
• Investment in the tourism sector is booming which includes the renovation and upgrading of several properties. As a matter of fact, in addition to detailed developments announced by mw last month amounting to hundreds of millions of US dollars, we have at least two new Hotel investments valued over US$150 million in the works for sign off in coming weeks. This will add well over 1000 new mid to ultra-luxurious Hotel rooms and at least 1500 jobs to the sector and further diversify our product offerings. I will speak further on these developments with specific details in short order.
• Our targets are clear and we are on track to exceeding them – we are keen on securing 5 million visitors by 2021 and in that time line we intend to generate US$5 billion in tourism earnings, increase the total direct jobs to 125,000 and add 15,000 new Hotel rooms.
Tourism as we know it is being refocused and our efforts are already successful.
You have seen our:
• boosted Spruce Up Jamaica program
• focus on resort town and infrastructure development
• our push of the Shovel Ready project initiative
• our renewed focus on cruise tourism
• our support for Small and Medium Sized Tourism Enterprises (SMTEs)
• developing the Jamaica Centre of Tourism Innovation
• making reality Pension for our Tourism Workers
• developing a Craft Development Institute
• building out our gastronomy, sports and entertainment, shopping, health and wellness and knowledge linkages networks
• developing Destination Assurance Councils to address the several nagging issues concerning the state of affairs in our resort areas
• boosting Community Tourism
• building out Artisan villages
• developing the Kingston Metropolitan area, St. Thomas and Portland as the great tourism parishes of the future
• aggressive targeting of new and emerging markets
• development of the institutional architecture to drive sustainable tourism development
• development of strategies for new production and consumption patterns inclusive of opportunities for micro and small enterprises to be included in the tourism value chain
CONCLUSION
This successful sectoral debate has put squarely on the table the need to change our thinking and realize that as a small nation we have the potential to be the best and greatest.
Borrowing from Prime Minister’s views contained in his maiden budget presentation last year a mere three months from winning the general election, he noted that it is time to change our thinking.
He argued that we have to move from a poverty consciousness to a prosperity consciousness. He is right and I would add, as he has so expertly done, HOPE.
After just over a year in office we have illustrated to the Jamaican people that you can HOPE:
• HOPE for a brighter future.
• HOPE for an improved governance.
• HOPE for a better and prosperous.
• HOPE for Jamaica to be the place of choice to live, work, raise families and do business.
We are providing inclusive growth, prosperity and hope.
I thank you.
