Minister of Tourism (Ministry of Tourism)

Jamaica, like all countries in the region, is striving to attract foreign investment. What would you say are the island’s most significant competitive advantages both generally and in terms of tourism compared to other countries in the region?

Our main competitive advantage is the strength of Brand Jamaica. It is a very positive brand and it is continuously being rejuvenated. A major part of this brand is the people of Jamaica. Among them are our athletes who are continuously performing creditably on the world stage, for example Usain Bolt and Shelly-Ann Fraser-Pryce, the fastest man and woman in the world, who will be representing Jamaica at the IAAF World Championships in Beijing this month. But Brand Jamaica is so much more than this. It is also our reggae music, our rich eclectic culture and our popular local dishes, which have great international appeal. Jamaican jerk chicken appears on menus in many of the finest restaurants around the world. There is an extremely high international demand for our Blue Mountain Coffee. Brand Jamaica is one that people consider synonymous with excellence and this gives us a head start in our country's product marketing.

From the tourism perspective, we have a beautiful country with warm and engaging people. There are so many things to do and see. People know that whether they choose historic Port Royal, once called "the richest and wickedest city in the world”, or our spectacular Dunn’s River Falls that there is always somewhere interesting to visit and something exciting to do. We offer a full range of options. At the root of it, the beauty and the people make Jamaica what it is – a good platform for both business and tourism.

There’s no doubt that Jamaica boasts a highly diverse tourism offering. With last year’s visitor numbers higher than the island’s population and a repeat factor of around 48%, Mr. Pennicook described the industry as thriving. How would you summarise Jamaica’s tourism industry today and why?

We are now experiencing a boom in the tourism sector and the projection going forward is extremely positive. Two years ago we passed the milestone of 2,000,000 stopover visitors, which is very significant. There are only four countries in the Caribbean that have achieved that. On top of that, when you add cruise visitors to the stopover visitors, we are getting 3,500,000 visitors. That number is greater than our population.

But these numbers are only part of the equation. What we have seen over the past few years is a real interest in visiting Jamaica that is unlike anything we have seen before in terms of its intensity. With this increased volume of people coming to Jamaica our occupancies have risen, which in turn drives interest in investing. Since 2012 there has been a steady flow of investment to the tune of over US$460,910,520 million in Jamaica’s tourism product, most of which is in upgrading existing plants.

Right now, on the books for this year, 2015, we expect about 1,600 new rooms to begin construction in Jamaica. We see over the next two years another 1,500 that are near completion in terms of planning and approvals that will also start construction in the next 3-5 years. China Harbour, the developer contracted to construct the north-south highway, is also planning to build an additional 2,500 rooms in the next year or two. The government has just announced two new IRD (Integrated Resort Developments), which are supposed to get started on 1,000 rooms each by next year. So if you were to put all of those numbers together, there will be over 7,500 rooms over the next five years. This represents a tremendous amount of confidence in Jamaica.

What this means is that in terms of investment in Jamaica, we are now only at the start of our investment boom. As the quantity of rooms increases, we also see the quality of existing rooms increase as well. There will be upgrades. The quality of our product has risen.  This also results in our daily rates moving up. It is becoming a more profitable business as our occupancy rates are increasing as well.  So we are very confident in our tourism sector as we go forward.

What Jamaica needs now, above all, is economic growth. We have got the fundamentals right. Everyone is looking to tourism to be an engine of growth and we are putting ourselves in the position to do just that.

What role is your ministry playing in ensuring that tourism continues to be an engine of growth?

The Ministry of Tourism drives policy.  Our Ministry thinks about how Jamaica is best able to set a framework for the development of our tourism product. The Ministry has three agencies to help us achieve this goal.  First, we have the Jamaica Tourist Board, which markets our tourism product and Jamaica. Second, we have the Tourism Product Development Company, which is responsible for training, product development, quality control and regulations. Third, we have the Tourism Enhancement Fund, which is a funding agency for the industry. It funds both product development and marketing.

Our main focus is the extent to which tourism operates as a social, economic and developmental tool. Therefore, my role is largely to ensure that while we are increasing investment in the sector and growing visitor arrivals that tourism’s success benefits Jamaica as a whole.  How can tourism have the widest possible reach? The Ministry’s Tourism Linkages Hub is working to ensure Jamaica’s tourism sector becomes better integrated with and creates opportunities for other sectors such as entertainment, agriculture and manufacturing. The hub’s activities are guided by the Tourism Linkages Council, chaired by Donovan Perkins, who is also the President and CEO of Sagicor Bank Jamaica.  The Council includes representatives of the Private Sector Organization of Jamaica, JAMPRO, the Jamaica Hotel and Tourist Association, the Jamaica Manufactures’ Association and other stakeholder groups.

We are continually thinking about how we can ensure that local products and services are utilised in the sector. A lot of the time it’s really about connections. Other times it is difficult because the quality, quantity and cost mean that the numbers may not work. The Council has conducted a demand study to identify the needs of the tourism industry and we are working closely with the agriculture and manufacturing sectors to see how these demands can be met. The key is the extent to which you can integrate tourism into your economy. You could get investment but it does not really move the mark of economic growth unless you really push forward.

We have made tremendous progress but are never truly satisfied. There is always more that we can do. We try to take best practices from around the world but it will always be a work in progress.

The annual tourism trade show, JAPEX (Jamaica Product Exchange), has helped. This is the single most important travel trade show for Jamaica's tourism sector and brings together hundreds of travel agents, wholesalers and tour operators from Europe and the Americas as well as leading suppliers from our tourism sector for important business negotiations. We added the dimension of including the agricultural and manufacturing sectors. The hoteliers walk through and see all the quality items available locally. For example, maybe one hotelier is looking for beds. The hotelier would think about how he can get 100 beds at a good price and quickly. He could import but if he knows there are beds available here, he can put in an order.

We expanded to include the Caribbean marketplace. A number of local companies are going to Aruba, Antigua, Bahamas and other Caribbean islands to seek business opportunities. The more they make, the less their costs are. So this is all a process but the linkages program is going well. It is great to see the extent to which we can expand to see growth and investment here in Jamaica.

We also have a number of other programs. We have the community tourism programs. We are working very closely with various Members of Parliament to prioritize their tourism projects and we are also looking at what we can do with the Parish Councils because Jamaica has such an abundance of cultural sites throughout the island.  The Ministry’s Tourism Enhancement Fund (TEF) funded the renovation of the historic Seville Great House in St. Ann. Many say that this is one of the greatest archaeological sites in the Western hemisphere. We have done work at the Civic Centre in Montego Bay, renovating it into the Montego Bay Cultural Centre, which houses the National Art Gallery West, a museum, and a space for the performing arts. Trench Town Culture Yard also underwent a multi-million dollar renovation and a new sculpture of reggae icon Bob Marley was erected.  Through TEF we have renovated numerous heritage and cultural sites in communities across the island.

I remember stopping at a small town on the south coast when two persons approached me; one was American and the other German. They wanted to meet with me because there was a site that they were looking at for possible development.  I followed them and ended up about two miles out into the bush at a graveyard. We were actually at the site of the first Moravian Church in Jamaica. The epitaphs on the gravestones recorded births, marriages and more. None of the gravestones indicated that the person had been here for much more than a year and a half. I realized that they had all died of yellow fever! A group actually made contact with their families back in Germany and they have done a whole body of work.

All across Jamaica, communities are using heritage sites to attract visitors.  The more we can work to develop these aspects of Jamaica, the more tourism will be infused into the economy. People will see the impact and will feel the need to protect tourism.  We are always working to see how much impact tourism can make on the overall economy.

Recently founder and president of the Grand Bahia Principe Pablo Piñero, was in Jamaica and said he wanted to talk to me. So I went to meet with him and he immediately said, “Come, come, come and follow me.” This man is close to 80 but he is vivacious and always on the move. So I followed him down to the beach and he says, “Look.” He turns around and says, “Minister, look there.” I see a barren piece of land. I see only one bulldozer sitting there. He explains that he wants to build 120 rooms. “Minister, look at the sun. Look at the sea. Look at my hotel next door, it’s full.” Then he continues, “But maybe more, what about 250 rooms with 80 added over on the other side! And I want it open by December!”

I think to myself, “Here is somebody who decides, with the requisite approvals, to build over 250 rooms because of the sun and the sea.” Subsequently, I drove past and saw activity on the site. He’s just moving along merrily – no fanfare, no press, nothing. He’s just building.

You’ve spoken about how crucial tourism is to Jamaica’s economy. But we know that this ministry is also in charge of entertainment. How are you aligning entertainment with all of this?

Entertainment is a huge part of what we are doing. The Ministry has an Entertainment Advisory Board, which seeks to guide and influence the policies and programs aimed at developing the sector. Our music is important to our brand and we are using our artistes as unofficial ambassadors.

In 2012 we had Jamaica House, London, during the Olympics and we plan to have another in Rio. Usain Bolt will be there. They joked that all we need is Shaggy, Sean Paul and Damien Marley and then Jamaica would steal the show. Of course it isn’t quite that simple but it helps a lot. We are doing what we can to ensure that we preserve the history of our music. Before reggae, we had ska and rock steady and we are exploring how to market this. This is where programs like Jamrock Summer - 90 Days 90 Ways come into play.  We use music festivals, parties, food festivals, fashion shows and other entertainment and cultural events to attract more visitors.

We are also working to maximize the benefits of sports tourism. We have a committee in the ministry that deals with this, Jamaica Sport. This body is examining ways to leverage Brand Jamaica and sporting events held locally and internationally to ensure that Jamaica maximizes marketing and promotional opportunities while encouraging additional visitors to our shores.

There’s definitely so much potential in areas such medical tourism, marijuana tourism, sports tourism, business tourism and heritage tourism. Out of these industries – some of which are nascent while others are emerging - where do you see the biggest potential in terms of tourism and why?

Then we have sub-sectors of this market. Health tourism is one such sub-sector. We have very strong professionals renowned across the world and we are an English speaking country with large markets such as the U.S. and Canada nearby. Other countries have done health tourism but they are far from these markets. We have many flights. We have hospitable people. Within that sub-segment, we also have spas. Some of the spas, like Milk River and Bath Fountain, have world-renowned waters with curative powers. We are looking at how we can maximise these assets.

We’ve heard a lot of talk concerning the potential of Kingston tourism. From the Ministry side, what are you doing right here in the capital?

A good portion of what is happening in Kingston is being done by the private sector. Kingston is in an interesting position now. The Hendrickson Group recently bought and refurbished the Jamaica Pegasus Hotel in our New Kingston business district. They have also bought the old Wyndham Hotel and have plans for that property too. The Courtyard Marriott will be opening across the street later this year. There are other investors who are also interested in building hotels in our capital. We facilitate finding land and they find funds to move forward. These are commercial arrangements.

Where we come in is building Kingston’s brand as a business capital but also a cultural capital. Kingston has much to offer. We have done a lot of work, for example, with the trade shows.  We have the Bob Marley Museum; we have Devon House. A bus company is starting a new tour of Kingston. We have an initiative, Reggae Month| it’s Kingston for February, which uses Reggae, its cultural significance and its celebration in the month of February to attact visitors to Kingston.  We are working with the Jamaican Golf Course Association because we certainly have great golf courses in Kingston. One of our major projects at the Ministry this year is the Kingston Entryway project. We are going to work on the entrance to this town to beautify it.

Minister, you are no stranger to the tourism portfolio. You, for example, were Minister of State in the Ministry of Tourism and Sports from 2000 to 2007. What is your five-year vision for the country’s tourism sector?

Interestingly, I took over in 2012. At the time that I was setting the vision, the question that became a focus was, “How do you determine what makes a successful tourism sector?” There was the traditional idea, which included growth numbers, arrival figures, occupancy and earnings.  My question was “Why does Jamaica want tourism?” And the answer really has to align with the extent that tourism can benefit the people of Jamaica and work as an economic and developmental tool.

My vision has been to develop Jamaica as a resort. We do have six resort areas, but we have to think of Jamaica as a whole resort area. Everywhere you go there are so many things to see. The goal is to continue to develop that Jamaica in this way. Again not just for visitors, but for Jamaicans. All the work that we do regarding heritage and culture really gives our people a sense of self-actualization. The visitors that come, they really enjoy this too, of course.

It has been a question of developing the tourism product and we have spent a lot of time doing so. In every single resort area, we have transformational development projects taking place. For example, in Ocho Rios we are developing the pier and the town. We have plans in place to further develop the boardwalk and the main street. In Negril we are doing a whole town development plan. A lot of work is taking place in developing our heritage and our culture sites for tourism. The markers that we use are different. We have been very successful in getting visitors, increasing investment, increasing our earnings. All of that is great. That impact is good.

Harvard Business Review’s readers include many of the world’s most influential business and political figures. Minister McNeill, what message would you like to leave them about Jamaica and the Ministry of Tourism?

There are persons who have the perception that Jamaica is a laid-back, “no problem” country. This is all true.  However, it takes a lot of hard work and tenacity to make it true. The basis of what we have developed as a tourism industry and as a country is based on a lot of people who are very efficient with business and are globally competitive. Sometimes the image of someone under a coconut tree, lying back with a Red Stripe saying “no problem” undermines a tremendous business effort of Jamaicans. Some of our businesses here have become global brands because of the work that they have done. Jamaica has it all. It has the culture, the heritage, and the people to make good businesses work. It has a strong brand but it also has the underlying business acumen. It has hard work and an educated work force. It has all the things that are part of the formula for success.

Tourism is in a good place now because we see the investment coming. If you were to research all the universities, apart from having all the necessary courses in dentistry, medicine, engineering and all that, everyone now has their tourism courses. People are studying tourism management. They are studying to become chefs. We have the educated workforce to put into these businesses that are coming on stream. It’s a great opportunity for them but it creates great opportunity for everybody. We just have to seize it and make sure that we ride this wave. People want to come onboard and that’s a good thing.

I was at a function at Jewel Runaway Bay Resort recently. They pointed out that they are sold out for the next two months and that they are sold out for the first few months of the winter season. RUI told me that they are sold out until the end of August. As minister, I am asked many questions about growth rates. And all of these places are doing well. Looking forward, the future looks bright. If we correctly manage investments, people can benefit from it and the outcome will be good. It will be a win-win for all.