China Is Jamaica's Next Big Tourism Market

The discussion about increasing and sustaining economic growth in Jamaica must recognize that tourism will be the engine of economic growth in both the short and medium terms.

In the context of the downturn in the world economy, the tourism sector has done well, as is evident in the steady annual increase in the number of visitor arrivals, resulting in much needed foreign exchange, taxes and employment.

The United States and Canada have traditionally been the biggest source of visitors who come to our shores to soak up the sun and cavort in the warm blue waters of the Caribbean Sea. In more recent years, there has been some diversification in tourist source to include Japan and Western Europe. This is in part a deliberate strategy by the Government of Jamaica, reflected in air lift and marketing, including by private resorts, and as a result of direct foreign investment by Spanish companies.

If Jamaica is to accelerate economic growth then the tourism sector has to grow even faster than it has in the last decade and that means Jamaica must both induce more tourists from traditional markets and break into the fastest growing travel market in the world, namely China.

The number of Chinese travellers and the value of their expenditure have been growing rapidly in recent years and is projected to grow exponentially, reaching 53 million in the next decade with an anticipated expenditure by 2020 of $120 billion annually.

Assuming Jamaica entices more Chinese tourists, the critical issue is do we have sufficient capacity in hotel rooms to accommodate the new arrivals? The answer is also to be found in China.

Tourism is a distinct possibility for Chinese investment given the growth of world tourism, the forecast of significant increase in foreign travel by Chinese and the fact that China is now a major source of foreign investment.

This has started to happen in the Caribbean. In February 2011, construction started on the Baha Mar, a 3,800 room, $3 billion resort in Nassau, Bahamas. It is being financed by the Export-Import Bank of China, and construction will be carried out by Chinese enterprises.

The Bank of China and the Foreign Trade Bank of China will provide $462 million in financing for the Punta Perla tourism complex in the Dominican Republic which is being undertaken by Spanish investors. The transaction marks the first Chinese investment in the Dominican Republic and is all the more remarkable because of its diplomatic affiliation with rivals Taiwan.

The possibilities of attracting Chinese tourists to Jamaica are good but will need a marketing strategy. If this is done and a demand for travel to Jamaica emerges the opportunity to finance and invest in the ownership of hotels is not likely to escape the attention of Chinese investors and its government. It will not be long before private Chinese investors become willing to buy into global hotel chains and cruise shipping.

With strategic planning and creative marketing Jamaica could be early in capitalizing on both Chinese tourists and investment.

Source: The Jamaica Observer