Support for Small Hotels in Jamaica Still Strong

Small hotels represent a third, or just under 10,000 of Jamaica’s hotel room stock, and despite the all inclusive concept, have contributed significantly to the growth of the hospitality sector over many years.

They represent the entrepreneurial spirit of many Jamaicans, President of the Jamaica Hotel and Tourist Association (JHTA), Wayne Cummings tells JIS News, and they must receive continuous support. “They may not necessarily have the resources to be innovative, but they employ a lot of people, they are in a lot of places and they are truly representative of what Jamaica is,” he says.

Cummings explains that small hotels have taken a beating from the global economic recession, as they are naturally less competitive due to their higher operational costs. “It’s been quite difficult. There have been some successes, however. There are some properties that have found their niche on the Internet as well as in specific marketplaces - case in point are some of the hotels on the west end of Negril,” he notes.

Added to overheads is the fact that occupancy on average for small hotels has been far less than for the larger hotel category. “If the national average was about 62 per cent in 2009, I would say that they did closer to 45 per cent, which in many instances does not necessarily equate to breaking even,” Cummings informs.

He says the JHTA has done a lot of work with the small hotels, especially toward the end of 2008 when the recession was bearing down. “We spoke with them about some of their operational needs, gave them pointers with regard to renegotiating their contracts, particularly their buying contracts,” he notes. The Association also helped the hotels to assess the strength of their management tools, particularly in hiring, and their purchasing power.

“A number of those (measures) have worked quite significantly for them, so that continues. We also tried to have them ramp up their marketing, particularly with the established trade shows on the marketing calendar,” he outlines.

He points out that the profile of visitors to small properties vary, and include an interesting mix of people, such as the budget conscious, and those who are looking for a more intimate vacation experience, but do not necessarily have less of a disposable income.

The support and assistance being provided by the Government has proven to be critical. Cummings says the government has been playing its part in keeping small properties viable, with the strengthening of the regulatory framework. He also notes that ensuring that minimum standards are kept for operating any accommodation, has been the mantra of the Tourism Product Development Company (TPDCo).