Sandals to spend US$20M on J'can properties
KINGSTON, Jamaica--Hoteliers and other players in the tourism sector are set to benefit from a 10 per cent duty waiver on the importation of material that will be used to refurbish their facilities, under a new programme called the Tourism Industry Refurbishing Programme (TIRP).
Tourism Minister Edmund Bartlett, who made the announcement Wednesday, said the programme will boost the tourism sector and improve its competitiveness, by enabling eligible entities to carry out refurbishing work at their establishments in an effort to contribute to the modernisation and competitiveness of the Jamaican product.
"The immediate impact of this policy is to create jobs, create revenues and to enable greater economic activities within the sector and of course at the backend is to ensure that our products are perpetually fresh and we remain competitive," said Bartlett, who was addressing the media at the signing ceremony of a J$100-million contract between the National Solid Waste Management Authority and the Tourism Product Development Company at the ministry's office in New Kingston.
The money will be used to spearhead phase four of the Spruce-up Jamaica Programme, which will benefit several parishes island wide.
The TIRP, said the tourism minister, is being implemented to encourage players in the tourism sector, especially the smaller hoteliers who would otherwise be unable to renovate due to the high associated cost.
The initiative, said the minister, is very timely and should speed up the recovery of the tourism sector which suffered fallout in arrivals following the recent unrest in West Kingston.
The programme will benefit owners of hotels, villas, guest houses, attractions and water sport operators which have been in operation for at least five years and will be undertaking a refurbishing programme at a cost of at least J$500,000.
Beneficiaries of the programme, said Bartlett, are expected to purchase goods from local manufacturers where it exist in quality and quantity and will be given a 15 per cent income tax credit.
Tourism entities that have benefited from the Hotel Incentive Act or currently benefiting from a similar programme will not be able to access the incentives under the refurbishing programme.
The programme was immediately endorsed by Wayne Cummings, president of the Jamaica Hotel and Tourist Association.
"We think that this initiative which has been pushed through by the Government is really a tremendous effort on their part and it shows good faith in terms of our partnership with the private sector," Cummings told reporters. He added that it was a very bold move which will encourage investors to the country.
Meanwhile, Adam Stewart, chief executive officer of Sandals Resorts International described the programme as a "game changing initiative." Sandals, he said, will make the most of the initiative.
"We have invested more overseas in the last decade than we have in Jamaica simply because the other islands have made it more efficient for us," said the Sandals CEO.
Stewart said the new programme has caused a change in his company's operation as funds have now been brought back from overseas to develop the facilities in Jamaica.
He said that US$20 million will now be spent to refurbish its Jamaican properties during the fall period and that about 1,000 Jamaica workers will be employed as a result.
The tourism refurbishing programme is scheduled to last for five years and will be reviewed after the first three years to determine whether or not it should be extended. Jamaica Observer
