Jamaica is a popular vacation destination, but that hasn’t helped the economy there as much as one might think. Part of the problem is that Jamaican-owned and operated businesses have a hard time competing with larger travel companies and resorts. As a result, much of the money that comes into Jamaica from tourism turns around and goes back overseas.
That’s why the country’s tourism board is earmarking funds for small and medium-sized tourism-related businesses.
Traditionally, smaller businesses have had trouble getting the capital they need to grow, explained Minister of Tourism Edmund Bartlett. The country’s Tourism Enhancement Fund will make $1 billion available for these business owners in a new loan program being coordinated by EXIM bank.
“Providing access to capital is one of the keys to unlocking the true potential of our small businesses, which will enable them to upgrade and become more productive,” said Bartlett.
The loans will be targeted toward businesses in the health and wellness, knowledge, shopping, and sport and entertainment fields.
The reasoning behind the loan program is that if more people coming to Jamaica spend their money at local businesses, more of that money stays in the country and gets used to support the economy and infrastructure.
A government stepping in to help keep a business sector afloat is not a particularly new or experimental idea, but it can be helpful. The value of the tourism dollar has been dropping, but Jamaica is being smart by moving in with this program now instead of after that market collapses.
What will this mean for tourists? Probably a wider variety of services and goods in Jamaica. For those who don’t want the all-inclusive resort model of travel, it will likely be a boon. Being able to get away from the sterile, Americanized resort space and actually experience Jamaica will attract more travelers who want an authentic experience, and with greater support for local business, it will be easier for tourists to do just that.
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