The debate over the contribution of tourism sector revenues relative to diaspora remittances to the Jamaican economy continues to be a hot topic, at least among diaspora Jamaicans who demand full and meaningful engagement with the Jamaican government. The public benefits of the tourism sector are due to perceived rather than actual impacts. The tourist profile, the gorgeous facades and beautiful architecture along Jamaica’s pristine coastline, and the public relations efforts that accompany tourism promotion, including government resources dedicated to tourism development and promotion, all contribute to this recognition. I am.
The Gleaner editorial “Tourism and Production” (6 May 2024) provided an opportunity to discuss this issue. As stated, “Tourism’s economic contribution to the economy is of equal, if not more, importance.”According to the Minister, last year’s revenue from the tourism sector was US$4.38 billion, and by 2022-2023. It increased by 9.6%.”
Very impressive. But most important to this discussion are the qualifiers. “Mr Bartlett said 40 per cent of that revenue (US$1.752 billion, or more than J$271 billion) remains in Jamaica. This means that 40 cents of every dollar earned in tourism is “I oppose the portion paid to foreign goods and service providers to keep the industry afloat, meaning it is spent in the economy or remains in Jamaican bank accounts.” ”
This means 60 per cent of tourism revenue leaves Jamaica. In fact, you probably never entered the country in the first place. why? This is because many tourism products, such as hotels and tourist attractions, are foreign-owned and their owners deposit their profits in foreign banks. In other words, it is the headquarters of these foreign companies. That’s the reality of international business. Most hotel owners are multinational companies.
The Gleaner editorial also noted that “Tourism’s total revenue of $4.38 billion makes it Jamaica’s biggest earner of foreign exchange, but Mr Bartlett estimates that 40 per cent of domestic retention ($1.75 billion) goes to remittances. He also mentioned the fact that it came in second place. Sectors related to direct circulation in the local economy. Jamaicans abroad sent home $3.1 billion last year, 46% more than they saved domestically from tourism, according to central bank data. ” This means that his 100% of all US dollars in diaspora remittances will remain in Jamaica.
I believe that total tourism receipts should not be included in the data in order to be classified as “Jamaica’s largest foreign exchange earner”.
However, that “46 per cent more than domestic savings from tourism” means that discrete remittance spending in the Jamaican economy exceeds tourism spending by US$1.35 billion, and in addition, remittances have a significant multiplier effect, increasing the It means that it has an impact on the lives of people. Again, diaspora remittances exceed tourism receipts retained in Jamaica by US$1.35 billion. In addition to this cash profit, in-kind contributions to schools (educational institutions and students), health facilities, and volunteer health services provided directly and free of charge annually to thousands of Jamaicans, the poor and marginalized. It includes material donations to NGOs that provide services to people.
The tourism sector contributes significantly to Jamaica’s GDP and therefore to the Jamaican economy, which in turn adds value to those whose livelihoods are directly or indirectly affected. The tourism sector contributes to low-income employment for thousands of Jamaicans.
vulnerable
At the same time, we experienced how vulnerable the tourism sector is to external economic shocks, natural disasters, disease pandemics, travel boycotts, and travel advisories issued by major supplier countries. More recently, we have experienced a sharp decline in tourism sector revenues due to the COVID-19 pandemic, contrasted with a parallel steady increase and reliability of discrete remittances. Perhaps discrete remittances saved Jamaica’s economy from collapse at a time when tourism revenues collapsed.
The Jamaican government and its arm, the Bank of Jamaica, have been vocal about record levels of National Foreign Exchange Reserves (NIR). The government boasts of the NIR’s record as a major economic achievement of the current administration. This declaration is often heard at the same time as statements about record tourism receipts. Not much has been said about the contribution of discrete remittances to the NIR. Nothing is said about the link between the increase in NIR and the steady and predictable flow of diaspora remittances. Too many people in Jamaica are not exposed to or do not understand this connection. I believe this is an unintentional and inadvertent way for governments to silence the diaspora, keep the population in the dark, and thereby justify the exclusion of the diaspora from influencing governance and influencing government policy and decision-making. We should hope that the policy is as follows.
Tourism industry leaders wield significant influence over government policy and decision-making. The government jumps on them when they speak. The Jamaican diaspora has no such influence. Perhaps the diaspora is taken for granted, their voices are often ignored, and many, including governments, avoid defending them. Sadly, there are many Jamaicans who object to the diaspora having any impact on the quality of governance in Jamaica. I am not encouraging Jamaicans abroad to vote in Jamaica. Never. But I have consistently advocated for ways to meaningfully impact governance, including the right to criticize government poor performance and the right to access courts to hold governments accountable for defaults, torts, and wrongdoing. We have supported diaspora engagement.
There is a lack of available, or at least unpublished, data on the multiplier effect of remittances on the lives of Jamaicans and the economy as a whole. GDP numbers are just the tip of the iceberg. CAPRI’s 2017 report on remittances, published on the sidelines of the 2017 Biennial Diaspora Conference, attempts to put this into perspective. However, more comprehensive research is needed to fully inform Jamaicans of the synergistic effects that diaspora remittances have on their daily lives. Data is available from school boards, school principals, beneficiary students, the Ministry of Health (estimates), artisans, shopkeepers, and small and medium-sized enterprises such as small-scale farmers and fishermen. The Customs Bureau should also have useful data.
A lack of widespread public knowledge about the impact of diaspora remittances contributes to misinterpretation of diaspora realities and demands. Many are quick to suggest, unknowingly, falsely, dishonestly, or deliberately, that diaspora grievances are limited to a small portion of the diaspora. Therefore, the diaspora can be ignored. There is a disconnect between perception and reality.
Mr. Curtis Ward is a former United Nations Ambassador to Jamaica and has special responsibility for Security Council affairs. He is a lawyer and international consultant on geopolitical and international security issues and an anti-corruption advocate. Please send your feedback to columns@gleanerjm.com.
