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Stop the double standard
2008-05-17 Written by: No Author
In the-mid 1980s, the leadership of the Private Sector Organisation of Jamaica (PSOJ) was very effective in lobbying the government to adopt policies for liberalising the Jamaican economy. The PSOJ leaders argued convincingly that opening the economy to competition was a critical step for attracting investment and spurring economic growth, without which the standard of living of Jamaicans could not be improved.
The rapid expansion of access to telecommunication services and the transformation of the quality of service were perhaps the most powerful evidence of the benefits of competition to ordinary Jamaicans. The market also provided new opportunities for both consumers and businesses.
In some areas the winds of competition are, however, being stoutly resisted. An outstanding case in point is the opposition to the entry of Spanish hotel chains into the local tourist industry. This industry, which has become the engine of economic growth, was, up to recently, controlled by two players who dictated the pace of investment and the direction of future development.
Too often the Jamaican government was manoeuvred into putting up large sums to meet their need for investment capital even while resources were short for vital public services. In several instances, state property was also sold cheaply to facilitate their expansion.
Spanish hotel chains, which are now establishing resorts in several areas of Jamaica, have fundamentally altered this equation. Not only have they come with their own capital, which is projected to amount to US$2.5 billion by 2012, but the country has begun to benefit from increased airlift and the marketing clout of these chains. Already, market exposure of our tourism product in Canada and Europe has been broadened, resulting in accelerated growth in visitor arrivals from these regions. All of this is happening without adding to the burden of the Jamaican taxpayers.
Stung by the threat of competition, those who would wish to maintain their stronghold on this vital industry have been mounting a belligerent campaign against resort projects being developed by the Spanish chains. Using half-truths and misinformation, they clearly are bent on setting the government against the Spanish, in the hope of discouraging further investments from this source.
Unfortunately, there is more than a perception developing that the government is pandering to these interests and has bowed to their tactics. How else can one explain the mishandling of the situation at the RIU project in Montego Bay? Not only did the Prime Minister act without establishing the facts, but he also cast aspersions on the integrity of the investor without providing credible evidence. By his hasty actions, he could well have done serious damage to investment projects in this vital industry.
It is not too late for the government to take urgent action to resolve the issues involving RIU, within the framework of respect for the rules and regulations of the planning authorities.
2008-05-17 Written by: No Author
In the-mid 1980s, the leadership of the Private Sector Organisation of Jamaica (PSOJ) was very effective in lobbying the government to adopt policies for liberalising the Jamaican economy. The PSOJ leaders argued convincingly that opening the economy to competition was a critical step for attracting investment and spurring economic growth, without which the standard of living of Jamaicans could not be improved.
The rapid expansion of access to telecommunication services and the transformation of the quality of service were perhaps the most powerful evidence of the benefits of competition to ordinary Jamaicans. The market also provided new opportunities for both consumers and businesses.
In some areas the winds of competition are, however, being stoutly resisted. An outstanding case in point is the opposition to the entry of Spanish hotel chains into the local tourist industry. This industry, which has become the engine of economic growth, was, up to recently, controlled by two players who dictated the pace of investment and the direction of future development.
Too often the Jamaican government was manoeuvred into putting up large sums to meet their need for investment capital even while resources were short for vital public services. In several instances, state property was also sold cheaply to facilitate their expansion.
Spanish hotel chains, which are now establishing resorts in several areas of Jamaica, have fundamentally altered this equation. Not only have they come with their own capital, which is projected to amount to US$2.5 billion by 2012, but the country has begun to benefit from increased airlift and the marketing clout of these chains. Already, market exposure of our tourism product in Canada and Europe has been broadened, resulting in accelerated growth in visitor arrivals from these regions. All of this is happening without adding to the burden of the Jamaican taxpayers.
Stung by the threat of competition, those who would wish to maintain their stronghold on this vital industry have been mounting a belligerent campaign against resort projects being developed by the Spanish chains. Using half-truths and misinformation, they clearly are bent on setting the government against the Spanish, in the hope of discouraging further investments from this source.
Unfortunately, there is more than a perception developing that the government is pandering to these interests and has bowed to their tactics. How else can one explain the mishandling of the situation at the RIU project in Montego Bay? Not only did the Prime Minister act without establishing the facts, but he also cast aspersions on the integrity of the investor without providing credible evidence. By his hasty actions, he could well have done serious damage to investment projects in this vital industry.
It is not too late for the government to take urgent action to resolve the issues involving RIU, within the framework of respect for the rules and regulations of the planning authorities.