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Exploring the Lat-Am potential

Dennis Morrison, Contributor

The local tourism industry is showing greater interest in pulling visitors from Latin America as it tries to weather the economic storm battering our traditional markets in North America and Europe.

In this regard, the news that two charters are expected to continue to bring tourists from Ecuador is encouraging. The reality, however, is that this market will not provide a quick-fix in efforts to diversify Jamaica's sources of visitors.

Favourable

Latin American economies have had a record of instability. While the region's population of well over 400 million people, spread across Central and South America, represents a sizeable potential market, its economies' sharp ups and downs have affected business links with Jamaica. Brazil, Mexico, Argentina and Peru all experienced severe economic crises in the 1980s and 1990s, but have emerged stronger in recent years. Indeed, Brazil is now among the world's top 10 economies, with Mexico not being too far behind. Thus, the environment is becoming more favourable for a steady expansion of business ties.

Direct flights

Because Jamaica's air links with Latin America are underdeveloped and no regular direct flights exist, visitors must travel via Miami, which involves costly and tedious visa arrangements.

Recognising the critical importance of this issue, teams from the Jamaica Tourist Board, Airports Authority and the Ministry of Transport visited Latin America in 2004 and 2005 to expedite otherwise lengthy negotiations of air services agreements with Brazil, Chile, Mexico and Venezuela. As a result, agreements were concluded with Brazil, Chile and Mexico which allow for arrangements to be made for scheduled direct flights by carriers from these countries.

What should have followed are the commercial negotiations with airlines to secure flights into Montego Bay to serve our tourism industry and for European and North American bound traffic seeking an alternative connection point to Miami. Foremost among the airlines are Lan formerly Lan Chile which is the main carrier in several South American countries and a financially strong entity. The agreement with Brazil had contemplated a special role for Air Jamaica on the route to Rio de Janeiro, apart from airlines from Brazil.

relatively low

In the absence of regular flights, whether scheduled or charter, Jamaica's tourist traffic from Latin America has been dependent on connections through the US and on short-term charters from Colombia and Ecuador. Given this and other limitations it is not surprising that visitor arrivals are relatively low. In 2001, arrivals from the region stood at 14,815, but fell sharply to 8,428 by 2005. With increased marketing activity and support for airlift following the appointment of a dedicated marketing representative, Alex Pace, under the JTB's restructuring exercise in 2003/ 2004 arrivals recovered to reach 16,122 by 2008.

Apart from the improved economic situation in Latin America, the presence of the Spanish hotel chains in Jamaica has laid the ground for increased traffic as these chains are popular in that market with their hotels in Cancun, Cuba and the Dominican Republic attracting tourists from all over the region.

The focus now must therefore be on securing airlift and increased marketing in partnership with these chains and others like De Cameron, as well as Jamaican brands that are already established in those markets.

hospitalityjamaica@gleanerjm.com