KINGSTON, Jamaica – The Government of Jamaica will engage a team of consultants to work with a Task Force to trace the impact of tourism on the economy, Minister of Tourism, the Hon. Edmund Bartlett revealed Monday, at the signing of a J$100 million low-interest facility established by the Tourism Enhancement Fund (TEF) with JN Small Business Loan Limited (JNSBL).
The consultant team, to be named next month, will be mandated to identify the demands of the sector, with a view to assisting local suppliers to fill those needs.
“Within six months, Jamaica should have empirical data to corroborate the demand for goods and services in the tourism sector, so we can say to our bankers, you can lend against this, as it represents real demand in the market,” Minister Bartlett said.
The TEF funds, to be on lent by JNSBL the microfinance subsidiary of Jamaica National Building Society, is targeted to small businesses that supply goods and services to the tourism sector. The loan will complement the work to be implemented by the Task Force, the Tourism Minister noted, as it will help to build the capacity of businesses, and improve productivity to meet the demands of the industry.
This will also open up opportunities for tourism to penetrate the economy in a more meaningful way. Tourism currently contributes nearly eight percent to the Gross Domestic Product, according to the Ministry of Tourism; and, the Minister suggests that the economic impact could be far greater.
“How does the tourism dollar benefit the people in this country? How do we enable the well being of the country while, providing pleasure for visitors?” he asked, emphasizing that these are some of the issues the Ministry is working to address by establishing the Task Force and enabling the loan facility.
Frank Whylie, General Manager of JNSBL, said the loan facility will meet critical needs of small businesses in the sector to boost performance. Speaking at the signing of the agreement at the Tourism Ministry Monday, February 28, he explained that the TEF Loan Scheme will provide a maximum loan of $5 million to small entrepreneurs, for a period not exceeding five years, at an interest rate of five percent on the reducing balance.
“The Scheme is specially designed for established sole traders, partnerships and companies; however, it will also facilitate new businesses,” he said.
To qualify for the loan, businesses must be in operation for at least one year; and must have obtained all the necessary licenses and permits to operate the entity.
“New businesses will be considered…if they are registered in Jamaica as sole traders, partnerships or companies; and possess a business plan; as well as, clearly established markets for the goods and services they produce; as well as prior experience in the business being pursued,” Mr. Whylie explained.
He pointed out that JN Small Business will accept a first charge on assets bought with the loan funds, as collateral, in addition to documents authenticating the Guarantee of Directors; a charge over real estate, or charge over motor vehicle or other specialised equipment.
“Real estate and equipment given as collateral for loans must be supported by valuation reports, which are not more than six months old; and, in the case of motor vehicles, the valuation report should be no more than three months old,” Mr. Whylie advised. New businesses must also provide a satisfactory report from their bankers.
A moratorium of six months is available to beneficiaries of the loan he added; and this will provide businesses with a window to recover from difficulties that may arise.
“We anticipate that this loan will assist businesses to improve their performance in a manner that will allow profits accrued from the tourism sector to flow directly into the economy; and, thereby enrich the lives of many Jamaicans,” Minister Bartlett said.
It our hope that this timely loan facility will continue to drive the sustainable growth of the sector, the Tourism Minister affirmed.
