1 September 2009
Despite a 3.3% increase in the number of tourists visiting the Caribbean islands of Jamaica, a rise in the number of residential and hotel units constructed, has seen supply exceed demand, causing a decline in the average occupancy level in the country.
The news is bad for investors who own property in Jamaica, particularly those focused on the buy-to-let sector in the country.
Yesterday, Tourism Minister Edmund Bartlett, urged people in Jamaica to be careful about the demands they place on the tourism sector, particularly during the existing global economic downturn.
Bartlett offered his comments in a statement, following the announcement that the Jamaica property scheme Iberostar Rose Hall was being temporarily closed, due to the impact of the global economic crisis on tourist travel.
“While tourism arrivals are increasing, we need more than the 3.3% growth which we are now experiencing to fill our hotel rooms at this time,” Bartlett said. “The fact is that our room numbers have been growing, at a time when the world economy is in a downturn and most other tourism destinations have been hurting from serious declines in visitor arrivals.”
Iberostar Rose Hall, one of three Montego Bay resorts, located 20 minutes away from the Sangster International Airport, has been forced to temporarily close and release 320 employees.
Managing director Philipp Hofer commented: “We [Iberostar Rose Hall] are currently running at 16% occupancy level, and we see no improvements in forward bookings to minimise the losses.”
See Also: Marc Da-Silva (269), Jamaica (1), Caribbean (4), Overseas property investor news (42)
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