Global shifts impacting tourism sector, says Seiveright

WESTERN BUREAU:

Senator Delano Seiveright, the state minister in the Ministry of Tourism, has warned that rising global protectionism and trade tensions are beginning to impact Jamaica’s tourism industry.

He noted that escalating geopolitical issues are disrupting supply chains and driving up the cost of key goods and services vital to the tourism sector.

“From construction materials to hospitality technology, cost increases are being felt across the sector. This is the new operating environment we’re in,” he shared last week.

Seiveright noted that changing global monetary policies – particularly as central banks move from tight to more neutral stances – could also affect consumer spending in key tourism markets, including North America and Europe.

He expressed concern about the resurgence of nationalism and protectionism, describing it as a reversal of the wave of globalisation that had fueled tourism growth over the past two decades.

“It’s unbelievable that in 2025, we are having these conversations. Historically, these things have a strange way of repeating themselves,” he remarked. “Tourism thrives on openness, on free movement, and those ideals are under pressure.”

Despite these headwinds, Seiveright pointed to new opportunities for growth – such as global infrastructure partnerships and the expanding outbound tourism market in China.

He also highlighted the transformative role of digital technology, including artificial intelligence tools like ChatGPT and the growing importance of data regulations.

“These policy shifts are not theoretical. They are actively changing how we do business, engage customers, and plan ahead,” he said.

Seiveright emphasised that despite emerging global challenges, Jamaica’s tourism sector has demonstrated consistent growth over the past 30 years and continues to be a major driver of economic development. He noted that in 2024, Jamaica welcomed approximately 4.15 million visitors, generating an estimated US$4.3 billion in revenue.

However, he acknowledged that the past year came with its own set of hurdles – including uncertainty around the US elections and the effects of negative travel advisories.

“We’ve been battling the effects of the US travel advisory, and we’re really hoping for good news very soon on that,” said Seiveright. “There’s been quite a bit of anxiety and uncertainty, especially among green card holders. That has been a unique challenge for us.”

Still, the junior tourism minister remained optimistic.

“We’ve recorded one million stopover arrivals since the start of this year, even though the numbers are relatively soft compared to last year. Things are looking relatively good so far, but situations can change overnight. We must stay alert and adaptive.”

Speaking at the National Commercial Bank (NCB) Chief Executive Officer Connect Luncheon at the NCB Financial Wealth Centre in Fairview, Montego Bay, last week. The event, which brought together top business leaders, policymakers, and stakeholders, was held under the theme ‘Strengthening Jamaica’s Hospitality Industry Amidst Global Policy Shifts’.

AIRBNB GROWTH

Seiveright also used the luncheon to spotlight one of the most significant shifts in Jamaica’s tourism industry – the meteoric rise of Airbnb and other short-term rental platforms.

“In 2017, Jamaica welcomed approximately 59,500 Airbnb guests. Last year, that number soared to about 840,000. That kind of growth tells a powerful story, Jamaican people are stepping up, opening their homes, and becoming tourism entrepreneurs,” Seiveright said.

Seiveright recalled a 2017 visit to Airbnb’s global headquarters in California alongside Tourism Minister Edmund Bartlett, where Airbnb executives expressed strong confidence in Jamaica’s potential.

“They saw it from early on – the culture, the warmth, the vibe. They believed Jamaica could be a standout destination for community-driven tourism,” he noted.

That prediction has proven accurate. In 2024 alone, Jamaican Airbnb hosts earned over J$32 billion in revenue. Listings span the island – from the vibrant music culture of Trench Town in Kingston to the tranquil shores of Treasure Beach in St Elizabeth, the popular Negril strip in Westmoreland, and the scenic hills of Portland.

“This is not just about rooms. It’s about empowerment,” stated Seiveright. “We’re seeing single mothers, retirees, and young professionals all stepping into the tourism space, earning an income, and sharing Jamaica with the world.”

Seiveright, who oversees tourism linkages, has long advocated for stronger connections between tourism and the broader Jamaican economy. He said continued government investments in infrastructure, such as digital access and road upgrades, are key to ensuring more communities benefit.

“This is not a top-down model. It’s grassroots, it’s community-focused, and it’s authentically Jamaican. From yard to the world, we’re telling our story, and the world is listening,” he noted.

editorial@gleanerjm.com