Already disbursed 162 loans valued at some J$1.56 billion

Durrant Pate/Contributor

There has been a strong take-up of the Government of Jamaica (GOJ) special loan facility for tourism stakeholders with more than J$1.5 billion being disbursed already.

The facility was announced over a year ago with J$1 billion earmarked by the Tourism Enhancement Fund (TEF) to provide financing to Small and Medium Tourism Enterprises (SMTEs) and Linkages Network as well as manufacturers and suppliers to the industry. The loan facility, managed through Jamaica’s EXIM Bank, is geared at creating an enabling environment to foster the growth and development of tourism stakeholders in order to create a more inclusive sector.

To date, some 162 loans valued at some J$1.56 billion have been approved and disbursed to 72 beneficiaries. Tourism Minister Edmund Bartlett, who gave an update on the special loan initiative in Parliament on Tuesday, highlighted that “this specialised lending programme has been particularly important over the last 24 months of the COVID-19 pandemic, as the ministry and its tourism partners, along with the EXIM Bank, worked proactively and diligently to provide relief to players in the tourism value chain”.

In closing the 2022-2023 Sectoral Debate in Parliament, Bartlett explained that the loan facility took the form of extended payment moratoria and debt restructuring, noting that in some cases, where practicable, EXIM Bank was able to support capital improvements during the downturn period after the breakout of COVID-19.

More loans being processed

The tourism minister disclosed that an additional J$100 million in loan applications are still being processed by EXIM Bank, as the tourism sector rebounds.

“We believe through this loan programme a significant contribution has been made to the economic growth of Jamaica through foreign exchange earnings from businesses engaged in the tourism value chain and ensuring that approximately 1,300 jobs are sustained,“ Bartlett told the House of Representatives.

He announced that the TEF was making progress with the Tourism Incubator, noting that a task force has been set up with a variety of key stakeholders to guide the establishment of the incubator with the goal of having the first call for ideas before the end of the financial year.

PARTNERSHIP TO EXTEND BEYOND TOURISM INCUBATOR

TEF is partnering with the Development Bank of Jamaica on this important initiative.

In addition, TEF has begun discussions with potential Information Communication Technology partners, as technology will play a key role in the operations of the incubator and enhancing the sector overall.

Bartlett said this partnership is expected to extend beyond the tourism incubator and will entail initiatives geared towards utilising technology in local hotels and attractions, as well as the tourism value chain to create exciting and efficient experiences for all players in the sector.

“You will hear more on the incubator’s technology partners in the coming weeks,” Bartlett promised.