Alternative financing product expected to be available to public before year-end, subject to regulatory approval

NCB Capital Markets Limited’s (NCBCM) creative tourism alternative financing product – the Tourism Response Impact Portfolio (TRIP) – has received overwhelming endorsement from the Government and tourism interests.

Officially launched last Thursday, TRIP is one of four funds in the Stratus Alternative Investments SCC suite, managed by NCBCM. TRIP was established to provide creative and bespoke financing solutions to industry players given the increased uncertainty stemming from the COVID-19 pandemic.

TRIP provides investors with the opportunity to provide tourism players with creative funding solutions needed for retooling and sustaining their operations while facilitating broader investor participation in the fund with returns commensurate to the associated risks.

Tourism Minister Edmund Bartlett, addressing the launch as keynote speaker, cited TRIP as “a well-needed creative alternative funding source, which will undoubtedly aid in the recovery of Jamaican’s tourism sector from the COVID-19 pandemic”.

He also gave NCBCM credit for moving in this direction.

Tourism minister bats for creative financing for the sector like TRIPS

He pointed to the vast linkages the hospitality industry has to sectors such as manufacturing and agriculture; arguing that these opportunities will be missed if the banking sector is more focused on providing loans for consumer durables and motor vehicles. Bartlett argued that many great ideas on new and innovative tourism services are contending but lack creative financing to bring them into operation, calling for more adaptive financing such as TRIP.

Highlighting the need to incentivise great ideas, turning them into solid businesses requires a new creative and alternative funding solutions, the Tourism Minister credited TRIP as one such alternative financing option, which needs to be exploited by tourism sector interests.

Tracy-Ann Spence, chief operating officer of NCBCM, highlighted the competitive strengths of TRIP in three main areas: the uniqueness of the tourism sector opportunity, NCBCM’s regional originating infrastructure and investment expertise, and the strong governance of Stratus.

Tourism interests endorsing TRIP

Players in the industry gave their support to TRIP during the panel discussion at the launch, citing the necessity for such funding source within the industry to recover much stronger.

CEO of Chukka Caribbean Ventures, Marc Melville said “such a funding scheme is long welcomed; it is well needed”.

Melville added that the alternative funding arrangement can potentially assist his company through the current pandemic, noting that, outside of the Dominican Republic, Jamaica is on the cutting-edge in terms of innovation in investment banking.

CEO of Couples Resorts, Glenn Lawrence, in his comments, drew drew reference to the struggles encountered by Couples, following 9/11, which significantly slowed the industry, but outlined that banks were willing to adjust loan terms to alleviate the situation. He, too, praised TRIP, describing it as a necessary tool to cater to the specific concerns of the tourism market