There has been a spike in hotel booking cancellations globally since the Omicron strain of COVID-19 was detected last month.

This rapid cancellation of hotel bookings is threatening the rate of recovery in global tourism.

While local hoteliers in Jamaica have not reported any massive rise in cancellations, concerns still abound that the new COVID-19 variant will put a damper on Jamaica’s recovery.

Jamaican stakeholders are currently predicting that the destination will have the best winter season since 2019, when COVID was first detected. However, Jamaica continues to see a rise in cruise passenger arrivals and a positive forecast for stopover arrivals but analysts foresee future cancellations, as Omicron cases are doubling every 1.5 to three days.

LOCAL HEADWINDS FOR INFLATION RATE

In fact, the US Centers for Disease Control and Prevention says it is expected to become the “dominant strain” in the US in the coming weeks. This could deter travel, limit the recovery in the local tourism sector, and lower-than forecasted growth for 2022 (4.6 per cent, according to the International Monetary Fund).

A drop in the pace of domestic recovery could cause local headwinds for the inflation rate. The supply chain impact from Omicron could put upward pressure on inflation, which will likely keep central banks across the globe on alert.

Omicron was first reported to the World Health Organization on November 24, 2021. This new variant was first detected in specimens collected on November 11, 2021 in Botswana and on November 14, 2021 in South Africa.