Solving the Capital Leakage Problem with the Help of Local Assets: Jamaica

Before discussing a possible marketing plan for Jamaica’s tourism, it would be helpful to start with the physical description of the island. Jamaica’s terrain is predominantly mountainous, where a sandstone plain covers nearly 67 percent of the mainland, and sinkhole groupings dominate the island with caves (Marsooli & Lin, 2020). It also has slender coastline lowlands, high-density green tropical forests, sandy hangars, and beach resorts. The island’s physical features could be classified into three categories: the core hillside shaped by granitic and magmatic rocks; the sinkhole highlands in the Cockpit zone; and the low-lying coastline flatlands and internal ravines. Sandstone establishment lasts throughout the island, particularly in the western parts. The majority of Jamaica’s rivers are too small to accommodate large cruise ships, except for The Black River, which is Jamaica’s one of the lengthiest rivers. The waterfalls in Jamaica are mainly created by river systems flowing over the edge of a hilltop. Tourists can clamber up to relish a multitude of babbling waterfalls.

Few vacationers are aware that Jamaica is among the Caribbean’s broadest islands. It extends 145 miles eastward, with a sequence of mountainous regions and going up to more than 7,400 feet at their maximum height in the east (Marsooli & Lin, 2020). Jamaica has become a vacation spot with numerous outstanding hotels, guesthouses, and hostels. Multiple airports, motorways, and harbors from which visitors can reach supplement the list of Jamaica’s attractions. Jamaica offers many all-inclusive luxury hotel channels, including the Sandals and Couples and famous resort locations like Port Antonio, Ocio Rios, and Montego Bay. The greenery combines verdant tropical woodlands and rich coffee farmlands, allowing tourists to observe the manufacturing of one of the planet’s most widely appreciated beverages (Rowntree, 2018). The country resembles a beautiful green tropical heaven in every possible way, including the climate. Jamaica has more than 300 sunny days yearly, even in the middle of the rainy period. Possessing such tourist-friendly features as described above, Jamaica can be regarded as an ideal vacation spot.

Despite the island’s small size, it offers so many activities and entertainment venues that a single trip might be insufficient. With the help of a guide, tourists can rise to the organic layers to the upper edge of the waterfalls and cool down in the nice puddles at the bottom. The most engaging activities involve mountain climbing, lush tropical forest trails, boating in the Rio Grande, visiting Reach Falls, scuba diving, and swimming in the corals. The stunning Blue Lagoon, nourished by groundwater streams, is a popular swimming location. The Blue Hole is a collection of scenic lakes and ponds supplied by cascading waterfalls. Guides can take tourists on a tour of the location, where they can investigate the rivers and climb off cliffs into the fabulous swimming pool below. The Rios Jazz is regarded as Jamaica’s highest quality modern jazz festival. Aside from the main festivals, tourists can visit a lot of free jazz concerts throughout the island. Last but not least, Portland Jerk Festival allows tourists to try several peppery variations on typical Jamaican cuisine offered with traditional main dishes, including crops and peas, jackfruit, and yams.

Tourism is commonly regarded as a significant economic driver in Jamaica. The sector contributes significantly to taxation, work opportunities, revenue, and foreign currency inflows. Because of its connections to many areas of manufacturing, it affects a broad swath of the country’s economy. The hospitality industry segment has expanded more than any other in the Jamaican economic system over the last few years. It implies that, in terms of capacity, tourism is the driving force behind Jamaica’s growth in the economy. If cost increases are excluded, tourism has increased faster than all other sectors throughout the past years. Even though tourism has become a bright spot in economic development, the sector confronts a few significant problems. A major worry generated was capital leakage, with imported goods and the price added to service suppliers like airline companies and tour companies centered abroad defined as the primary contributor to leakage. Another effect is the ability of a foreign investment to take advantage of duty-free imports, which could be prolonged further than the initial ten-year investment contract via the widening of propositions. The very same deferral, regrettably, relates to domestic hotel corporates.

A solution to Jamaica’s capital leakage problem would contain three strategies, which include establishing a co-operative, pricing significant entry fees to community landmarks, and trying to sell domestically crafted goods. The creation of a co-operative is linked to efforts to increase jobs for local people, and entry fees are linked to attempts to enhance profitability and lessen leakages. Domestic product sales are linked to efforts to bolster connections between tourist activities and the domestic manufacturing frame. It must be mentioned that all communities use some blend of different techniques, but it is practical to concentrate on the fundamental strategies, which were listed above. According to the first strategy, the wages of the local population rise, the volume of effort they put into competing decreases, and the locals’ bargaining power increases. The second strategy could guarantee that tourists’ spending is directed immediately to the domestic market, lowering cumulative leakage out of the country. Finally, the local market can retain most of its revenue by merchandising locally-made commodities, while most of the cash invested on goods produced outside leaves the country.

References

Marsooli, R., & Lin, N. (2020). Impacts of climate change on hurricane flood hazards in Jamaica Bay, New York. Climatic Change, 163(4), 2153–2171.

Rowntree, L. (2018). The Caribbean. In Diversity amid globalization: World regions, environment, development. essay, Pearson.

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StudyCorgi. "Solving the Capital Leakage Problem with the Help of Local Assets: Jamaica." June 10, 2023. https://studycorgi.com/solving-the-capital-leakage-problem-with-the-help-of-local-assets-jamaica/.

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StudyCorgi. 2023. "Solving the Capital Leakage Problem with the Help of Local Assets: Jamaica." June 10, 2023. https://studycorgi.com/solving-the-capital-leakage-problem-with-the-help-of-local-assets-jamaica/.

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