TALKING POINTS BY MINISTER OF TOURISM, HON. EDMUND BARTLETT AT THE PRESS LAUNCH & MOU SIGNING FOR THE TEF/EXIM BANK SMTE LOAN FACILITY HILTON ROSE HALL RESORT SPA, MONTEGO BAY WEDNESDAY, SEPTEMBER 21, 2016

Salutations:

Fellow tourism partners, members of the media, ladies and gentlemen…good morning.

• Tourism is one of the world's largest and fastest-growing industries yet it is dominated by small and medium-sized tourism enterprises (SMTEs).
• It is therefore inevitable that visitors to Jamaica will encounter and support these enterprises regularly, whether they are eating at a restaurant, staying at a guesthouse, visiting an attraction or taking a taxi.
• These SMTEs contribute significantly to the authenticity and quality of the tourism experience, and there is little doubt that these businesses play a significant role in destination competitiveness. That is, they determine what makes a given destination attractive to visitors.
• Although individually these businesses employ few people, collectively the employment generated by SMTEs reliant on visitor spend can be highly significant. Further, these SMTEs encourage visitors to spend in local communities, thus stimulating the multiplier effect.
• So these enterprises are of great benefit not only to local communities but by extension to the wider economy as well.
• Because of this critical inter-dependence between tourism and SMTEs, providing access to financing to enable these enterprises to capitalize on business opportunities and so participate in the supply chain that the sector generates is essential. 
• It therefore gives me great pleasure to be here this morning to formalize this framework between the Tourism Enhancement Fund (TEF) and the National Export-Import Bank of Jamaica (EXIM Bank) to provide well needed banking support to SMTEs and those companies which play a part in the tourism value chain.
• With this morning’s signing of the Memorandum of Understanding (MOU) between TEF and EXIM Bank, operators of SMTEs will be able to access up to $25 million dollars at 5 percent interest, over 5 years.
• I am extremely pleased that TEF has kick-started this new facility with a financial injection of some J$1 Billion.
• I would like to commend TEF for leading the charge on this important initiative in partnership with EXIM Bank.
• Today’s agreement complements an arrangement already in place with JN Small Business Loans for industry stakeholders.  Launched last month in Treasure Beach, the TEF-financed $20 million revolving loan facility seeks to boost the compliance of small tourism properties, attractions and businesses.
• Under this arrangement, community tourism entities are now able to access up to $2 million dollars at 3 percent interest, for up to 5 years to foster development and compliance.
• This initiative is in-keeping with the Ministry’s National Community Tourism Policy and Strategy aimed at developing community tourism island-wide to help diversify the local tourism product.
• The idea of providing banking support for tourism stakeholders and potential tourism stakeholders comes against the background of players in our sector experiencing serious challenges in accessing capital. This is coupled with the existence of a high level of leakage of the tourism dollar, a significant portion of which goes back overseas.
• In light of this, there is a need for more local stakeholders to be able to join the tourism value chain to help meet the high demand for goods and services generated by the sector.
• Providing access to capital is one of the keys to unlocking the true potential of our small businesses which will enable them to upgrade and become more productive.
• With the right support SMTEs can be a source of innovation and help shape destination development.
• We must always remember that tourism is a fiercely dynamic and highly competitive industry. Therefore, our ability reap the full benefits of tourism depends on the policies, initiatives and financing available to develop the necessary infrastructure, enhance our tourism product and meet the needs of our visitors.
• Initiatives like this loan programme are geared towards doing just that by fostering the development of a more inclusive quality and service oriented tourism industry that not only benefits our visitors but Jamaicans too.
• Many SMTEs have ideas, vision and drive to turn their dreams into reality but lack the financial resources to do so. Ask any SMTE operator and they will tell you an all too familiar story – access to long-term financing is one of the most significant impediments to improving, modernizing or expanding operations.
• This is why we are here today.  We realize the need to boost investment in not only the accommodations and attractions sub-sectors but also in the many other small and medium tourism industry supporting enterprises.
• Loans will be offered to providers in the subsectors of health and wellness, knowledge, shopping, and sport and entertainment, which are being given focus as part of the drive to grow tourism, diversify our offerings and increase the production of goods and services locally for the tourism sector. These areas also fall under the five networks which underpin our five pillars of growth.
• What we are trying to do is enable local enterprises at the broadest level to build out their capacities to supply on the demands of the industry.Tourism in the wider UAE has been a sector for big international operators and large national players, but the authorities are now pushing for smaller companies to feed off the industry’s growth.Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi) is encouraging local small and medium enterprises to bring their skills and expertise to the travel sector.  Tourism in wider Jamaica is often viewed as a sector for big international businesses and large national players, but we are pushing for smaller companies to feed off the sector’s growth.
• In this way, the average Jamaican in communities throughout Jamaica will feel as if they are a part of the process.  At the same time we will be putting in place the infrastructure that will provide a world-class experience for our visitors.
• In closing, I wish to reiterate that Jamaica’s tourism is performing very well and offers ample opportunities for SMTEs.  As the sector continues to grow it opens up many avenues for entrepreneurs who are interested in entering the market.
• I therefore encourage operators of SMTEs to take advantage of this special loan facility so that your businesses can grow.
• We expect small and medium-sized tourism enterprises to continue to play a vital role in ensuring sustained growth within Jamaica’s tourism industry.  The signing of today’s agreement will facilitate this process.

Thank you.