Hospitality Industry Impacted by Growth in Several Allied Subsectors

Jamaica’s hospitality industry was positively impacted by notable growth out-turns recorded in several allied subsectors during the January to March 2024 quarter.

The Statistical Institute of Jamaica (STATIN) reports that increased foreign national arrivals and passenger movements through the island’s major international airports were pivotal in generating expansion of several Services Industry subsectors during the period.

According to STATIN’s Gross Domestic Product (GDP) Quarterly Report for the review period, which was released on Monday (July 15), stopover visitor arrivals increased by 7.4 per cent, moving from 733,982 in 2023 to 788,246 in 2024.

Additionally, cruise passenger arrivals rose from 477,502 in 2023 to 563,828 in 2024, representing an 18.1 per cent increase.

Meanwhile, the number of passengers moving through Jamaica’s two major international airports rose from 1,761,922 in 2023 to 1,861,108 in 2024.

Consequent on these out-turns, the ‘Hotels and Restaurants’ subsector grew by 6.9 per cent during the March 2024 quarter, relative to the corresponding period last year.

According to the STATIN Report, all groups within that subsector expanded, with growth in the ‘Hotels and Other Short Stay Accommodations’ group, largely spurred by increased foreign national arrivals.

Meanwhile, the ‘Other Services’ sub-industry recorded 2.6 per cent growth, which, according to the STATIN Report, was attributable to an expansion in the ‘Recreational, Cultural and Sporting Activities’ and ‘Other Services’ subsectors.

Within the Recreational, Cultural and Sporting Activities sub-industry, there was improved performance in the ‘Other Entertainment’ and ‘Tourist-related Activities’ groups, the document outlined.

“Tourist-related activities benefited from the increase in stopover and cruise passenger arrivals to the island,” it further indicated.

In the meantime, improvements in the operations of airports, piers and docks positively impacted the transport component of the ‘Transport, Storage and Communication’ subsector, which grew by 3.5 per cent.

This was also supported by increased out-turn for the ‘Post and Telecommunications’ group.

Growth out-turns for ‘Electricity and Water Supply’, up 6.5 per cent; ‘Finance and Insurance Services’, up 2.2 per cent; and ‘Real Estate, Renting and Business Activities’, up 0.3 per cent, along with those for ‘Hotels and Restaurants’, ‘Transport, Storage and Communication’, and ‘Other Services’, spurred a 1.3 percentage points expansion in the Services Industry.

The only subsectors contracting were ‘Wholesale and Retail Trade, Repairs, and Installation of Machinery and Equipment’, down 2.2 per cent, and ‘Producers of Government Services’, down 0.5 per cent.

The Goods Producing Industry recorded a 1.9 per cent March 2024 quarter growth out-turn, primarily driven by increased output for ‘Mining and Quarrying’, up 18.7 per cent, and ‘Agriculture, Forestry and Fishing’, up 7.4 per cent.

However, the other two subsectors comprising that group declined, with ‘Construction’ contracting by 3.7 per cent and ‘Manufacturing’ by 0.8 per cent.

The subsectors expanding, according to the STATIN Report, spurred overall growth of 1.4 per cent in the domestic economy for the review period, relative to 2023.

A comparison of the economy’s performance between the first quarter of 2024 and the fourth quarter of 2023 (October to December) showed a 0.3 percentage point increase in total value added.

This, STATIN indicated, resulted from growth of 0.1 per cent in the Services Industry and 0.8 per cent for the Goods Producing Industry.

Consequently, the Institute added, Jamaica recorded 2023/24 fiscal year growth of 1.9 per cent, compared to 2022/23.