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In an interview in the Jamaican Observer of Tuesday, September 19, 2023. The Opposition Leader Mark Golding spoke below. Our economy, as everyone knows, has become heavily dependent on tourism. It is a major contributor to the GDP and employment. It is one of the country's fastest-growing industries that directly employs 175,000 Jamaicans and generates indirect employment for another 354,000 people. Yet tourism should be contributing far more to the national economy," Golding said. "Most of the earnings from tourism never come into Jamaica. The larger hotels have adopted an enclave model where guests enjoy their entire visit by staying within the hotel or going on tours organized by the hotel. This means the benefits of the sector do not sufficiently drive the local economy, even though significant portions of taxpayer dollars are being spent on advertising Jamaica to promote the industry," he argued. Do you believe that the All-inclusive concept being referred to as the “Enclave model” has helped or hindered Jamaica’s tourism's contribution to the national economy? Discuss! Be sure to include evidence of research and it MUST include one book reference.

Question

In an interview in the Jamaican Observer of Tuesday, September 19, 2023. The Opposition Leader Mark Golding spoke below.

Our economy, as everyone knows, has become heavily dependent on tourism. It is a major contributor to the GDP and employment. It is one of the country's fastest-growing industries that directly employs 175,000 Jamaicans and generates indirect employment for another 354,000 people. Yet tourism should be contributing far more to the national economy," Golding said.

"Most of the earnings from tourism never come into Jamaica. The larger hotels have adopted an enclave model where guests enjoy their entire visit by staying within the hotel or going on tours organized by the hotel. This means the benefits of the sector do not sufficiently drive the local economy, even though significant portions of taxpayer dollars are being spent on advertising Jamaica to promote the industry," he argued.

Do you believe that the All-inclusive concept being referred to as the “Enclave model” has helped or hindered Jamaica’s tourism's contribution to the national economy?

Discuss!

Be sure to include evidence of research and it MUST include one book reference.

...expand
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Solution

The "Enclave model" or the all-inclusive concept in Jamaica's tourism industry has both helped and hindered the contribution to the national economy.

On one hand, it has helped in terms of attracting a large number of tourists to the country. The all-inclusive model offers a convenient and worry-free vacation for tourists, as they can enjoy a wide range of services and amenities for a single price. This model has been successful in attracting tourists, which has led to an increase in employment in the tourism sector. According to the World Travel & Tourism Council, the travel and tourism sector in Jamaica directly supported 170,000 jobs in 2018, representing 13.5% of total employment in the country (WTTC, 2019).

On the other hand, the enclave model has hindered the contribution of tourism to the national economy in terms of revenue leakage. According to the United Nations Environment Programme (UNEP), 80% of all money spent by tourists in Jamaica goes to airlines, hotels and other international companies, and not to local businesses or workers. This is because tourists tend to stay within the confines of their all-inclusive resorts and do not spend much in the local economy.

In his book "Tourism and Sustainability: Development, globalisation and new tourism in the Third World", Mowforth and Munt (2015) argue that the enclave model of tourism development can lead to economic leakage, as the profits are repatriated to the foreign owners of the hotels and not reinvested in the local economy. They also argue that this model can lead to social and cultural impacts, as it can create a barrier between tourists and the local community.

In conclusion, while the enclave model has helped to boost employment in the tourism sector in Jamaica, it has also led to significant revenue leakage, which has hindered the contribution of tourism to the national economy. Therefore, there is a need for a more sustainable model of tourism development that can ensure that the benefits of tourism are more evenly distributed within the local economy.

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