- Jamaica’s tourism sector has struggled nearly a year after Hurricane Melissa
- An estimated 20 hotels remain closed with insurance claim delays
- Tourism represents up to 35pc of Jamaica’s GDP
- More than 61pc of claimants await full settlements
- The hurricane caused approximately $12 billion in damage
Jamaica’s tourism sector has struggled to regain its footing nearly a year after Hurricane Melissa made landfall as a Category 5 storm. High deductibles and delays in insurance claim settlements have left hotels and businesses running out of operating capital. An estimated 20 hotels have remained closed nearly a year after the hurricane.
Tourism represents up to 35pc of Jamaica’s GDP and accounts for more than half of foreign exchange earnings. The sector employs roughly one in four workers when indirect jobs are factored in. Damages from the hurricane equalled approximately 57pc of Jamaica’s GDP. Commercial claims from the hospitality sector made up the bulk of projected $2.2 billion to $4.2 billion in total private insured losses.
More than 61pc of claimants have awaited full settlements according to the Jamaica Hotel and Tourist Association. More than eight in 10 association members submitted property or business interruption claims after the hurricane. The disruption caused a 17pc drop in visitor arrivals and an 18pc drop in tourism revenue costing approximately $550 million in lost earnings.
O’Brian Heron, president of the Jamaica Hotel and Tourist Association, shared “Claims are being paid slowly and settled short, and that leaves a working-capital hole across the sector.”
