Government signals shift on hotel incentives

By Stabroek News On In Business |
Jamaica Manufacturers and Exporters Association President and JFP Limited CEO Metry Seaga (right) supervises the construction of a furniture piece alongside machine operator Norman Oakley (left) and design supervisor Alian Bennett at the company’s manufacturing facility. As local manufacturers push for greater inclusion in the hotel sector, industry leaders like Seaga continue to advocate for policy changes that would ensure more locally produced goods are used in tourism developments.(File photo)
Jamaica Manufacturers and Exporters Association President and JFP Limited CEO Metry Seaga (right) supervises the construction of a furniture piece alongside machine operator Norman Oakley (left) and design supervisor Alian Bennett at the company’s manufacturing facility. As local manufacturers push for greater inclusion in the hotel sector, industry leaders like Seaga continue to advocate for policy changes that would ensure more locally produced goods are used in tourism developments.(File photo)

…but uncertainty remains

By Karena Bennett

(Jamaica Observer) MANUFACTURERS may have to wait until the dust settles on the 2025/26 Budget Debate before gaining clarity on whether the Government will move beyond moral suasion and introduce policy-backed solutions to enforce local procurement, particularly among hotel chains benefiting from duty-free imports.

For years, industry players have raised concerns that the Hotel Incentives Act disproportionately favours foreign suppliers, allowing hotels to import furniture, bedding, and other goods duty-free while local manufacturers struggle with high costs and regulatory constraints. The issue has taken on renewed urgency following the closure of McIntosh Bedding, which operated under the Sealy Posturepedic brand for over 60 years.

The Government, which has long encouraged voluntary compliance from hotels, is now publicly acknowledging that moral suasion may not be sufficient.

Tourism Minister Edmund Bartlett, during his presentation in the Standing Finance Committee on March 5 , admitted that stronger measures may be needed to increase local procurement.