General Description
The Jamaican economy is based on the free market model, with few restrictions on trade, investment and movement of currency. The major productive sectors are tourism, mining (bauxite, alumina), agribusiness, agriculture, information technology & telecommunications, manufacturing and the entertainment sector. The country takes advantage of benefits under regional and international pacts.
The economy is largely dependent on tourism and mining as major foreign exchange earners and on manufacturing and agriculture as major employers. Most large corporations are owned by the private sector and many are listed on the Jamaica Stock Exchange.
Free Zones
Jamaica has Free Zones which offer attractive investment opportunities to investors. These Free Zones consist of predominantly manufacturing and information technology based activities. A highly trainable work force, minimal customs procedures, as well as an exemption from customs duties, and tax-free profits from the free zone activities combine to make these facilities particularly attractive to potential investors.
Tourism
Tourism is one of Jamaica's major sources of foreign exchance. The largest market source for visitors continues to be the United States of America, which accounts for approximately 70% of tourist arrivals during the year, followed by the United Kingdom with 10% and Canada, 8%. The sector has approximately 13,500 rooms and possibly the widest variety of attractions available in the Caribbean.
Mining
Jamaica is one of the major producers of bauxite and alumina in the world and the island possesses significant reserves of bauxite. There are 3 plants in Jamaica which produce alumina, and bauxite is also shipped in its unrefined state to smelters overseas.
Agribusiness
The agribusiness sector is a significant provider of employment in Jamaica which accounts for approximately 18% of the workforce and 7% of GDP. The main crops are sugar cane, bananas, coffee and citrus. Sugar is manufactured at several factories islandwide and exported to Europe and the United States, mostly under a preferential quota system. Bananas are also exported.
Information Technology
In an effort to foster a knowledge-based society, several programs have been implemented or continued in order to assure the continued development of this sector. These include programs geared toward IT Training in tele-services/data conversion, and academic training for programmers.
Thriving information technology enabled businesses such as call centres, data entry facilities and software development houses exist throughout the island.
Communications
In the telecommunications sector, policies and programs have concentrated on improving the regulatory framework as the country moves to a more competitive telecommunications sector. A new telecommunications bill was passed by Parliament in 2000. This bill seeks to regulate and enhance the development of competition in the sector.
Cable and Wireless Jamaica Limited (CWJ) is the major player in the telecommunications industry, providing land based and cellular telephone services in addition to Internet service provision.
In pursuit of the Government's policy of deregulation and the encouragement of investment in the island, proposals were invited for wireless (cellular) licences, and subsequently licenses issued to two international companies. Both have commenced operations giving Jamaica three licenced providers of cellular telephony services. Indeed, so successful was Digicel, one of the new entrants to the market, that Jamaica is ranked as one of the fastest growing cellular markets in the world. There are also several Internet service providers in Jamaica.
A facility within the Montego Bay Free Zone provides specialized international digital telecommunication services between Jamaica and the rest of the world, including voice, facsimile and data transmission services, reservation services, credit card authorizations, international toll free and high speed switchboard and dedicated services. Service is provided to persons having the designated Free Zone status.
Mass media communication includes two daily national and several weekly and biweekly community-oriented newspapers, specialist magazines, several radio stations, and two privately owned television stations. Cable television operators provide subscribers with local and foreign programming for a fee.
Utilities
The Office of Utilities Regulation (OUR) has the responsibility for regulating the provision of utility services.
The main provider of electricity, The Jamaica Public Service Company is a subsidiary of Mirant Corporation, which is a US corporation. There are other, smaller, private companies which produce electricity which is sold into the national grid.
Water is distributed by a Government-owned entity, the National Water Commission. The reliability and quality of potable water available through organized systems is generally good.
Transportation
The Government has placed special attention on improving the transportation system. A number of projects have been undertaken, which involve the maintenance of several roads in the island. Two major road development projects, Highway 2000 and The North Coast Highway, will play pivotal roles in the development of the island's economy.
International air transportation is facilitated by two international airports; Norman Manley International in Kingston and Sangster International in Montego Bay, through which Jamaica enjoys excellent air links to North and South America and Europe. Several small airports, situated close to major towns and resorts, are served by domestic air service.
The Port Authority of Jamaica, the principal maritime agency, is responsible for regulating and fostering the development of the island's ports and shipping industry. The principal seaports are Kingston and Montego Bay; there are also cruise shipping facilities in Ocho Rios and Port Antonio. The Port of Kingston, the world's seventh largest natural harbour, is located approximately 32 miles from the trade routes passing through the Panama Canal. The largest terminal in the Port of Kingston, the Kingston Trans-shipment Terminal, provides trans-shipment operations to international carriers in the region.
