JHTA
( L - R ) Neita, Cummings

PRESIDENT OF the Jamaica Hotel and Tourist Association (JHTA), Wayne Cummings, says concerns raised by a parliamentary committee about the use of the Tourism Enhancement Fund (TEF) are well founded.

Cummings was responding to warnings issued last week, by members of Parliament's Public Administration and Appropriations Committee, against the use of the fund for recurrent expenditure in tourism agencies.

The JHTA president told The Gleaner his organisation had previously put its position on the table.

"We have been very clear from the JHTA's standpoint this is not the source of funds for recurrent expenditure," he said.

"We believe that the TEF funds must be for the sole purpose of developing what the minister likes to call marquee attractions - things that will be there as a catalyst for the development of our tourism industry going forward," he added.

Soften position

Cummings said the JHTA was prepared to soften its position this year because of the challenges facing the economy.

"We have said this year, we understand extenuating circumstances. however, those things are supposed to be funded out of tax revenues," he stressed.

He said a portion of revenues from tourism inflows should be put back into the funding of destination marketing.

According to Cummings, the TEF was put in place to fund the Tourism Master Plan.

The TEF has been stretched this financial year, allotting more than the $2 billion it earns annually to rescue major projects in a number of agencies in the tourism ministry.

Scores of other projects being funded by the TEF this financial year have forced the management of the fund to dip into its reserves in an effort to meet the growing demand for financing.

Executive director of the TEF, Ian Neita, said recently that the total commitment of the fund had exceeded $2.5 billion this fiscal year, adding that money from the reserves was being used to finance other projects. However, he did not disclose how much money was in the reserves.

First five months

For the first five months of the current fiscal year, the TEF has raked in some $900 million, said Neita, who told the parliamentary com-mittee last week that the fund was expected to pull in about $2 billion.

"So you are spending the 'save-up money?" asked committee member Ronald Thwaites. Responding, Neita said: "If you look at the trend then you would have exceeded your earnings for the year - yes".

The committee queried the developmental objectives of the TEF and warned against the spending of this dedicated fund mainly for recurrent expenditure.

Agencies funded by TEF

JTB - $1 billion

Jamaica Vacations Ltd - $406 million

National Housing Development Corporation - $500 million