1) COUNTRY PROFILE JAMAICA Information provided by JAMPRO 2015 1
2) Contents Quick Facts Other Facts about Jamaica o Economy o Culture o Education o Labour Standards o Media o Targeted Sectors for Investment o Targeted Sectors for Export o Bilateral Investment Treaties o Double Taxation Treaties o Regional Trade Agreements Success Stories Competitive advantages Cost of Doing Business in Jamaica Major Internationally Renowned Brands in Jamaica Related Links 2
3) For more information, please contact: Jamaica Promotions Corporation (JAMPRO) Jamaica: Kingston Head Office 18 Trafalgar Road, Kingston 10, Jamaica W.I. Phone: +1 876 978 7755; 978-­â€3337 Toll Free: +1 888 INVESTJA (468 4352) – Jamaica; 1-­â€877-­â€JAMVEST (526 8378) – North America Fax: +1 876 946 0090 Email: info@jamprocorp.com Jamaica: Montego Bay UGI Building 30 Market Street, 2nd Floor, Montego Bay, St. James Jamaica W.I. Phone: +1 876 952 3420 Fax: +1 876 952 1384 Email: jampromobay@jamprocorp.com UK: London JAMPRO/Jamaica Trade Commission 1 Prince Consort Road, London SW7 2BZ, England Phone: + 44 020 7 584 8894 Fax: + 44 020 7 823 9886 Email: jamprouk@jamprocorp.com North America: Toronto, Canada JAMPRO North America 303 Eglinton Avenue East, 2nd Floor Toronto, Ontario, M4P 1L3, Canada Phone: 416-­â€932-­â€2200, 416-­â€598-­â€3008 Ext: 232 & 239 Fax: 416-­â€932-­â€2207 Toll Free: 877-­â€744-­â€2208 Email: jamprocanada@jamprocorp.com Website: www.jamaicatradeandinvest.org 3
4) Quick Facts – Jamaica Capital: Kingston Population: 2.950.210 (2015 est.) Official Language: English Inflation: 7,1% (2014 est.) GDP (Purchasing Power Parity): $24.1 billion (2014 est.) GDP (official Exchange rate): ($13.79 billion (2014 est.) GDP per Capita: $8,600 (2014 est.) Unemployment rate: 15.3% (2014 est.) Total Employed Labour force: 1.311 Millions Total Unemployed Labour Force: 200.583 (2014 est.) Major Imports : Mineral fuels; machinery & transport equipment; food; chemicals; manufactured goods Major Exports Crude materials; mineral fuels; food Jamaica’s main import trading partners (2015): United States; Venezuela; Trinidad and Tobago; China; Mexico; Brazil; Japan; Canada, United Kingdom, Turkey Key Productive Sectors: Mining; Tourism; Agriculture; Agro-­â€processing; Industries; Manufacturing; Financial Services Creative Jamaica’s main export trading partners (2011): United States; Canada; Russian ; U.A.E; Latvia; Netherlands; UK; Slovenia; Slovakia ; Italy; Republic of Georgia; Germany Government Type: Constitutional Parliamentary Democracy Governor General: His Excellency Michaelle Jean Prime Minister: The Most Honourable Portia Simpson-­â€Miller Opposition Leader: The Honourable Andrew Holness 4
5) Economy: Jamaica operates as a mixed free-­â€market economy with both state and private sector participation in productive enterprise. The economy recorded GDP of US$13.7 billion in 2010 with the main sectors of the economy being Tourism, Agriculture and Agro-­â€processing, Mining, Manufacturing, Creative Industries and Financial Services. The Services industries account for over 70 per cent of GDP. The economy is driven by foreign direct investment (FDI) and foreign exchange earned through exports and remittances. Jamaica received an estimated US$201 million in FDIs in 2010. The most dynamic sectors in term of foreign direct investment (FDI) have been tourism, ICT and mining. The Jamaican Diaspora also contributes significantly to the economy through remittances, which amounted to over US$1.7 billion in 2009. Jamaica also boasts a developed tourism industry and continues to enjoy record levels of tourist arrivals. Jamaica is also the largest English –speaking Caribbean island, and boast the distinct qualities of a vibrant emerging market with enormous possibilities for trade and inward investment. Its comparative advantages that attract strategic investors and tourist include natural beauty, geographical location (only one hour and twenty minutes by air from Miami), time zone, English-­â€speaking skilled labour force, strong financial services sector, the world’s seventh-­â€largest natural habour and mineral resource endowments, as well as a spirit of enterprise and well-­â€established traditions of democracy and accountability. Culture: Accurately represented by its motto, “Out of Many one People”, Jamaica has a dynamic mix of different ethnicities, which has contributed to the country’s unique culture. The people are mostly of black (African) descent (91.6%), However, the population also consists of East Indians (0.9%), whites (0.2%) Chinese (0.2%),and mixed race (6.2%). Renowned for its popular music-­â€reggae-­â€the country has also gained international recognition through sports, dance and other cultural activities. Education: The Literacy rate in Jamaica is 87.9%. The educational structure in the country is largely based on that of Great Britain. Children begin infant school at age three (3) and move on to the primary level at around age six (6). Primary school begins at grade 1 and ends at grade six (6), while high school ends at grade eleven (11), with an option of what is considered sixth form for two years after which they may opt to attend university. It must be noted though that some schools do not have the option of sixth form and student can either chose to attend another sixth form of go on to what is called a community college. 5
6) According to the Economic and Social Survey of Jamaica (ESSJ-­â€2010), output of tertiary institutions totalled 13,244 (71.6 per cent female).The report also identified that there are 199 secondary/high schools; 84 vocational, technical and agricultural high schools; 116 community and business colleges; 5 teachers’ colleges; and 8 universities. Labour Standards: Core labour standards are generally respected in Jamaica; and the country has ratified all 8 core ILO Labour Conventions. Media Houses: There are over 50 media houses in Jamaica, ranging from larger television and radio stations to small cable stations that have local Jamaican programming. The media houses listed below are considered to be the more prominent of these. i) RJR Communications Group The RJR Group consist of the Television Jamaica (one of the islands main television stations); FAME 95FM,HITZ 92FM, Television Jamaica (TVJ), Reggae Entertainment Television (RETV), TVJ Sports Network (TVJSN) and Jamaica News Network (JNN). They also operate Multi-­â€Media Jamaica Limited which offers technology solutions. Contact:32 Lyndhurst Road Kingston 5 Jamaica, W.I. Tel: 876 926 1100 Website: www.rjrgroup.com ii) CVM Communications Group-­â€Portland Holdings Inc. The CVM Communications Group consists of two television stations, CVM Television Limited (CVM TV) and its cable affiliate CVM Plus; a radio station, HOT 102-­â€FM; and two newspapers, X-­â€News and the Teen Herald. Contact: 69 CONSTANT SPRING RD. KGN10 Tel:931 9400-­â€3/931 9422/931 9425/931 9434 Website: www.cvmtv.com 6
7) iii) Grove Broadcasting Company (Irie FM and Zip Fm) 1b Courtney Walsh Dr. (Derrymore Rd) Kingston 10, Kingston. Or Coconut Grove, Ocho Rios, Jamaica Telephone: 974-­â€5051 Websites-­â€ www.iriefm.net/www.zipfm.net iv) v) Jamaica Gleaner/Gleaner CompanyLtd. The Gleaner Company Limited 7 North Street P O Box 40 Kingston Jamaica, W.I. Telephone: (876) 922-­â€3400 Website: (http://jamaicagleaner.com) Jamaica Observer Head Office: Kingston 40-­â€42 1/2 Beechwood Avenue, Kingston 5, Jamaica, W.I. Main: 876-­â€920-­â€8136, 876-­â€926-­â€7655 (http://www.jamaicaobserver.com/) Targeted Sectors for Investment: ICT/BPO; Tourism; Manufacturing; Energy; Agro-­â€processing/Agri-­â€business; Creative Industries; Mining. 7
8) Targeted Sectors for Export: Service Sectors: Tourism; ICT (BPO) services; Creative Industries; Professional services International Financial services Business services Merchandise Sectors: Fresh / Processed foods Beverages Nutraceuticals (primarily nutraceutical ingredients, and spa and aromatherapy products) Minerals (excluding bauxite) Art and Craft Bilateral Investment Agreements /International Investment Agreements signed: Jamaica has investment treaties with the United States (Feb. 1994, which came into force in March 1997), Argentina (Feb. 1994), France (Jan. 1993), Italy (Sept. 1993), Germany (Sept. 1992), Netherlands (Apr. 1991), Switzerland (Dec. 1990), the United Kingdom (Jan. 1987), China (1998), Cuba (May 1997), Egypt (Feb. 1999), Indonesia (Feb. 1999), Zimbabwe (Feb. 1999) South Korea (2003), Spain (2002) Nigeria (2002) and Kuwait (2013) Double Taxation Agreements signed Jamaica has signed and ratified double taxation agreements with the U.S., Canada, CARICOM, China, Switzerland, Germany, Israel, Norway, Spain, Sweden, Denmark, France and the United Kingdom. Regional trade Agreements Treaty Establishing the Caribbean Community and Common Market (CARICOM) Revised Treaty of Chaguaramas -­â€ CSME Free Trade Area Agreement -­â€ CARICOM / Dominican Rep. (CARIFORUM) FTA Agreement -­â€ CARICOM / Colombia FTA Agreement -­â€ CARICOM / Venezuela EC-­â€CARIFORUM Economic Partnership Agreement (also speaks to investment) WTO (Marrakesh Treaty) 8
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10) Success Stories: 1. Vistaprint Jamaica Limited By the middle of 2012, Vistaprint Jamaica Limited will seek to consolidate its operations in a newly built US$25-­â€million, 92,000-­â€square-­â€foot facility in the nascent Barnett Technology Park in Montego Bay, a move that affirms its continued confidence in the local investment climate and places it on a strong growth trajectory that will create job opportunities for Jamaica’s world-­â€class workforce. The company, which began operations in 2003 as a customer service centre for parent company Vistaprint – the world’s leading online design and print solution for small businesses worldwide, currently occupies 35,000 sq. ft. spread out over three floors in two buildings in the Montego Bay Free Zone. After initially starting with over twenty employees, Vistaprint Jamaica’s staff count now stands at over 600, with the complement increasing by some 50 per cent in the 12-­â€month period ending September 2011. According to Roger Williams, general manager of Vistaprint Jamaica, the company’s steady growth over the past eight years necessitated the build out of their own facility. Work has already commenced on Vistaprint Jamaica’s future location, and Williams noted that JAMPRO provided the company with strong support in this endeavour. Williams also points to the quality of the Jamaican workforce which he identifies as one of the compelling reasons for the company’s continued investment in the island, and described Vistaprint’s presence as a win-­â€win-­â€win situation for the company, its clients and Jamaica. He exuded great optimism in Vistaprint’s prospects for the future. 2. Global Gateway Solutions Born out of vision shared by Jamaican entrepreneur Jacqueline Sutherland and American investor Mark Jones to explore the opportunities to grow the local information and communications technology (ICT) sector, Global Gateway Solutions, Inc. (GGS) has emerged as one of the leading providers of global contact centre solutions in Jamaica. At the start of 2010, GGS had 50 agents and occupied 5,000 sq. ft. in the Montego Bay Free Zone. Mark Jones, the founder and former President of a 550 -­â€person finance/accounting outsourcing company, joined GGS as a shareholder and Chairman in that same year. This proved to be the start of a very fruitful business union, which was facilitated by JAMPRO – the national investment and export promotion arm of the Ministry of Industry, Investment and Commerce. By March 2010, GGS was well on its way to tying up a major deal with a company that would turn out to be one of its largest clients. Based on introductions facilitated by JAMPRO, GGS was able to land two additional contracts, which significantly bolstered the company’s growth momentum. GGS’ impressive expansion continued throughout the year, and at the start of 2011, the company’s staff complement increased to over 500. GGS added another 10,000 sq. ft. in a contiguous building in the Montego Bay Free Zone, bringing its total space to 30,000 sq. ft. The company is currently in the process 9
11) of building out the most recent space acquired, and is eyeing expansion into Jamaica’s capital city of Kingston. “We have gathered momentum and credibility, and we’re now at a size that puts us in a position to attract top tier international clients who are looking to bring 100 to 400 jobs as an opening proposition. This business always requires a hand-­â€in-­â€hand awareness of client expansion and facilities expansion, so we try to match those as closely as we can,” stated Jones. Jones and Sutherland remain as impressed and encouraged as they were in the beginning by the quality of Jamaican talent available to the ICT sector. The GGS Chairman affirmed his confidence in the large and growing English-­â€speaking workforce, which he said had the potential to provide world-­â€class service at all levels of the industry. Competitive Advantages Based on the Doing Business report 2012, Jamaica ranks fairly high in the areas of starting a business (23of 183), dealing with construction permits (49 of 183), and resolving insolvency (26 of 183). Additionally, according to the Global competitiveness Report 2011-­â€12, Jamaica is the fourth highest ranked country in the Caribbean after Puerto Rico, Barbados and Trinidad and Tobago. The countries th also ranked fairly high when the entire Latin American region is considered, as it obtained the 14 place in said region. Countries in Latin America ranked above Jamaica in the DBR 2012 are Chile, Peru, Colombia, Puerto Rico, and Mexico. Additionally, Jamaica ranked 107 of 142 countries based on the overall Global Competitiveness Index (Global Competitiveness Report 2011-­â€2012) . According to the same source, Jamaica ranked 116 based on the basic requirements; 85 in terms of efficiency enhancers; and 84 in terms of innovation and efficiency factors. 10
12) Cost of Doing Business (Based on Doing Business Report 2012) Corporate Income tax rate 33.3% Personal income tax rate 25% to 35% Average wage earnings for high level occupation groupings a. Average wage per hour b. Average hours per week JMD$221.83 Average hours per week : 40 hours Average cost of Transportation Fuel: Fuel tax – 0.86 USD / Liter Average cost per sq.ft, for office space in the central business district: USD $ 12 per sq. ft Average cost per sq.ft, for industrial space in the central business district: 191.42 (estimate calculated from Corporation listing of available space) Factories’ Link to Doing Business Report 2015-­â€Jamaica http://www.doingbusiness.org/data/exploreeconomies/jamaica/~/media/giawb/doing%20business/docume nts/profiles/country/JAM.pdf Major Internationally renowned brands Red Stripe Beer Grace Kennedy Jamaica Blue Mountain Coffee Cooyah Clothing Appleton Rums/ J. Wray and Nephew Walker’s Wood Spices and Sauces Reggae Music 11
13) Related Links: Ministry of Industry, Investment & Commerce Jamaica Business Development Corporation (JBDC) The Companies Office of Jamaica The Office of Utilities Regulation Urban Development Corporation 12
