"Unlike the rest of Latin America, Jamaica has managed to attract large private-sector investments."

Unlike the rest of Latin America, Jamaica has managed to attract large private-sector investments to support a rapid expansion and transformation of its infrastructure and foreign direct investment is at an all time high. We asked former banker and executive director of Jamaica Trade and Invest, Michael

McMorris, to give us his view of the islands economic future. The Chairman of venture consulting company KRONOS, McMorris is also Managing Director of

the hotel development company Seawind Key Investments.

By Michael McMorris

Given my far ranging work within the development sector over the last 8 years, it no longer surprises me when people I meet in my travels express shock at the amazing changes taking place along Jamaica's North Coast. What still brings a smile to my face, however, is when the astonishment comes from fellow Kingstonians,- residents of Jamaica's capital city on the south coast. Such has been the rapidity and depth of the transformation that even Jamaicans a few hours removed from the physical evidence are still staggered by it. In fact, I silently take account of the number of "incredibles" I hear on a weekly basis.

Usually, the adjective prefaces a description of traversing the brand new airport facilities in Montego Bay, hopping on the ‘under construction' North Coast highway, swinging through the elegant corridor of Rose Hall past the landmark Palmyra towers, the new Iberostar Rose Hall, and the other burgeoning hotel sites, to arrive in Ocho Rios within 90 minutes. My weekly "wow" count, as I call it, tells me just how undiscovered Jamaica's tourism revolution continues to be and how long investing in related sectors within the Jamaican economy,- including pure real estate investing on the North Coast, will remain an absolute give-away. Here are the top reasons why my money is on Jamaica for the next decade.

JAMAICA'S ON A ROLL

In the last four years, foreign direct investment (FDI) into Jamaica has registered a total of US$2.8 billion dollars,- US$400 million more than was invested during the entire 1990s decade. Local investment has also gotten into the mix as island interest rates continue to fall, and with a boom already initiated on the North Coast, that's where the smart money is headed. I expect both foreign and local investment to continue the momentum for some time to come.

JAMAICA HAS DEMONSTRATED A COMMITMENT TO INFRASTRUCTURE AND

RESOURCE DEVELOPMENT

Over the last decade, divestment of utilities and airport management, licensing of international telecom companies and joint ventures for highway development have delivered an unprecedented expansion in national infrastructure and utility modernization. With plans afoot for a further extension of the highway network both east and southward underway combined with an increased number of air- and seaports, international accessibility and cross-island resource movement has never been better, nor had a brighter future.

THERE IS A NATIONAL CONSENSUS TO CREATE GREATER VISITOR DIVERSITY AND A BETTER TOURISM EXPERIENCE

Notwithstanding the huge investment in infrastructure, most of the recent FDI has been directed at Jamaica's tourism industry, partly based on the unequivocal priority awarded to that industry within the national economy. A consensus exists between the government and private sector to supercharge this industry as the driver for overall economic growth. As a result, major government efforts are underway to increase our already high amount of airlift and gateway access from both North America and Europe, to complement the dramatically increased marketing muscle provided by the new global hotel chains building resorts in Jamaica. Such a coordinated effort should drive revenues beyond the existing forecasts.

THE JAMAICAN ECONOMY IS DUE FOR GROWTH, CREATING MORE DISPOSABLE INCOME

With a 50 % (7,000) increase in hotel rooms, either completed or under construction, tourism,- the main driver for the Jamaican economy, is seeing renewed growth and vibrancy, while national unemployment is at historic lows and falling. I expect that secondary investment in the many linkage industries related to hotels,- such as construction of housing, agriculture and professional services, coupled with increased direct employment in the tourism industry, will finally spur a period of sustained growth throughout the economy and cause asset values, especially land, to revalue upwards in line with regional prices.

HOSPITALITY IS ENJOYING A SUSTAINABLE TREND TOWARD LUXURY

Jamaica has always had its share of loyal, global celebrities (not counting our home grown ones, who might be accused of innate bias) such as Errol Flynn, Noel Coward, Mick Jagger and Ralph Lauren. With the enormous influence exerted by the rich and famous, the recent surge of interest in luxury condo and hotel development bodes well for the recruitment of a new generation of influence builders. The elegant Palmyra Resort & Spa, Chris Blackwell's Golden Eye expansion, the twin Secrets resorts being developed on the Seawind Peninsula and the Tavistock Group's Harmony Cove all vow to extend the proud tradition of icons like the Half Moon, Tryall and Round Hill hotels.

THE INTERNATIONAL CAPITAL MARKETS AND LOCAL FINANCE HOUSES ARE POISED TO FUND FURTHER EXPANSION

Jamaica's sustained rating of B+ (reaffirmed by rating agency Fitch 9/07) in global capital markets does not do justice to the tremendous goodwill enjoyed by the nation from international financiers. Jamaica,- whose sovereign debt trades at premiums as high as 20 %,- has never defaulted or delayed creditor payments, making the country unique as an emerging market fund-raiser. In the realm of commercial financing, international money centers and banks remain in sharp competition with local financial institutions,- and even multi-lateral institutions - to provide project financing. Jamaica has no exchange controls, no restrictions on dividend or payment remittances, encouraging healthy international competition and a broad range of innovative financial products available to borrowers and fundraisers.

JAMAICA IS THE 3RD LARGEST ENGLISH SPEAKING COUNTRY IN THE AMERICAS

While speaking English is certainly not a requirement for economies in this region to do well, it doesn't hurt to speak the native language of the largest economy in the world and be producing professionals from three indigenous universities and numerous offshore tertiary programs. That this fact is not to be underrated is proved by the many foreign companies, particularly American and Spanish, who are investing in local tourism, real estate and service related enterprises on the island with the implicit idea that the English speaking island can become the #1 work and play hub for North America in the 21st century. According to, and probably in great part thanks to the efforts of the national promotion agency, Jamaica Trade and Invest (www.jamaicatradeandinvest.org), Jamaica currently ranks 20th in the world as a destination for foreign investment, 12th in technology transfer and 10th in ease of regulatory processes for doing business.

AND WE CAN DO BETTER

If real estate investment is about location, location, location,- business creation is about people, people, people. So what is it that propels the Jamaican people into the world rankings time and time again, when you can barely find the island on a globe? In 2005, when Asafa Powell broke the world record for the 100 meters and became the first Jamaican to ever hold such a globally coveted position, the first thing he said was; "I can run faster". This attitude is an essential part of the Jamaican psyche. We all want to do better; - be better than yesterday and, more importantly, we believe we can. For any business investment, that spirit harnessed and motivated is worth its weight in gold. Just ask Mr. Powell, who has subsequently equaled his own world record twice and then broken it again.

While there are many other issues to consider, both simple and complex, this is my checklist for why I think Jamaica is a hot investment destination. I urge you to take a closer look, but quickly, since a tenet of good investing - much like great vacationing - is to get there ahead of the crowd. Happy hunting!