Jamaica beach resort with palm trees and turquoise Caribbean Sea
Required Case Study

Tourism in Jamaica

Reducing the Development Gap through Tourism

AQA Specification Requirement

"An example of how the growth of tourism in an LIC or NEE helps to reduce the development gap."

Location & contextWhy tourism has grownBenefits (economic, social, environmental)Challenges & negative impactsEvaluation of success
2.9M
tourists/year (2024)
$4.38B
tourism revenue
30%
of GDP
529K
jobs (1-in-4)
CASE STUDYRequired for exam
Jamaica: Tourism & Development
Caribbean's 2nd most visited destination - 2.9 million arrivals, $4.38 billion revenue

Geographic Location

  • Region: Caribbean Sea, Greater Antilles
  • Position: 140km south of Cuba, 600 miles south of Miami
  • Size: 10,991 km² (3rd largest Caribbean island)
  • Terrain: 50% mountainous, Blue Mountain Peak 2,256m
  • Coastline: 1,022km of beaches

Development Context

  • Classification: Lower-Middle Income (NEE)
  • GDP per capita: $5,100-9,300 USD
  • HDI: 0.734 (High) - rank 101/189
  • Life expectancy: 74.5 years
  • Poverty rate: 12.6%

HDI Progress (Evidence of Development)

+13.8%
HDI increase (1990-2019)
+30%
GNI per capita increase
+3.8 years
Mean schooling increase
-5%
Poverty rate reduction

Why Jamaica Needed Tourism

  • Bauxite decline: Mining revenue fell 60% (1990s-2000s)
  • Manufacturing uncompetitive: Small island, high costs, far from markets
  • Agriculture limited: Only 20% arable land, hurricanes destroy crops
  • Natural assets: Beaches, climate, reggae culture, proximity to USA = tourism potential

Test Your Knowledge

Question 1 of 8
Score: 0

What percentage of Jamaica's GDP comes from tourism (direct + indirect)?

Worked Example9 marks

'Tourism has been successful in reducing Jamaica's development gap.' To what extent do you agree? [9 marks + 3 SPaG]

Key Terms

Economic Leakage

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Tourism revenue that leaves the country through imported goods, foreign company profits, and expatriate wages - Jamaica loses 33% ($1.46B) annually

Enclave Tourism

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Tourism where visitors stay in self-contained resorts (all-inclusive) and don't spend money in local communities - 70% of Jamaica's hotels

Multiplier Effect

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How tourist spending circulates through the economy, creating additional jobs and income - Jamaica's tourism multiplier is 1.8-2.2

All-Inclusive Resort

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Hotel where one price covers accommodation, meals, drinks, and activities - tourists don't need to spend outside, reducing local benefit

Foreign Exchange (Forex)

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Foreign currency (US dollars) earned from international tourists - Jamaica earns $4.38B, essential for importing food/fuel

Overdependence

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When an economy relies too heavily on one sector - Jamaica's 30% GDP from tourism makes it vulnerable to shocks (COVID: -10% GDP)

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