Introduction
Small developing states suffer a clear disadvantage in their inability to take advantage of economies of scale in the production process (Wint, 2003). It is argued that taking advantage of these returns of scale is important for growth and small countries are likely to be most successful if they shift their economic activities away from industries such as commodity-manufacturing and agriculture. Wint argues that the competitiveness of these primary and secondary industries are highly dependent on taking advantage of the returns of scale. Wint hypothesized that “small countries are likely to achieve competitive advantage through the provision of services far more effectively than through the production of goods” (Wint, 2003)
Jamaica fits squarely into Wint’s definition of small countries and depends greatly on services for economic survival. Blessed by the climate and the natural resources of the tropics, the island holds tourism as one of its major industries and an important contributor to its future growth and development. Understanding the importance of the tourism industry to the growth of the Jamaican economy within the context of Wint’s arguments and the recent decisions by the World Trade Organization in relation to differential prices for sugar and banana exports, the perpetuated competitiveness of Jamaica as a tourist destination has become increasingly important to governments and policy makers.
However, the competitiveness of tourism destinations is increasingly threatened by improvements in travel services, blurring of national boundaries, and the ease of duplication of a destinations physical infrastructure. With with the reduction of travel time and cost, the increase of travel comfort, reduction in political hindrances to many de ...