Economics - General

Why is the Jamaica Tourism Board Advertising?

Recently, I have seen a number of commercials promoting tourism to Jamaica.  Why are these commercials running?

Let us assume that these commercials convince 2% of vacationers to go to Jamaica.  If this is the case, it would make more sense to advertise during boom times; 2% of a large number of vacationers is a bigger number than 2% of the current small stock of vacationers.  On the other hand, it is possible that advertising is more effective now since the advertising budgets from other countries have been cut.  

A final possibility is that the Jamaica Tourism Board is not profit maximizing.  It may have a target tourism level.  Achieving the status quo tourism level may be more valuable to Jamaica in order to maintain a more stable level of tourism-related employment. Does this mean that the Jamaica Tourism Board is not a fiscally sound organization or that–like many government organizations–it is simply acting to smooth the booms and busts that results from normal swings in the world economy?


  1. Could it also be that Jamaica is aiming to convince tourists with more money. Jamaica to begin with is a travel destination option for only those with a decent amount of money. Those with more money tend to have larger savings and able to weather the credit crunch that is occurring. So Jamaica is taking this time to convince the upper level tourists to come.

    At the same time, by advertising to a select affluent group, Jamaica is making itself seem like a private special destination that average joes must aim to try and visit.

  2. This is true, but if this is the case, you would think that a more targeted campaign (in Fortune Magazine or the WSJ) would be more cost effective than just advertising on TV.

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