The Jamaican Ministry of Finance and Public Service has expressed its intention to issue another public request for applications for an Approved Integrated Resort Development (AIRD) order for the St James zone. The development follows the Ministry’s decision not to issue an AIRD order to an applicant who was interested in building an integrated resort development in the area, Jamaica Gleaner reported.
Portfolio Minister Dr Nigel Clarke made the disclosure during a statement to the House of Representatives on Tuesday. Clarke explained that in October 2021, the ministry launched a request for applications (RFA) process, whereby interested investors were invited to submit applications for two AIRD licenses, each for an exclusive geographical zone.
He also informed that in his capacity as Minister of Finance and the Public Service, an enterprise team was established to receive and process applications, oversee the due-diligence exercise, and make recommendations regarding the award of Integrated Resort Development Orders.
“Two applications were received for two exclusive zones that were on offer in the RFA. The two zones were the combined zone of Hanover and Westmoreland and the zone of St James. After fulfilling the necessary requirements, the Enterprise Team recommended that an AIRD license be issued to the applicant for the Hanover and Westmoreland zones. This was done in August 2023,” Clarke said.
The minister said the other applicant was given additional time to respond to queries relating to its application.
“Upon review of those responses and all other relevant material, the Enterprise Team determined that the applicant had not provided sufficient evidence to satisfy the Enterprise Team that the applicant had met the mandatory financing disclosures required by statute in relation to the applicant’s proposed project. The Enterprise Team has, therefore, advised me against awarding an Order to the second applicant,” he added.
An integrated resort development must have a minimum of 1,000 hotel rooms, of which 500 must be luxury rooms. Additionally, the development must have a minimum capital investment of US$450 million.
Clarke said the concept of integrated resort development was introduced by the Government of Jamaica more than a decade ago to further expand the country’s tourism product. He stated that these luxury resort developments include, but are not limited to, hotels, villas, spas and other recreational facilities, shopping centers, and casino gaming.
The minister further stated that the Government is committed to supporting the diversification of the tourism/entertainment product in Jamaica and, therefore, the Ministry of Finance and the Public Service will continue to actively encourage and facilitate the construction and operation of integrated resort developments.
