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?