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Why is the Jamaica Tourism Board Advertising?

Posted May 07 2009 8:00pm

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?

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