JHTA President Christopher Jarret says implementation of minimum wage will pose challenge for hotel sector

President of the Jamaica Hotel and Tourist Association (JHTA), Christopher Jarret says implementation of the announced 1000 dollar increase in the minimum wage will pose a challenge for the hotel sector.

During his budget debate presentation in parliament yesterday, Prime Minister Dr. Andrew Holness announced that the minimum wage will be increased from $16000 to $17000, come July 1.

This is $1500 less than the 18500 dollar increase Dr. Holness promised last year.

Dr. Holness indicated that the lower increase is because the economy is still navigating external shocks following Hurricane Melissa.

Speaking to IRIE FM News this morning, Mr Jarrett said he expected the increase, but the timing poses a challenge, because the hotel sector is still recovering from the category 5 hurricane.

He said employers will have to absorb the additional cost, as it cannot be passed down to guests at this time.

He explained that even though the increase is lower than initially planned, the hotel industry is already absorbing a lot of costs.

He said it will impact small and medium sized establishments in particular.