Great opportunities, great risks Published in the Sunday Gleaner July 23, 2006 Klao Bell-Lewis, Contributor

VIRGIN ATLANTIC is here and so is Richard Branson, one of the United Kingdom's most famous tycoons with a reputation for adventure, a sharp nose for business and an eye for the next big thing.

Virgin's choice of Jamaica is quite an endorsement with potential for significant opportunities that will expand beyond the estimated 100,000 more passengers and inflows of $45 million into the Jamaican economy in the first 12 months.

Branson is inextricably bound up with his Virgin brand. And the entry of this brand into Jamaica will cause British investors and vacationers to take yet another look at Jamaica, whose image in the U.K. has been severely bruised by a plethora of negative press reports

The periods I have researched, showed 10,895 negative stories were published in major (or quality) newspapers between 1998 and 2003, despite the efforts of the JTB and hotel chains such as Sandals, which hire U.K. public relations firms to sell Jamaica. In fact, arguably from, or in spite of their efforts, during the same period, only 3,384 focused on Jamaica as a travel destination. All other stories were about crime, drugs, guns, illegal immigration and "yardies."

The impact of this stream of negativity contributed to Jamaica having less appeal among British travellers.

The view of a member of the travel industry back in 2003 was that "Jamaica's appeal in the U.K. is dependent on competitive pricing and affordability rather than a great desire to visit Jamaica. The image in the AB1 market is extremely poor, whereas at ABC1, the level is manageable.

There will always be some consumers that cannot be won over ... The damage is done. It therefore becomes a matter of identifying the appropriate Jamaica client and adjusting plans accordingly."

The numbers for British visitors to Jamaica have been fluctuating. They went from 116,552 in 1998 to 135,338 in 2000, before going down to 125,859 in 2002 and up again to 149,714 in 2003.

IMPACT ON ATTITUDES

But besides the numbers and the tourists, the negative publicity has also affected the attitude of Jamaican-born British residents to their homeland and how they are perceived by other British citizens (both U.K.-born and immigrant).

Their feelings of attachment to and desire to associate with their homeland have been affected by the negative press reports which have also caused them to feel shame and shock. This has had an impact on their willingness to return to settle in Jamaica, the frequency of their visits here, and their philanthropic contributions to relatives and causes via remittances.

The potential impact of negative publicity on trade and investments was also a concern of a former envoy to the U.K. who was interviewed for my research.

He witnessed hesitation among first- and second-generation Jamaicans as well as other British interests to invest in Jamaica, and wondered about opportunities lost as a result.

THINGS LOOKING UP

And so, in 2006 we have Virgin and Branson in Jamaica.

Branson's trademark grin and antics on the tarmac on Monday July 3 were important signals that things are looking up.

Virgin is a top U.K. and emerging global brand. Branson and his team are master strategists at PR, marketing, and advertising and are known for their witty, cheeky, down-to-earth and highly-effective campaigns.

In fact, the company profile lists "the power of the Virgin name" and "Richard Branson's personal reputation" among the secrets of its success.

The weight of a man with two million references on Google and an airline with three million references, can certainly complement Jamaica's image and marketing efforts.

Jamaican tourism industry stakeholders might want to identify and pursue ways of benefiting from this association.

After all, the cool Virgin is seeking to earn 'Irie' status by associating its brand with brand Jamaica. (Incidentally, Jamaica has 252 million references on Google).

Interestingly, the statistics on British visitors to Jamaica in 2004 was 158,818, the highest since 1998. The following year was also high, despite the decline to 149,773. (This decline coincides with a period where there was much ferment in the British press and among gay rights activist about the homophobic lyrics of some dancehall artistes.)

In the meantime, the April 2003 to March 2005 period showed a decline in negative reporting on Jamaica in the British press from 3,370 to 2,407.

This is a significant drop which shows the results of the JTB's marketing efforts, positive responses to the reduction of trafficking via drug mules, cooperation between British and Jamaican police and the fact that the British press were busy with other matters at home, such as politics and terrorism.

It is against this backdrop that Virgin has expanded the options of travel to Jamaica. And Jamaican and British travellers will be better off for it. Further, Virgin's travel network, which consists of Virgin Atlantic, Virgin Blue, Virgin Express and Virgin Holidays will make Jamaica more accessible to tourists from emerging markets of Europe and Asia, thus augmenting the JTB's efforts in those markets.

BENEFITS OF COMPETITION

Virgin Atlantic has done well in the business traveller's market but has targeted the Caribbean for the benefits to be gained from tapping into the leisure market.

The Virgin team was not able to share information with me about the profile of their expected travellers but I think apart from Jamaicans, and cost-conscious Europeans and British travellers, Branson's personal endorsement of Jamaica within his circle of influence, might also get some more AB1 clients to reconsider Jamaica. In other words, we might get some of Barbados' crowd.

Already, the benefits of competition are clear. According to their websites (checked on July 7), the lowest fares available for a two-week return economy direct flight between Jamaica and London was US$834 on Virgin, US$1,052 on British Airways and US$834 on Air Jamaica.

Now, Virgin prides itself on being a "consumer's champion."

The implications for our national airline and Virgin's old rival British Airways remains to be seen. Note this excerpt from Virgin's corporate profile:

"We often move into areas where the customer has traditionally received a poor deal, and where the competition is complacent ... We are pro-active and quick to act, often leaving bigger and more cumbersome organisations in our wake. When we start a new venture, we base it on hard research and analysis. Typically, we review the industry and put ourselves in the customer's shoes to see what could make it better. We ask fundamental questions: Is this an opportunity for restructuring a market and creating competitive advantage? What are the competitors doing? Is the customer confused or badly served? Is this an opportunity for building the Virgin brand? ... Contrary to what some people may think, our constantly expanding and eclectic empire is neither random nor reckless. Each successive venture demonstrates our skill in picking the right market and the right opportunity."

PLAYING HARD BALL

The airline's expansion into the Caribbean (they fly to Cuba, Barbados, St. Lucia, Grenada and Trinidad, Cuba and The Bahamas) might also create additional possibilities for Jamaica and the region to benefit from some more FDI.

Virgin is well positioned to take advantage of the World Cup Cricket. (Virgin Holidays, which already directs some 130,000 travellers to the region annually, has been promoting packages for the WCC).

The outcomes of that event and Virgin's performance will be duly noted by entrepreneurs across the Commonwealth.

But as fantastic as Virgin is, they also know how to play hard ball.

They pride themselves on being anti-establishment and are not afraid to take on anyone who gets in their path. British Airways can attest to that. Richard Branson's lively jig with the costumed Jamaican partner on the tarmac does not belie that this is a serious investment that is expected to reward the Virgin group handsomely.

MATCH STANDARDS

Virgin prides itself on "providing value for money, good quality, brilliant customer service, innovation and on being competitively challenging and fun."

Local travel industry stakeholders ought to be careful to match this assertion and deliver on expected standards at all levels of direct and indirect interaction with Virgin. Mind you, this should be the standard for all local and foreign investors. But Virgin's position urgently underscores the need for maintenance of high standards.

Branson's companies are neither owned by faceless shareholders nor run by distant boards. Each is set up as an independent company, but he wraps his passion and identity around each one.

This means quick decision-making and quick action. As such, should there be any adversity or dispute with the travel giant on our shores, this could also mean quick reactions via a rapid ripple effect through the media and to the ears and pockets of those who matter.

We should, therefore, be mindful that the Branson influence and Virgin's brand potency could pose some risk to our reputational capital if we fail to deliver in any way be it via bureaucratic bungling, dishonest practices, false advertising, lack of professionalism, poor service or unethical conduct of any sort. (Not that Jamaica is known for this kind of thing.)

RISE TO OPPORTUNITIES

Branson's well-oiled PR machinery runs on the basis that "good PR is really about having something different to say in the first place. Our PR is about [building our] relationship with the public as a whole, rather than just the media.

"Therefore, it is about getting products right and the challenge of fixing things that are not. It can never be about empty promises never met."

With standards like these, let us not cross this one. Let us be sure to rise to the opportunities and deliver.

Copyright of the Gleaner Company Ltd - published July 23, 2006

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