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Tourism-related companies listed on the Jamaica Stock Exchange (JSE) have been dealt a blow from Hurricane Melissa which will impact them well into 2026, according to large brokerage firm NCB Capital in a notice to clients this week.
“The outlook for Jamaica’s tourism sector has become markedly more complex,” NCB Capital indicated.
The tourism-linked companies had a bumper year up until Melissa devastated the island on October 28. They are expected to register downturns lasting at least “a few quarters ahead”.
The category 5 strength hurricane was particularly brutal on the tourism industry, a vital economic driver accounting for about one-third of the nation’s output and employs a similar percentage of the labour force. The bulk of the activity centred in Montego Bay, the island’s tourism capital which suffered billions of dollars in infrastructure damage.
Overall, NCB Capital reasoned that the hurricane represents “a meaningful setback to Jamaica’s tourism sector in the near term”. Prior to the hurricane, Jamaica was on track to meet its target of 4.5 million visitors in 2025, supported by improved travel advisories and marketing strategies. But the passage of Melissa resulted in dozens of resort closures and a 73.4 per cent drop in passenger traffic at Sangster International Airport (SIA) in November.
JSE-listed companies currently feeling the effects of the storm weeks after its passing include
Express Catering Limited (ECL). The company that operates branded sports bars and restaurants at the SIA which reported a 49.7 per cent increase in net profits for the first quarter of 2025 but faces challenges due to declining arrivals at SIA.
Everything Fresh Jamaica Ltd, another tourism-dependent company which has just doubled earnings to $106.7 million was also badly disrupted by Melissa. The medium-sized importer and distributor of fresh produce, dairy and baked goods to supermarkets, hotels, and restaurants across Jamaica “could also face headwinds”. In particular, it recently secured a US$550,000 loan in July “to support previously expected peak tourism seasons working capital needs”.
Caribbean Producers Ltd was already experiencing challenges with a 25.8 per cent decline in year-to-date earnings, but with damage from the hurricane, it may be longer before the company returns to profitability, NCB added.
Meanwhile another company that depends heavily on overseas visitors Dolphin Cove is anticipating “US$300,000 in restoration costs” although its properties were fully insured, the brokerage house explained. The popular marine attraction however may still see limited earnings growth due to subdued visitor traffic.
The timeline for recovery remains to be seen. NCB Capital did not put a buy or sell rating on these stocks.
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