The cinema industry is grappling with an existential crisis. Globally, theatres are losing audiences to the allure of on-demand streaming platforms such as Netflix, Amazon Prime, and Disney+. These platforms, now competing directly with Hollywood studios, offer high-quality films featuring A-list talent, making it harder for traditional cinemas to sustain attendance.

Locally, Jamaica’s Palace Amusement Company exemplifies this struggle, recently reporting a one-third dip in attendance and significant losses. Yet, despite the dire headlines, opportunities for reinvention abound.

The Local Scene: Palace Amusement’s Struggles and Innovations

Palace Amusement faces the dual challenge of a global content drought and shifting viewer habits. The lingering impacts of Hollywood’s Screen Actors Guild and Writers Guild strikes exacerbated the situation, delaying blockbusters and leaving theatres to depend on weaker releases. Hits like Barbie and Mission: Impossible 7 in 2023 were followed by a lackluster 2024 lineup, with films like Joker 2 underperforming globally. As a result, Palace recorded a 33% decline in attendance during the first quarter of 2024, leading to a 20% revenue drop​.

To combat these challenges, Palace has taken steps such as introducing 4DX technology at its flagship Carib 5 cinema. This multi-sensory format—incorporating seat movements, water splashes, and other effects—has proven popular, driving higher occupancy rates for certain screenings. However, such innovations alone are not sufficient.

The Global Shift: Lessons from International Players

Around the world, cinema operators are diversifying their offerings and finding creative ways to fill theatre seats:

Alternative Content: Cinemas in Europe and the United States are increasingly showing live events such as concerts, sports matches, and theatrical performances. For example, AMC Theatres in the U.S. streams live concerts and offers gaming nights, turning theatres into multi-purpose venues.

Premium Experiences: Operators like Cineworld have shifted to offering luxurious seating, gourmet food options, and private screening packages, creating an upscale experience that streaming cannot replicate.

Local Content and Festivals: In countries like India and South Korea, cinemas rely on vibrant local film industries to draw audiences. By promoting Jamaican and Caribbean films through local festivals, Palace could engage regional audiences while reducing dependence on Hollywood.

Subscription Models: Subscription services like AMC Stubs A-List and Regal Unlimited allow audiences to see multiple films for a flat monthly fee, boosting attendance and stabilizing revenues.

Digital Engagement: Many cinemas now use robust loyalty apps, personalized recommendations, and gamification strategies to connect with patrons. Palace could enhance its app to drive engagement, offering discounts, virtual rewards, and early ticket access.
Strategies for Palace Amusement

Given the shifting landscape, Palace Amusement could adopt the following strategies to revitalize its business:

1. Diversify Offerings Beyond Films

Transform cinemas into multi-use entertainment hubs. Hosting live events, comedy shows, and esports tournaments can broaden audience appeal.

2. Expand Local Content Investment

Collaborating with Jamaican and Caribbean filmmakers to produce original content would not only support the local creative economy but also attract culturally invested audiences.

3. Enhance the Viewing Experience

Expand 4DX technology to additional locations while exploring other immersive technologies like VR cinema experiences.

4. Build Community Engagement

Cinemas can serve as cultural spaces, hosting film clubs, Q&A sessions with filmmakers, and themed events tied to movie releases.

5. Adopt Flexible Pricing

Dynamic pricing strategies—lower ticket prices during off-peak hours and premium pricing for blockbusters or special events—can maximize revenue.

6. Strengthen Online Presence

Leveraging social media and digital marketing to highlight new experiences and engage with younger audiences is critical. Integrating streaming partnerships, such as limited online releases of local films, could also diversify revenue streams.

The Path Forward: A Reinvented Cinema Experience

Despite challenges, there is optimism. Palace Amusement anticipates a stronger 2025, with a more robust lineup of films and continued financial stabilization through debt reduction strategies. Globally, the National Association of Theatre Owners projects a rebound for cinemas, particularly with the release of delayed blockbusters​.

To secure its place in a rapidly evolving industry, Palace must embrace innovation, diversify revenue streams, and reimagine the cinema as more than a place to watch films. It must become a hub for experiences that unite communities, celebrate culture, and deliver entertainment that streaming cannot replicate.

In the end, the future of cinemas lies not in resisting change but in embracing it—and leading audiences back to the magic of the big screen.

Jamaica’s trusted name in transportation, JUTA, is proud to announce the launch of JUTA Express, beginning service on December 15th, 2024. Offering a premium, non-stop travel experience, JUTA Express is set to revolutionize intercity transportation and same-day courier services in Jamaica.

Your Non-Stop Ride to Convenience
With four daily departures from Kingston, Sangster International Airport, and Mandeville, passengers can count on timely, uninterrupted service. Departure times are 6:00 AM, 8:00 AM, 4:00 PM, and 6:00 PM, ensuring flexibility and convenience.

JUTA Express guarantees the same renowned level of customer service and comfort that passengers have come to trust from JUTA over the years.

Same-Day Courier Service
In addition to passenger services, JUTA Express will offer courier services on all routes. With same-day pickup and delivery, customers can rely on swift and secure transportation of packages. Please note, no overnight storage is available. Unclaimed packages will incur heavy overnight fees, making same-day collection a must.

Book Easily with the InterMetroONE App
JUTA Express is designed with modern convenience in mind. All bookings and payments are processed through the InterMetroONE Customer App, available for download on both Google Play and the Apple App Store. Limited in-person bookings will be accommodated at the JUTA Kingston Office; however, the service is primarily cashless, accepting only credit and debit cards.

Looking Ahead to 2025
To meet the anticipated demand, JUTA Express will expand its routes in 2025, connecting even more of Jamaica’s key destinations.

Download the App Today and Book Your Seat!
Be among the first to experience the next generation of intercity travel and courier services with JUTA Express. Download the InterMetroONE Customer App today, secure your seat, and travel in comfort, safety, and style.

For more information, contact:
JUTA Express Customer Service
4 Lady Musgrave Road Kingston
jutaexpressone@gmail.com
Phone: (876) 927-4536

About JUTA
JUTA (Jamaica Union of Travellers Association) is Jamaica’s leading transportation provider, known for its unparalleled commitment to safety, reliability, and exceptional customer service.

As a leader, you recognize the importance of inspiring your team with a compelling vision. Yet, you may find that your company’s vision statement, despite its lofty aspirations, fails to inspire meaningful change. How can you craft and communicate a future that genuinely motivates your team to take action?

The Challenge of an Inherited Vision Statement

Imagine you’re a newly promoted CEO. Among the many responsibilities you’ve inherited is a vision statement. While it might look passable on paper, it has yet to inspire you, let alone your team, to embrace new behaviors or think differently.

It’s not that you lack vision yourself—after all, your success is built on envisioning possibilities and pursuing them. But translating that personal energy into an organizational vision that resonates with others is a different challenge altogether. Should you simply rewrite the vision statement, or is there a better way to achieve meaningful impact?

Here’s a fresh approach to this age-old leadership dilemma.

Understanding How Vision Truly Works

A powerful vision fundamentally transforms how we experience the present. Think about the difference between a Friday afternoon in the office and a Sunday afternoon. The former often feels better—not because of the immediate circumstances but because of our anticipation of the weekend. This sense of future anticipation changes how we perceive the present moment.

That’s the kind of shift you want to inspire in your stakeholders. You want them to feel energized by the future you’re describing, just as you are. The hallmark of success is when individuals take initiative, make sacrifices, and go beyond their job descriptions—not because they’re told to, but because they’re inspired to.

But here’s the hard truth: a traditional vision statement alone cannot deliver this kind of transformative impact.

Rethinking Vision: Introducing the Three Levels

Most organizations begin with what can be termed a “Level 1 Vision”: a concise, polished statement, often a few sentences or paragraphs, that attempts to summarize the future. However, these statements are frequently vague, generic, and uninspiring. They might sound nice but leave people either indifferent or skeptical. Some may even feel the statement describes what the organization has already achieved, rendering it irrelevant.

A better approach is to think of the Level 1 Vision as just the “headline” of a more detailed vision framework. Here’s how to expand it.

Building a Level 2 Vision

To create a meaningful vision at this level, gather your leadership team for an offsite retreat and focus on a specific long-term horizon—typically 15 to 30 years in the future. Work together to describe a vivid picture of what success looks like at that time. This Level 2 Vision goes beyond a brief statement; it provides several pages of detail, potentially including visuals, videos, or other media to bring the future to life.

The key here is collaboration. By involving your leadership team, you not only create a shared sense of ownership but also tap into a wider pool of creativity and ambition. A well-crafted Level 2 Vision should reflect the aspirations of your entire C-suite, energizing everyone involved.

However, many organizations stop at this stage. While the Level 2 Vision is more compelling than a simple statement, it often becomes an overwhelming list of aspirations. Without prioritization (and reduction), it risks becoming unrealistic, leading to cynicism rather than inspiration. Some employees may even dismiss it as “the CEO’s wish list.”

To avoid this pitfall, you must take the next step.

Evolving to a Level 3 Vision

The “Level 3 Vision” transforms lofty aspirations into a credible, actionable plan. This involves narrowing down the vision to a focused set of achievable targets supported by a strategic roadmap.

This process requires tough conversations. Your leadership team will need to negotiate priorities, confront trade-offs, and align on a clear path forward. Engaging a skilled facilitator can help ensure these discussions are productive and lead to consensus.

The outcome is a vision that stands apart from your competitors. A Level 3 Vision includes:

– Specific, measurable results: Clearly defined goals with tangible metrics.

– Milestones: Key achievements along the journey to the ultimate vision.

– A strategic pathway: A roadmap showing how to get from the present to the desired future.

– Team alignment: Full buy-in from your leadership team, ensuring commitment to execution.

With this, your vision evolves from an abstract dream into a realistic plan that inspires action.

Communicating Across the Three Levels

Once your Level 3 Vision is established, it’s crucial to communicate it effectively. Each level of vision—Level 1, Level 2, and Level 3—has a role to play depending on your audience and context.

For example, a Level 1 Vision offers a concise, memorable summary. Think of Vision 2030 Jamaica’s tagline: “…the place of choice to live, work, raise families and do business.” It’s short, evocative, and easy to recall.

A Level 2 Vision, on the other hand, provides more depth. Vision 2030 Jamaica expands on its tagline with four National Goals and 15 Outcomes, offering stakeholders a richer understanding of the country’s aspirations.

Finally, a Level 3 Vision delivers the detailed roadmap necessary to ensure credibility and guide execution.

By mastering these three levels, you can tailor your communication to inspire stakeholders while maintaining clarity and focus. Avoid the mistake of using the wrong level for the audience or situation, which can lead to confusion or disengagement.

Conclusion

Transforming vision statements into actionable, inspiring frameworks requires more than polished language. By embracing a three-level approach, you can align your team, inspire stakeholders, and chart a credible path to the future. Choose the right level of vision for the right moment, and you’ll not only communicate your aspirations—you’ll make them a reality.

Intrigued? Interested in more? Visit the JumpLeap Long-Term Strategy Podcast and Newsletter.

Francis Wade
Jump Long-Term Newsletter and Podcast
http://blog.fwconsulting.com, http://fwconsulting.com

Introduction: The Tension Between the Central Bank and Commercial Banks
Jamaica’s economic recovery in recent years has been closely tied to the monetary policies of the Bank of Jamaica (BOJ), which has used interest rate adjustments as a tool to control inflation, stabilize the currency, and foster economic growth.

However, a key obstacle to the effectiveness of these policies has been the slow transmission of BOJ rate cuts into the lending rates of commercial banks. The pace at which commercial banks lower their interest rates after the BOJ makes its adjustments has been a source of tension, particularly as high borrowing costs have stifled investment and economic activity in critical sectors such as construction, real estate, the stock market, and broader financial services.

The Rate Transmission Challenge
For years, the BOJ has maintained an aggressive stance on controlling inflation, setting the policy rate at elevated levels to curb inflationary pressures and stabilize the exchange rate. The central bank’s decision to raise rates has, however, faced resistance when passed through to consumers. While the BOJ adjusts its policy rate, which is expected to affect market rates and borrowing costs, commercial banks in Jamaica have been slower to adjust their own lending rates. The delayed response from commercial banks in reducing interest rates after the BOJ signals a rate cut has created a disconnect in the economy, frustrating the central bank’s efforts to stimulate investment.

“We are absolutely determined that we have to have a much more efficient transmission system,” Bank Of Jamaica Governor Richard Byles

“Commercial banks have been slow to lower lending rates in response to BOJ adjustments, even as the central bank signals its intention to stimulate growth,” says an economist from the Caribbean Development Bank. “This delay results in a less responsive monetary policy, which weakens the transmission mechanism and hampers economic growth.”

This slow pass-through effect has been especially problematic for businesses and consumers relying on credit to drive spending and investment. High lending rates have made borrowing expensive, discouraging business expansion and large-scale investments, especially in sectors like construction and real estate.

“The group’s financial performance continues to reflect the impact of the ongoing high-interest rate environment in Jamaica, which exerts downward pressure on property values, resulting in lower property income relative to prior year.” Norman Reid Chairman FirstRock Real Estate Investments Limited

The Impact on Key Sectors: Real Estate, Construction, and the Stock Market

1. Real Estate and Construction:

The construction and real estate sectors are particularly sensitive to interest rate movements because of their reliance on financing for property development and home purchases. High interest rates have increased the cost of capital for developers, making it more expensive to finance new projects and slowing down the pace of construction. In addition, potential homebuyers have been discouraged by high mortgage rates, further dampening demand in the housing market.

Jamaican developers and real estate professionals have expressed frustration with the lack of affordability. “With borrowing costs so high, it has become increasingly difficult for developers to undertake large projects or offer affordable housing to the average Jamaican,” said a prominent Jamaican real estate developer in an interview with the Jamaica Observer. “This is not just about the cost of money, it’s also about the ripple effect of slower growth in the construction industry, which impacts employment and related sectors.”

“Owing to higher policy interest rates by the Bank of Jamaica, which moved from a historic low of half a per cent (0.50) since October 2021 to the current 6.5 per cent, FirstRock Real Estate Investments Limited has been realising lower property income as pressure continues to weigh down property values resulting in a softening of the market.”

2. The Stock Market:

In the financial markets, particularly the stock market, high interest rates have made government securities more attractive relative to equities. As a result, the Jamaican stock market has seen a period of subdued investor activity. When interest rates are elevated, investors tend to favor the guaranteed returns of bonds and treasury bills, which are perceived as lower risk compared to stocks.

The Jamaican stock market has experienced a sharp decline in activity, with reduced liquidity and a diminished appetite for riskier investments. Analysts suggest that the high cost of capital has discouraged companies from seeking capital through equity financing, opting instead for less-expensive debt or leaving expansion plans on hold. “The slow transmission of lower rates from the BOJ to consumers means that the real economy and the stock market suffer as investment slows,” says an analyst at JMMB Group.

3. The Financial Sector:

The financial sector has been one of the primary sectors impacted by the BOJ’s rate hikes. Banks’ profitability is closely tied to the interest rate spread—the difference between what they pay for funds and what they charge on loans. As commercial banks face high borrowing costs, their interest rate margins tend to widen, increasing profits in the short term. However, in the long term, the suppressed demand for loans due to high rates can limit business growth opportunities and create a drag on the overall financial ecosystem.

“The banking sector is seeing increased profitability on loan spreads, but that comes at the cost of reduced lending, which is unsustainable in the long term,” says a financial analyst with Scotiabank Jamaica. “Banks need to balance profitability with growth, and high interest rates are squeezing that balance.”

The Likely Effects of Falling Interest Rates on Key Sectors

1. A Revival in Real Estate and Construction:

As the BOJ begins to reduce interest rates in response to easing inflationary pressures, the real estate and construction sectors stand to benefit significantly. Lower rates would reduce the cost of financing for both developers and homebuyers, unlocking pent-up demand in the housing market and spurring new construction projects.

Industry stakeholders are optimistic about the potential revival of the construction and real estate sectors. “The drop in interest rates will likely create a favorable environment for developers and potential homeowners. Projects that were previously on hold due to financing costs can now move forward,” says a director at the Jamaica Chamber of Commerce. With a focus on sustainable and affordable housing, developers expect to see increased interest in residential projects as mortgage rates become more manageable.

2. A Boost for the Stock Market:

In the stock market, lower interest rates tend to make equities more attractive compared to fixed-income securities like government bonds. As borrowing costs decrease and disposable income rises, consumer spending increases, driving demand for goods and services. Companies that are able to capitalize on this surge in demand are likely to see stronger earnings, which can attract investors back into the stock market.

In addition, lower rates would reduce the cost of capital for companies looking to expand, potentially leading to increased IPOs and capital raises on the stock exchange. A recovery in investor confidence could stimulate trading volumes and liquidity on the Jamaica Stock Exchange (JSE), enhancing its attractiveness to both local and international investors.

3. A More Dynamic Financial Sector:

The financial sector stands to benefit from a more balanced interest rate environment. Lower rates would stimulate demand for loans and credit products, providing a boost to lending volumes and enabling banks to diversify their portfolios. Banks would also be able to offer more competitive loan products, which would benefit consumers and businesses alike.

In particular, the reduced cost of capital could lead to increased investment in long-term projects, with businesses likely to take on more debt to fund expansion plans. This shift would help create a more dynamic financial sector, capable of sustaining growth in both the short and long term.

Conclusion: A Delicate Balance

The slow pass-through of BOJ rate changes to commercial banks’ lending rates has created challenges for Jamaica’s economic recovery, especially in key sectors like construction, real estate, and the stock market. However, as interest rates begin to fall, the prospects for these sectors are set to improve. Lower rates will encourage investment, promote lending, and make capital more accessible, providing a much-needed stimulus to the Jamaican economy.

As Jamaica navigates the transition to lower interest rates, the effectiveness of the central bank’s policies will depend on how quickly commercial banks respond to rate changes. A more synchronized approach between the BOJ and commercial banks could unlock significant growth potential, driving Jamaica towards a more dynamic and resilient economy.

A. Norman Sabga, the Chairman and Chief Executive Officer of the ANSA McAL Group of Companies, leads one of the Caribbean’s most influential conglomerates. Based in Trinidad and Tobago, ANSA McAL operates across diverse sectors, including manufacturing, financial services, distribution, media, and construction. Sabga succeeded his father, Dr. Anthony N. Sabga, the group’s founder and Chairman Emeritus, continuing the family legacy of entrepreneurship and business leadership.

Career and Leadership
Norman Sabga has been instrumental in the transformation and growth of the ANSA McAL Group, particularly by adopting innovative strategies to expand the company’s footprint in the region. Under his stewardship, the group has consistently delivered robust financial results, such as reporting a profit of $258.8 million after tax for the first half of 2024, reflecting a strategic focus on operational efficiency and sustainability. Sabga has emphasized long-term growth goals, including the group’s “2X objective” to achieve $2 billion in pre-tax profits by 2027​

Achievements and Accolades
In recognition of his contributions to business and society, Norman Sabga was awarded an honorary Doctor of Laws degree by the University of the West Indies in 2015. This honor symbolized his dedication to education, sustainable business practices, and community development. He has also played a significant role in advancing initiatives like the ANSA McAL Psychological Research Centre and supporting the UWI School of Entrepreneurship and the Guardian Media School of Journalism​

Vision and Values
Sabga is known for his belief in ethical leadership, hard work, and fostering a collaborative corporate culture. In speeches and interviews, he has highlighted the importance of integrity, teamwork, and resilience in overcoming challenges. These principles have guided his leadership approach, making ANSA McAL a model of corporate excellence in the Caribbean​

Challenges and Legacy
Navigating complex economic environments and managing a diversified business portfolio have been among Sabga’s challenges. His ability to adapt and innovate has ensured the group’s sustained success. As a visionary leader, Sabga continues to inspire future generations by championing business practices that balance profitability with social responsibility.

Norman Sabga remains a pivotal figure in Caribbean business, steering ANSA McAL toward greater achievements while upholding the values instilled by his family.