Jamaica’s tourism sector continues to struggle nearly a year after Hurricane Melissa struck the island as a Category 5 storm. With the peak winter travel season approaching, Jamaica faces pressure to help hotels and tourism businesses complete repairs and reopen.

Around 20 hotels remain closed nearly a year after the hurricane. The storm killed dozens of people and caused an estimated $12 billion in damage, much of it in northwest Jamaica.

Tourism plays a major role in Jamaica’s economy. The sector contributes up to 35% of the country’s gross domestic product and more than half of its foreign exchange earnings. It also supports roughly one in four jobs when indirect employment is included.

The biggest obstacle to Jamaica’s tourism recovery is now insurance. High deductibles and slow claim settlements have left businesses without enough money to complete repairs and reopen.

O’Brian Heron, president of the Jamaica Hotel and Tourist Association, said many claims remain unsettled or have fallen below the amounts businesses expected. The association says more than 61% of claimants still await full settlements.

More than 80% of association members filed property or business interruption claims after the hurricane. The insurance industry had committed to resolving most non-litigated claims by the end of September. However, many claims remain unresolved.

The impact has already affected Jamaica’s tourism industry. Damage to hotel rooms contributed to a 17% decline in visitor arrivals and an 18% drop in tourism revenue. The country lost an estimated $550 million in tourism earnings.

Tourism representatives have also raised concerns about deductions under the “average clause.” This provision can reduce insurance payouts when insurers determine that a property was under-insured.

Insurers have pointed to the complexity of commercial claims and a shortage of licensed property adjusters as reasons for the delays. They say each claim requires individual assessment. Business interruption claims can also take months to calculate.

The slow insurance process has drawn attention from Jamaican government officials. Prime Minister Andrew Holness recently warned that he could use legislative authority to push for faster claim resolutions.

As Jamaica approaches its peak tourism season, businesses continue to wait for insurance payments. The pace of those settlements remains a major issue for hotels and other operators trying to rebuild after Hurricane Melissa.