Quote Originally Posted by Hussyband View Post
Typically, I use a mix while we are there. I get Jamaican for some purchases, but pay large purchases in US dollars.

Over the last week, I've seen threads on various FB pages, trip advisor and a carribean travelers forum I frequent where the topic has come up. One issue that I do not understand, and was hoping someone could either refute or explain is "spending US dollars in Jamaica hurts the economy"... and "spending us dolllars in Jamaica will not enter their system"

Both seem counterintuitive to me, but I'm not an economist. I get that buying rooms from a foreign owned entity may not enter the economy directly, but it seems that salaries, and the like would still make it into the system... but I'm more curious about the impact of using US dollars as opposed to strictly Jamaican.

Thoughts?
"spending US dollars in Jamaica hurts the economy"... and "spending us dolllars in Jamaica will not enter their system"
Don't see rooms mentioned in these statements. Spending any currency would enter their system in some manner (reported or underground). Spending US dollars probably does hurt somewhat the "reported" Jamaican Economy as they are often pocketed and not taxed as income.

I don't see the difference between buying rooms from a foreign owned entity or from a Jamaican owned entity entering the economy. Most room purchases are done pre-arrival in Jamaica and are recorded for taxation as soon as funds are received and accrued. These funds (though technically not yet realized as they are pre-arrival) are probably used to pay current liabilities like salaries and such.

Rooms that are purchased upon arrival may or may not be recorded and taxed regardless of currency. That is illegal, of course, but happens. The smaller property probably more frequently than larger places.