People's National Party (PNP) Senator Noel Sloley has urged the Government to consider an economic stimulus package to kick-start the economy in the wake of the global financial crisis.

In his contribution to the State of the Nation Debate in the Senate Friday, Sloley said uncertainty has prompted world leaders to implement measures to stabilise financial systems.

"Yet in Jamaica, we appear to be in a state of denial, in spite of repeated warnings from the private sector and all the ratings agencies that have threatened a downgrade," said Sloley.

He added: "It would appear as if the Government wants to convey the mistaken impression that Jamaica is an island of prosperity, surrounded by an ocean of chaos and economic uncertainty."

Sloley argued that these denials persist in spite of the obvious umbilical linkages to the United States economy, particularly in terms of tourism, trade credits and remittances.

Fallout looms

He forewarned of dire consequences for the tourism and hospitality sector in the face of bleak predictions for the winter season, which starts December 15, and projections of visitor fall-off.

"Jamaica's tourist industry will limp into the upcoming winter season - with no joy - as hotels will operate below planned occupancy levels and with deep discounted rates, leaving no surplus to carry into the long slow spring, summer and fall seasons," he said.

Sloley told the Senate that the tourism industry will only be able to attract sufficient visitors if Jamaica markets heavily and offers deals.

"The industry needs real help, not more platitudes," he said.

"This does not augur well for the industry as the crisis in the United States and the other major market could last well into and beyond 2009," said Sloley.