Executive Chairman of Caribbean Producers Jamaica (CPJ) Mark Hart says the explosion of short-term rentals, such as Airbnb, has opened up a whole new market for the company.

Speaking on Taking Stock with Kalilah Reynolds, Hart said the company has been targeting the retail market to help diversify its revenue streams.

“Airbnb has become quite the phenomenon. [The Government] is saying now that it represents almost 40% of our tourism. Everybody is getting into it,” he noted.

“And those customers are coming to us in droves; not just the villas but also just people who are coming to stay in those informal environments,” he said.

CPJ opened a third location in Drax Hall, St Ann, a rapidly developing tourism hub. The company also relaunched its flagship store in Montego Bay, St James, last year.

Hart, who is also acting as the Interim CEO, said both locations have been receiving tremendous support. He revealed that sales at the Montego Bay location increased 100% since reopening.

“The stores are geared towards small businesses, so anybody that has a small restaurant, whether it be gourmet or a little shop.” he said.

“And, that’s a big part of our business. So, instead of waiting on a large distributor to get to you, you can come into a retail environment where you can touch and feel the products and take them back with you,” he added.

Hart said that this approach is proving very successful for the company, adding that CPJ set a record sales month in May.

“So we really see that model of focusing our retail markets, we call them our chef markets, as an avenue of growth going forward,” he said.

Meanwhile, the Executive Chairman said the company is preparing for the summer season, which is traditionally its busiest season, and the opening of several new hotels.

Hart noted that the hospitality industry still plays a significant role in the company’s day-to-day operations.

He said the company will spend an extra US$7 million to expand its operations in Jamaica and St Lucia.

Over 6,000 additional hotel rooms are expected in Jamaica over the few years. Hart said the CPJ wants to be ready to serve all of them. The company will reportedly be spending US$1 million on solar power, US$2.5 million on its processing plant, US$1 million in St Lucia, and an additional US$2.5 million on regular expenses in its next financial year.

“We want to be ready. So, that’s what you’re seeing with this push for cap ex, to make sure that we’re ready for when these hotels open so we can supply them and maintain our share of business,” he added.