Competition for Palace Amusement?

Could Palace Amusement finally be getting some competition in Jamaica?

Trinidad-based cinema company, MovieTowne, is reportedly in talks to open a location here in Jamaica. 

According to their website, MovieTowne is the largest cinema chain in Trinidad and Tobago.  They have three locations across the country and another one in Guyana. 

MovieTowne theatres are in complexes that have retail shops, food franchises and even casinos, all owned by the company as well.

So it’s like if Palace not only had movie theatres at Sovereign and Sunshine Palace, but also owned the entire plazas.

MovieTowne’s owner, Derek Chin told Trinidad’s Guardian Media, that he’s been in talks with local stakeholders and hopes to start rolling in Jamaica by the end of this year. 

That’s major news for Palace, which is Jamaica’s only cinema operator.  Because even though Palace controls the market, the last few years have been rough on the company. 

The pandemic shut down movie going for well over a year.  And even when things were back to normal, the company had equipment issues and attendance problems. People got used to being inside by a certain time, so going to the movies just wasn’t as appealing.

Palace has been trying to turn things around. They’ve had a couple of box office hits like One Love and Dune. They’ve also revamped their website and raised ticket prices. 

According to the company’s third quarter results, for the nine months ending March, they brought in J$1.1 billion in revenues and made J$123 million in profit. 

But if this move by MovieTowne works out, it could affect Palace’s pockets.

On the other hand, MovieTowne has some problems of its own back in Trinidad. 

The company reportedly owes TT$93 million in unpaid taxes and penalties. That’s around US$13 million or J$2 billion. 

Apparently, the back taxes span two decades. Chin told the Guardian that MovieTowne has negotiated a payment plan to pay the taxes.

Even so, the Guardian reported the Government had started garnishing some of MovieTowne’s accounts.

So it seems like funds are tight, especially considering the timeline they have for coming to Jamaica.

And that’s the bottom line.

Why do you think? Would MovieTowne do well in Jamaica? And if so, where should they open their first location?  Or should they sort out the tax problems first?

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