PUERTO RICO TAKES ITS PLACE ON THE TOURISM WORLD STAGE by Adam Greenfader

PUERTO RICO TAKES ITS PLACE ON THE TOURISM WORLD STAGE A Powerful Story of Recovery and Growth Presented by

Puerto Rico Takes its Place on the Tourism World Stage

SKIFT REPORT 2019

EXECUTIVE LETTER Dear Travel & Tourism Colleagues, Great opportunities are disguised as impossible situations. Puerto Rico has embraced the challenges faced as an opportunity for transformation. Leveraging travel and tourism’s transformative powers, we have reimagined our tourism economy, positioning it as the poster child for what a strong comeback should look like. After recovering from one of the largest natural disasters in modern history, it’s thrilling to showcase that the outlook for the tourism industry in Puerto Rico is an optimistic one. The island’s lodging options is now showcasing a beautifully refurbished inventory and an ample pipeline of hotels, currently under construction or soon to break ground. Simultaneously, cruises and airlines providing access to the island continue to grow. More so, a plethora of experiences all around the island continue to be developed, showcasing the island’s untapped rich and diverse offerings. This positive outcome is driven by the Government’s commitment to developing Puerto Rico as a destination that competes on a world stage. Governor Ricardo Rosselló has been emphatic about the urgency to seize this unique opportunity to strategically position Puerto Rico as an island of innovation and one that is open for business. This vision has been widely adopted by other public, private, and nonprofit partners, who have also been key to securing a promising future for the islands’s tourism economy.

Carla Campos Executive Director Puerto Rico Tourism Company

To better showcase this economic development story, our partners at Skift have analyzed the elements that are indicative of an optimistic outlook and unquestionable growth trends. This report highlights the results of that analysis and the insights extracted from the investigation. We hope that this comprehensive deep-dive into Puerto Rico’s current state and future for travel and tourism will entice you to invest in, do business with, and travel to Puerto Rico. If you were not thinking about Puerto Rico before, we hope you will now. Warm wishes, Carla Campos Executive Director Puerto Rico Tourism Company

Puerto Rico Takes its Place on the Tourism World Stage

SKIFT REPORT 2019

TABLE OF CONTENTS 6

Introduction

Sidebar: Puerto Rico’s Recovery and Growth Major Changes to Advance the Investment Environment

IT’S TIME TO INVEST IN

PUERTO RICO

Actively Engaging the Private Sector Through Partnerships and More

Creating Economic Incentives

Simplifying Regulations and Streamlining Policies for Investors

Establishing an Autonomous Destination Marketing Organization to Generate Demand

Engaging Not-For-Profit Organizations for Strategic Initiatives

Sidebar: How Foundation for Puerto Rico is Growing Sustainable Tourism Securing the Future: Puerto Rico’s Efforts to Ensure Sustainable Growth

16 18

Building a Resilient Infrastructure

Growing Connectivity and Inventory

Creating Targeted Marketing Campaigns to Grow Demand

Consumer Trends Driving Puerto Rico’s Allure as a Global Destination

Key Takeaways

ABOUT SKIFT Skift is the largest media platform providing news coverage, insights and marketing to the travel industry. Skift deciphers and defines trends for global CEOs and CMOs across all travel sectors though a combination of news, research, conferences, and marketing services.

ABOUT SKIFTX SkiftX is Skift’s in-house content studio. SkiftX produced this report in partnership with Puerto Rico Tourism Company (PRTC).

MASTHEAD Vice President, SkiftX / Katherine Townsend Executive Director, Sales / Deborah Knudsen Strategist, SkiftX / Sonali Sen Editorial Strategist, SkiftX / Paul Brady Research Editor, SkiftX / Jeremy Kressmann Editor, SkiftX / Alison McCarthy Project Manager, SkiftX / Gianna Greco Designer / Andrea Yang-Yanez

SKIFT REPORT 2019

Puerto Rico Takes its Place on the Tourism World Stage

INTRODUCTION Puerto Rico is one of the most unique places to visit in the U.S. and the Caribbean. It was named as a top destination in 2019 by the New York Times in its annual ‘52 Places to Go’ list. This American territory is emerging as a sought-after destination for travelers from around the world, who come for its distinctive cuisine, unique culture, historic sites, and unparalleled beaches. A gateway connecting the North and South Americas, and a US territory, Puerto Rico’s government has made boosting the tourism industry one of its top priorities. According to the Puerto Rico Planning Board, a government agency in charge of centralized economic planning in the territory, the number of tourists visiting the island has been growing since 2011. Visitation in 2017 increased by 24 percent to 5.2 million tourists, up from 4.2 million in 2011. And while Puerto Rico (including the islands of Culebra and Vieques) was severely impacted by category four Hurricane Maria and category five Hurricane Irma in 2017, that momentum hasn’t abated. In fact, Puerto Rico Governor Ricardo Rosselló said that visitation was 13 percent higher than pre-hurricane visitation in September 2018. Today, Puerto Rico’s recovery story has positioned the destination for significant and continued growth. Developing tourism and building a related resilient infrastructure are key to the government’s economic development plans. The island is also expected to receive additional federal funding for its infrastructure. The stars are aligning for Puerto Rico with new hotels, renovated accommodations with updated amenities, improved attractions, and tourists returning in large numbers by air and by cruise ships. The government is committed to building a robust infrastructure by improving the electrical grid, roads, port facilities, airports, and prioritizing other development projects that will make Puerto Rico more accessible and easier for tourists to navigate.

Puerto Rico Takes its Place on the Tourism World Stage

SKIFT REPORT 2019

The Virtuoso Hot 10: The destinations that experienced the largest year-over-year growth in summer bookings (June, July, August of 2019 over the same months in 2018)

Visitation to Puerto Rico

+410%

increased by 24 percent from 4.2 million to 5.2 million between 2011 to 2017. +173%

Governor Rosselló himself has, on numerous occasions, recognized the key role that the tourism industry plays in the island’s economic future. “When I was running for office, we saw tourism as one of the critical opportunities for us to showcase our culture,” he said at the 2018 Skift Global Forum. “We saw that we have a unique window to differentiate from others, extend the length of stay, and have more folks come to Puerto Rico.” Tourists haven’t disappointed. Travel to Puerto Rico is on the rise. Jack Richards, president and CEO of travel agency Pleasant Holidays, which handles travel to 23 islands in the Caribbean, told The New York Times that bookings started picking up in June 2018. Virtuoso, a global network of travel agents and advisors specializing in luxury and experiential travel, released the ‘The Virtuoso Hot 10’ of destinations, identifying where upscale travelers are headed during the summer months in 2019. This list ranks the destinations that have shown the highest year-overyear growth in summer bookings. Puerto Rico came in third with an increase of 149 percent over the same months in the year prior.

Chile

India

+149%

Puerto Rico

+129%

Philippines

+111%

Belgium

Government officials of Puerto Rico attribute this growth to its ability to bring the public, private, and not-for-profit sectors together to improve the territory’s visitor economy. “We really believe that Puerto Rico can compete boldly and aggressively in the global tourism scene,” said Federico Stubbe Jr., president of Prisa Group, one of Puerto Rico’s largest developers. Prisa Group develops and owns several hotels, resorts, entertainment projects, and residential communities on the island. “The government officials seem to have a pretty clear strategy in using tourism as a driver for recovery and economic growth,” said Nicolas Graf,

+89%

Kenya

+76%

+73%

Egypt

Singapore

+67%

+58%

Costa Rica Dominican Republic

associate dean of the Jonathan M. Tisch Center for Hospitality and Tourism at New York University’s School of Professional Studies. “Being almost entirely devastated by the hurricane gives the island pretty much a blank sheet of paper to start with. And so it can be a lot more strategic in defining their tourism development policies, the various incentives that they have put together, and the opportunity zones that they have created.” So far, he said, Puerto Rico has enjoyed many early successes. “In my view, the government is being pretty strategic in defining one goal – to drive investment to the island and ultimately drive tourism,” Graf said. It has aggressively prioritized investment and assisted various travel sectors in their efforts to rejuvenate and expand the tourism industry, he added.

SKIFT REPORT 2019

Puerto Rico Takes its Place on the Tourism World Stage

SKIFT REPORT 2019

Puerto Rico’s Recovery and Growth

Airlines

Cruising

The airline industry in Puerto Rico has not only been able to recover quickly, but has been one of the key facilitators of growth on the island. “Puerto Rico now has a very strong visiting friends and family market, which resulted in significant growth for low-cost and ultra low-cost carriers,” said Carla G. Campos, executive director of the Puerto Rico Tourism Company (PRTC). “Airlines like Allegiant, Frontier, and Spirit have significantly increased their footprints on the island, while legacy carriers like United, Delta, and American have also come back with confidence. Just recently, we announced that Iberia will start flying to Puerto Rico year-round. The last time Iberia flew year-round was in 2013, so clearly there are very strong indicators for growth in terms of air access.”

Puerto Rico has been a popular cruise port for years, for both embarkation and disembarkation, as well as a common stop on Caribbean itineraries. According to Campos, “2018 ended up being a record-breaking year for the cruise sector in terms of passenger arrivals, surpassing the previous record high of 1.5 million, set in 2015. We received 1.6 million cruise passengers between July 2017 to June 2018.” She also noted that the number of cruise ship passengers is poised to increase to 1.8 million in the 2018 to 2019 fiscal year.

Campos was referring to Iberia Airlines’ announcement in April 2019 about its service expansion between Madrid and San Juan moving from seasonal service to year-round service. Another foreign carrier, Avianca Airlines, a Colombian carrier with service across North and South America, is also strengthening its presence in Puerto Rico. JetBlue, one of the destination’s champion airline partners, returned to its pre-hurricane numbers as early as June 2018, flying up to 48 flights per day from the island to 13 destinations in the continental U.S. and the Caribbean during the summer peak.

Puerto Rico is starting to occupy a very important space in the travel and tourism industry. It’s not just going to be important that we host the World Travel & Tourism Council Global Summit next year, but it is also a large statement about how the rest of the world is looking at Puerto Rico, expecting the island to come back in full force. Carla Campos, Executive Director, PRTC

Hotels and Lodging Puerto Rico’s repertoire of accommodations is continuing to grow and diversify as well. There are currently over 15,500 rooms across the island’s hotels and resorts, and more than 6,000 shortterm rentals and private accommodations. According to numbers reported by the Puerto Rico Tourism Company, 14 properties (which amounts to 4,892 rooms) were closed for renovation after the hurricanes hit the island. However, out of those 4,892 rooms, 1,852 rooms are already available post renovation and another 1,132 rooms are expected to reopen soon. This means that due to extensive renovations, made necessary by the hurricanes in the last couple of years, the island now has some of the newest and most modern lodging options in the region. New properties such as the Serafina Beach Hotel and O:LV Fifty Five have been added to the island’s repertoire of available rooms.

Puerto Rico has also received important travelindustry endorsements: travel industry associations and organizations have made plans to host their annual conferences there. This U.S. territory is hosting the Florida-Caribbean Cruise Association’s annual cruise conference and trade show for the second year in a row. The World Travel & Tourism Council, which is a representative body for private sector travel and tourism brands from around the world, announced in April 2019 that it had chosen Puerto Rico to host its 2020 Global Summit. The 2019 Global Summit, hosted by World Travel and Tourism Council, was hosted in Sevilla and had a record attendance of 1,500 private and public sector leaders from the travel industry.

Being afforded the responsibility to not only host leaders from the hospitality, airline, and cruise sectors, but also world leaders like tourism ministers, sends a strong signal to the travel industry. In this report, Skift will examine how Puerto Rico is on the right path to becoming a leading leisure and business travel destination. We’ll look at the role that the government of Puerto Rico, private sector investment and partnerships, and not-forprofit organizations are playing in fostering a proinvestment and pro-travel environment. We will also highlight opportunities for investors who are looking to capitalize on the destination’s upward trajectory.

SKIFT REPORT 2019

Puerto Rico Takes its Place on the Tourism World Stage

MAJOR CHANGES TO ADVANCE THE INVESTMENT ENVIRONMENT The government of Puerto Rico has prioritized tourism and is on the path to establishing a strong tourism economy through direct and indirect investments in the island’s infrastructure. It is doing so by not only creating an environment that is ripe for investments and partnerships, but also ensuring that the destination is poised to attract and grow tourists. As a result, Puerto Rico is in a unique position to offer a relatively new — but extremely attractive — environment for travel and tourism investors. The Puerto Rican government established Invest Puerto Rico Inc., also known as Invest PR, to promote Puerto Rico as a competitive investment jurisdiction, and attract new business and external capital to the island. “It’s a new, independent organization that will look to attract investment to the island,” Campos said. “The organization will play a key role in educating potential investors on the benefits of investing in Puerto Rico tourism.” One of its primary responsibilities will be to help connect new businesses in Puerto Rico with local companies to acquire goods and services needed to build their brands.

The reason Puerto Rico is so interesting is because it provides an opportunity to reinvent what travel means to the world, in our own backyard in the United States. With all of the bigger issues around the extractive effects of mass tourism that we are unfortunately seeing globally, this is our chance to build an inclusive and distributive ecosystem of travel that is embedded in the community. Tourism should satisfy and balance the needs of local communities and travelers, and contribute to the destination’s growth and development in responsible ways. This is my challenge to the travel industry: Let’s invest in Puerto Rico and act as the compass for responsible travel in the 21st century. Rafat Ali, CEO, Skift

Puerto Rico Takes its Place on the Tourism World Stage

Actively Engaging the Private Sector Through Partnerships and More Puerto Rico has been working closely with the private sector by creating public-private partnerships and actively engaging influential companies such as JetBlue, Southwest Airlines, Delta, Spirit, Carnival Cruises, Royal Carribbean, Norwegian Cruise Line, Marriott International, Hilton, and The Points Guy. JetBlue, for example, is not only contributing to growing tourism to the island, but has also played an active role in helping with its recovery efforts and restoring stability to the island. JetBlue started service to San Juan in 2002, shortly after the airline’s first flights took off in 2000. It now operates more than 40 daily flights between Puerto Rico and 11 cities on the mainland, the U.S. Virgin Islands, and the Dominican Republic. The company has the largest presence of any airline in Puerto Rico, with nearly 500 of its crew members residing on the island. After the hurricanes, the carrier launched the 100 x 35 JetBlue initative with partners such as the Puerto Rico Tourism Company (PRTC) to help the island with the aftermath of the storm by completing 35 developmental and recovery initiatives in 100 days.

SKIFT REPORT 2019

“As Puerto Rico’s largest airline, we knew it was important to help the community, the island’s geography, and our crew members recover from this terrible storm,” said Marty St. George, executive vice president and chief commercial officer at JetBlue. Initiatives included offering hospitality training programs and promoting travel to Puerto Rico throughout the U.S., including through JetBlue Vacations.

We consider ourselves a part of the Puerto Rican community and want to be a part of its recovery. We are thrilled to see how well the island is recovering and how it’s attracting new visitors. We are humbled to know that our partners feel that we are doing our part. Marty St. George, Executive Vice President and Chief Commercial Officer, JetBlue

The company also demonstrated its commitment to Puerto Rico by introducing a specially painted aircraft, Bluericua, which featured iconic images that promote Puerto Rico and its culture (the name is a

Bluericua by JetBlue

SKIFT REPORT 2019

pun on “boricua,” the Puerto Rican term for islanders). “This aircraft travels throughout the region to remind travelers of Puerto Rico’s beauty and why they should visit,” St. George said. The airline also supported Puerto Rico’s efforts to attract the Broadway hit “Hamilton” for a limited run in San Juan with the show’s creator Lin-Manuel Miranda, who is of Puerto Rican heritage. Other public-private partnerships that support tourism are also underway. The Puerto Rico Ports Authority signed a memorandum of understanding with Norwegian Cruise Line in 2018 to improve the Pan American and San Juan piers. This important partnership means that the piers will be able to accommodate the Norwegian Dawn and the Norwegian Epic, the cruise line’s new, larger ships. “We also have a public-private partnership that is underway, which is for the improvement of the cruise port in San Juan,” Campos said. “The project is currently up for bid. There’s a shortlist of three candidates up for management operations and infrastructure development of the port in San Juan for cruise ship development.”

Creating Economic Incentives

Puerto Rico Takes its Place on the Tourism World Stage

Late last year, Governor Rosselló proposed a bill in the House of Representatives that would take these tax incentives even further. Such benefits could include a 20 percent fixed tax rate on net income from eligible developments, and a 100 percent exemption from taxes on construction projects.

SKIFT REPORT 2019

“Let’s say that you’re an opportunity fund, and you invest in Puerto Rico,” said Carlos Romo Aledo, planning and development director for PRTC. “You would be able to use that investment, get the tax credits in Puerto Rico specifically, and the tax concessions coupled with the federal incentives of an Opportunity Zone. You would have a great investment with good return because of the combination of all the factors.” A Snapshot of Hotel and Hospitality Incentives under Act 74 of 2010

Income Tax: 90 percent exemption (a 100 percent exemption applies if the income is derived from eligible activities conducted in Vieques or Culebra) Dividends: 90 percent exemption Royalty Tax: 12 percent withholding tax on royalty payments (a lower 2.9 percent withholding tax will apply if the royalty is paid to entities that control the entity that conducts the eligible activities) Licenses, Excise Taxes and Other Municipal Taxes: 90 percent exemption (100 percent exemption for new businesses) Real Estate and Personal Property Tax: 90 percent exemption on real estate and personal property taxes

Approximately 98 percent of Puerto Rico has been designated as an Opportunity Zone by the federal government, as a result of the 2017 Tax Cuts and Jobs Act. Almost every corner of the island is now eligible for Opportunity Zone investment, which delivers large tax deferments and exemptions for developers. One of the benefits offered is the elimination of capital gains taxes entirely if an investor holds an asset within the zone for at least 10 years.

Puerto Rico Takes its Place on the Tourism World Stage

Taxes on Articles of Use and Consumption / Sales and use Tax: 100 percent exemption Excise Tax Fuel Tax Exemption: 100 percent exemption for fuel used in production of electricity for eligible activities

The Prisa Group is taking advantage of those incentives, said Stubbe Jr., the company’s president. Prisa Group has previously developed and is a partner of Dorado Beach, a Ritz-Carlton Reserve. The company has broken ground on District Live in San Juan, a $160 million urban, mixed-use development, which will have a 177-room Aloft Hotel, 6,000-seat performance hall, cinemas, restaurants, bars, a nightclub, a rum distillery, and even a zip line. It is expected to have its soft opening later this year. Prisa Group is also breaking into medical tourism with a $105 million hospital in collaboration with Johns Hopkins University of Baltimore.

He sees the same advantages outside San Juan, such as in Manati on the north coast of Puerto Rico. That region is less-visited than some of the island’s bigger hubs, but it still has plenty to offer and plenty of business opportunities, Stubbe Jr. said. When he first opened his hotel and casino there, he recalled, running a fairly basic $50,000 social media–driven marketing campaign with pictures of the property, as well as nearby shopping, beaches, caves, and old haciendas that are open for tours. He targeted people who were spending a few days in San Juan and might consider a road trip. He saw the property’s occupancy rise within 90 days.

“We’re heavily invested in Puerto Rico and have a strong pipeline of entertainment and value projects,” Stubbe Jr. said. “The incentives available towards development here are very attractive and make it worth certain risks involved in building, especially a large hotel.”

“It shows that there are opportunities out there to develop tourism in such a way,” he said. “You package things, you make them beautiful, and you convince people to come and they’ll enjoy it and have a great time. It was a great investment obviously.”

SKIFT REPORT 2019

Puerto Rico Takes its Place on the Tourism World Stage

SKIFT REPORT 2019

how to do business here, what the opportunities are, and what the regulatory framework is for investment.”

Establishing an Autonomous Destination Marketing Organization to Generate Demand

Simplifying Regulations and Streamlining Policies for Investors New policies and regulations are easing the process of investing in the island. “Prior to 2009, if entrepreneurs and developers wanted to get building permits or other official forms, they would have to go to multiple agencies,” said Romo Aledo. “Now, the Permit Management Office, established in 2009, handles every permit across the board. In fact, Act 19 of 2017 was enacted to further strengthen the office and speed up the process of obtaining all types of permits, such as use permits or construction permits by simplifying requirements. PRTC has an employee stationed inside the agency to facilitate any permits specifically related to tourism businesses.” The government has also created the Single Business Portal, a resource to help investors and entrepreneurs navigate the process of starting a business. “The government is basically reforming the permitting process, making incentives easier and more streamlined. The goal is to make it possible

for investors to make better-informed decisions by digitizing a lot of the information,” said Romo Aledo. “The private sector no longer sees the government as an obstacle to growth, but rather as an ally.” The private sector agrees. “We’ve come a long way in the last 10 years, and I think that you’ll probably see many more changes to come over the next year or two,” said Emilio Colon-Zavala, president of engineering and construction company ECZ Group and chairman of the board of the Puerto Rico

One major change in the recent tourism marketing efforts underway in Puerto Rico was the creation of a public-private, independent destination marketing organization in 2018 – Discover Puerto Rico. The organization is responsible for generating demand and growing the inbound visitor economy, thereby ensuring sustainable economic growth and healthy returns for investors in Puerto Rico. Discover Puerto Rico has taken over all tourism-related branding, advertising, and public relations efforts that were previously under the auspices of the PRTC.

“I personally meet with people who are looking at Puerto as an investment opportunity frequently,” Colon-Zavala said. “We constantly receive inquiries on

In the past, marketing Puerto Rico was another function that the PRTC, and therefore the government of Puerto Rico, had direct oversight over. This meant that every time there was a change in the government (such as a change in leadership or priorities), the marketing strategy was updated, upgraded, or completely transformed, preventing Puerto Rico from pursuing the creation of a consistent brand image for the destination. This delegation of demandgeneration tasks to Discover Puerto Rico provides a clear advantage: establish a clear, consistent positioning for the island on the world tourism stage. This two-agency model has set Puerto Rico on a competitive path, allowing both Discover Puerto Rico and PRTC to focus on their core responsibilities, both of which directly and indirectly drive development and tourism investment on the island. Each organization has role clarity and its own unique identity. While PRTC can focus on creating and growing the developments needed to support tourism on the island, Discover Puerto Rico can operate independently of political cycles to generate demand.

Destination Management and Marketing Shared Structure

Builders Association. “The government has actively reached out to the private sector, non-governmental-organizations and the general public to find out which regulations are duplicative, obsolete, or in need of streamlining,” Colon-Zavala said. A few years ago, the government even allowed some private professionals to issue certain permits on behalf of the government under specific conditions, which helped many small business owners, he said.

Elevate the Tourism Competitiveness

Generate Demand

Planning

Development

Administer

• Design and execute the tourism development plans • Establish governance structures • Define public policy • Legislation and regulation • Lead the land and space planning • Ordering and legislations of zones

• Foster capital investment for the hospitality and experiences product offering • Sustain relationships with the commercial airlines sector • Withstand relationships with the cruise line sector • Develop key tourism infrastructure projects

• Establish quality standards • Regulation and governance of all tourism activities, including gambling • Security • Human capital development and continuing education • Promote internal tourism • Capital and collections management

Branding

Advertising

Public Relations

Sales

• Develop and safeguard the destination’s brand • Establish marketing plans on par with the brand design

• Reach target consumers by placing the brand and the destination’s offering in the right communication channels • Assets management including the website, social networks among others

• Management of the relationship with international media outlets • Place editorial content in international media • Establish and sustain relationships with influencers and brand ambassadors

• Sustain relationships with the key travel distribution channels, including the travel agents • Attract groups and conventions business • Attend to trade shows and consumer events

Measurement & Reporting • Statistics and Intelligence of the tourism economy • Unify performance data and metrics • Establish performance and competitive indicators • Report to the public and private sector

SKIFT REPORT 2019

Puerto Rico Takes its Place on the Tourism World Stage

PRTC continues to operate as a government-funded entity, but its duties are more geared towards designing and executing tourism development plans, defining public policy, regulating and governing all tourism activities, and sustaining relationships with commercial airlines and, cruise lines and other partners.

Foundation for Puerto Rico. “The private sector and other non-governmental organizations have the advantages oftentimes of being very agile and not being subject to the vagaries of electoral cycles and politics. They can provide a continuity of vision to projects that require longer-term efforts,” Borschow said.

“It’s a very unique governance model for destination marketing,” said Campos. “We truly believe that the joint structure of management and marketing will not only be beneficial for the island, but that we’ll also be a case study to be referenced by other destinations.”

For example, Foundation for Puerto Rico launched the Bottom Up Destination Recovery Initiative as a tool for local government planning and project development, especially in rural communities. The federal government is funding the project, which aims to make communities self-sufficient and become micro-destinations. This program is another example of the type of long-term, forward thinking investment taking place on the island. By empowering communities (outside of major cities like San Juan,) with their own tourism identity, the organization is addressing the potential threat of overtourism and putting a visitor dispersal framework in place.

In its first year, Discover Puerto Rico has aggressively promoted the destination to business and leisure travelers in the U.S. and beyond. It has highlighted attractions in San Juan and other parts of the island that don’t always get as much attention, such as La Parguera and Humacao. The organization also launched a consumer campaign targeting leisure travelers who are not familiar with the island. The “Have We Met Yet?” campaign was aimed at newer segments that the island’s tourism marketers haven’t necessarily focused on in the past, such as millennials, LGBTQ travelers, medical tourists, and adventurers. To reach meeting planners, the agency produced “The Power of Puerto Rico,” a campaign to educate the group travel and conventions sector about the infrastructure improvements the island has made.

Engaging Not-For-Profit Organizations for Strategic Initiatives The non-profit industry is also providing its share of support. Foundation for Puerto Rico is one such notfor-profit, whose initiatives aim to develop tourism in smaller and/or lesser-known communities outside of the typical big cities. “The government is good at doing certain kinds of things,” said Jon Borschow, founder and CEO of the

How Foundation for Puerto Rico is Growing Sustainable Tourism Annie Mayol, president and chief operating officer of the Foundation for Puerto Rico, points out that tourism can be a key driver in reviving and growing the local economy of many rural destinations throughout the island. “These towns can’t wait for a new manufacturing plant. They can’t use the traditional economic strategies of the past,” she said. “They need to use things that they can actually leverage, the current assets of the community — the natural assets, cultural assets, and human assets. The things that you don’t have to build, but that you can use to bring in that new traveler who is looking for a unique experience.” The Foundation has thus focused its efforts on developing tourism in lesser-visited parts

Puerto Rico Takes its Place on the Tourism World Stage

SKIFT REPORT 2019

of Puerto Rico. The first community it engaged with was in Orocovis, which is located in the mountainous region in the central part of the island. The foundation gathered local leaders for workshops in July of 2018 to identify the area’s assets for attracting visitors. It found many, including restaurants and bars, local artisans and musicians, access to nature, history, and more. “It had some wonderful assets, and it had enough exposure to outside visitors that this was not like introducing a foreign language,” said Borschow. “People actually understood that there was a concept for visitors.” The Foundation then collaboratively developed tourism goals for the area. The goals were to have 20 percent of visitors spend the night and 50 percent of visitors to visit at least three types of tourism experiences, be it adventure, culture, gastronomy, agritourism, or ecotourism. And they wanted cultural events to drive repeat visits. In order to achieve that, they created a “living map” of Orocovis’s assets to establish a program of cultural events throughout the year, educate residents about providing short-term rental options on Airbnb and other platforms, and train staff. The early results are promising. The Foundation connected a farmer who has a property by one of the lakes in Orocovis with tourism experts to help him develop a glamping business. He was provided seed funding for the infrastructure and was connected to a marketing platform so that he can spread the word about this business. He has since been completely booked, mostly with international visitors. The success of the Orocovis initiative bears testimony to the fact that there is tremendous appetite for sustainable tourism initiatives that benefit visitors, the environment, and local

communities – authentic experiences that make a difference all around. In its annual sustainable travel report, Booking.com found that 72 percent of travelers believe that people need to act now and make sustainable travel choices for future generations.

We’re seeing how sustainable tourism h a s b e e n o f i n te r e s t i n to u r i s m development in Puerto Rico. From very small scale projects to the very large resorts, all of them are equally committed to making sure that there’s ample community integration and opportunities to conserve the natural resources. Ultimately, this diversity of tourism offering is what is motivating travelers to come to Puerto Rico. Carla Campos, Executive Director, Puerto Rico Tourism Company

SKIFT REPORT 2019

Puerto Rico Takes its Place on the Tourism World Stage

SECURING THE FUTURE: PUERTO RICO’S EFFORTS TO ENSURE SUSTAINABLE GROWTH While a large part of Puerto Rico’s strategy to grow tourism is to attract investment to its tourism infrastructure, another essential part is the government’s efforts to not only protect these investments, but also ensure high and stable returns in the future. While Discover Puerto Rico plays a major role in generating demand, there are other infrastructure projects underway to improve accessibility to and on the island.

Building a Resilient Infrastructure Several federal spending laws under The Community Development Block Grant Disaster Recovery (CDBG – DR) Program have provided Puerto Rico with billions of dollars in 2018 to rebuild the island after Hurricanes Maria and Irma. The economic cost of Hurricane Maria alone was estimated at $100 billion. Also, as a result of legislation, the Federal Emergency Management Agency (FEMA) is now authorized to fund new construction and rebuilding of government infrastructure on the island. In March 2019, federal officials said they would give Puerto Rico greater authority to spend those recovery funds. Starting April 1, 2019, the island was no longer required to wait for approval from FEMA to reimburse towns and agencies that are rebuilding. This reduced what had previously been a two-month process to one that would take, on an average, just four weeks, significantly expediting recovery efforts. In other words, money is already flowing into Puerto Rico, and total federal investment could reach $100 billion over the coming 11 years, said Campos. “This money is going to be strategically invested in core infrastructure to increase the island’s resilience

and growth significantly. This goes beyond recovery now.” she said. “If we wanted to pursue a new development in a rural part of the island because those communities would benefit from growth in tourism, then we would invest part of the federal funds in infrastructure that would support any private tourism-related projects in the area,” she said. “That’s a unique opportunity we have right now to make sure that private investments in the island can leverage the benefits coming from federal funds.” Puerto Rico worked hand-in-hand with the federal government to make sure that public services were restored as quickly as possible in the initial days after the storm, said Romo Aledo. “Now the government is working to improve the resiliency of public services all around Puerto Rico,” he said. “For example, there are plans to have a better power authority and generation for Puerto Rico.” In more isolated rural areas, the government plans to create micro-grids so that residents won’t have to depend on transmission lines that could fail in the event of another major hurricane, Romo Aledo added. The nonprofit sector has been particularly active in rural communities to receive more community-based electricity generation, such as solar panels. The government is also improving roads and other infrastructure. For example, there are several ongoing projects to prevent flooding in the region. In fact, in July 2018, the United States Army Corps of Engineers (USACE) announced they plan to spend $10.6 million for studies and $2.5 billion on infrastructure projects in Puerto Rico to prevent future inland and urban flooding.

Puerto Rico Takes its Place on the Tourism World Stage

There are additional projects, still in the early development phases. One such project will involve dredging some of the ports around San Juan to provide better access for larger vessels. “When the improvements to the San Juan Harbor are completed, this would not only mean that bigger cruise ships can dock at the harbor, but also larger container ships that carry liquid natural gas and other fuels can come in more efficiently. As a result, the power plant in San Juan could move from burning oil to burning natural gas, which would be more environmentally sensitive and cheaper when compared to oil,” Romo Aledo said. These efforts coupled with a streamlined permit process have made it easier for the island to let investors know that they will get the net benefit of Puerto Rico’s “open for business” mantra. Natural areas are also seeing investment. El Yunque National Forest, part of the National Parks Service (NPS), is on its way to recovery. Many of the park’s trails have opened, though some still have debris and require improvements. These are important developments because more than 1.4 million people visited the National Parks Service–managed sites in Puerto Rico in 2016, generating more than $85 million in visitor spending, according to the NPS. Those visits created more than $100 million in economic output, more than 1,000 jobs, and around $40 million in income, the agency reported. The visitor center and Castillo San Cristobal area of the San Juan National Historic Site reopened just two months after Hurricane Maria. Airports and cruise ports, both important parts of the island’s infrastructure, are also receiving federal funds. Projects are underway to improve Aguadilla Airport, which is in the northwestern part of the island. Last year, the airport welcomed a record-breaking 600,000 passengers, Campos said. “The western part of the island is definitely set up nicely for growth. And we anticipate that more tourism development will take place in that region,” she said.

SKIFT REPORT 2019

The airport and cruise port in Ponce, which is the second largest city after San Juan and is located on the southern part of the island, could also benefit from the federal funds. “That speaks to our vision of making sure that tourism development is not just limited to the San Juan area, but is expanding to the rest of the island,” said Campos. “However, it’s important to know that the San Juan area can still benefit from a significant increase in hospitality development in areas like the Convention Center District that are key for the government.” Efforts are also being made to improve the island’s public transport system. In addition to improving roads, the island has allowed Uber drivers to provide an alternative to taxi drivers and public buses. Two other locally based ride-hailing companies have also popped up in Puerto Rico. Pink Car offers rides exclusively to women and children, with an allwomen crew of drivers, and Jaime Te Lleva, another ridesharing service, is an option for visitors to the metro areas of both Ponce and San Juan.

Growing Connectivity and Inventory A key part of growing the visitor economy in Puerto Rico is improving access to the island and providing large and varied accommodation options to its visitors. Investing in improved port infrastructure and air access, while simultaneously growing and diversifying the lodging inventory available, is sure to drive more visits and increase repeat visits. Improving Accessibility and Connectivity The cruise industry was up and running by November 2017, less than two months after the hurricanes. Royal Caribbean International’s Freedom of the Seas ship and Carnival’s Conquest ship anchored in Puerto Rico that month, signaling that Puerto Rico’s cruise terminals had resumed operations.

Puerto Rico Takes its Place on the Tourism World Stage

SKIFT REPORT 2019

According to reports on Travel Weekly from May 2018, 14 cruise ships called Puerto Rico their homeport, up from 10 in 2017. Norwegian Cruise Line also planned to double its homeport presence on the island in 2018. Four cruise ships, out of the 14 that visited Puerto Rico, docked there for the first time in 2018. Puerto Rico continues to receive more cruise passengers in general. The port at Old San Juan had 172,447 arrivals in the month of March 2019, according PRTC, up from 133,660 passengers in March 2018 – a 29 percent increase. The numbers are also a vast improvement over the 64,634 passengers who arrived the March 2016 before Hurricane Maria, showing that cruiser sentiment has actually improved in the wake of the storm. As more ships make port calls in Puerto Rico, many lines have designated San Juan as a homeport for their vessels. This has driven both better air access and increased booked hotel nights in the city as many people fly in or stay over before or after their cruises to explore what the island has to offer. The Puerto Rican government has also been working closely with airlines to improve air access to the island, and both American and international airlines have been growing connections to the airports. “We’re very optimistic about demand for travel to Puerto Rico in 2019 and into the future,” said St. George, of JetBlue. “This is based on the trends we’ve seen, including the highest demand for travel during this past holiday season and January, than what we’d seen in the last three years.” JetBlue stepped in as the island’s main carrier when American Airlines decided to “de-hub” Luis Muñoz Marín International Airport in San Juan and reduced service to the island in 2008. Since then, other major carriers entered the San Juan market or grew the number of flights in and out of the territory. Southwest grew their presence by more than 15 percent, Delta by 17 percent, and United by 79 percent. Smaller carriers Spirit and Seaborne each increased their capacity by

Puerto Rico Takes its Place on the Tourism World Stage

SKIFT REPORT 2019

40 percent. More than 10 airlines — including Allegiant, Frontier, JetBlue, Spirit, and Sun Country — began or restored service to the airport. Hurricanes Maria and Irma caused a significant and immediate dip, but one year after the storm, PRTC reported that traffic at San Juan airport had nearly recovered with June 2018 traffic just 0.2 percent lower than traffic in 2017. Improved and Diversified Accommodation Inventory Hospitality Industry Overview (January to March, 2019) Metrics

January

February

March

Quater 1, 2019

Occpancy

64.30%

73%

74.70%

70.60%

ADR

$251.20

$256.03

$255.66

$254.38

RevPAR

$161.51

$186.91

$191.06

$179.60

Source: STR Global, formerly Smith Travel Research, March 2019

The hotel industry remains strong, with plenty of additional growth potential. Through the first three months of 2019, the average daily rate across the island was $254.38, according to STR, which tracks room rates. The revenue per available room, or RevPAR, a key performance metric for the industry, was $179.60 during the same period. Both numbers represent increases over the same time period in 2018, with average daily rate up 11.6 percent and RevPAR up 0.4 percent, per STR data. Overall occupancy rates did decline in early 2019 by about 10 percent to 70.6 percent, but there’s a logical reason for that: Many FEMA and corporate relief staff that had filled hotel rooms in the first quarter of 2018 were no longer on-island in the first three months of 2019. This allowed Puerto Rico to take stock of the situation, without the temporarily inflated demand from relief workers. Tourism-related organizations found that the numbers and growth still looked strong. As additional rooms come back online, hotel inventory has expanded in 2019. Today, Puerto Rico has over 15,500 available rooms, according to industry sources and another 1,200 rooms are in the pipeline for this year.

Further attesting to more growth to come, Juan Corvinos Solans, Hilton’s vice president of development for Latin America and the Caribbean said, “We are very close to announcing pretty interesting developments on the island in the coming months. I think there is a lot of interest in rebuilding and re-energizing the destination with new projects since the new government took office and since the hurricane happened.” Hilton already has over 2,600 rooms on the island.

Creating Targeted Marketing Campaigns to Grow Demand Many of Discover Puerto Rico’s efforts are aimed at the larger theme of distinguishing the destination from other Caribbean islands and emphasizing its unique amenities. Puerto Rico offers visitors countless attractions, lush scenery, a rich culture, fascinating history, bioluminescent bays, and cutting-edge gastronomy. The territory also includes two evenmore-low-key islands, Vieques and Culebra, as well as El Yunque National Forest, the only tropical rainforest managed by the U.S. National Park Service (NPS). And because Puerto Rico is part of the United States, travelers from the U.S. don’t have to deal with the hassle of using a passport, converting currencies, or getting special mobile phone plans when visiting.

79 % of travelers are

likely to visit a national park in the next two years

Skift Global Travel Economy Outlook 2019

SKIFT REPORT 2019

Puerto Rico Takes its Place on the Tourism World Stage

“First and foremost, we must establish a strong, resilient brand, built upon the rich, vibrant culture of Puerto Rico and the incredible travel experiences the island offers that you cannot enjoy anywhere else,” said Brad Dean, CEO of Discover Puerto Rico. “For decades, our messaging has been inconsistent, which has inhibited our ability to grow visitation. Our goal is not simply to resume pre-Maria levels of tourism but, rather, to put the transformative power of travel at work throughout the island, creating new jobs and business opportunities.”

Puerto Rico Takes its Place on the Tourism World Stage

SKIFT REPORT 2019

CONSUMER TRENDS DRIVING PUERTO RICO’S ALLURE AS A GLOBAL DESTINATION

Discover Puerto Rico’s goal is to increase the average amount of time people spend in the destination from four days to seven. The only way to make that happen is to make sure the entire island has attractions to offer, officials there said. Dean said that the ultimate goal is to see the visitor economy double in size and impact. Business travel will be a critical part of reaching that mark. “We are also investing resources into meetings and convention marketing, as we must turn around a five-year slide and create more business travel to the Island,” Dean said. A large part of this is leveraging San Juan’s Puerto Rico Convention Center, which is the largest such facility in the Caribbean. As meeting and event planners think about destinations to plan events, it’s important to consider that the island is a metaphorical bridge between the U.S. mainland and Latin American markets, strategically located between the Caribbean Sea and the Atlantic Ocean, Campos said. Puerto Rico is a short flight from many major U.S. cities — it’s just 30 minutes from Miami by plane. Its three international airports — in San Juan, Ponce, and Aguadilla Pueblo — have more than 20 U.S. and international airlines operating direct flights to destinations including Frankfurt, Madrid, and Panama City. Puerto Rico also has 11 cruise ports, Campos said.

The Commonwealth of Puerto Rico has a lot to offer to its visitors. Beyond the charm and attractions of San Juan, there are plenty of treasures to be found off the beaten track. Travelers can experience a 16th-century citadel built by the Spanish, one of the longest ziplines in the world, bioluminescent bays, the only rainforest in continental U.S., beautiful beaches, colonial-era forts, natural caves on limestone cliffs, and remote haciendas.

were beach resort stays and active or adventure trips. Puerto Rico, with expansive resorts like the St. Regis Bahia Beach Resort & Golf Club, not only provide easy access to the beach but also plenty of activities to indulge in. The global adventure tourism market has been growing in popularity across all generations. According to Allied Market Research, it was valued at $4.4 billion in 2016 and is projected to reach $1.3 trillion in 2023.

Deloitte’s 2019 travel and hospitality outlook notes that consumers are ultimately looking to tap into their “passions and interests,” and Puerto Rico is an ideal place to do that. The island caters to multigenerational travel groups, solo travelers, adventure seekers, culinary enthusiasts, history buffs, resortgoers, affluent travelers, and more.

Adventure seekers are a growing and attractive segment for tourism organizations. In early 2019, Jimmy Fallon of The Tonight Show filmed a segment on Toro Verde Adventure Park, one of the largest zip lines in the world, which bore testimony to the island’s potential as an adventure destination. Tour operators provide off-the-beaten track hiking tours in the rainforests of El Yunque, eco-adventure tours to hike through limestone canyons and explore waterfilled caves in Tanama, swimming and kayaking tours to the La Parguera Bio Bay, and more.

According to Virtuoso, one of the top travel trends for 2018 was multi-generational family travel, and the types of trips that appeal most to that group

SKIFT REPORT 2019

Gastrotourism is also picking up on the island as it diversifies its culinary offerings to include opportunities for agricultural tourism as well. In June of 2018, Booking.com surveyed over 50,000 global travelers, 61 percent of those travelers said they would pick a destination for its great food or drink. With rum tasting tours at Casa BACARDÍ, coffee plantation tours at Hacienda Buena Vista in Ponce, farm-to-table restaurants offering local favorites and more, Puerto Rico’s culinary offerings are diverse and unique. Organizations such as Spoon Food Tours, who offer culinary tours around San Juan, are making these experiences more widely available on the island. Agritourism is also gaining popularity, Campos said. “There are very many small-scale projects that are popping up all around the island that link agriculture to tourism,” she said, pointing specifically to Hacienda La Mocha in Ponce, an old coffee farm that has now become a boutique guest house. “It has reinvigorated the lost craft of coffee farming that was historically practiced in the area.” In addition to all of the above, Puerto Rico also appeals as a sustainable, eco-friendly destination that can stand the test of time. Apart from offering a wide variety of ways for guests to enjoy the outdoors and commune with nature, accommodations like Hix Island House, a Vieques Hotel, are leading the way in developing ecofriendly lodging options. The hotel, which received the “2005 Green Hotel Award” and the “2002 U.S. EPA Environmental Quality Award,” is located on a 13-acre natural refuge filled with butterflies, birds, trees, and tall grass. It has apartment-style accommodations and uses solar panels to reduce electricity usage. Puerto Rico also offers wellness-focused retreats that center around rejuvenation and relaxation. Luxury resorts on the island are becoming a hotbed for such retreats. The Purist, a wellness brand focused on holistic well-being, offers, a wellness retreat to the The St. Regis Bahia Beach Resort complete with yoga classes, farm-to-table nutritionist-planned meals, and spa experiences. El Conquistador, a Waldorf Astoria Resort, now offers yoga classes as well.

Puerto Rico Takes its Place on the Tourism World Stage

These consumer trends are not only reflective of the promising future of the island, but also indicate the diversity of growth potential investors can tap into on the island. The Growth of Luxury Travel As Puerto Rico strengthens its position as a worldrenowned destination, the growth of luxury travel supports efforts made by the island to improve its luxury offerings. Analytical Research Cognizance, an international research organization, estimates that the luxury travel market will register an 8.5 percent compound annual growth rate in revenue over the next five years. Additionally, the global luxury market is projected to reach $8.46 billion by 2024, up from $5.2 billion in 2019.

Puerto Rico Takes its Place on the Tourism World Stage

The Four Seasons in Cayo Largo, Fajardo – a $230 million hotel project – is another signal of growth in luxury in Puerto Rico One of the most highly anticipated reopenings was that of the Caribe Hilton, which just completed a $100 million renovation of its 652 guestrooms and suites, fitness center, spa, food and beverage outlets, and landscaping. When it first opened in 1949, the hotel was Hilton’s very first property outside of the U.S. mainland. “It’s going to be an amazing hotel and it’s such an icon on the island,” said Corvinos Solans, vice president of development at Hilton. “It’s part of our history and DNA.” Corvinos Solans said Hilton has remained committed to Puerto Rico not just because of the financial incentives, but because of its easy ties to the mainland. The company has 2,600 rooms in seven hotels across the island. “The appeal of the island to its travellers is the opportunity to experience the

SKIFT REPORT 2019

Caribbean islands without having to leave the U.S.,” he said. “Some people just want to feel at home when they travel, and they can have both experiences [in Puerto Rico].” “The reopening of the Caribe Hilton has caused much anticipation and pride among the Hilton family, locals, guests, and all who have an enduring affinity for this cherished San Juan hotel,” said Pablo Torres, general manager of the Caribe Hilton. “It is a symbol that Puerto Rico is back in business and that the path ahead is one of prosperity. Every visitor from this point forward will fuel the comeback and be a part of this amazing story.”

The island’s portfolio of luxury hotels is growing quickly, with the following properties open or coming soon amongst others: •

Dorado Beach, a Ritz-Carlton Reserve

•

El San Juan Hotel, a Curio Collection by

[Open Now] Hilton [Open Now] •

The St. Regis Bahia Beach Resort

•

Caribe Hilton

•

Condado Vanderbilt Hotel

•

The Ritz-Carlton, San Juan

[Open Now] [Open Now] [Open Now] [Opening Soon]

SKIFT REPORT 2019

Puerto Rico Takes its Place on the Tourism World Stage

SKIFT REPORT 2019

KEY TAKEAWAYS Puerto Rico is also extremely focused on diversifying the attractions and experiences it offers to its visitors and capitalizing on growing travel trends like ecotourism, food tourism and more. Some of these offerings include: 1. Natural sites such as a well-preserved rainforest, beautiful beaches, limestone canyons, waterfilled caves, and bioluminescent bays 2. Unique and authentic local experiences like visits to haciendas, farms, wellness and rejuvenation tours, and culinary tours 3. Adventurous tours that include hiking, trekking, mountain-biking, kayaking zip-lining, and more 4. A variety of hotels and lodging options including luxurious resorts, and glamping sites

Puerto Rico’s recovery and growth story bears testimony to its resilience and ability to bounce back when faced with adversity. The public, private, and nonprofit sectors have united to build a promising future for the Puerto Rican economy, with tourism playing a key role. The inbound tourism numbers have already exceeded pre-hurricane numbers, and the island’s lodging inventory is continuing to grow as renovated properties reopen and new properties are added. The number of cruises and airlines providing connectivity to the island is also on the rise. The government’s commitment to developing Puerto Rico as a destination that can compete on the world stage can be seen in the following steps taken:

1. Investing in Puerto Rican tourism infrastructure such as airports and ports to improve accessibility 2. Providing economic incentives and streamlining regulations to make investing in Puerto Rico seamless and easy 3. Establishing Discover Puerto Rico as an independent destination marketing organization to generate demand and build a consistent brand image 4. Establishing Invest Puerto Rico as an independent organization to attract more investors 5. Streamlining all investments and efforts to diversify and improve Puerto Rico’s attractions, accommodations, and other offerings 6. Partnering with not-for-profit and private sectors to develop resilient and sustainable infrastructure on the island

The influx of tourists, the government’s commitment to improving the visitor economy, the federal support provided through additional funding, and other economic incentives have made Puerto Rico a strategic and a potentially extremely lucrative place to invest in right now. The stars are aligning and early investors such as Prisa Group are already beginning to see initial returns. It is the opportune moment to leverage the benefits offered and capitalize on Puerto Rico’s growth trajectory – and private companies across all travel sectors (hospitality, cruise, airlines, tours, transportation, restaurants) are recognizing this.

As the Government of Puerto Rico continues to grow tourism to the island, enabling public-private partnerships and private investments will remain a top priority.

Our administration and Governor Ricardo Rosselló really believes in empowerment of the private sector and building strong public-private partnerships as a catalyst for growth. We have been able to enact policy along those lines repeatedly. This has been key for us to implement our recovery plan and will be key as we implement our long-term destination development plan that will position Puerto Rico as the world-class destination it is set up to be. Carla Campos, Executive Director, Puerto Rico Tourism Company

SKIFT REPORT 2019

Puerto Rico Takes its Place on the Tourism World Stage

ABOUT SKIFT

ABOUT PUERTO RICO TOURISM COMPANY

Skift is the largest media platform in travel, providing media coverage, insights, and marketing advice to key sectors of the industry. Through daily news, research, podcasts, and Skift Forum conferences, it deciphers and defines the trends that matter to the marketers, strategists, and technologists shaping the industry.

The Puerto Rico Tourism Company (PRTC), founded in 1970, is a public corporation responsible for stimulating, promoting, and regulating the development of Puerto Rico’s tourism industry.

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PRTC is the Destination Management Organization, and a government entity with the sole mission of elevating the territory’s tourism competitiveness. The four key areas of function for PRTC are planning, development, administration and measurement of the travel and tourism sector, are the Planning, Development, Administration and Measurement of the travel and tourism sector. In addition, responsible for promoting tourism amongst local residents among local residents. A key functionality of the organization is to provide assistance to investors and foster capital investment for thospitality and experience sectors. Establishing governance structures, defining public policy, and implementing legislation and regulations that supports the planning and development in Puerto Rico are some of the duties of Puerto Rico Tourism Company.