ECONOMIC DEVELOPMENT PLAN RESULTS INTEGRATION
TEAMWORK
CLEAR GOALS
4 T H
E D I T I O N
TRANSPARENCY
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J U N E
FOCUSED ON RESULTS
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THE THREE FOUNDATIONS OF OUR PLAN ARE
GROWING STRONG GENERAL SUMMARY RESULTS UP TO JUNE 2015
1
TRADITIONAL INDUSTRIES
2 HIGH-IMPACT PROJECTS
3 STRATEGIC VENTURES
MORE JOBS CREATED IN A DIVERSITY OF ECONOMIC SECTORS. DECLINE IN UNEMPLOYMENT. UNEMPLOYMENT RATE
total EMPLOYMENT
may 2014 - may 2015
may 2014 - may 2015
13.8%
998,000
997,000
996,000
13.6% 13.4%
994,000
13.2%
992,000
13.0%
990,000
12.8%
988,000
12.6%
986,000
13.6%
12.4%
987,000
12.4%
12.2%
984,000
12.0%
11.8%
982,000 MAy 2014
MAy 2015
SOURCE: PUERTO RICO EMPLOYMENT AND UNEMPLOYMENT SURVEY, MAY 2015.
+ NEW CAPITAL IN THE ECONOMY
may 2014
SOURCE: PUERTO RICO EMPLOYMENT AND UNEMPLOYMENT SURVEY, MAY 2015.
More investment. Key ventures by Paulson ,& Co., Putnam Bridge & Taubman Centers.
+ NEW ENTREPRENEURS
More entrepreneurs. For the first time the subject of entrepreneurship reached primetime with Hit3001.com.
+ INCREASE IN TOURISM
More tourists. Record season for cruise industry and air access.
+ NEW ECONOMIC SECTORS
may 2015
More development. Aerospace and Medical Tourism sectors gained momentum.
WE CONTINUE WORKING TIRELESSLY TOWARDS PUERTO RICO'S ECONOMIC RECOVERY
ECONOMIC DEVELOPMENT VISION Build upon Puerto Rico's historic strengths, creativity and innovative spirit to achieve a more diverse, knowledge-driven economy that addresses the challenges of globalization and maximizes emerging opportunities.
THE THREE FOUNDATIONS OF OUR PLAN ARE
GROWING STRONG
MANUFACTURE
1
RESULTS UP TO JUNE 2015
MAIN DEVELOPMENTS:
ST. JUDE MEDICAL GENERAL ELECTRIC SNC TECHNICAL SERVICES
TRADITIONAL INDUSTRIES
2 HIGH-IMPACT PROJECTS
TRUENORTH CORPORATION ROCK SOLID INSIGHT MANAGING SOLUTIONS VENTION ACTAVIS
INFOSYS LUFTHANSA TECHNIK
3 STRATEGIC VENTURES
AON HEWITT SEABORNE DREYFOUS & ASSOCIATES WOVENWARE LILLY INDUSTRIAS ALIMENTICIAS ALTO DE SJ
SUGARCANE PROJECT LIFESTYLE FOOTWEAR HONEYWELL AEROSPACE MEDTRONIC
DESTILERÍA COQUÍ RAINE
ASPEN SURGICAL MEDTRONIC
PROPPER INTERNATIONAL
OLEIN RECOVERY CORP. COVIDIEN PACE ANALYTICAL DESTILERÍA SERRALLÉS
NEOLPHARMA ATENTO
SNC TECHNICAL SERVICES
COOPERVISION UTC AEROSPACE SYSTEMS
GENERAL ELECTRIC
STRYKER
AEROSPACE PROGRESSION Aerospace corporation finalized construction of the first docking bay in its new Aguadilla hangar. With 80% of the hangar's capacity already committed, the first plane scheduled for maintenance is expected to arrive during the last week of July.
By the end of July, construction will be completed on the new aerospace laboratory building. Over 230 jobs have been contracted. For additional opportunities visit www.careersathoneywell.com.
INVESTMENT: $56MM / JOBS: 400
INVESTMENT: $35MM / JOBS: 300
Abbvie
Abbvie expands operations in Barceloneta. This expansion will reinforce Puerto Rico's capacities as a biotechnology manufacturing center and is expected to generate 100 new jobs in the next two years. Investment: $30MM
American Industrial Acquisition Corporation American Industrial Acquisition Corporation (AIAC) acquired Merck's facilities in Arecibo, which were about to be closed down. As part of this process, the job safety of approximately 200 employees working at the facilities is ensured.
Industrias Alimenticias Alto de San Juan
International food company established operations on the island in order to develop a manufacturing operation in Luquillo. Investment: $400,000 / Jobs: 200
infosys Export service operation for the aerospace segment with 300 committed jobs and a $9.3 million investment.
Sabrina Bottling Puerto Rican company located in Luquillo is expanding operations in order to increase its artisanal sangría production to an industrial scale. Investment: $100,000 / Jobs: 8
Wovenware Puerto Rican technology company expands in the Santurce area to meet the global demand for software development services. Investment: $250,000 / Jobs: 40
JOBS CREATED - INDUSTRIAL DEVELOPMENT JANUARY 2013 - junE 2015
350
550
ELECTRONICS
IT AND AEROSPACE
778 1,194 biopharma
MEDICAL DEVICES
1,461 1,599 EXPORT SERVICES
OTHER
2,039 7,971 textiles
JOBS CREATED SOURCE: cfipr 2015
THE THREE FOUNDATIONS OF OUR PLAN ARE
GROWING STRONG
TOURISM
1
RESULTS UP TO JUNE 2015
TRADITIONAL INDUSTRIES
AVERAGE RATE PER ROOM ($)
HOTEL REGISTRIES (#)
2 HIGH-IMPACT PROJECTS
TOTAL AIRPORT VOLUME (TOTAL PASSENGERS)
CRUISE PASSENGER ACTIVITY
#
#
#
1.5mm
$8
2.2mm
2.5m
$143
1.5m
9.0mm 8.4m
8.7m
FY 2014
FY 2015
$151 1.0mm
1.4 mm
8.0mm
SOURCE: ctpr 2015
1.2m 2.4m
300k
300k
100k
3.0mm
0 CY 2013
CY 2013
CY 2014
AIR ACCESS
NEW ROUTES THAT GIVE US ACCESS TO NEW TOURISM MARKETS
1
CY 2014
FY 2014
FY 2015
RECORD SEASON IN MARITIME ACCESS
NEW AIRLINES ARRIVED HOTELS AND TOURISM PRODUCTS • AIR ACCESS: For 2014 Luis Muñoz Marín Airport registered traffic at 8.7MM passengers, a 4% increase with 23 new routes in the last 2 years.
2
• CRUISES: For 2014 cruise traffic was at 1.2MM passengers, a 16.5% increase with 461 new cruise ships. Dock #3 extension was completed, which made it possible in December 2014 to receive the first megacruise, Quantum of the Seas. In 2016 the largest cruise ships in the world will arrive: Oasis of the Seas and Allure of the Seas, from Royal Caribbean.
NEW FLIGHTS UNITED
3
3 STRATEGIC VENTURES
RELOCATED HUB
TO PUERTO RICO
A
I
R
L
I
N
E
S
LODGING AND RECREATION JOBS 82,000
may 2014 - may 2015
81,700
81,500
• LODGING: More rooms and new tourism products. • Recent openings: Best Western Condado Palm and Suite Hotel, Hyatt Place Manatí, Hyatt Place Bayamón & Tropical Casino, Casa Hines Beachfront Estate in Rincón, Casa Sol in Old San Juan, Media Luna Hotel in Comerío, Hacienda Santa Isabel, the Hyatt House Convention in San Juan, The Blok in Vieques and The Vanderbilt Condado. • Hotels under construction: Las Cascadas Hotel in Aguadilla, Wyndham Río Mar's expansion in Río Grande and infrastructure for Cayo Largo in Fajardo. • New tourism offer programs: Inns dedicated to cultural tourism, Posada Colonial in Mayagüez and Da'House Hotel in Old San Juan; fractual ownership options like Casa Hines Beachfront Estate in Rincón; Bed & Breakfasts with Casa Sol in Old San Juan, Casa Castellana in Condado and Dos Ángeles del Mar in Rincón; and AgroTourism and EcoTourism programs. •The first International Tourism Expo was held in Puerto Rico with participation from over 300 travel agents from around the world.
81,000
AWARDS FOR PUERTO RICO
80,500 80,000 79,500
80,300 may 2014
may 2015
SOURCE: PUERTO RICO EMPLOYMENT AND UNEMPLOYMENT SURVEY, MAY 2015.
• 1 of 6 Luxury Destinations for 2015 - New York Post • 50 Places to Visit in 2015 - Travel & Leisure • Top Caribbean Destination -USA Today’s 10 Best Reader’s Choice • Ideal Wedding Destination in the Caribbean - USA Today’s 10 Best Reader’s Choice • Most Accessible Hot Spot in the Caribbean -CNN Travel
THE THREE FOUNDATIONS OF OUR PLAN ARE
GROWING STRONG
pymes
RESULTS UP TO JUNE 2015
TRADITIONAL INDUSTRIES
1
• THREE NEW LAWS THAT PROTECT AND PROMOTE SMEs HAVE BEEN APPROVED IN PUERTO RICO: 1. Act 62 - 2014: Support for Micro Enterprises and Small and Medium Sized Businesses 2. Act 120 - 2014: Incentives for SME Job Creation and Retention 3. Act 135 - 2014: Incentives and Financing for Young Entrepreneurs • ALSO, THE SME SUPPORT AND CREATIVE INDUSTRY BOARDS WERE CREATED, composed of various working committees that attend the sector's needs.
EXPORTS • COMMERCIAL MISSIONS: 20 international commercial events took place, generating projected annual sales of over $93MM. • EXPORTABLE BUSINESSES: A plan was put in place designed to drive, promote, develop and create businesses under the franchise model. Seven businesses, ready to export their concepts, are working under this program to develop their franchises abroad.
may 2014 - may 2015
250,000
245,000
235,000 230,000
232,000
225,000 MAY 2014
• SME GROWTH: In 2014 SMEs increased 5.9% to 44,848 businesses, the highest registered level in the last 8 years. Main concentration in these 5 economic sectors: 1. Retail Sales (29.2%) 2. Social Health and Assistance (17.2%) 3. Professional Services (10.0%) 4. General Services (8.2%) 5. Wholesale Trade (4.9%) • THE INSTITUTE FOR FOREIGN TRADE AND ENTREPRENEURIAL DEVELOPMENT (ICEDE in Spanish) held 56 educational activities and has trained over 4,511 entrepreneurs on local and foreign trade matters. • COMMUNITY ENTREPRENEURSHIP: 165 proposals were approved to receive the Economic Incentive for Micro Enterprises. 15 proposals have been approved through the Community Incubator Development Program, with investment over $473,295. • CREATIVE ENTREPRENEURSHIP: The Creative Industry Development Board was created. P. ERE, the first ever retail commercial clothing line, was launched with ready to wear designs and the opening of a pop-up store in Plaza Las Américas, which is now being managed by Puerto Rican entrepreneurs. • FINANCING: Through an alliance with the Economic Development Bank, more efficient services are provided for Puerto Rican entrepreneurs looking to create jobs, with loans exceeding $7MM.
EXPORTABLE BUSINESSES
JOBS IN COMMERCE
240,000
3 STRATEGIC VENTURES
ENTREPRENEURIAL DEVELOPMENT
PUBLIC POLICY SUPPORTING SMEs
245,000
2 HIGH-IMPACT PROJECTS
MAY 2015
SOURCE: PUERTO RICO EMPLOYMENT AND UNEMPLOYMENT SURVEY, MAY 2015.
THE THREE FOUNDATIONS OF OUR PLAN ARE
GROWING STRONG INVESTMENT RESULTS UP TO JUNE 2015
1
TRADITIONAL INDUSTRIES
ROOSEVELT ROADS
3 STRATEGIC VENTURES
PONCE PORT AUTHORITY
ECONOMIC DEVELOPMENT ADVANCES
ADMINISTRATION ADVANCES
• Clark Realty Capital was selected to manage the redevelopment of 3,000 acres in Roosevelt Roads. The terms and conditions are currently being negotiated, focusing on benefits that strengthen the eastern region's economy. The proposed project is varied in scope, including tourism, commercial, industrial, entertainment and living developments, in addition to a cruise port, marina and regional ferry terminal. Investment: $3,200MM OVER 30 YEARS // Jobs: 28,000 PERMANENT JOBS // 3,000 CONSTRUCTION JOBS • Request for Proposals for Community Micro Enterprises: 17 PROPOSALS RECEIVED // 8 PROPOSALS ACCEPTED // 35 JOBS
• The new Ponce Port Authority administration was created and an initial credit line with the Government Development Bank was approved to get the necessary initiatives under way to promote the Port's operation, project developments and necessary maintenance that will protect the investment to date.
WORK AND BUSINESS PLAN
• Agreement with Ceiba municipal government to operate Commercial Marina: $650,000 INVESTMENT // 30 JOBS
• A work plan was established for the Authority in order to aggressively direct the efforts needed to choose a world class private operator.
• Deal with NBC-Universal to film the TV series "Crossbones" in Roosevelt Roads: $30MM INVESTMENT
• An agreement with the United States Army Corps of Engineers is in place to restart work on Phase III A-2, which includes necessary infrastructure to promote the development of added value zones.
COMMUNITY ADVANCES • New access plan for cycling, exercising and fishing activities. First beach open to the public. • CROEC educational center is established, to provide outstanding math and science students with progressive alternative teaching methods. Beginning in August 2015 for 200 STUDENTS // $15MM INVESTMENT // 150 JOBS
ONGOING NEGOTIATIONS • LRA is working with the Federal Health Department on evaluating the two proposals for the administration of a hospital in Roosevelt Roads. $15MM INVESTMENT // 150 JOBS • Exclusive negotiation agreement with Astivenca Shipyards Corporation to develop a shipyard in the Roosevelt Roads dry dock area. $25MM INVESTMENT // 300 JOBS
2 HIGH-IMPACT PROJECTS
• A Strategic Commercial Plan was developed in order to define the Port's operational potential based on the current state of the international maritime market; and the Request For Proposal (RFP) process for world class private operators took place. • After finalizing the RFP process to choose the Port of the Americas' operator, an exclusive negotiation process began with Portek International. With 1,400 employees and 19 offices operating worldwide, primarily in Asia, Europe and Africa, Portek International is a company that specializes in providing machinery and services for maritime ports. Now they also have presence in the Caribbean.
SCIENCE, TECHNOLOGY AND RESEARCH TRUST SCIENCE CITY DEVELOPMENT SCIENCE CITY DEVELOPMENT • Construction has begun on the Comprehensive Cancer Center and the first phase of Sciences Boulevard. An aggressive program to attract tenants in the fields of biotechnology, life sciences, aeronautics and information technology is ongoing. • Claim Software, an information technology company, relocated 20 HIGH SKILLED JOBS to Puerto Rico from India. They are now located in the Science City's Innovation Center. • $3.8MM were assigned for the development and construction of the Vivarium, a small animal research center. The Health Disparaties Collaborative Research Center is also under way; a years old initiative granted by the U.S. National Health Institute's Research Centers in Minority Institutions Program.
ADVANCES IN TRAINING AND INFRASTRUCTURE • The first $150,000 grants were given to 12 INNOVATION PROJECTS from academia, non profit organizations and the private sector in the areas of Life Sciences, Software and Aerospace. Investment: $1.8MM • A historic partnership was established between the Trust, the University of Puerto Rico, the National Health Institutes and the National Institute of Allergy and Infectious Disease, Division of AIDS (NIAID-DAIDS) to take part in a project to research and develop the HIV virus vaccine. • The trust was instrumental in helping Google, world leader in technology development, decide to launch the new phase of their ARA project in Puerto Rico. The ARA project is developing a smart phone with interchangeable components which lets users personalize its operation. • Incentives: Act 101, the Tax Incentives for Scientific Researchers Act – 84 applications have been evaluated and 35 decrees granted, to date.
THE THREE FOUNDATIONS OF OUR PLAN ARE
GROWING STRONG INTERNATIONALIZATION RESULTS UP TO JUNE 2015
1
ACT 20 FOR EXPORT SERVICES
FILM’S RECORD NUMBERS
• 491 decrees sin program began • Primary sectors include: 1. HQS and Shared Service (19%) 2. Software and IT Services (17%) 3. Financial Services (14%) 4. Creative Services (12%) 5. Professional Services (9%)
80 $103MM INVESTMENT*
PROJECTS
10,572 JOBS SOURCE: oeci 2015
255
180
200
66%
150
145
100 50
69
0
2012
97 2013
2014
ACT 22 FOR INDIVIDUAL INVESTORS
517
450
150
250
151
50
22
0
2012
2013
• Walt Disney Studios, Warner Brothers and Relativity Media with the films Making Waves, The Preppie Connection, Our Brand Is Crisis, Masterminds and Girlfriends Getaway 2.
TELEVISION: • Sony - Mad Dogs; ABC - Marvel's Agents of Shield; HBO - Show Me A Hero; TNT - Wrecked; NBC Universal - Royal Pains; Cooking Channel - Avec Eric; Discovery Channel - Feral Island; CBS - Victoria's Secret Swimsuit Special
PROMOTION & MARKETING: • Coors Brewing, Denny's Restaurant, Walgreens Pharmacy, Nestlé Chocolate and Bacardí Triangle.
MEDICAL TOURISM SOURCE: oeci 2015
550
126%
• PREMIERES: Las Vacas con Gafas, 200 Cartas and Hugo, Paco y Luis. • IN PRODUCTION: Angélica, coproduction with Mexico • PREPRODUCTION: 9 feature films, 4 documentaries • STRATEGIC PARTNERSHIPS: to finance, export and develop local productions
FILM:
Projected
• 506 decrees since program began • Over 90% of these establish businesses in Puerto Rico
250
3 STRATEGIC VENTURES
2015 Grants
350
2 HIGH-IMPACT PROJECTS
FILM / TELEVISION
ATTRACTING INVESTMENT AND CAPITAL
250
TRADITIONAL INDUSTRIES
• CARIBE HEALTH SUMMIT: First regional event attended by 32 international medical tourism service buyers, where they had the opportunity to visit certified provider's facilities. Patient referral confirmations are expected during the next months.
83 2014
2015 Grants
• PROVIDER TRAINING AND CERTIFICATION: For the past 6 months, the Medical Tourism Corporation has been training all providers interested in being part of the medical tourism network: • 80+ interested providers (hospitals, outpatient clinics, dental clinics, hotels, tour operators, travel agents) have taken training courses and will receive certification during the next months. • 11 providers already certified.
Projected
OTHER HIGHLIGHTS • Public events held to bring together business leaders and investors, provide orientation and discuss opportunities: three editions of the Puerto Rico Investment Summit, the Executive Economic Forum, the Investing in Puerto Rico Forum in Spain with El País newspaper and the Fomento Abre Sus Puertas seminars for local entrepreneurs.
• PROMOTION AND MARKETING: Promotional efforts are already getting results on the east coast of the U.S. with various patient procedures interested in coming to Puerto Rico. Webpage launch with destination info, certified providers and procedures.
LATIN AMERICA Developed a strategic plan to maximize participation in emerging Latin American markets, attract capital to the island, promote it as a top tourism destination and export our products. • The Commonwealth opened new offices in Colombia and Peru, adding to those in Panama and Dominican Republic. • A law was signed to help establish the Commonwealth of Puerto Rico as an EB5 visa center. • Increased exports as a result of several commercial missions to Latin America.