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Puerto rico’s comeback: how ‘boricua’ is driving tourism.

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Puerto Rico's "Live Boricua" campaign has helped revitalize tourism.

Many tourists who visit Puerto Rico today are unfamiliar with the devastation inflicted upon the country in September, 2017 by Hurricane Maria , the 10 th most intense storm in Atlantic history and one that made a direct hit upon the island. In addition to damaging buildings, the storm devastated electrical grids and cellphone towers as heavy winds also uprooted trees and caused flooding that wiped out roads and farm crops. Full recovery has been a lengthy process and in some respects is ongoing but has been aided by the resilience of the Puerto Rican people .

Against the backdrop of hurricane damage, Discover Puerto Rico , the island’s official tourism body initially faced challenges related to negative media surrounding the hurricane. The agency found that 90% of the media had been negative and that half of travelers exposed to media coverage were left with a less favorable view of the island. In response, in 2018, Discover Puerto Rico launched the #CoverTheProgress campaign which encouraged media to focus on fair and future-oriented coverage while showing images from tourism destinations. The result of the campaign, which featured travel influencers including The Points Guy (Brian Kelly) and Kyle Huber , was improvement in perception of the island and a substantial increase in vacation bookings.

Local cuisine is featured as part of the new phase of the campaign.

The #CoverTheProgress campaign generated 14.5 million media impressions and laid the groundwork for three back-to-back years of record growth in tourism. Subsequently, Discover Puerto Rico’s “Live Boricua” campaign which focuses on unique aspects of the Puerto Rican culture and way of life has helped keep up the momentum. The latest phase of the campaign was launched this month and is produced by a local director using local talent for storytelling while spotlighting locations across the island. The campaign delves deeper into what it means to “Live Boricua.”

Leah Chandler, CMO of Discover Puerto Rico

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Leah Chandler, Chief Marketing Officer of Discover Puerto Rico notes the genesis of the campaign emanated from wanting to expose travelers to authentic experiences. “The ‘Live Boricua’ campaign was born in 2022 from a collaboration between Discover Puerto Rico, Puerto Rican tastemakers and the local tourism industry to invite travelers to immerse themselves in authentic Puerto Rican experiences alongside locals,” she says, “It aimed to engage visitors through storytelling, showcasing the Island's unique culture, heritage, and spirit, making it an authentic expression for promoting tourism and fostering meaningful connections between visitors and locals, highlighting Puerto Rico as a vibrant destination rich in diverse experiences and warm hospitality.”

“Boricua’s” direct translation refers to being a person from Puerto Rico by birth or descent and is positioned as a state of mind, spirit, flavor and way of life on the island. The campaign encourages visitors to immerse themselves in the culture and beauty of the island – through dance, music, gastronomy, mixology, fashion, art and nature. In this vein, the new campaign focuses on authentic experiences including adventuring in El Yunque, dining with Puerto Rican chef Mario Pagan in Condado, enjoying Luquillo Beach and dancing at La Factoria in Old San Juan.

A natural scene from Puerto Rico.

Chandler sees the new phase of the campaign as further boosting an effort that is already a success story, saying, “The ‘Live Boricua’ campaign has played a pivotal role in driving tourism to the island. Over the past year, the island witnessed unprecedented numbers of incoming travelers, employment, and revenue within the local tourism industry, including welcoming over 6.1 million passengers at the Luis Muñoz Marín International Airport…and achieving an all-time high of $9.8 billion in tourism revenue, a 13% increase from the previous year. Overall, the significant increase in tourism numbers and visitor spending reflects the success of both Discover Puerto Rico's strategic initiatives and the appeal of Puerto Rico as a top travel destination.”

“Live Boricua” represents a good application of marketing principles as its unique selling proposition relates to what is truly distinguishing about Puerto Rico. The focus is on the people of the island, their lifestyle, and special places serves as a legitimate point of difference and is an effective way to communicate the ability to have a deeper vacation experience.

According to Chandler, the campaign has generated more than 625,000 trips to the Island and more than $2 billion in influenced visitor spending, showing a successful approach to value-based marketing. She states, “This campaign is unique in that it’s not a typical montage tourism commercial filled with product. It’s a personal invitation from Boricuas themselves, warmly welcoming visitors to explore, enjoy and honor the place they call home. It’s the start of a new conversation about what travel should mean for local communities and cultures, not just visitors.”

Chandler further notes that research commissioned by Discover Puerto Rico shows that once travelers get a taste of the Live Boricua experience, “…they understand what truly makes Puerto Rico special and they crave more. Every detail of the brand campaign was intentionally and thoughtfully created by Puerto Ricans, who expressed a sense of pride in seeing the creative articulation of the destination's offerings celebrated as a way of life.”

In a highly competitive tourism environment in which Puerto Rico’s primary competition includes Caribbean and Central American destinations such as including Jamaica, Mexico, and the Dominican Republic emphasizing points of difference is important. Chandler also observes that one of the biggest misconceptions that U.S. citizens from the mainland have about Puerto Rico is that they need a passport to visit the Island. As Puerto Rico is a U.S. territory, and U.S. citizens and permanent residents can travel to Puerto Rico without a passport. In an effort to remedy this misconception, Discover Puerto Rico has also been promoting the "No Passport, No Problem" message to emphasize the ease of traveling to the Island.

For the first-time visitor to Puerto Rico, perhaps not surprisingly, Chandler recommends staying a substantial stay. “For a first-time visitor to Puerto Rico, I recommend a diverse itinerary that captures the essence of the Island's culture, history, natural beauty, and culinary delights. One option is to start in San Juan, exploring the historic streets of Old San Juan, visiting iconic landmarks like Castillo San Felipe del Morro and Casa Blanca Museums, and indulging in the vibrant food scene. Then, head east to experience the lush rainforests of El Yunque National Forest, where you can hike through verdant trails and swim in refreshing waterfalls. Explore the bioluminescent bays of Vieques or Fajardo, where you can kayak through shimmering waters illuminated by millions of tiny organisms. Next, head to the west coast to discover the charming town of Rincon, known for its laid-back atmosphere and world-class surfing beaches. Don't miss the chance to sample fresh seafood and catch a breathtaking sunset over the Caribbean Sea.”

This suggested itinerary reinforces that Puerto Rico can offer a balance of adventure, relaxation, and cultural immersion of the type advocated by the campaign. Given the selling proposition, it is not surprising that the campaign has been achieving significant success.

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Travel & Tourism - Puerto Rico

• Puerto Rico
• In Puerto Rico, revenue in the Travel & Tourism market industry is projected to reach US$56.93m by 2024.
• The market is expected to show an annual growth rate (CAGR 2024-2028) of 1.23%, leading to a projected market volume of US$59.79m by 2028.
• The largest market in the market is the Hotels market, with a projected market volume of US$28.91m in 2024.
• By 2028, the number of users in the Hotels market is expected to amount to 236.90k users.
• In 2024, the user penetration rate is 12.3%, and it is expected to increase to 12.0% by 2028.
• The average revenue per user (ARPU) is expected to amount to US$142.00.
• By 2028, 67% of total revenue in the Travel & Tourism market in Puerto Rico will be generated through online sales.
• In global comparison, United States is expected to generate the most revenue, with US$199bn in 2024.
• Puerto Rico's travel and tourism industry is experiencing a rise in eco-tourism, with visitors seeking out the island's natural wonders and sustainable tourism options.

Key regions: Malaysia , Europe , Singapore , Vietnam , United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

The market consists of five further markets.

• The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
• The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
• The Hotels market includes stays in hotels and professionally run guest houses.
• The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
• The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

• Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

out-of-scope

• Business trips
• Other forms of trips (e.g. excursions, etc.)

Travel & Tourism

• Vacation Rentals
• Package Holidays
• Analyst Opinion

Puerto Rico, known for its beautiful beaches, vibrant culture, and rich history, has seen a notable development in its Travel & Tourism market. Customer preferences: Travelers in Puerto Rico are increasingly seeking authentic and unique experiences, moving away from traditional tourist hotspots to explore off-the-beaten-path destinations. This shift in preferences has led to a rise in ecotourism and cultural tourism activities, as visitors look to immerse themselves in the local environment and heritage. Trends in the market: One prominent trend in the Puerto Rican Travel & Tourism market is the growing popularity of sustainable and responsible travel practices. Eco-friendly accommodations, organic dining options, and community-based tourism initiatives are on the rise as travelers become more conscious of their environmental impact and seek to support local communities. Local special circumstances: Puerto Rico's unique status as a U. S. territory offers a blend of American comforts and Caribbean charm, making it an attractive destination for a wide range of travelers. The island's diverse landscapes, from lush rainforests to historic cities, provide a variety of experiences for visitors to enjoy. Additionally, Puerto Rico's rich cultural heritage, including its music, art, and cuisine, adds to the overall appeal of the destination. Underlying macroeconomic factors: The recovery and rebuilding efforts following natural disasters, such as Hurricane Maria, have played a significant role in shaping the Travel & Tourism market in Puerto Rico. Infrastructure improvements, investments in hospitality services, and marketing campaigns promoting the island as a resilient and welcoming destination have contributed to the market's growth. Additionally, Puerto Rico's geographic location and accessibility from major U. S. cities have made it a convenient choice for travelers looking for a tropical getaway without the need for a passport.

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Additional notes:

• Sales Channels
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• Global Comparison
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Puerto Rico Tourism Company

Puerto Rico Tourism Company Selected Statistics

Click on the button to view the monthly percentage of occupancy. This occupancy is calculated using an average of 100 hotels throughout the island.

Source: PR Tourism Company

Occupancy by touristic region

Click on the button to view the monthly occupancy trend for the six touristic regions.

Average daily rate (ADR)

Click on the button to view the average daily rate (ADR) for high season (Dec-Apr) and low season (May-Nov). This rate is defined as the average price per night of all rooms rented during the month using an average of 100 inns throughout the Island.

Average daily rate by touristic region

Click the button to view the monthly trend of the average daily rate (ADR) for the six touristic regions.

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Lucia A. Molina

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Tourism Demand in Puerto Rico Sees Significant Growth in 2023

Puerto rico’s tourism sector is experiencing a notable surge as tourism demand shows a remarkable increase of 14% in 2023, driving positive economic growth..

During the first four months of the year, lodging income also witnessed substantial growth, reaching an estimated €680 million, representing a significant 20% increase compared to the same period last year.

Between January and April 2023, passenger arrivals, tourism demand, and lodging income displayed strong upward trends, underscoring the consistent growth in the visitor economy over the past two years. Moreover, reservations for the second and third quarters have surpassed the levels seen in 2022, reflecting the overall positive momentum across various sectors, including hotels, short-term rentals, and flights to Puerto Rico’s airports.

Brad Dean, CEO of Discover Puerto Rico, expressed optimism about the current situation, highlighting the increasing demand, the strength of the brand, and the rise in employment opportunities within the tourism industry. These encouraging results coincide with the 5th anniversary of Discover Puerto Rico, showcasing the success of the destination marketing organizations (DMO) model implemented on the island.

Cecilia Rodríguez, an analyst and researcher at Discover Puerto Rico, emphasized the positive trajectory observed during the first and second quarters. Key indicators for the period up to April demonstrated significant improvements compared to the previous year. Notably, lodging revenue from hotels and short-term rentals reached €680 million, marking a substantial 20% increase. Passenger arrivals recorded an 18.6% growth, while the demand for accommodations surpassed 2022 levels by 14%.

A recent visitor profile study conducted by Discover Puerto Rico revealed an increasing number of older travelers visiting the island. The study indicated a 5% increase among Baby Boomers and a 2% rise among Generation X. Although currently only a small fraction of Baby Boomers consider Puerto Rico as a travel destination, this presents a significant growth opportunity, especially now that the COVID-19 pandemic crisis has subsided and this generation feels more comfortable traveling.

Dalissa Zeda, Digital Marketing Director at Discover Puerto Rico, provided updates on the Live Boricua campaign, including the production of new advertisements and strategic content placements during film premieres such as Fast X and Guardians of the Galaxy Vol. 3. The campaign also focuses on promoting the southern and western regions of Puerto Rico, as well as ensuring beach safety. Ed Carey, Chief Sales Officer, reported a 47% increase in events and conventions on the island between July 2022 and May 2023, resulting in a 4.8% improvement in reservations.

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Tourism Making Robust Return In Puerto Rico

August 18, 2022

Since the start of 2022, Puerto Rico has broken its record of jobs in the leisure and hospitality sectors every month, signaling a robust reboot of the economic engine.

The 82,300-worker record in 2015 was surpassed in November 2021 with 83,000 tourism-related jobs reported.

Starting in January 2022, each month has seen a figure that surpasses the previous record to reach 86,700 workers in June of this year, according to the U.S. Bureau of Labor Statistics (BLS).

Brad Dean, Discover Puerto Rico’s CEO, said: “These impressive employment numbers reflect our local tourism industry’s amazing success in growing tourism and creating new jobs, due in part to the collaboration between the public sector, private sector, and Discover Puerto Rico. Job creation is one of our most important metrics because it reflects not only economic growth but also the impact tourism has on the people of Puerto Rico.”

Clarissa Jiménez, president of the Puerto Rico Hotel and Tourism Association, observed that: “Tourism in Puerto Rico is, without a doubt, a great opportunity for well-paid jobs and professional growth opportunities. One of the benefits of this industry is that it offers good jobs at all levels. We continue to see an encouraging outlook for tourism in Puerto Rico, and we are confident that this will continue in the remainder of 2022 and 2023.”

According to the BLS, in the last 12 months, jobs in the leisure and hospitality sectors increased by 15.4%.

Between January and June 2022, the tourism industry added 3,300 new jobs.

Puerto Rico tourism officials recently launched a new promotional campaign dubbed “Live Boricua’’, which highlights the cultural aspects of Puerto Rico, and reactivated the destination’s events and conventions industry, among other initiatives.

Photo credit — Omark Reyes

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Puerto Rico’s Recovery Offers These Lessons for Global Tourism

Dennis Schaal , Skift

June 21st, 2022 at 2:30 AM EDT

Puerto Rico tourism, bolstered by Airbnb when hotels were shut, has had a noteworthy comeback. But if travel and living have blended, then the island's fiscal and political woes can't be overlooked.

Dennis Schaal

Puerto Rico tourism is as hot as a breezeless late-morning in June on the island, but it also faces long-term challenges that could chill the narrative.

With much of the work divided between the private sector-led  Discover Puerto Rico  and the decades-old, government-run  Puerto Rico Tourism Company , Puerto Rico tourism eclipsed pre-pandemic marks in 2021 on airport arrivals, non-resident visitor spending, lodging taxes generated, and hotel revenue per available room, which was 124 percent higher than the U.S. average that year. 

Figures from the first four months of 2022, including hotel average daily rates of $305, which amounted to a 35 percent year-over-year increase, showed nothing if not acceleration in the island’s tourism metrics.

“In 2021, once the restrictions were relaxed, it was off to the races,” Brad Dean, the CEO of Discover Puerto Rico, told Skift. 

All of that came despite a tumultuous last half-dozen years.

In 2016, the U.S. Congress appointed a financial oversight board for Puerto Rico that still dictates much of the island’s finances, and cut services, including teachers’ pensions several years later. A Zika outbreak took hold in 2016, as well. Hurricanes Maria and Irma devastated the island in 2017, and frequent blackouts are a nagging reminder to this day that Puerto Rico still hasn’t fully recovered. Street protests led to the ouster of the governor in 2019, and three weeks of earthquakes starting in early January 2020 rattled the island’s already fragile infrastructure.

And, then came the pandemic.

Dean said Discover Puerto Rico retooled during the first months of the pandemic because he knew travel would be back — eventually.  “We did get to a point where we just didn’t have enough work for everybody, but for the most part, we kept our team intact,” he said. “We wanted to keep the brand top of mind. So 2020 really ended up just being a year where we pushed the pause button on the progress that was already under way.”

The progress and setbacks in Puerto Rico are a useful guide for other destinations struggling to make their way back from the depths of the pandemic, shining a light on how to traverse a travel industry now forced to stay nimble while meeting travelers’ new expectations.

Meanwhile, while not a Puerto Rico-specific issue, there are early signs that U.S. consumers — and perhaps others — are cutting back on travel and dining as inflation rages.

You Can’t Separate Tourism From Puerto Rico’s Colonial Status

With digital nomads wandering the earth and if barriers have indeed broken down between travel and living, as articulated by  Airbnb’s Brian Chesky  and  Skift’s Rafat Ali,  among others, then it is fair to say the island’s tourism must coexist with the  tax breaks  that American mainlanders can wrangle in Puerto Rico that are unavailable to Puerto Ricans, the sentiment that Airbnb is dominating what otherwise might be reasonably priced rental housing for locals, unchecked development in environmentally sensitive locations, and the fact that the island’s 78 municipalities might be divided between tourism haves and have-nots.

Then throw into the mix the fact that the island is officially a U.S. territory, but actually is a colony of the U.S. where Puerto Rican residents, who are U.S. citizens and have served in the U.S. armed forces in Vietnam, Afghanistan and Iraq, can’t vote for U.S. president. The U.S. grabbed Puerto Rico after invading the island in 1898 at the tail end of the Spanish-American war.

Because of the Jones Act , the island can’t import food and goods from U.S. ports unless it comes in a ship built in the U.S. and is mainly staffed by Americans. Since most of Puerto Rico’s imports are from U.S. ports, this Jones Act requirement drives up prices.

Crystal Díaz, who hosted the Skift team last Wednesday night at the Jajome Terrace farm-to-table restaurant in Cayey during a company retreat, told us: More than 80 percent of Puerto Rico’s food is imported despite hundreds of thousands of acres of potential farmland laying fallow.

Our farm-to-table host tonight in Cayey, PR, Crystal Diaz, telling us that economics, & lack of a food policy means 85 percent of island 🇵🇷food imported w/ 600,000 abundant acres of rich farmland. % in 1940s? 60 % ⁦ @skift ⁩ Retreat pic.twitter.com/nB0SRL5YpK — Tom Lowry (@lowrytom) June 14, 2022

Puerto Rico’s tourism bodies don’t have the mandate or power to fix all of the island’s structural and decades-old issues, but some of them fall within their portfolios. The Puerto Rico Tourism Company, for example, shares some of the destination management responsibility with government agencies.

The Good and the Bad of Puerto Rico Tourism

Hector Pesquera is a retired family physician who splits his time between San Juan and Puerto Rico’s Culebra island, where his son runs a guest house, Hostal Casa Culebra . He said the majority of tourism is good, and it’s especially important in Culebra for the water taxis, restaurants, and bed-and-breakfasts. 

In a separate interview, his son Sergio Pesquera, said the biggest problem with Culebra tourism is it is very difficult to make a ferry reservation to get there. The ferry websites often shows tickets are sold out, “and if you call no will answer,” he said, adding that tourists aren’t allowed to bring their cars like they were before the pandemic.

Hector Pesquera said Airbnb has had a positive impact on Culebra.

However, tourism has a negative impact when travelers don’t safeguard the island’s natural resources, Hector Pesquera said. A minority “comes just to mess things around,” he added.

Hector Pesquera said when people from U.S. states move to Puerto Rico to extract certain tax exemptions and “buy everything they can,” that’s not good for the island.

 A Centro de Periodismo Investigativo investigation — it’s the same group that uncovered the homophobic chats that led to the 2019 ouster of Governor Ricardo Rosselló   — found last year that Act 22 tax incentives for non-Puerto Rican investors that were geared to generate job growth and other benefits for the local economy “never materialized.”

“From being an instrument to attract millionaires, and foreign investment, Act 22 went on to become a haven for cryptocurrency fans, YouTube personalities and consultants,” the story said.

Puerto Rico Tourism Gets a New Structure

How did Puerto Rico tourism get to this juncture?

In 2017, six months before Hurricane Maria, the Puerto Rican government revamped its tourism board structure. It created privately led Discover Puerto Rico to assume and supplement some of the work of the decades-old, government-run Puerto Rico Tourism Company. The latter body now handles tourism marketing within Puerto Rico, is in charge of destination management, and oversees much of the island’s relationships with, and financial incentives for, airlines and cruise lines.

Discover Puerto Rico took over marketing Puerto Rico tourism outside the island and is in charge of meetings and conferences.

One of the ideas behind the change was to avoid the lack of strategy consistency and the constant revolving door among Puerto Rico’s tourism leadership because when tourism was solely government-run that meant there was executive turnover with each new occupant in La Fortaleza, the governor’s official residence. 

Puerto Rico hasn’t reelected a governor since the 1990s so every few years the leadership of the Puerto Rico Tourism Company, which previously headed all of the island’s tourism marketing, got overturned, just as it did in 2021 when Carlos Mercado Santiago replaced Carla Campos in the top spot with the election of a Governor Pedro Pierluisi.

The inconsistency over the years led to a Puerto Rico tourism identity crisis. Just what was Puerto Rico’s tourism identity and what was the strategy if the branding was ever-changing?

Consider the Puerto Rico Tourism Company’s marketing slogans over the years. They ranged from  Escape The Cold  to  Summer Is Easy  and  The Continent of Puerto Rico and Puerto Rico USA . Wait, is Puerto Rico a continent or part of the USA? Add to the mix Fall in Love ,  The Island of Enchantment ,  Live Your 5 Star Vacation , and  Explore Beyond the   Shore.   

Unlike those mixed messages, Dean of Discover Puerto Rico hopes its recently launched Live Boricua  marketing campaign will have staying power.

The campaign emphasizes not just Puerto Rico’s beaches and places to visit, but the faces of the Puerto Rican people in all of their diversity, he said. Puerto Ricans call themselves Boricuas; the name comes from the Tainos, Puerto Rico’s native inhabits, who called the island Borinquén. Puerto Ricans are a multicolored mash with Taino, Spanish, and African roots.

Dean said Discover Puerto Rico started planning the campaign under the premise that it had to distinguish Puerto Rico from its Caribbean and U.S. mainland competitors because most islands have plenty of beautiful beaches, and so do other destinations. He said the campaign emphasized experiences for active-minded travelers, as well as Puerto Rico’s rich history and culture, as well as destinations beyond the San Juan metro and eastern corridor.

Some of the marketing urges visits to Ponce in the south and the bioluminescent bay in Lajas a little further to the west. Both take at least two hours by car from San Juan. The Toro Verde adventure park in the central portion of the island is another point of interest.

The following  chart from Tourism Analytics  shows Puerto Rico ranking second behind the U.S. Virgin Islands in the Caribbean in terms of 2021 non-resident stopovers as a percentage of 2019’s numbers at 103.2 percent. The Puerto Rico figures tallied non-resident hotel registrations, but much of Puerto Rico’s tourism comeback involved non-hotel short-term rentals.

Arrivals into San Juan’s international airport from January to April 2022 exceeded 1.6 million, a 6.3 percent increase compared with the previous record, according to Aerostar Airport Holdings , which runs the airport.

While the long-term success of the  Live Boricua  campaign, which launched on digital channels earlier this month in the UK, Germany, Spain, Canada, and Colombia, remains to be seen, Dean thinks with it Puerto Rico tourism has found an identity to build on.

“If you think about it, I can’t say that we thought of  Live Boricua  four years ago, but it’s become a natural extension into that brand definition, where now we’re emphasizing not only the unique cultural heritage of the island and the unique experiences, but also the uniqueness of the people,” Dean said.

Tourism’s at Times Heavy Footprint

Amelia Barbosa works as a bartender in a beachside bar/restaurant in Rincón, Puerto Rico, on the island’s northern west coast about 90 miles from the San Juan metro area. Asked about the benefits of tourism, Barbosa said, “it’s complicated.”

Some tourists in the San Juan area behave badly, Barbosa said, and the ones who venture out of the metro area to the west coast to towns such as Rincon, Aguadilla and Cabo Rojo, don’t tend to stay very long. 

“The Puerto Ricans are literally selling everything,” Barbosa said, referring to real estate and the development of Airbnbs. She said it is very difficult for Puerto Ricans to afford to buy a house. 

“Americans are benefitting from everything,” Barbosa said, referring to residents of the 50 states as opposed to Puerto Ricans, who are likewise U.S. citizens. “It is very difficult to deal with that. It’s very bad.”

Felix Salas, who was born in Puerto Rico and lived here for more than 30 years, overheard the conversation and invited me to join him at the Rincon bar.

He agrees with Puerto Ricans who are angered by developers who sometimes get carte blanche to build in environmentally sensitive areas, without much government intervention.

“That is true to a certain extent,” said Salas, who works as a surveyor as it relates to land use management for a U.S. government agency in Massachusetts. “Not 100 percent, but it’s something that’s happened for a very long time. Many people either built illegally or the government agencies in charge turned a blind eye and that’s well-known.” 

Salas said a movement is under way among Puerto Ricans to push the government to safeguard the island’s natural resources.

For example, one Puerto Rican independence activist, @chimeraelf , recently pointed to the problem, tweeting a series of photos depicting Airbnb properties built on beaches, allegedly impeding legally guaranteed public access to the surf and sands, and some of the homes tread on environmentally sensitive beach turf. 

Villa Shacks in Isabela hosted by Mark — 🤔 sure looks like it’s encroaching on public beach zone… that’s just 2 listings out of 1000s! pic.twitter.com/PDM4cFeg2B — boricuabot #AbolishLaJunta (@chimeraelf) June 7, 2022

Mark tries to play it cool, his theft of public beach “The beach is literally your backyard. Even though all of the beaches are public, this feels like a very private spot.” pic.twitter.com/qEjeRMr215 — boricuabot #AbolishLaJunta (@chimeraelf) June 7, 2022

Airbnb played an outsized role in Puerto Rico’s tourism recovery. In the years after Hurricane Maria, when many of the island’s hotels were shuttered, Airbnb properties filled much of the gap and more. In the first four months of 2022, Puerto Rico’s hotel revenue jumped 78 percent year over year, and short-term rental revenue climbed 55 percent, according to STR and AirDNA, respectively. The average daily rate for hotels was $305, a 35 percent increase, and was much higher than the U.S. average.

There is some resentment on the island against Airbnb, especially when locals search for places to live among rising rents, and a chunk of housing is reserved for Airbnb use.

While some of that Airbnb use in Puerto Rico can be tied to non-Puerto Rico real estate speculators coming to the island for tax breaks and investment gains, Governor Pierluisi said recently that most Airbnb owners on the island are Puerto Ricans . His statement came as part of his proposal to raise the accommodation tax on short-term rentals 1 percentage point to 8 percent while a mayor’s group wants to raise it to 10 percent. Hotels without a casino pay 10 percent, and those with gambling facilities get charged 11 percent.

While the proliferation of Airbnbs is an issue, there is a movement on the island to beat back allegedly i llegal construction .

On the west coast In Rincon, a months-long protest on Playa Almendros that had demonstrators lay down in front of construction equipment on the move, beat back a condo’s attempt to construct a swimming pool perilously close to the shore line and in an area where turtles nest.

A cousin of Governor Pierluisi was a resident of the condo that was trying to build the swimming pool.

Elsewhere in Rincon, an assortment of community groups and local businesses built a hiking trail along the beach near the marina underneath some palm trees to stave off a threatened hotel development. Signs along the trail and through the town read, Salva Tres Palmas, No Destruyas Rincón (Save Tres Palmas, Don’t Destroy Rincón). 

Destination management, in terms of developers seeking financial incentives for large projects such as hotels, would be the responsibility of the Puerto Rico Tourism Company. Its CEO didn’t respond to an interview request.

Responsibility for destination management also falls to the Department of Natural Resources and local municipalities in terms of permits and enforcement.

Felix Salas, the Puerto Rico-born surveyor, is familiar with encroachment issues where people were trying to illegally acquire federal land on Culebra, one of the two bigger islands along with Vieques that are part of Puerto Rico.

“So they’re in the maritime terrestrial zone where you’re not supposed to do anything, really,” Salas said. “And that’s a public domain. It was a pretty straightforward case, but we realized that Puerto Rico needs a lot more attention from our headquarters and from all federal agencies.”

Tomás Ramírez, Discover Puerto Rico board vice chairman who heads the Asociación de Paradores y Pequeñas Hospederías Puertorriqueñas (the Association of Paradores and Small Inns) in Cabo Rojo on the island’s southwest coast, acknowledged there has been a problem “with some people taking ownership of the beaches. We have had some large developers purchasing properties near the beach and closing access.”

Ramírez, who also owns the  Combate Beach Resort  in Cabo Rojo, said there are some Airbnbs in places they should not be. “However, it is not a large problem yet,” he claimed.

The Puerto Rico Tourism Company, the natural resources agencies and local officials weren’t doing adequate jobs in safeguarding the island’s development. He contended things are improving, though.

“It was a matter of execution and enforcement,” Ramírez said. “It is happening.” 

Community Engagement and Dispersing the Island’s Visits

Skift Editor-at-Large Lebawit Lily Girma has written several articles about how  Panama tourism , and tourism officials in Hawaii, are in the forefront of those seeking to connect local communities to tourism strategy.

Ramírez said engagement with local communities is happening “little by little” in Puerto Rico. Discover Puerto Rico has a local advisory committee that includes the presidents of the Chambers of Commerce of the south and west regions, as well as the director of the Universidad Ana G Méndez  Kingbird Innovation Center , and the owner of  LT Travel Agency , for example.

He said Discover Puerto Rico has met with legislators, mayors and community groups in municipalities such as Cabo Rojo, Ponce, Aguadilla, and Lajas, for instance.

Some raised concerns about the quantity of tourism — they want more — and some of the mayors have favorite tourism projects, Ramírez said. Municipal officials are sometimes also angry about visitors behaving badly. 

Ramírez said Discover Puerto Rico is “using strategies to filter such behaviors.”

He pointed proudly to the fact that around 90 percent of Puerto Rico’s off-island marketing used to be directed toward visiting the San Juan metro area or beach vacations, and that now 30-40 percent of promotions go beyond the corridor from Dorado to Fajardo.

The challenge is to get tourists out of the San Juan area to visit places like Castillo Serralles in Ponce in the south or the Toro Verde adventure park in the central portion of the island. 

“So that dispersion, I think to me, is part of the story,” Dean said. “It’s not only more visitors, it’s spreading them out, which, of course, you can look at that in different ways. One, that’s hopefully helping prevent overtourism. The other side, to me, is it’s bringing everybody to the party. Whereas, historically, tourism had been concentrated in certain areas.”

Another side of the coin — yes, Puerto Rico uses U.S. currency — is that the island’s visitors come primarily from the U.S. east coast, namely from New York to Florida.

Discover Puerto Rico hopes to attract more guests from the U.S. Midwest, and eventually the U.S. west coast. International arrivals have been largely shut down until recently, but the destination management organization began marketing abroad a couple of weeks ago.

As part of that strategy to attract visitors from the U.S. mainland beyond the east coast, Dean said Discover Puerto Rico is using different versions of the  Live Boricua  campaign for varied audiences. 

“There are some markets that know us fairly well, like New York and Florida,” Dean said. “They immediately resonate with  Live Boricua . They’re familiar with us and they want that deep intrinsic connection, an emotional connection. They’re craving that. Then there’s other markets like my friends in Indianapolis or Peoria, Illinois. They want it too, but they don’t know us well enough yet. This is the first date. They want to get to know us a little better. They probably need to see some beaches and some of the traditional shots.” 

Jobs, Jobs, Jobs But What Kind?

As part of its tourism recovery, Puerto Rico is now attracting meetings and conventions at twice the pact of pre-pandemic levels. Some $400 million worth of meetings and conventions is already booked, according to Discover Puerto Rico, including annual gatherings this year or in 2023 for the U.S. Travel Association, American Society of Travel Advisors, the National Association of Travel Journalists, and the Caribbean Hotel Tourism Association. 

Although jobs in leisure and hospitality reached a record 86,000 through April 2022, according to the U.S. Bureau of Labor Statistics, there still is a labor shortage.

“And maybe the most important stat of all, to me this is probably the one that’s the most surprising, as of today, we have more people employed in leisure and hospitality than ever in the history of the island, which is pretty interesting, because if you talk to local businesses, they’ll tell you they don’t have enough people,” Dean said.

For Puerto Rico born and raised Felix Salas, it all depends on the types of jobs and the economy that the Puerto Rico government, flush with mismanagement and corruption, is creating.

“So I think tourism for an island, it should be one of the top economic methods of having a healthy economy, as long as it’s done right,” Salas said. “As long as the people in Puerto Rico are working for good paying jobs and get fair incentives for what they do, I think it’s absolutely fine.”

But Salas thinks there are downsides to Puerto Rico tilting too heavily toward a services economy. He’s like to see the government and private business help to develop the island’s agriculture potential, for example.

He doesn’t want Puerto Rico tourism to eventually resemble the Dominican Republic where all-inclusive resorts with low-paying jobs are common.

“Because you’re going to have people making little money just to serve people who come here who have the money,” Salas said. “So you do want to diversify the economy a little bit more. I think that is the way to the future. I think it should be something that we should work hard on. I feel like that would make it a bit more independent.”

Dean of Discover Puerto Rico probably wouldn’t disagree. 

“There are massive changes in the workplace and the workforce, and major infrastructure needs, which in many instances our country has not addressed, at least not to the level we need,” Dean said. “These are major challenges that the best marketing plan and sales team in the industry can’t overcome.”

In that regard, Dean argues that the old destination marketing organization model of placing ads and selling inventory is an anachronism. 

“I think it’s a challenge at the same time for us to step up and recognize that we have a role in the economic strength and prosperity of our communities,” he said. “But that means recognizing that we’ve got to be at the table, helping solve issues that, while they may not appear as the top priority for us, they’re important to the community. If you can’t be at the table helping solve your community’s problem, then A, you’re not a part of the team, and B, it’s going to impede your ability to drive progress in your community.”

Lessons From Puerto Rico Tourism

Among the lessons one can glean from Puerto Rico tourism:

• Discover Puerto Rico, mostly out of necessity because of the tourism industry’s weak financial position at the time, tossed out the usual membership funding model that sees many tourism boards dominated by the narrow interests of hotels, for example. Airbnb is a big part of Puerto Rico’s tourism comeback, and the destination management organization may have been hampered had the hotel industry been the only party calling the shots. Puerto Rico offers attractions and restaurants free directory listings, but their impact isn’t gargantuan. 
• Yes, it’s great to see when tourism board leaderships aren’t solely made up of political appointees here today and gone on Wednesday to bring a degree of consistency to strategy. But will private businesses adequately safeguard the public interest?
• If tourism boards don’t make engagement with local communities a big priority, they too can get swept away in a backlash as fast as a governor who reveals his true character with associates in a seemingly private chat.
• In this current era, tourism, living and social issues are one big splotch of paint, and each will color the other, and can’t be separated.
• Hire the best and the brightest, and employees who value diversity and inclusion, whether for content creation or supplier relations. Everyone will not always get along in any collection of human beings, but doling out the best jobs to an exec’s cousin or nephew won’t cut it when the public measures your every move.
• Let your decisions be research driven or at least research influenced as a core practice. If your research tells you your brand positioning isn’t much different than for any other Caribbean island or country in Southeast Asia, then it’s time to change your message and perceptions — based on your research. 
• Don’t crawl into a bunker during the next crisis — and there will inevitably, yes guaranteed, there will be one. Use the time to retool and stay in the consideration set, circumstances permitting. 
• Trust your instincts but consult with others about ever-changing consumer behavior or patterns. Otherwise you will be left behind as fast as a wind gust from a Cayey mountaintop overtakes you. 
• After all, complacency is death. 

Editor’s Note: The author, Skift founding editor Dennis Schaal, has lived in Puerto Rico since November 2020.

Disclosure:  Skift founder and CEO Rafat Ali serves on board of advisors for Discover Puerto Rico.

Correction: The Jones Act only pertains to goods that Puerto Rico imports from U.S. ports, and we incorrectly reported that it covers all global imports.

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Tags: airbnb , airlines , destinations , discover puerto rico , DMO , hotels , jobs , marketing , puerto rico , puerto rico tourism company

Photo credit: A screenshot from Discover Puerto Rico's Live Boricua marketing campaign. Discover Puerto Rico Raquel Pedrosa / Adobe

Puerto Rico tourism industry lags rivals, offers little relief from debt crisis

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Reporting by Jessica DiNapoli; Additional reporting by Dan Trotta in Havana; Editing by Megan Davies and Martin Howell

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How 2 executives found success in Puerto Rico's booming business landscape

• In recent years, Puerto Rico has gained international parity in sectors such as tech and aerospace.
• In 2023, more than 550 businesses and nearly 6,000 new job opportunities were established. 
• The island's skilled workforce, network of established companies, and quality of life make it a solid business destination.

In recent years, Puerto Rico's rich potential has caught the attention of foreign companies, quickly propelling the small island to gain international parity in sectors such as tech, aerospace, and pharmaceuticals. In 2023, more than 550 businesses and nearly 6,000 new job opportunities were established on the island, according to Invest Puerto Rico . 

More than ever, Puerto Rico is positioned to host entrepreneurs and executives considering establishing or expanding their business presence. Take it from two locals who have witnessed the evolution of the Puerto Rican business landscape: Luis Ramos, a senior engineering director at Honeywell Aerospace, and Christian González, the cofounder of Wovenware, share why Puerto Rico is the place to be for businesses like theirs. 

A buoyant business ecosystem 

Puerto Rico thrives on the backbone of burgeoning industries like technology and aerospace, as González highlights. 

When González cofounded the tech consultancy firm Wovenware in 2003, Puerto Rico's tech scene was virtually nonexistent. Yet, he saw an opportunity to not only start a company, but foster a thriving tech ecosystem. Wovenware was created with the sole purpose of opening doors for Puerto Rico's computer and electrical engineering graduates, giving them a reason to build a career right at home. 

Fast forward two decades since its founding, and Wovenware stands as a testament to Puerto Rico's vibrant tech ecosystem, having grown into a key player. González's vision has helped retain the island's brightest minds, who might've otherwise sought work opportunities on the mainland. "We're proud to be able to not only fulfill the needs of the market but also to offer our skills to a lot of the companies that are coming to Puerto Rico," he said. 

This narrative of growth is echoed by Ramos from Honeywell Aerospace, a manufacturer of aircraft engines and avionics, who sees Puerto Rico as a robust ground for all types of businesses. He said this is thanks to the island's world-class supply chain and diverse network of companies that have laid the groundwork for economic progress. 

Both leaders also highlight how much Puerto Rico's government incentives, like tax breaks on property and business licenses, make it more viable for startups and established companies to have operations on the island. 

A goldmine of talent  

Particularly for Ramos, Puerto Rico's appeal as a business destination comes from not just its natural beauty, but the brains of the individuals who live on the island.

"While there are certainly many beautiful beaches around the island, it is the highly skilled talent that makes it a great business destination," he said.

Despite its small size, Puerto Rico is home to four engineering universities and numerous trade schools. This educational infrastructure propels the island to produce STEM graduates at a  rate six times higher than the mainland, positioning Puerto Rico to have the highest proportion of STEM workers in the US, at 13%.

The University of Puerto Rico is the largest engineering college on the island and offers mechanical and aerospace engineering programs across its Mayagüez and Aguadilla campuses, while the Polytechnic University of Puerto Rico offers mechanical and computer engineering programs. This foundation allows companies like Honeywell Aerospace to tap into a well-educated talent pool when hiring. 

Having been with Honeywell Aerospace for 16 years, Ramos has watched Puerto Rico's aerospace industry transform into a significant global player because of the island's dedication to developing adept professionals like himself. "When I started at Honeywell, there was no aerospace education in Puerto Rico," he said. "And today every major engineering university has some sort of aero track in their curriculum."  

Moreover, Ramos points out that the aerospace industry not only offers the highest average salary on the island but also draws in the largest number of engineers, underscoring the industry's growth and appeal. 

Perks of island life 

For anyone thinking about moving to Puerto Rico, it's not just a career move — it's a lifestyle upgrade, according to González. Workers and their families who relocate are met with an enviable quality of life that includes warm weather, tropical beaches, social activities, and a welcoming community. Ramos added that kids have access to a range of bilingual schools and top-notch yet affordable universities. Essentially, all the factors that ensure your time there is productive and enjoyable. 

"We're very welcoming to anyone relocating — we want to make you feel at home, and I think that's very special," González said.

Learn more about establishing yourself in Puerto Rico's business landscape.

This post was created by Insider Studios with Invest Puerto Rico.

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How To Be A Considerate Tourist When Visiting Puerto Rico

P uerto Rico is a much-loved destination for American travelers. Beyond the fact that U.S. citizens don't need a passport to travel there, the island is a great way to get the feel of a tropical getaway without having to go very far or exchange money . However, in the last few years (or the last few decades, if we're being honest), Puerto Rico has not been given the respect it deserves nor the care it so desperately needs.

You may remember in 2017 and 2022 when the territory was hit by Hurricanes Maria, Irma, and then Fiona. These natural catastrophes caused unprecedented damage to Puerto Rico's infrastructure, including their power grid which took 11 months to restore. The island's government estimated it would require nearly $132 billion to repair the damages, of which they have received only a fraction.

And if that wasn't bad enough, in the middle of these events, COVID-19 happened and Puerto Rico was swarmed by tourists looking for an escape from pandemic restrictions they faced back home. Even though Puerto Rico required masks, some visitors took a rules-for-thee-not-for-me approach. Now as the pandemic subsides and the island continues to rebuild, a question arises. How can we, as tourists, do better?

How To Travel Responsibly In Puerto Rico

Leave it better than you found it. Just a step above "leave no trace," this rule of conservation is globally espoused to encourage individuals to be more conscious of their impact on nature. Don't scour the trees with your and your lover's initials. Don't throw trash into the streets. Don't take pieces of rock or shells home from a beach that explicitly forbids it.

However, "leave it better than you found it" goes beyond the effects we have on our environment at home. It also applies to the places we travel. This is treating locals in Puerto Rico with respect, following the local laws and regulations, supporting locally owned establishments, and being an informed traveler. These are all things you can do to leave behind you a better impression of tourists from your country than those before you.

If you're traveling to Puerto Rico, consider lending a hand directly to a good cause. There are numerous volunteer opportunities throughout Puerto Rico where you can help local communities in a variety of ways.

You should also make sure the money you're spending is staying in the local economy. You can do this by buying food from local fishers, farmers, and restaurant owners and purchasing gifts made and distributed by local artisans. Lastly, when booking your accommodations, take the extra step to ensure it is independently owned. There are a variety of eco-conscious accommodations like this in Puerto Rico, so take your pick!

Support Puerto Rico By Being Informed

There are many ways to be a responsible traveler in Puerto Rico that go beyond just spending your money wisely. Learning a bit about the history of the island and current hardships communities are facing can make us all a bit more empathetic to the destinations we visit and the people who live there.

Puerto Rico , much like the mainland U.S., is a melting pot of cultures and ethnicities that include the Indigenous Taínos, Spanish, and African communities. This has led to an intermingling of cultural traditions that you can see and experience in every corner of the island. Don't make the mistake of missing out on local Indigenous food traditions or try your hand (or rather feet) at some Afro-Caribbean dance classes.

With such beautiful traditions also comes a respect for the local nature and wildlife. Puerto Rico is full of green tropical rainforests, stunning sandy beaches, sapphire blue waters, and the colorful fauna to match. Locals rely heavily on local ecosystems to support their own livelihoods as well as keep tourists coming back year after year.

It's estimated that the coral reefs alone generate $1.4 billion in revenue from tourism. So, be sure to book a snorkel or dive tour of the reefs with a responsible tour operator and wear your reef-safe sunscreen. You may also want to consider donating to the Nature Conservancy which works with local fishermen to promote more sustainable fishing methods and preserve food traditions.

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