Destination Bliss


Where can you find El Yunque, the only tropical rain forest in the U.S., the second longest canopy of the world, the largest and most technologically advanced Convention Center in the Caribbean and 3 of the 5 bioluminescent bays in the world?

On the island that does it better, Puerto Rico.

Puerto Rico welcomes 19% of all Caribbean arrivals. That’s 5 million passengers by air and almost 1.2 million cruise passengers per year.  With its pristine white sand beaches and world class biodiversity, the reasons for Puerto Rico’s success are as diverse as its habitats.  Add to this the incentives we offer for tourist businesses and you see why we’re such a great destination to visit and an ideal place to business.

Currently, there are more than $580 million invested in tourism projects underway and over $3.5 billion still under development, such as multifaceted hotels and resorts, casinos, golf courses and other tourist attractions throughout the island.  With this in mind, Puerto Rico approved a new incentives Act in order to facilitate and promote world-class tourism projects.

For those willing to explore the island, there are thousands of adventures, which translate into thousands of unique business opportunities.

"Tourism Incentives for the Economic Development of Municipalities Act" - (Act No. 118 of 2010)
  • Facilitates the establishment of world-class tourism development projects in less developed municipalities
  • The main criteria for eligibility under this act include:
  • Being a world-class hotel with at least a 4-star rating
  • Planning for diverse commercial and recreational establishments
  • Other tourist attractions and facilities typical of 4-star hotels, including casinos
  • The project must be developed exclusively with private capital.
  • Tax incentives on net income from casinos will be granted according to the following scale:
  • Investment of $500 MM - fixed tax rate of 25%
  • Investment of $750 MM - fixed tax rate of 15%
  • Investment of $1.0 B - fixed tax rate of 10%
  • Investment of $1.25 B - fixed tax rate of 8%

“Tourism Development Act of Puerto Rico" - (Act No. 74 of 2010)
  • Facilitates the establishment of tourism projects on the island
  • Eligibility:
    • The business must engage in tourism-related activities using:
      • New facilities
      • Existing facilities that have not been in use for three or more years
      • Existing facilities where substantial renovations or expansion will take place
    • The following business activities qualify as tourism-related activities:
      • Ownership or administration of:
        • Hotels, condo-hotels, timeshares/vacation clubs, hostels, guesthouses, excluding the operation of casinos
        • Theme parks, golf courses, marinas for tourism purposes, port facilities in areas that promote tourism activities
        • Natural Resources as a source of entertainment value
        • Other entertainment or recreational tourism-related facilities
      • A business operation dedicated to renting or leasing to an exempt business dedicated to tourism-related activities
    • Benefits under this law will remain valid for a period of 10 years from the starting date of the eligible tourism-related project, and the business operation will be entitled to a 10-year extension:
      • Tax credit of 10% of the total project cost, or 50% of cash from investors (whichever is lowest)
      • 100% exemption on municipal construction excise tax
      • 100% exemption on taxes on imported goods and sales tax
      • 100% exemption on municipal licenses
      • 90% exemption on income tax
      • 90% exemption on property tax

When it comes to tourism, Puerto Rico definitely does it better. We are committed to the development of new and attractive offers to retain and attract new tourist segments. The diversification of markets and products, the promotion of nautical, medical, culinary, cultural, and sports tourism, plus the creation of locations of interest outside the metropolitan area, are part of our plan for this sector. 

Compared with other destinations in the Caribbean, Puerto Rico’s tourism potential is astounding. Tourism only contributes 6% to our Gross Domestic Product, while it contributes 11% to the Dominican Republic’s, 15% to Jamaica’s, 59% to Barbados’, and 17% to Cuba’s. Puerto Rico has all the cultural and natural conditions and attributes to expand its tourism, and have it contribute more to its economy.  Some of the more recent results in this sector are:

  • Hotel occupancy rose 1% in calendar-year 2010 and 3.8% from January to May of 2011 as compared to the same period the year before – this while maintaining Average Daily Room Rates (ADRs)
  • The opening of the W Hotel Vieques Retreat, the Sheraton Convention Center, the Eco-Tourist Park in Toro Verde, and the St. Regis Bahia Beach Resort in Rio Grande
  • We are enabling the development of new projects such as the Ritz Carlton Reserve in Dorado, and the Block in Vieques
  • The Tourism Company, assigned $8.6 million in world class events and sponsorships such as the Puerto Rico Open, Rip Curl Pro Search and Saborea
  • The level of “homeport” cruise liner passengers reached its highest level in four years, surpassing 530,000 passengers for FY 2009-2010

Since 2009, the opening of 21 hotels and inns, including the W Hotel Retreat and Spa, the Sheraton Convention Center, the St. Regis Bahia Beach Resort, among others, has represented investments of $756 million and the creation of 3,482 jobs in the construction phase and 1,600 jobs in the operational phase. In the next several years 30 projects are projected to opening representing an estimated investment of $1.344 billion and the creation of 3,454 jobs in the operational phase.

For more information on incentives and statistics from successful businesses, please contact us at 787-765-2900 or send us an email to infotourism@prdoesitbetter.com.

 

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  • How about hereplay
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  • Puerto Rico: Island of Opportunitiesplay
  • Puerto Rico: Quality of Lifeplay