Puerto Rico’s economic lifeblood is its tourism industry, with meetings and events playing a central role in driving business to this Caribbean island. But this year presented the U.S. territory—where U.S. citizens can travel freely without a passport—with a series of challenges, including an ongoing debt crisis and the spread of the Zika virus in South America and the Caribbean, which prompted concern among travelers.
“Meetings and conventions account for about one in four rooms booked in Puerto Rico,” said Milton Segarra, president and CEO of Meet Puerto Rico. “And business from the MICE market is important for the overall success of our hospitality industry. Nearly every major hotel development on the island with 100 rooms or more has a meeting space component and offers flexible and modern facilities.
“Even though in the last year we’ve been facing certain challenges due to Zika and the financial crisis the central government has been facing, if you compare the March through September window in 2015 versus that same window in 2016—the months in which Zika impacted perception the most —we’ve been able to book more or less the same number of groups, even though it has been smaller groups,” he continued.
Segarra attributes the continuity in group bookings to Puerto Rico’s immediate response to the Zika virus in the form of an educational and health-related campaign throughout the island. The U.S. territory is also providing a unique research opportunity for the Centers for Disease Control and Prevention (CDC), which has prompted additional support.
Safety and Security
Safety and security are top priorities for any planner looking to bring a group overseas, whether dealing with the prospect of a terrorist threat or a major health emergency. The modern-day reality is that these situations could arise at any time and planners need to be prepared, even at home.
“There are two new norms in travel we have to consider, involving global safety and health-related concerns,” Segarra said. “Global safety may include what happened in France, what happened in Italy, what happens all over the world … and health issues include the outbreak of SARS, Ebola and other emergencies. Planners are looking for destinations that can immediately react in these situations.
“In Puerto Rico we have a few important advantages,” Segarra continued. “No. 1, we’re a territory of the U.S., that means the FBI, the CIA, Homeland Security, all the federal security establishment is here. In terms of health care situations, our own resources in conjunction with the CDC and the Health and Human Services Department are present here. We present a combined front against any situation.”
PageBreak
What’s New in Puerto Rico
Meet Puerto Rico is aware and ready to respond to any concerns planners or their attendees may have about meeting on the island. And while it’s easy to focus on the headlines, there is a lot of new and planned development across the island that Puerto Rico is proud of, in hospitality and beyond.
“In the last decade in Puerto Rico there has been $3.3 billion worth of investment in the hospitality industry,” Segarra said. “That includes investment in new hotels and infrastructure.”
Segarra referred to the $750 million worth of investment ($500 million already invested, $250 million incoming) in the island’s largest airport, Luis Munoz Marin International Airport, as one major development. He also mentioned that the island is making a $200 million investment in enhancing the San Juan Bay piers.
The 387-room El San Juan Hotel & Casino closed in August to complete a $60 million property-wide renovation that includes meeting space, and it is expected to reopen in the first quarter of 2017. The 240-room Sheraton Old San Juan Hotel at press time was finalizing renovations to its guest rooms and meeting space, and the San Juan Marriott Resort & Stellaris Casino recently debuted its new 1,094-square-foot vice presidential suite and a 581-square-foot executive suite.
Two major luxury hotel brands are also in the process of developing properties in Puerto Rico, including a Four Seasons on the east coast of the island in Fajardo and a JW Marriott west of San Juan in Dorado. The island’s two Ritz-Carlton properties in San Juan and along Dorado Beach remain popular higher-end group options.
Another major announcement for the convention market in Puerto Rico is the reveal that AEG and PRISA Group have entered into a contract for AEG Facilities to undertake the management and operation of a new 6,000-seat concert and entertainment venue called The Pavilion, which will be the anchor of District Live!, a five-acre hospitality and entertainment district in San Juan set to open in early 2019.
The District Live! entertainment complex is being constructed in San Juan’s Convention Center District, adjacent to the Puerto Rico Convention Center. AEG was also behind the L.A. Live project in Los Angeles.
Moving Forward
While 2016 has been a difficult year for Puerto Rico, the Caribbean island has shown it has the resilience and determination to continue to grow.
“Please allow us to prove our case on why it’s a good time to come to Puerto Rico,” Segarra said. “News will continue to develop. Safety is on everyone’s radar, financial situations will take time to get to the point where we want them to be, and Zika is something that is cyclical. Don’t jump to conclusions. Let us be part of the conversation and prove our case, and once you have all the details, then make the call.”
And here’s a bonus for planners looking to book a meeting on the island in 2017 and beyond; Segarra said that the ability and the willingness to provide better rates or price points for groups is on the table.
