The Weekly Journal - Wednesday, March 31 - April 6, 2021

Puerto Rico and the Caribbean

www.theweeklyjournal.com

>Carlos Rivera Giusti

Wednesday, March 31- April 6, 2021 - // no. 101

Renewed Calls for Structural Reforms P6 LUMA Stays Firm on PPP Contract P7 Strong Sales for Local E-Commerce Bookstore P8

Here Comes the Bride

Puerto Rico’s wedding industry seeing gradual recovery

T

>Courtesy

Giovanna Garofalo

Enjoy a WorldClass Cigar from Mayagüez P13

ggarofalo@wjournalpr.com

@giopgarofalo

he wedding industry in Puerto Rico has experienced an unprecedented downfall in revenues due to the COVID-19 pandemic, affecting the myriad sectors that comprise it, as well as the other industries that benefit from it indirectly.

Carla Padilla Rodríguez, co-founder and creative director of WeddingWaysPR, told THE WEEKLY JOURNAL that weddings generated roughly $600 million a year

before the coronavirus outbreak, excluding its multiplier effect on other economic sectors.

“I would say the impact is about $600 million without considering the rest, and that’s just an average,” she stated, adding that approximately 14,000 weddings are duly registered annually on the island, but that there are other informal celebrations that also contribute to this industry.

Asked to elaborate on the pandemic’s toll on this sector, Padilla said that “we are talking about millions and millions of dollars. It is an impact that GO TO PAGE 4

The Weekly Journal > Wednesday, March 31, 2021 > 2

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a week in review Puerto Rico Co-Ops Registered Over 1.5 Billion Increase in Shares and Deposits

>Brandon Cruz González

The Public Corporation for the Supervision and Insurance of Cooperatives (COSSEC by its Spanish acronym) reported that the co-op sector registered an increase of over 1.5 billion in shares and deposits in the fourth quarter of 2020 compared to 2019. During 2020, savings and deposits in the co-ops sector totaled more than $9.7 billion. The increase was largely due to the federal financial aid received from the COVID-19 pandemic, which seems to have awakened in Puerto Ricans the importance of saving, COSSEC said.

FEMA Approves $6.5 Million to Repair the Puerto Rico Coliseum and Bahía Urbana

Mexican Workers Arrive in Puerto Rico to Boost Agriculture

The José Miguel Agrelot Coliseum and Bahía Urbana, two of the most important venues dedicated to promoting the arts and entertainment sector in Puerto Rico, has received an obligation of nearly $6.5 million from the Federal Emergency Management Agency (FEMA) for permanent works. According to the Convention District management that oversees both facilities, the entertainment industry in Puerto Rico produces nearly $2 billion per year and generates around 30,000 direct and indirect jobs annually.

Puerto Rico government officials announced that Mexican workers have started to arrive on the island to work on local farms, in such areas as picking coffee. The Mexican workers received H2-A visas allowing them to temporarily work in the U.S. Workers from Honduras and the Dominican Republic are also expected to arrive and work on local farms. The Puerto Rico Department of Labor has said that there are roughly 4,000 farming jobs available.

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CONTINUED FROM PAGE 1 I think is immeasurable... We are talking about a highly influential industry in Puerto Rico’s economy and it is not generating nearly enough revenues as it used to.”

Before the pandemic, people would generally invest $50,000 and more on luxury weddings, roughly $30,000 for moderate weddings, and fewer than $30,00 on weddings with lower budgets. The loss of revenue affects multiple businesses — from self-employed professionals to midsize and large enterprises— in a variety of disciplines, such as photography, floral arrangements, planning, makeup artistry and many others.

Rafael López, co-owner of AKUA Events and president of The Lounge Event Furniture Rentals, lamented that the months-long inactivity in the industry forced AKUA to downsize its personnel by nearly 75 percent, with now 45 employees as of press time. “There is no way to keep the operation healthy. And many colleagues are in the same situation,” he said.

Meanwhile, Elisandra Ortiz, founder of EO Studio

by Elisandra Bride Specialist, would regularly book dozens of brides and their entourages to do their hair and makeup on their special day, but in 2020 she could only serve one client, due in large part to the impact of the COVID-19 pandemic and the strict government lockdown that followed. Thanks to the gradual reopening of the economy, she has managed to secure 10 contracts for weddings so far this year.

Destination weddings are a lucrative segment of the industry. >Courtesy

Gov. Pedro Pierluisi signed Executive Order 2021-019, effective from March 15 until April 11, allowing events and venues, including weddings, to operate at 50 percent occupancy and eliminating the requirement to present a waiver. Despite

“There are many local weddings this year, but there are also many other destination weddings. So, both locals and people from abroad are interested. And what we are seeing is that tourists want to come here.”

- Elisandra Ortiz, founder of EO Studio by Elisandra Bride Specialist

having fewer restrictions now than at any point throughout the pandemic, López asserted that the wedding segment “has been one of the hardest-hit industries because we are still limited compared to the large-scale events that we used to do.”

However, López praised the reopening flexibility as a step —albeit still constrained— toward the industry’s reactivation. “The bigger a room is, the more opportunities we have. So, if a room can seat 800 people, then you know you can do a party with 400 guests. If 500 people fit in the room, then you can do an event with 250 people. Everything is relative to the space where it will be held. And hotels are cooperating, so at least we have the hotels as allies,” he stated.

Keren Concepción released a best-selling book about wedding photography planning during the pandemic. >Courtesy

Opportunities in Times of COVID

But not all industry leaders have the same hardships. For instance, Pedro López Calderón

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positive for the industry.”

“Let’s say a destination wedding costs $35,000, which is an average wedding, but you have people who stay at the hotel, who have to pay for their stays, who go out to eat, they do tours, and more,” Padilla explained.

Ortiz, for instance, reported that about half of her contracts signed so far this year are with brides living in the U.S. mainland who will hold the venue on the island. “There are many local weddings this year, but there are also many other destination weddings. So, both locals and people from abroad are interested. And what we are seeing is that tourists want to come here,” she said.

As such, Padilla underscored the importance of promoting Puerto Rico as a safe and alluring tourism location in order to attract destination weddings. “Tourism needs to keep promoting us as a destination. The government’s support is important for us to flourish as an industry because this is not only comprised of decorators and planners; it also involves hotels, the Convention Center, and the Choliseo (Coliseum of Puerto Rico). I believe we need firm support for us to stay afloat until the pandemic ends. I hope that after September, this situation dissipates as more people keep getting vaccinated,” she added.

WeddingWaysPR held a hybrid conference in mid-March 2021 to connect brides and grooms with industry suppliers and coordinators. >Courtesy

of Zuazo Floral noted that although the company would not receive orders for wedding floral arrangements, there was a dramatic spike in customers who wanted bouquets to be delivered to family members and loved ones, or who bought flowers to do the arrangements themselves.

“Maybe it helped us a lot that people did not go out, but sent a flower arrangement to avoid visits.

In that part our business tripled,” he reported.

Moreover, Keren Concepción, owner of Keren Photography, had her wedding-photography book release coincide with the pandemic. Her book in Spanish, titled “Inolvidable: La guía para inspirar a los novios a planificar las fotos de sus sueños,” soon became a best-seller. “We send that message of hope, to keep planning and dreaming, and we will improve that wedding plan,” she explained. “By having more time to plan, we have the opportunity to do even better things and you won’t have to cancel your wedding. Instead, let’s change it, let’s modify it, and let’s celebrate love. That is something truly beautiful amid this crisis, in my particular case.”

Gradual Recovery

As for how long before the industry could reach pre-pandemic revenues, Niletza Adorno— proprietor of Niletza Adorno Events—surmised it would take between one and one-and-a-half years.

Likewise, López opined that while this year will show moderate recovery, it won’t be until 2022 at least for the industry to get back on track.

Although the industry still has to overcome the effects of COVID-19, López highlighted that the public and private sectors’ rigorous protocols to curb the coronavirus will likely encourage locals and U.S. mainland residents to choose the island

for a safe wedding venue. “Compared to other countries, Puerto Rico will have a greater number of people vaccinated at a faster pace, and that will be of benefit to us as an island. In addition, [vaccinations] will give security to people to do their events again. We as an industry are prepared to hold events because we have been working hard for months from the beginning, so that when the time comes to fully open we are able to do so,” he asserted.

The industry experts also agreed that the vaccine progress in Puerto Rico, which is currently in its Phase 1C of inoculation, will soon lead to the full reopening of this industry, although they warned that COVID-19 vaccination IDs may eventually be required. Both Adorno and Padilla commented that some clients are presently requesting their guests to present negative coronavirus test results before attending, and that could eventually morph into COVID-19 IDs to host or attend venues, or specialized passports for travel, as is already under discussion in the European Union. “I think that first, they have to allow openings in certain age groups and then ask that people be vaccinated,” Padilla stated.

Destination Weddings a Boon

WeddingWaysPR recently held a virtual expo, where residents and people living abroad could get connected to local suppliers and coordinators.

“This is undoubtedly a great step to boost this industry that generates millions for the island’s economy,” Padilla affirmed. “Many people have written to me from foreign destinations saying that it is good that they saw that information because it had been very difficult for them to know this.

In that case, the event that took place was very

El Morro is a popular backdrop for wedding photos. >Courtesy of the Puerto Rico Tourism Company

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FOMB: Lack of Progress on ‘Five Critical Structural Reforms’

Represents billions in potential government revenues

W Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

ith the exception of reforms in Puerto Rico’s electrical system, as envisioned in the publicprivate partnership agreement that LUMA Energy has with the Puerto Rico Electrical Power Authority (PREPA), the central government continues to lag behind in implementing “five critical structural reforms” that the Financial Oversight and Management Board (FOMB) has on its priority list.

According to the FOMB, the reforms are necessary to restore competitiveness to the island, enable growth and spur a return to prosperity in Puerto Rico. During a public meeting held last week, the Oversight Board estimated that full and timely implementation will add almost one percentage point of economic growth and $25 billion in revenues to the Puerto Rico government over the next three decades.

“Improvements to human capital and welfare to increase the qualified work force; reform of the electricity sector to ensure more affordable, more reliable, and cleaner electricity; improvement of the business environment, be it permits, registration of property, infrastructure or tax administration burden; comprehensive reform to improve the education of our children will lead to a permanent turnaround of the Puerto Rican economy, and address Puerto Rico’s chronic under-investment in infrastructure,” said Natalie Jaresko, the FOMB’s executive director.

“We have made some progress, in implementing these reforms in Puerto Rico, but we have a long way to go to complete them… “Only full implementation of these reforms will enable Puerto Rico to be competitive with the rest of the world in attracting investments and create high quality jobs that will improve the lives of all Puerto Ricans right here, in Puerto Rico,” she added.

“Failure to reform is not an option.”

The largest contributors to economic growth and government revenue will be the overhaul of Puerto Rico’s energy system, adding an estimated $11 billion, and reforms making it easier to do business in Puerto Rico are estimated to add over $9 billion.

The FOMB’s Natalie Jaresko >Carlos Rivera Giusti

During the meeting, Gov. Pedro Pierluisi reaffirmed his support of the LUMA contract. “There is so much bad information out there, unnecessary politicization, against LUMA and it is shocking.

Everybody wants to criticize the contract. It should be remembered that PREPA’s response after Hurricane Maria was disastrous,” Pierluisi said.

The governor added that the lack of professionalization at PREPA is clear, which is why “we need professional management of the transmission and distribution system… Puerto Rico is a place of law and order, the government has to honor its contracts and this one in particular went through a process with the Public-Private Partnerships Authority, PREPA and the FOMB,” he said.

The Five Critical Structural Reforms are:

•Human Capital and Welfare: The Puerto Rico Treasury Department successfully updated tax forms and enabled regulations and legal changes necessary to implement the earned income tax credit (EITC), but few efforts have been made to communicate and educate the target population.

On the EITC front, of the estimated $240 million in credits that the government could have granted, only $115 million were claimed by taxpayers.

On the Nutrition Assistance Program, the Administration for Socioeconomic Development of the Family delayed implementation of the work/ volunteer requirement and has not finalized a detailed implementation plan.

•Ease of Doing Business: The Department of Economic Development and Commerce has made initial progress in reforming the process to

obtain permits and the Department of Justice has made some progress in reducing the property registration backlog. Invest Puerto Rico and Discover Puerto Rico have made great progress in their mission to help grow Puerto Rico’s economy.

However, a tax administration reform necessary to improve Puerto Rico’s competitiveness is delayed.

•Education Reform: The Department of Education and the University of Puerto Rico have made progress in the implementation of their tutoring program for low-performing schools and in supporting teachers during remote teaching in the pandemic. However, the department lacks a comprehensive strategy to leverage researchbacked practices to increase family engagement and a plan to support data-driven decision making.

•Power Sector: The transformation of the Puerto Rico energy sector already reached several milestones on its path to provide households and businesses with more reliable, more affordable, and cleaner energy. Puerto Rico now has a truly independent energy regulator, and PREPA’s grid will soon be managed by a private operator, LUMA Energy. LUMA is incentivized to improve reliability and customer service, make investments, and create efficiencies that will help making electricity more affordable. The Public-Private Partnerships Authority has commenced a process to select one or more professional, private operators to manage PREPA’s generation.

•Infrastructure: Progress has been made to increase capital investments in transportation assets but developing a prioritization framework for transportation sector investments remains behind schedule.

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Wayne Stensby reported that LUMA has received 13,000 job applications from non-PREPA workers. >Josian E. Bruno Gómez

LUMA President Rejects Possible Amendments to PPP Contract Affirms that the agreement is ‘lawful and fully ratified’

W Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

ayne Stensby, president and CEO of LUMA Energy, reiterated the company’s rejection of amendments to the Public-Private Partnership (PPP) contract with the Puerto Rico Electric Power Authority (PREPA) on the island’s transmission and distribution systems.

Speaking at a round table with members of the press, Stensby suggested that discussing the possibility of negotiations to alter the contract — which comes into full effect on June 1— “serves as a distraction on the important issues, which is let’s get started and let’s make improvements for customers.”

THE WEEKLY JOURNAL asked if LUMA is therefore unwilling to amend the “force majeure” clause in the contract, which would reportedly allow the company to desist from complying with the contractual agreement in the event that a natural disaster impacts the island and causes serious damage to the electrical system. The clause on “acts of God” is common in many business contracts. To this, Stensby asserted that neither LUMA nor its parent company, Canadian Utilities Limited, are “going anywhere.”

“We formed LUMA because we have this,

frankly, expertise and capability in storm response as well as all the other aspects of operating a world-class utility. Our parent company is one of the organizations that move toward storms, we don’t run away from storms. In the 2020 season alone, we responded with more than 2 million hours across 20 named storms across more than 40 utilities in the U.S. So, we understand storms, we understand storm response, we understand the importance of emergency response and the infrastructure that it takes in order to facilitate that. This idea that, again, I think was an attempt to mischaracterize the situation, we’re not going anywhere. We’re here for 15 years and we’re going to make it better,” he affirmed.

Moreover, the CEO noted that the investment community worldwide is “paying attention” to how Puerto Rico secures contractual obligation in this process to assess PPP opportunities in these types of transformations. The contract, approved last year, has been under scrutiny by the Puerto Rico House Committee for Economic Development, Planning, Telecommunications, Public-Private Partnerships and Energy. The Electrical Industry and Irrigation Workers Union (Utier by its Spanish acronym) has been the most vocal group against this agreement, claiming that it will increase energy rates, a charged that Stensby denied.

“The contract is lawful and it is fully ratified. And perhaps most importantly, the contract and the transformation is good for customers and it’s what customers are screaming for, a point that seems to be at all times missing from the dialogue, missing from the conversation, and missing from the approach that’s been undertaken by the inquiry,” he said. As reported by THE WEEKLY JOURNAL, an Oct. 2020 report by the Puerto Rico Chamber

of Commerce revealed that 60 percent of survey participants would support the privatization of the island’s energy infrastructure if it would lower rates.

Meanwhile, Stensby lambasted the legislative hearing held on March 21 in which he was asked to provide “private details” about his life and his salary. “Frankly, we are not going to disclose the names and details of our Board members and my salary, and other related items,” he said, adding that publicly traded but privately-owned companies have an obligation to keep those things personal.

Evaluating Job Applications

Stensby also reported that the company has received 13,000 job applications from Puerto Rico residents who are not currently employed by PREPA, as well as 1,300 applications from PREPA employees. “In summary, I think recruitment is going well. We will be ready for June 1st, and we’re just going to continue to work through with it,” he stated.

In addition, he highlighted that the company is willing to send PREPA line workers “at our cost and expense” to participate in a training center.

“We’ve gone public to say that for all the PREPA line workers that are interested in LUMA, send your application in. We would love to be able to host you at this advanced training center, both in order to allow a very wholesome and one-onone assessment and to understand their areas of development and capability, but also to give line workers a bit of a perspective of who we are and the capability that we bring in, and the seriousness behind safety and skill training, which is a very important criteria of who we are,” he said.

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Libros787 Puts Puerto Rican Literature in the Spotlight

Reports 150 percent sales growth in first quarter of 2021

L Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

ibros787, an online bookstore dedicated to selling Puerto Rican literature, reported substantial growth throughout the pandemic, showcasing the importance of e-commerce for local businesses while underscoring the need to conserve the island’s literary legacy.

It comes as no surprise that as people were forced to stay indoors to curb the spread of COVID-19, consumer behavior shifted to online retailers. According to a February 2021 analysis

by Digital Commerce 360, online sales grew by 44 percent last year in the United States, while online spending represented 21.3 percent of total retail sales in 2020 compared with 15.8 percent in 2019.

Carlos Goyco, co-founder of Libros787, told THE WEEKLY JOURNAL that last year, the company’s sales increased by 121 percent. Meanwhile, sales in the first quarter of 2021 currently surpass those from January to March 2020 by roughly 150 percent.

He attributed this major growth to people seeking different forms of entertainment to pass time under lockdown and the fact that avid readers had scarce options to support local bookstores, as many businesses were forced to suspend their operations or even close their establishments. “The bookstores that they usually went to in Puerto Rico are closed and there was a shift in that market that fell on us,” Goyco stated.

Goyco, who created Libros787 with Gerardo Enríquez, affirmed that the e-bookstore has experienced sustained growth since its conception in December 2017, just months after Hurricane Maria devastated the island. The idea surfaced after he noticed the mass exodus of Puerto Ricans to the U.S. mainland, thus limiting their access to Puerto Rican literature.

After launching www.libros787.com via the Shopify platform, the co-founders participated in two pre-accelerator programs for startups, Startups PR and Pre18, the latter of which was a precursor to their participation in Parallel18’s accelerator program. Now, the company has a total of five staff members who work in packaging, customer service and curating content, among others.

“When we left those programs we followed

The e-bookstore features a variety of works from Puerto Rican and other Hispanic authors, as well as literary classics in Spanish. >Courtesy of Libros787

a growth path that was not something as exponential as what we are seeing now, but by the beginning of 2020 —when there was still no pandemic—, we expanded the catalog,” Goyco said. “Our average order value was about $25 and now it’s $40, so people are buying more with each purchase,” he added.

Libros787 indeed has a diverse literary offering.

The site sells books by past and contemporary Puerto Rican authors, ranging from poetry, recipe books, art and photography, children’s literature, young adult novels, fictional works and Puerto Rico history, with this being a top-selling genre among customers, according to Goyco.

“We also started working on books by [other] Hispanic authors. That is why you see that there are books by Gabriel García Márquez, Isabel Allende, all those greats,” he stated, adding that they also sell international works in Spanish, such as George Orwell’s “1984” and Franz Kafka’s “Metamorphosis.”

A Little Something Extra

Apart from books, Libros787 also has a “Gifts” section that features a variety of products featuring the company logo or commissioned art that illustrates Puerto Rican culture. Some of these include coffee mugs with a “garita” (sentry box) from El Morro, bookmarks featuring the Puerto Rican flag, stickers of Puerto Rican icons, board games and more.

Moreover, the company is in talks with Coffee

Roasters to sell locally-sourced coffee on its website. This way, even Puerto Ricans living stateside can get a taste of home.

Expansion Plans

Goyco revealed to THE WEEKLY JOURNAL that Libros787 is in negotiations to launch its own publisher, called 787 Editores. He compared this business strategy to Netflix, the multinational streaming platform that started out by renting DVDs before moving on to streaming movies and TV shows, and now has a growing list of original content as well.

“We see many publishing opportunities there because we noticed that there is a very large gap in terms of alternatives and diverse content being offered now in Puerto Rico, and we can make our contribution with that. Plus, we already have many independent writers who work with us, so the move is not as drastic,” Goyco explained, adding that this effort could be materialized by the end of this year.

He noted that Libros787 would not have distribution exclusivity with books published by 787 Editores. Rather, the company seeks to see its works in the shelves of local, national and international bookstores. “We are really excited because nobody has really done this in at least the past five to 10 years. So, we will see if we can export our literature to other countries in Latin America, the United States and Europe,” Goyco affirmed.

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The Piñones area of Loíza is famous for its stretch of beaches and food shacks, or kiosks, featuring authentic Puerto Rican street food. >Carlos Rivera Giusti, Archive

Local Entrepreneurs Moving Loíza Forward

Training, job creation and self-empowerment are critical

L Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

oíza is famous for its rich cultural traditions, such as bomba and plena music and dancing, as well as Puerto Rican street food found in the Piñones area, including tostones, “bacalaítos” (crunchy cod fritters) and empanadillas (filled

turnovers).

While it has become a popular tourist area in recent years, many Loíza residents still live in poverty. According to 2019 U.S. Census figures, an estimated 48 percent of the municipality’s estimated 24,553 residents live in poverty. The median household income in the town is about $17,852 a year. About 40 percent of Loíza residents are Afro-Puerto Rican, the highest concentration on the island.

Meanwhile, about 75 percent of its population have at least high school diplomas, while less than 15 percent have college degrees. Roughly 49 percent of its adult population are considered to be in the labor force.

Today, a group of local entrepreneurs is doing their part to help the municipality’s residents by creating businesses and jobs. In fact, 11 of them have created or maintained 30 jobs during the pandemic and generated more than $100,000 in economic impact for the community after

participating in the Loíza Glocal Bootcamp, developed by two nonprofits, Vitrina Solidaria and the Fundación Comunitaria de Puerto Rico.

The executive director of Vitrina Solidaria, Raquel Skerrett Escalera, reported that the estimated economic contribution of the nine companies established by the group of participants is preliminary and has greater growth potential in the coming months because several are in the preproduction phase.

In total, five new direct, 14 indirect jobs were created and another 11 direct jobs were maintained.

“We are really happy because these entrepreneurs have worked hard over the past few months. They took on a big challenge, gained confidence and were able to believe in their projects and business ideas. We will continue to provide them with advice and support,” she said during a webinar.

Success Stories

Among the businesses highlighted include Ciri Esco Nutritional Hydroponic, which produces hydroponic products and achieved sales agreements representing more than $83,000 with Select Supermarkets and Mr. Special in Loíza, and FamCoop of Rio Grande. Ciri Esco has also begun to supply seven Kairos food trucks with a variety of vegetables, lettuce and herbs. Entrepreneurs Sixdaira and Carlos Cirino have now doubled their plant production to 8,000 pounds of produce per week and employ 15 people.

“Thanks to the trust I acquired at Loíza Global, I dared to present my company with my products to potential buyers and I have had very positive

results. It was an excellent experience,” Sixdaira Cirino.

Likewise, the company Enamora tu Cabello (Fall in Love With Your Hair) created four new jobs after obtaining distribution agreements amounting to $6,000 per year with three beauty salons in Loíza: Magda’s Cinnamon Salon, One Off Beauty Salon and Annie’s Braids & Beauty Style. In addition, Deniece Martínez is in the process of exporting various products to Arkansas, as she has obtained a new customer in that state.

“I got the tools I needed. I didn’t consider myself an entrepreneur and now I have my own product line. The themes were straight to the point and well dynamic,” Martínez said of the experience.

Another example is the Ruta del Sabor (Taste Route) that created two jobs. Owner Ileana Calcaño reached a five-week agreement with the nonprofit PathStone to provide meals to 19 people in Loíza, amounting to $2,280. This agreement was very important to the entrepreneur because her original food truck business had not been operational due to various repairs.

Meanwhile, entrepreneur Lorenis Cepeda, of Enchanted Girls Spa Party, managed to reinvent her business. Now, she also offers wellness workshops to young women. She took workshops as a community health promoter, so she will receive an economic incentive and be a resource for the nonprofit Taller Salud. She participated in the activity Círculo de Mujeres de Amor Propio (Women’s Circle of Self Love), where she presented samples of her coconut oil products.

The Loíza Glocal Bootcamp is a free 40hour workshop for entrepreneurs in the Loíza, Canóvanas and Río Grande areas.

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Miglia Arroyo Rivera, co-owner and general manager of Caldera Café > Brandon Cruz González

The pandemic forced them to close the establishment in Old San Juan. >Brandon Cruz González

One Year Into the Pandemic: Cup Half Full at Caldera Café

Santurce venue still afloat despite losses due to the virus

C Génesis Ibarra

gibarravz@wjournalpr.com

@gibarravz

OVID-19 came knocking on all our doors in March 2020, after months of global reports of a mysterious new virus.

Worldwide, business halted, schools closed, and masks and social distancing became the

new reality.

At Caldera Café, located in Santurce, the knock came when they were forced to close their second venue, a mere few years after opening in Old San Juan.

Miglia Arroyo Rivera, co-owner and general manager at Caldera Café, shared the uncertainty of the first months after the pandemic hit, as well as the effort involved in keeping afloat a business that changed her life.

It was six years ago when Arroyo left her job as a dental assistant to partner with a close friend — who later moved on to other projects — and coffee-taster Alfredo Rodríguez, owner of Hacienda Adelphia in Maricao, home of Offeecay.

“After a while we decided to open the second venue in Old San Juan. That one closed, unfortunately. Last year with the pandemic, we had to close that business,” she said.

Between February and March, when the world had no idea of how dangerous COVID-19 would become, “Caldera Café San Juan Station” began to receive only one customer per day. His name was Enrique, she recalled, and his order was always the same.

“We were selling a single scramble egg with ham and cheese, and whole wheat toast a day.

I remember because it was the same man every day. Everything [in Old San Juan] was closed.

I stayed there for a little while, with one more employee, but the operational expenses were higher than the earnings,” Arroyo explained.

As a result, three full-time employees were left on the street. There are no plans to reopen, since the hotel where they rented the space also went bankrupt.

“I cried. I cried a lot. So much work to keep that space open. In 2017 — when it opened — Hurricane Maria came, then [the movement] Ricky Renuncia (Ricky Resign), then the earthquakes, then the pandemic. We struggled a lot to keep that place open,” recalled Arroyo.

The venue in Santurce also came close to shuttering. Fear, along with a strict government lockdown, during the first months of the pandemic prevented people from leaving the safety of their homes to buy coffee. With no income, everyone at Caldera Café was forced to apply for unemployment.

Crisis Leads to Reinvention

Uncertainty marked the first year of the

pandemic for Arroyo and four other employees at the cafe. Today, it would not survive another closure.

But the local business owner is no stranger to trauma and the experience of Hurricane Maria in September 2017 allowed Arroyo to adjust to the novel situation. “Maria taught us a lot. We stopped serving some products, we minimized the menu so as not to have losses. If we had losses, they were minimal,” she added.

The dining room was closed for much of the COVID emergency and now hardly any customers are allowed in. The barista area was moved to a window at the entrance to allow service from the sidewalk. This is how the “orange tent” arrived, with chairs and tables outside.

“By having moved [the entrance of the business] and being closer to the people who are walking, we have not had to close. We are making our sales,” Arroyo said. “We have our very good days, as we have bad days.”

To stay afloat, Caldera Café added homemade desserts to its menu, has begun to allow a few customers to be inside — with time limits and strict security measures — and organizes a brunch menu every other Sunday.

“What have you learned?” your correspondent asked. “To make croissants,” Arroyo laughed. “We have learned to read more into people, whether they care about their health or not; that the government cannot be counted on 100 percent.

We, as a society and as a people, have to unite a little more,” she said.

11

LOTERÍAS GANAMOS TODOS, GANA

Salud

Educación

Infraestructura

Deporte

Cuando juegas a la Lotería ganas tú y gana Puerto Rico, porque además de encontrar tu suerte, cada recaudo se invierte en LA SALUD, EL DEPORTE, LA EDUCACIÓN Y LA INFRAESTRUCTURA DEL PAÍS.

Para más información puedes acceder a loteriasdepuertorico.pr.gov @loteriadepuertorico

@loteriaelectronicapr

Advertencia: Los juegos de azar pueden crear adicción. Si jugar le causa problemas económicos, familiares y ocupacionales, llame al proveedor de salud mental ASSMCA al 1-800-981-0023. GOBIERNO DE PUERTO RICO.

< The Weekly Journal > Wednesday, March 31, 2021

CON LAS

12

/ Wednesday, March 31, 2021

Chief Operating Officer, Destinations International

The Elephant in the Room: Cultivating A Unified Travel Industry

W

e all know that 2020 was a year of extraordinary challenges. But through a series of additional challenges – budget cuts, global elections, social unrest and injustices, natural disasters – compounded by a global pandemic, our world has completely changed. The status quo no longer exists and we all need to look to solutions for a post-pandemic recovery.

And of course, in Spring 2020 with the deaths of George Floyd, Brianna Taylor and Amuad Arbrey, the conversations around equity, diversity and inclusion accelerated in ways our society has never openly and honestly addressed. We have all witnessed how everyone is not treated equally, that privilege to access and resources exists, and that voices are not always respected or even heard.

At that same moment, the tourism industry, along with the rest of the world, had to pause and ask ourselves why have we not been able to address these hard conversations, and what do we need to do to advance our thinking of what this means to implement action to move our industry forward?

As the global trade association for destination marketing organizations (DMOs)and tourism boards in 15 countries globally, Destinations International recognizes the importance of cultivating a unified tourism industry. We know it will be critical for destination organization leaders to embrace the role that equity, diversity and inclusion will play to move our industry forward, especially at a time when our industry must face one of the most challenging moments in modern history – recovering from the devastating impact of COVID-19. Through the recent release of a Strategic Roadmap for Equity, Diversity and Inclusion, we have laid out initiatives and opportunities that will be imperative to enable structural social change for all of our members’ communities.

One the most common reasons these efforts fail, is due to the lack of commitment and support of leadership. To date, over 250 destination organization executive leaders and CEOs have signed our Equity, Diversity and Inclusion CEO Pledge. Industry professionals must acknowledge their role as fundamental changemakers and commit to doing the work first before asking the same of others. Brad Dean, CEO of Discover Puerto Rico, the island’s official DMO, was among one of the first executive leaders to sign this pledge and

has committed to making equity, diversity and inclusion a priority for Puerto Rico.

Recently, I had the pleasure to join the team by Zoom to discuss the critical role equity, diversity and inclusion plays for our industry. The most refreshing take away was looking across the screen to see women in leadership roles, and faces of varied age, experience and ethnic and cultural diversity.

The Discover Puerto Rico team is deeply connected to their community. The organization understands the power of diversity and different perspectives within the community and workforce.

They understand that inclusivity and diversity is critical to foster innovation and are committed to being the brand stewards of Puerto Rico to ultimately cultivate current and future residents, businesses and visitors.

There have been countless published reports that further supports that diverse and inclusive teams tend to be more creative and innovative than teams who have similar demographic

structures by bringing different experiences, perspectives and approaches to solving day-today business challenges. The “2020 Diversity Wins” report by McKinsey & Company found that companies in the top quartile for both gender and ethnic diversity are 12 percent more likely to outperform all other companies in the data set. Diverse teams are also better equipped to target and serve diverse customer markets, such as women, ethnic minorities and LGBTQ+ communities that currently represent an increasing share of consumer purchase power that is often overlooked or not leveraged.

At the end of the day, equity, diversity and inclusion is a long-term commitment. Destinations must push towards inclusive and equitable marketing practices that are essential to tourism marketing and destination brand stewardship.

Destination organizations must evolve destination promotion practices to be welcoming and hospitable to all audiences to remain competitive and relevant. They must push for inclusive and equitable marketing practices that prioritize community partnerships, contributions and authentic experiences.

Destinations International encourages destination organizations to share experiences of their destination’s history, character and culture and grow an inclusive and equitable workforce that reflects the level of diversity we wish to welcome to our destinations. In today’s global economy, every community must compete with every other for its share of the world’s visibility and tourists. Those destinations who fail to compete, those who fail to implement equity, diversity and inclusion best practices, will be left behind.

>Courtesy of the Puerto Rico Tourism Company

Melissa Cherry

/ Wednesday, March 31, 2021

13

Tabacalera Falto de Mayagüez

Receives Global Accolades

One of the best Ultra Boutique Premium cigars in the world

W Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

ith cigar smoking enjoying a new boom, the Mayagüez cigar company, Tabacalera Falto Inc., has launched two new blends to celebrate its 26th anniversary as one of the most prestigious brands in the global cigar market, according to the niche publications Cigar Spirits Magazine and The Cigar Vixen.

Entrepreneur Luis J. Falto, master blender, CEO and president of La Tabacalera Falto (owner of the brands La Garita Cigar Co. and Falto Cigars), also unveiled his edition of the cigar for the occasion, the Falto La Pureza. During 2021, he will introduce the Falto Special Edition ELH Hato Viejo 2018, as the cigar that commemorates the company’s 26 years in the tobacco and cigar industry.

“Last year, we had planned to celebrate our silver anniversary in style, but instead we had to reinvent ourselves like the rest of the world. It turned out that our business model, by appointment and with individual attention, was the perfect formula to continue operating and to our surprise, sales increased. We create remote ties with our clients and followers of the brand, and we even carry out remote tastings in which our clients recorded themselves narrating the new rituals they created to enjoy their cigars during the pandemic,” Falto said.

Outside of Puerto Rico, wherever Ultra Boutique Premium cigars are tasted, Luis Falto’s name is known. His passion for the art of manufacturing and tasting a good cigar leads him on a constant quest to create perfect and personalized blends.

“That road led me to Santiago de los Caballeros, a region where some of the most prestigious cigar brands in the world are produced. I entered into an agreement with the La Aurora group, the oldest factory in the Dominican Republic, and started with a small, very personal production, maintaining strict quality control. This intimate production was welcomed in the U.S. market, especially by the Davidoff of Geneva stores. From that point on, growth has been dizzying and the name of Puerto Rico is already associated with a world-class tobacco company, “Falto explained.

The master blender also had the vision of

>Photos courtesy of Tabacalera Falto

anticipating the trend of specialized salons so that his clients can taste their favorite cigars in his Tobacco Studio, accompanied by a good coffee or their liquor of choice.

“We expanded the studio, equipped with the most advanced technology of extractors and equipment so that cigar lovers can have an individualized experience, since we attend to them by appointment and with all the necessary protocols,” he said.

“Premium Cigars are a luxury item. My clientele is mostly a person who enjoys relaxing while

enjoying a magnificent cigar. A person who enjoys the elegant and company a cigar leads to. It is very different from cigarettes in many ways,” he added.

In his Tobacco Studio, unique in Puerto Rico in size and concept, located in Mayagüez, Falto distributes, stores and exports his product.

Tabacalera Falto currently produces 23 types of cigars, each with a very different flavor stamp.

Falto, Falto Reserva Especial Tres Luises, Falto Perla Reserva Especial Selected, Falto Invicto, are some of the cigars in the Tabacalera Falto portfolio.

Falto told THE WEEKLY JOURNAL that he uses premium tobacco from all over the world, mainly from the Dominican Republic, Nicaragua, Ecuador, Brazil, Nicaragua and Cameroon.

Your correspondent asked what distinguishes his products from the rest? “My concept is very different from most of many companies. First, I only make a very small production. Only 100 boxes of each of my 23 blends. That is why most people consider Falto Cigars an Ultra Boutique Premium Cigars. Second, when most companies do one blend and four or five sizes, I make one blend in only one size. This is because I consider that size to be the one that best develop and complement the blend that makes a cigar. I have 23 different blends and I only repeat sizes in three occasions. Still, they are all different blends,” Falto explained.

14

/ Wednesday, March 31, 2021

STK Delights Guests With Fruits of the Sea

Enjoy culinary feats from chef Eric González’s creative genius

B Yaira Solís Escudero

ysolis@elvocero.com

@yairasolis

eing so close to the commemoration of Holy Week, THE WEEKLY JOURNAL visited the STK San Juan restaurant in the Condado Vanderbilt Hotel to learn about its seafood delights, which will undoubtedly be highly acclaimed during the remainder of the Lenten period, the period of the year when the Christian world traditionally gives up red meat on Fridays.

STK is a steakhouse that opened its doors at the end of 2019 and its urban lounge atmosphere allows diners to enjoy a tasty and fun evening.

Here, the cuts of meat are of the highest quality. On this occasion, we arrived at the renowned modern steakhouse to learn about the gastronomic proposal specializing in cuisine from

Branzino served over sweet potato puree >Yaira Solís

Tuna tartare on a bed of Hass avocado >Yaira Solís

the sea, prepared by executive chef Eric González.

Upon our arrival, we were welcomed by Joel Peña, the general manager, who explained to us the health security protocols that the restaurant carries out to prevent the spread of COVID-19.

Next, Chef González introduced us and served several exquisite dishes.

The first dish to taste was a crisp and refreshing Brussels sprouts salad, the result of the combination of Granny Smith apples, pickled red onion, goat cheese and almonds. This was followed by a delicious Tuna tartare served on a bed of Hass avocados, dressed with honey emulsion and topped with taro chips. The quality of the tuna is apparent to the naked eye, even more so to the mouth. Its texture was perfect and its flavor was defined without being too “fishy.”

From the restaurant’s “raw bar,” we received a fish ceviche with papaya salad, quinoa, yucca fry and “criolla” sauce that was wonderful because it contained all the elements between soft, spicy, creamy and crunchy that one wants to find in a plate. And it was so delicate that it invited you to

Fish ceviche >Yaira Solís

15

/ Wednesday, March 31, 2021

Brussels sprouts and apples >Angel Luis Meléndez

Beet salad >Yaira Solís

inside, and the chef undoubtedly knows what he is doing very well, because it was at perfectly done. Nothing gummy, as often happens to those who are not skilled in the task of cooking octopus.

Everything has its magic, and this dish has it. As does the surprising golden and purple beet salad, which the chef accompanies with chayote slaw and garnished with a fresh tomato emulsion. At STK, they try to buy the bulk of their harvest products locally because they are committed to offering freshness and quality to the diner.

Scallops served over cauliflower puree Seared scallops served on cauliflower and >Angel Luis Meléndez parsnip was the dish that chef they make especially for pairing.

González personally brought us During our visit, we enjoyed and told us that it is one of the the Spiced Watermelon, which most acclaimed in the restaurant. combines Jimador tequila, St. The scallop was cooked Germain liquor, melon juice, perfectly to the perfect point of STK decorated with a Tajin ring and creaminess. What is different Condado Vanderbilt about this dish is that it integrates a lime wedge. Another very Hotel a huge crunch of prosciutto ham refreshing cocktail you must try 1055 Ashford Ave., in a fan shape. This way, the is the Cucumber Stiletto, which East Tower Entrance dish offers the palate different combines Ketel One Citroen, Schedule textures and flavors between St. Germain liqueur, and mixed Monday to Friday: sweet and salty notes to enjoy. cucumber and mint juice.

5 p.m. to 10 p.m.

We completed the culinary STK is open seven days a week Saturday and experience with a perfectly for dinner from 5 p.m. to 10 Sunday: cooked branzino served over p.m. On Saturdays and Sundays, 11:30 a.m. to 2 p.m., sweet potato puree and dressed it opens for brunch from 11:30 5 p.m. to 10 p.m. with sweet corn and lemongrass a.m. until 2 p.m. and they return sauce, and topped with a taro to the regular dinner time. It is nest. Delicious! suggested to reserve seats in You can accompany these dishes with your advance through 787-722-2828 or Opentable. favorite wine or with the variety of cocktails that com.

In fact,

The restaurant offers amazing cocktails. >Angel Luis Meléndez

leave absolutely nothing on your plate.

The octopus was another of the dishes introduced by chef González, who has more than two decades of culinary experience. He told us that he lets the octopus marinate in soy milk and secret spices for three hours.

This helps its texture to be very smooth on the

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