The Weekly Journal - Wednesday, May 25, 2022

Wednesday, May 25-31, 2022 - // no. 161

Puerto Rico and the Caribbean

www.theweeklyjournal.com

Once-in-ageneration chance for development P6 Crypto Crash: nothing to be Afraid of P7 A potentially serious Hurricane season P8

Optimism

about tax agreement between federal Treasury and Puerto Rico But future investments must be monitored

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Ileanexis Vera Rosado and Juan A. Hernández, The Weekly Journal

Seating back at the table P15

he preliminary agreement reached between the U.S. Department of the Treasury and the Puerto Rico Treasury Department has been optimistically received by manufacturing industries and other sectors on the island. The agreement proposes a fixed income tax rate of 10.5% to Foreign Controlled Companies (FCCs), creditable by the U.S. Internal Revenue Service (IRS), in lieu of the 4% excise tax imposed in PR Act 154 of 2010.

Certified Public Accountant, Kenneth Rivera, considers

the agreement “positive”, even though it still needs to be approved by the Puerto Rico’s Legislature.

In his opinion, the proposal benefits many of the companies operating under Act 154 because it will not be “onerous” to them.

However, Rivera warns that the government must monitor future investments to avoid running into the same situation caused by the repealing of section 936 of the U.S. Internal Revenue Code in the 1990s, when many companies established on the island decided to leave.

“The government has to ensure that foreign GO TO PAGE 4

The Weekly Journal > Wednesday, May 25, 2022 >

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La verdad se olvidan de nosotros.

La verdad te necesita para reivindicar.

La verdad no tiene precio.

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/ Wednesday, May 25, 2022

A WEEK IN REVIEW CHEETOS X BAD BUNNY The Latinx community has an innate ability to transform the world around them, making it a more vibrant, fun, and mischievous place - a magic touch, some would say. To celebrate this magical touch, Cheetos and Bad Bunny launched the brand’s new television commercial, “Magic Touch”, as part of the Leave Your Cheetos Footprint campaign. This new TV commercial marks the third consecutive year that Cheetos and Bad Bunny have partnered in the Make Your Mark campaign. As a brand known for leaving its mark on culture, Cheetos’ mission is to encourage others to do the same, focusing on the Latinx community that embraced the notion of “Leave Your Mark” from the beginning.

To help further highlight this transformative touch, the announcement introduces the song “Party”, from Bad Bunny’s new album Un Verano Sin Ti. The commercial was shot in the streets of Los Angeles, in the neighborhood of Boyle Heights.

SELVA - A NEW LINE OF MEDICINAL MARIJUANA PRODUCTS

A COOKING PROGRAM TO TEACH HEALTHY EATING

Nextgen, a pioneering company in the development of medicinal cannabis products in Puerto Rico, and Draco Rosa Holistic collaborate again with the launch of Selva, a new line of products aimed at people looking to stimulate their spiritual health and lead a relaxed, harmonious lifestyle. This new line of products harnesses the therapeutic properties of the hybrid Sativa flower Jack La Mota to provide a sense of relaxation to its users. Developed under a formulation of 25.93% THC, the flower has 5% terpenes and particular aromas such as cinnamon and orange, among others. Draco Holistic products received great reception in the market and has obtained high awards as the Award for Best Mad Love Product Line by Nextgen, at the 420 Rally Awards in 2019 and the Monte Sagrado Dye received the Flor Award for Preferred Liquid Preparation in 2021.

Med Centro premiered the Educational and Healthy Cooking Program, a novel concept that combines the creation and preparation of recipes suitable for the consumption of patients living with chronic medical conditions. “We launched a major project to improve the health and lifestyle of patients with chronic diseases. The Educational and Healthy Cooking Program, which has a modern and extensive educational kitchen within the clinical facilities, aims to help patients incorporate balanced recipes and culinary techniques into their daily lives to improve the way they prepare their food,” said the executive director of Med Centro, Allan Cintrón Salichs. In the first episode of Cocinando Saludable, Chef Francisco “Panchi” Zayas Colón accompanied by one of the nutritionists of Med Centro demonstrated his gastronomic knowledge. They prepared a cauliflower mamposteao with gandules and chicken breast in chimichurri sauce. While cooking live, a class was given on the nutritional value of the ingredients being used.

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CONTINUED FROM PAGE 1 companies will continue to arrive and that those already here will stay. We must reinforce the investment campaign and work on economic, energy and permit reforms so foreign companies find it attractive to invest in Puerto Rico,” Rivera said. “What this preliminary agreement means is that the IRS recognizes this route as acceptable,” the accountant argued.

Economist Leslie Adames agrees.

Their joy comes either from the fact that they will be paying less taxes, processes have become simpler, or a combination of both. That is definitely good news for business.

Adrián Alós Economist

“Some months ago, nobody knew what was going to happen once the 4% was repealed.

This news [the preliminary agreement] says something has been agreed on, and somewhat clears up the uncertainty surrounding the issue,” Adames said.

She characterized the sector affected by this negotiation as “very important for Puerto Rico’s economy, and losing it cannot be an option.”

How Much Will The Agreement Cost?

In fact, The government must monitor future investments to avoid running into the same situation caused by the repealing of section 936 of the U.S. Internal Revenue Code in the 1990s.

Still, there are several questions that need to be answered, specifically those regarding government revenues.

“You can always expect companies to be happy with changes like this. Their joy comes either from the fact that they will be paying less taxes, processes have become simpler, or a combination of both. That is definitely good news for business,” said Abexus Analytics economist Adrián Alós. “The question is: how are government revenues going

to be affected?”

According to the Secretary of the Treasury, Francisco Parés, Puerto Rico’s revenues will stay more or less the same after the agreement becomes final. Since the 4% was imposed in 2010, revenues have averaged $1,600 million. Nevertheless, Parés has not specified how much more or less is expected to collect.

Upon the agreement becoming final, although the 10.5% tax rate is fixed, government revenues will vary with the companies’ income.

So, theoretically, a drop in a company’s income could mean less revenues for the

government.

Alós pointed out that this is an important element to consider because several, if not all, FCCs will be renegotiating their respective tax decrees after the agreement becomes final.

It can be expected the FCCs will vie for better tax conditions that could eventually impact government revenues.

“There is a chance revenues will decrease. How

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much would that be, is still unknown. But the fact is that the state has no room for error here. If revenues drop, cuts must be made. Where? That is still to be determined,” Alós said.

Legislative Action

Before the agreement becomes final, the Puerto Rico’s Legislative Assembly must approve a bill containing it, and then it has to be signed into law

by Gov. Pedro Pierluisi.

House Speaker, Rafael “Tatito” Hernández, says the bill “has to be approved.”

“We cannot delay the process. It is crucial that this transition take place at the federal level so that the process is completed by January 2023. We must give certainty to this industrial sector that represents almost 50% of the country’s economic activity and generates thousands of well-paid jobs,” Hernández has said.

As it stands now, a bill to turn the tax agreement into law would have to wait until the next legislative session because the deadline to introduce new legislation has already expired.

But, the governor could summon an extraordinary legislative session to attend the matter.

Regarding the 10.5% tax on the FCCs income as stated by the preliminary agreement, Hernández said it is part of a negotiated proposal.

“This percentage is based on the type of company, the jobs it generates, the economic activity and the volume of sales. They [companies]

Yandia Pérez, PRMA’s executive vice president, can negotiate a discount according to these further explained that the scope of the agreement criteria, but the tax is not negotiable,” Hernández is a change in the formula to determine the clarified. companies tax responsibilities.

Puerto Rico Manufacturers Association’s “If we see the formula today, many of these (PRMA) president, Carlos Rodríguez, is confident companies are already paying above 4%. The FCCs will be able to renegotiate their decrees so that the tax change does not cost them more than intention –in principle– is that the final percentage be similar to what they are what they are paying today. paying today and that it be “That 10.5% is the base creditable in the United States. tax, but each company will The formula changes, but the have the opportunity to be taxation is the same and the able to negotiate its decree collections too,” she explained. based on its infrastructure Upon the agreement The concern of the industrial and the jobs it creates on the becoming final, sector is that the Legislature island, so the percentage of although the will not be able to agree and taxation can change from one 10.5% tax rate is approve the project before the company to another,” he said. fixed, government end of June.

“Manufacturers are willing to revenues will vary According to a study continue paying the equivalent with the companies’ prepared by the Puerto Rico of the 4% under the new law, income.

Pharmaceutical Industry but not more.”

Association (PIA), the FCCs “I understand it is the sector makes for 37% of government’s interest the total revenue collected to ensure revenues are by the government, with a maintained so that the Fiscal contribution of more than $3,000 million in taxes.

Plan remains unaltered because it already This sector also generated almost $32,000 million includes the $1.6 billion. We are confident that in economic activity and totaled around $3,112 all companies can maintain close to the 4% being taxed today,” Rodríguez said, while acknowledging million in direct and indirect payroll, among the more than 80,000 direct and indirect jobs it that the preliminary agreement represents “a great step.” generates.

This percentage is based on the type of company, the jobs it generates, the economic activity and the volume of sales.

They can negotiate a discount according to these criteria, but the tax is not negotiable.

Rafael “Tatito” Hernández Speaker of the House

In fact,

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A “once in a generation” chance for economic development Outcome will depend on a well-designed strategy

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Juan A. Hernández, The Weekly Journal

espite all the hardships that have plagued Puerto Rico for the last decade, the island now has the necessary conditions to “turn its economy around” and put it back in track to “increase the living standards of the people and pay off its restructured debt.”

“Notwithstanding the existence of certain substantial risks, current conditions are auspicious for undertaking a broad-based economic development effort in Puerto Rico. However, that will happen only if we design an economic strategy that allows Puerto Rico to take advantage of this opportunity,” said Sergio Marxuach, Policy Director for the Center for a New Economy (CNE).

In the CNE’s most recent policy brief, Marxuach summarizes the conditions that he considers would turn around the island’s economy.

Favorable Conditions

For the economist, the most salient of these conditions is the culmination of the debt restructuring process. “The certified Plan of Adjustment provides significant debt relief to the island by cutting the Commonwealth’s debt by approximately 50%,” Marxuach states in the brief.

Nevertheless, while he does admit it is difficult to determine “whether this amount of debt relief is sufficient,” he also points out that “the medium to long-term viability of the Plan depends on jumpstarting the economic growth in Puerto Rico.”

Second, Marxuach points to the Biden Administration willingness to disburse the money appropriated by Congress five years ago to finance hurricane reconstruction efforts, which will allow Puerto Rico to significantly upgrade a large part of its physical infrastructure in a relatively short period of time.

He also argues that “while the risk of the emergence of a new (Covid) variant is still, and will probably always be, present,” there is reason to believe that the worst of the pandemic may be ending soon.

Finally, Marxuach considers the island’s political shift “towards a more activist state affords Puerto Rico the necessary policy space to develop and implement creative solutions to its economic problems.”

But, while the economist is convinced the

The negative impact of tightening monetary policy could be partially offset by the ramping up of federal spending for reconstruction projects in Puerto Rico.

Sergio Marxuach Policy Director, CNE

conditions are favorable for the development and implementation of a carefully crafted economic strategy, steps toward that end fall short.

“It is important to note that while the Pierluisi’s administration and the Financial Oversight and Management Board (FOMB) have proposed new economic incentives and the implementation of structural reforms, respectively, both efforts fall well short of crafting an economic strategy for Puerto Rico,” he said. “These efforts are certainly significant and seek to address important issues, but are inadequate on the whole because [they] are looking at only some pieces of the puzzle, and no one is looking at the entire puzzle.”

Risks

About the risks that could negatively affect the success of Puerto Rico’s economic development

strategy, Marxuach mentions the rampant inflation in the U.S. and the significant risk of a recession within the next 18 months.

“The Federal Reserve really has no other option but to tighten monetary policy because the current rate of price inflation is politically untenable,” the CNE policy director said about the recent increase in interest rates and the expected second and third hikes before the year’s end.

“The Puerto Rican economy will certainly be negatively affected by higher interest rates.

However, the negative impact of tightening monetary policy could be partially offset by the ramping up of federal spending for reconstruction projects in Puerto Rico,” he admitted, but emphasized he is not saying that “federal reconstruction spending will completely offset the effects of a broad economic slowdown or that such spending is a sustainable long-term economic growth strategy.”

“Our point is that to the extent federal reconstruction spending is executed in a timely fashion and in accordance with Congressional mandates that require providing a preferential option to local contractors in such spending, then Puerto Rico would have a cushion to partially offset any economic contraction in the short-term,” argued.

“The CNE will be convening a broad group of stakeholders from academia, government, the private sector, and NGOs over the next few weeks to jump-start a process that, hopefully, will generate the long-term economic growth and development we so desperately need.”

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The Crypto Crash Might Just Be a Temporary Blip

Revolutionary technologies follow a pattern

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Zoe Landi Fontana, The Weekly Journal

@Landi_Zoe

he last few weeks have wreaked havoc on crypto investors and enthusiasts, alike. Some are beginning to doubt the viability of crypto-based finance, and some are saying things along the lines of “I told you so”.

Nevertheless, eventually, the recent so-called Crypto Crash may not be as serious as it seems today. THE WEEKLY JOURNAL spoke with James Haft, Chairman of DLTx, a Norway-based technology company with a hub in Puerto Rico, for his expert take on the crisis.

Don’t Be Afraid: Part 1

“In my mind, you will never remember the last three weeks. Ten to twenty years from now, you won’t even think that they’re remarkable, the changes that happened over the last three weeks,” Haft reassured while citing Amazon as the perfect example.

Amazon came onto the scene in the late 1990s and ‘was the hottest thing since sliced bread’. When people began to speculate and criticize the business design, however, the stock dropped critically low.

Do we remember that period? Maybe, but on an absolute basis, those dips aren’t even visible. Since 1999, Amazon’s stock has gone up exponentially.

The Power Of A Down Cycle

The future of the crypto industry and markets isn’t in danger. “Many of the great tech businesses - and historically great quantum shift technologies that came into the world and changed society and

the economy - were born and developed during down cycles,” explained Haft.

During down cycles, people focus much harder and are forced to make difficult decisions. It’s an opportunity to spend less time speculating and more time working and evaluating shifting priorities while maintaining faith in long-term growth. The work done during a down cycle determines how successful the proceeding upcycle will be.

Besides leaning down and being less wasteful, downcycles lead to consolidating more attractive assets. Amateur investors tend to sell off their most liquid and in-profit assets. The better assets get sold at a cheaper price to people that are longterm investors. Thus, this period, a nightmare to some, can be a dream for long-term investors who plan for the future by acquiring quality assets at reasonable prices.

How To Avoid Being Devastated by Future Crashes

“Crypto is no different than real estate, the stock market, or foreign currency. There’s nothing special about crypto,” Haft stated, “Everyone says the same thing - you have to have a well-diversified portfolio, risk-adjusted. That will out-perform a single-adjusted portfolio almost every time. The effects of a single market - like crypto - won’t end up hurting you.”

So, instead of holding only one type of coin, invest in an index of crypto. Even better, have an index of cryptocurrencies as part of a portfolio of other investments - real estate, stocks, etc.

According to Haft, the idea of singling out crypto alone as being ‘so volatile’ is baseless. “Any singleexposure portfolio that takes a hit is brutal,” he said.

Haft has the following words of advice for anyone concerned with the current crisis: “I would give the same advice to someone in any market

- crypto is just like everything else. Instead of focusing on crypto, you need to understand that growth stage, emerging market, blue ocean growth opportunity, and the boom and bust cycles led by fear and greed. It doesn’t matter what the subject is, it’s all driven by people.”

Haft’s company DLTx is in the crypto business, but their operations aren’t being hit heavily by the Crypto Crash. “We’re in the business of providing infrastructure that is used by the companies in the new decentralized economy that uses peerto-peer encrypted transactions, which includes cryptocurrencies,” said Haft.

DLTx mines and produces Filecoin and Bitcoin as a public company. They produce those tokens in a way where the financing for those coins comes from the currency itself, making the price of the coin irrelevant to them. It’s like a foreign currency transaction in which they borrow, produce, and pay in the same currency.

Haft recounted how he learned the importance of this method while working abroad in Brazil. “It’s important to have your revenues and costs be in the same currency. [It] makes it, so you are not affected.

In the same way with the crypto crash happening right now, if you are buying or mining the tokens that you need to use, then when the price of [the coin] to dollars goes down, you don’t lose,” he described.

Don’t Be Afraid: Part 2

Puerto Rico isn’t heavily invested in crypto yet, so the current waves most likely won’t be significant on a macro basis to the island. “The only way that this would affect is if this lasted in the long term and slowed down global capital formation around crypto. It could slow down the growth of new crypto businesses in Puerto Rico, thus slowing down job opportunities formed by new capital investment,” Haft pointed out.

James Haft is the co-founder of CryptoCurious, a program founded to educate Puerto Ricans about blockchain and crypto. Classes are taught in Spanish, in cooperation with the Puerto Rico Blockchain Trade Association. He is also the founder of the global community event CryptoMondays, which is active in over 60 cities in 25 countries with 40K followers and has a robust chapter on the island.

Crypto is no different than real estate, the stock market, or foreign currency. There’s nothing special about crypto,” Haft stated, “Everyone says the same thing you have to have a well-diversified portfolio, risk-adjusted. That will out-perform a single-adjusted portfolio almost every time. The effects of a single market - like crypto - won’t end up hurting you.

James Haft Chairman, DLTx

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In fact, In the past five years there have been more Category 4 and 5 hurricane landfalls in the United States than in the previous 50 years combined.

Stormy Repeat: NOAA Predicts Busy Hurricane Season

Up to 21 named storms could form in the Atlantic

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Seth Borenstein, AP Science

ederal meteorologists are forecasting a record-shattering seventh straight unusually busy Atlantic hurricane season.

The National Oceanic and Atmospheric Administration predicted Tuesday that the summer in the Atlantic will produce 14 to 21 named storms, six to 10 becoming hurricanes and three to six turbocharging into major hurricanes with winds greater than 110 mph. Even with normals shifting upwards to reflect more active storm seasons in recent decades, these predictions are above the 30-year average of 14 named storms, seven hurricanes and three major hurricanes.

The National Hurricane Center ran out of names for Atlantic storms in the last two years, with a record-setting 30 named storms in 2020 and 21 last year. In the past five years, there have been more Category 4 and 5 hurricane landfalls in the United States than in the previous 50 years combined.

This hurricane season “is going to be similar to last year and given that you need only one bad storm to dramatically affect your life, if you fail to plan around this outlook, you’re planning to fail,” NOAA Administrator Rick Spinrad told The Associated Press Tuesday. “You can take this outlook to the bank literally when it looks to protecting your property.”

Every weather factor pointed to a busier season, said Matthew Rosecrans, lead hurricane season outlook forecaster for NOAA’s Climate Prediction Center. He pointed to a multi-decade long trend

to more storms in the Atlantic, an active monsoon season in West Africa, a La Nina — the natural and occasional cooling of parts of the equatorial Pacific that changes weather worldwide — and warmer than normal ocean temperatures, which scientists say are stoked by climate change.

Several outside hurricane experts agree with NOAA that the Atlantic conditions are ripe for yet another active hurricane season. They say La Nina reduces wind shear that could decapitate storms.

The warmer water — about half a degree warmer (0.3 degrees Celsius) than last year in stormforming areas, according to Rosecrans — serves as hurricane fuel. A reduction in pollution particles in the air has taken away artificial cooling in the Atlantic, and a new study links that to increasing storms.

We’ve seen such a dramatic change in the type of weather events that could be seen as a result of climate change.

Deanne Criswell Director, FEMA

Last week, President Joe Biden also warned the nation about “another tough hurricane season” coming.

“We’re seeing these storms happen more frequently. They’re lasting longer,” FEMA Director Deanne Criswell said in a New York City press conference. NOAA says 13 people in the city died during Hurricane Ida with 11 of them dying in flooded basements. It is also the 10th anniversary

of Superstorm Sandy, a downgraded hurricane that became one of the most expensive weather disasters in American history, with massive flooding in New York.

“We’ve seen such a dramatic change in the type of weather events that could be seen as a result of climate change,” Criswell said.

NOAA said there’s a 65% chance for an “abovenormal” hurricane season, a 25% chance for a normal season and only a one in 10 chance for an unusually quiet season.

One key indicator, that takes into account the number of storms, how strong they are and how long they last, is called Accumulated Cyclone Energy index or ACE and Rosecrans said this year could be as much as double what’s been normal since 1950.

The calculation is used when determining what is an average season and what’s above average.

The average ACE since 1950 is just shy of 100, while the last six years have ranged from 132 to 225 in 2017.

That stretch of six straight above-average years is a record, smashing the old mark of three-in-a-row, said Colorado State University hurricane researcher and seasonal forecaster Phil Klotzbach. He said it is highly likely that the record will stretch to seven this year.

“It’s really a strange thing that we’ve had six consecutive seasons be so active,” said University of Miami hurricane researcher Brian McNoldy.

NOAA’s predictions mesh with ten other meteorological teams — government, university and private — that have made their hurricane season predictions. The average of their predictions is 20 named storms, eight becoming hurricanes and four becoming major hurricanes.

Because La Nina has a different effect in the Pacific and conditions usually are opposite, earlier this month, NOAA predicted a quieter than normal Pacific storm season.

Atlantic hurricane season starts June 1.

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Climate change is a threat to historical buildings

Risks have always existed, but they are now magnified

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Juan A. Hernández, The Weekly Journal

eography, plot size, materials, loads, and the equipment to be used, are some of the aspects that concern people involved in the planning and construction of any structure. Still, even after the most careful planning, there are several structures currently at risk due to the effects of climate change.

“There are no new risks here. They have always been the same, the only difference is that they are magnified by the effects of climate change,” said architect Beatriz Del Cueto. “Also, lack of documentation is not an excuse for having ignored the effect climate has over structures,” she added, using as an example the information gathered by the US Army on the effects of the 1918 earthquake on the west coast of the island.

“It is not that no one could have necessarily predicted how changes in our climate will be harmful to structures built 50, 60 or 70 years ago. But that many of those

Many of those structures were built putting costs and convenience ahead of sound geographic and geological considerations.

Beatriz Del Cueto Architect

structures were built putting costs and convenience ahead of sound geographic and geological considerations,” Del Cueto said.

As a case in point, she mentioned the construction of the Luis Muñoz Marín International Airport on Puerto Rico’s coastline. Even without taking into consideration climate change back when the airport was built (more than 60 years ago), the construction of structures on coastal lands is risky because the ground is unstable.

Changes in climate patterns –rainy and drought seasons, acid rain, ozone depletion, sea level rise, among others– are in the process of rendering useless several constructions.

Preserving structures

For Del Cueto, the designing and building of structures, independently of their intended use, must take into consideration the climate aspects that come along with the geography.

“It is not out of whim that the buildings in Old San Juan are the way they are,” she said. “The ceilings and windows’ heights allow for cross ventilation… something the Spaniards were aware of,” Del Cueto said while contrasting with 20th century buildings which were built with “glass windows that won’t open, condemning us to forever depend on air One of the altars in the recently restored San José conditioning.”

Church in Old San Juan.

For the architect, and principal Del Cueto admits that historic preservation advisor for preserving structures considered La Esperanza and Buena Vista to be part of the country’s haciendas, building with the right heritage could be costlier materials ensures the stability when using original or similar and durability of the structure. materials. “Many opt to repair “Again, the Spaniards knew Designing walls in Old San Juan using their building materials and and building cement merely because it used them to their advantage. of structures, is readily available, and it is Structures were built using independently of cheaper. But cement will bring clay bricks, limestone, and their intended use, other problems later… for stonework. All these materials must take into instance, it doesn’t wick moisture absorbed moisture from the consideration the away, thus causing further ground, but it was wicked out climate aspects that deterioration to the wall as time by the quicklime used to paint come along with the goes by,” the architect said. the buildings. These materials geography.

Del Cueto recommended were consistent with both the the use of original materials environment and the climate. whenever possible.

It is no wonder, then, that so “Not using original materials many of these structures are still cannot be considered a restoration but an standing today,” Del Cueto said. ‘inadequate intervention’ to the heritage that would According to Del Cueto, problems start when eventually require an even more extensive and in the process of preserving and maintaining expensive restoration,” she said. “So, restoring with these structures different materials with different original or similar materials is more of an investment characteristics are used. “Any construction can than a cost, and will add value to the property being withstand the test of time if it is inhabited and is properly maintained,” she argued. restored.”

In fact,

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/ Wednesday, December 1, 2021 / Wednesday, May 25, 2022

opinion Zayas Edward Zayas,

Chief Strategy Officer, Discover Puerto Rico

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Live Boricua, highlighting the good and improving the disappointments

The New Year’s tourism miracle

here are thousands of reasons to hen the clock marks travel. Some may be looking on Dec. 31st,a for a daymidnight at the beach, others and people around good museum, some may want our time zone start to to see impressive structures, celebrate arrivaltoof and others may bethe looking a new moreofthan experience theyear, wonders 18endless. million people will nature. The possibilities are For decades, be watching their TV sets (or streaming Puerto Ricanon tourism has oversimplified itsto their phones or tablets) is celebrated in attractiveness, andhow our Christmas accommodations were sold Puerto Rico.

Tosand, be honest, by that time, viewers based on sun, and sea. willThat be well with images about wasin-tune not a bad idea, but it doesthe notIsland, consider different of reasons our culture, local attractions, the entireaspects range of our visitors buy a plane and sotoforth.

Dick Clark’s New Year’s Rockin’ Eve ticket our destination.

The beaches are not anin Puerto Rico is a huge marketing event. It is the real deal. A once-a-year event, to be exact. It is a onetime exposure, but what an exposure it is.

According to the National Basketball Association (NBA), the 2021 Playoffs averaged 4.25 million viewers across ABC, ESPN, and TNT networks.

The games peaked at 12.5 million viewers when the Milwaukee Bucks defeated the Phoenix Suns during the sixth game of the NBA finals.

exclusive attraction of Puerto Rico. The whole Caribbean is full of paradisaic coasts. We can argue that Flamenco Beach is the most beautiful piece of coastline on the planet, while a Cuban probably talks about Varadero (just to mention one) with a similar passion.

So, we asked travelers which factors were in play when selecting Puerto Rico as a destination. Some answers were obvious. For example, 37% pointed to the tropical climate as one of their main factors.

But other elements followed that validated what we already knew: Puerto Rico is not just a place of sand, sun, and beach. 32% of visitors highlighted the local culture as one of the primary motivators

The event is going to put Puerto Rico on top of the mind of millions of potential visitors.

The 2021 Major League Baseball World Series averaged 11.75 million viewers. As you can see, viewership is way beyond those stats for the New Year’s event. The over 18 million viewers it reaches is the equivalent of one in every 20 Americans.

The first week after it was announced that Puerto Rico will have its Spanish count down and become one of Dick Clark’s New Year’s Rockin’ Eve locations, we saw evidence of what a great deal this is for the island. The Convention Center District Authority is investing $3.6 million of American Rescue Plan Act (ARPA) funds on the event. In one week only, we got over $10 million in earned media value. Just to give you an idea, that is the value of the exposure in different news outlets that Puerto Rico has had since the announcement.

For every dollar invested, we have already received $2.7 in media exposure. And that can only increase from here. The event production team is

for selecting Puerto Rico. That is as much as warm weather. Another 32% spoke of our landscapes, 27% of the Island’s ambiance and atmosphere.

26% mentioned our gastronomy and 24% of our outdoor experiences.

That attachment to cultural elements was even stronger among members of Generation Z (those born in the mid-1990s). 57% of them value cultural experience as one of their main considerations.

Recently, Discover Puerto Rico launched a new campaign, “Live Boricua” (Vive a lo boricua), seeking to move the promotion of Puerto Rico as a tourist destination to more cultural, distinctive, and authentic aspects of Puerto Rican lifestyle.

That change will be seen increasingly in the images we use, the experiences we promote in our public relations efforts, the ads we run, and the elements that are reiterated in the development of our Discover Puerto Rico brand. What is more authentic than that proud feeling that the Boricua word evokes in that defiant chorus when we shout, “Yo soy boricua, pa que tú lo sepas (I am Boricua so that you know)”?

Let’s talk about everything. Let’s be authentic. Let’s highlight how Puerto Rican life is lived.

yet to announce Puerto Rico’s countdown host and musical guest. And the event itself generates its own news coverage. The purpose of the event is to bring the destination to the mind of the viewers.

That effort is paired with digital marketing and public relations strategies.

There is more good news. As of October 31st, the expected occupancy rate for the last week of the year is 41% higher in 2021 than in 2019. This metric is based on hotel bookings, and it defies some current understanding about the industry.

Let me give you some context around this: in 2021, visitors are booking with way less anticipation. This means that while visitors now book their visits with around 35 days in

Living Puerto Rican engages so many things. It’s going out to chinchorreo, it’s partying, parranda style, at Christmas, it’s dancing salsa in the square, it’s not pronouncing the “s” at the end of a word, and changing the “r” for “l” when we speak, it’s asking for the blessing when we arrive at the house of our relatives, it’s having that getaway to anticipation, NewofYear’s visitors arewe planning that little corner the Island that still don’t 60 daysit’sahead. shows a risingit’s demand know, eatingThat a good mofongo, singing surrounding Year’s celebrations, Dick you aguinaldos atNew Christmas, it’s bragging and because Clark’s event is definitely the new kid on the block. found the best bottle of pitorro (moonshine) in the The event is going to puthumor Puertodespite Rico onadversity, top of neighborhood, it’s finding the of millions potential is the andmind it’s protesting toof the beat of visitors. pleneros,It and best to culminate a record-breaking year inour muchway more.

It is also denouncing our troubles, tourism in which the industry back eternal disappointments, and has our bounced insufficiencies, from a terrible pandemic and, surprisingly, highlighting that not everything is peachy. has experienced the Rican highest lodging revenue its Living Puerto style is hard on tooin many history while arrivals are exceeding 2019 figures. occasions.

Let’s talk about everything.

Let’s be Dick Clark’s Year’show Rockin’ Eve Rican will life is authentic.

Let’sNew highlight Puerto hopefully thisthe year’s tourism good fortunes lived. Let’sextend promote good, and let’s change, for throughout 2022, when the marketing will the better, the hardness of our life as abudget Boricua.

It’s double with theus. federal ARPA funds. a win for all of

11

PONERTE TU VACUNA DE REFUERZO HA PERMITIDO QUE PUERTO RICO SIGA AVANZANDO

Si te pusiste o te pones el refuerzo lo agradecemos invitándote a participar

en el sorteo de un Mazda3 Hatchback

1

3

2 Vocespr.org

Ponte el refuerzo, aún estás a tiempo

Regístrate en VOCESpr.org para participar

SOBRAN LAS RAZONES Y HOY TE DAMOS OTRA. ¡PARTICIPA!

Tienes hasta el 19 de agosto del 2022

Busca un centro de vacunación cerca de ti en vocespr.org Reglas: vocespr.org, elvocero.com o solicítalas a razones@vocespr.org.

Sorteo termina el 19 de agosto de 2022. Mayores de 18 años, residentes en PR. Sujeto a validación de registro de inmunización. Otras reglas aplican.

< The Weekly Journal > Wednesday, May 25, 2022

SEGUIMOS EN MARCHA CONTRA EL COVID-19

12

>AP Photo/Liu Heung Shing, File

/ Wednesday, May 25, 2022

When purple reigned new liner notes penned by all needs to see this because this is five members of the Revolution. what it was all about.”

“I was so proud of him and The March 30, 1985, concert the band we put together and at the Carrier Dome in Syracuse, everything at that moment and New York, included the songs Mark Kennedy, The Associated Press “Prince and The the fact that it lives on and that “Delirious,” “1999,” “Little Red Revolution: Live” will this beautiful project is coming Corvette,” “Take Me Home,” be released June 3 in EW YORK — The first thing you out is something special,” says “Let’s Pretend We’re Married,” a variety of formats, hear is a familiar voice over the Bobby Z, a Prince friend since “Computer Blue,” “When Doves including digital sound of thousands of screaming Cry” and “I Would Die 4 U,” they met in 1976. “That band is streaming platforms. fans. cooking like a freight train.” among others.

“Hello, Syracuse and the world.

Prince fans have another It closes with a sensual, knockMy name is Prince, and I’ve come reason to be happy this out “Purple Rain,” with Prince in to play with you.” summer: “Prince: The Immersive a shimmering cloak delivering a The Purple One soon arrives, rising through the Experience” makes its worldwide solo that lasts several minutes stage — wearing an animal print jumpsuit with a debut on June 9 in Chicago. It offers visitors the and shows off an immensely talented guitarist. ruffled white frock, a guitar slug across his back — “You can tell that he knows what he’s doing there chance to explore his wardrobe, music influences as “Let’s Go Crazy” starts. “Dearly beloved, we are and hits.

— he is lighting up the world. He always played gathered here today...” he says.

The Syracuse concert came at the end of a 100it like there was no tomorrow. But that one is It’s the electric odd date tour, and Prince and the band are by this especially moving,” says beginning of a highBobby Z. time a tight and sleek machine, piggybacking off the energy concert in wild success of the film “Purple Rain.”

“Prince and The upstate New York “I’m really excited for a next generation of Prince Revolution: Live” will held more than three fans to see what it was all about. He wasn’t, you be released June 3 in decades ago, reworked know, just some average guy. This was a seriously a variety of formats, and re-released on talented, unbelievable dancer, singer, bandleader, including digital video and audio showman, composer, musician. This was a one-in-astreaming platforms, a capturing Prince & billion individual,” says Bobby Z. three-LP vinyl version, The Revolution at their Wendy Melvoin, a guitarist and singer in the a two-CD version and a peak.

Revolution, says die-hard Prince fans may have Blu-ray of the concert Bobby Z “It was as amazing film. already seen bootleg versions but hopes that the Drummer for The Revolution as I remember it was,” There’s also a limited new album and film can inspire other artists. says Lisa Coleman, a edition box set featuring “I think the people that I’d want to have see Revolution member three colored LPs, two it are people who want to learn how to put on a who was there that night singing and playing keys. really great show,” she says. “Other artists should CDs, the Blu-ray video, a 44-page book with neverAdds drummer Bobby Z: “The next generation before-seen photos of the Purple Rain Tour, and see it.”

A 1985 Prince concert finds a new life

N

You can tell that he knows what he’s doing there — he is lighting up the world. He always played it like there was no tomorrow.

In fact,

13

/ Wednesday, May 25, 2022

Léa Seydoux, once again, rules the Cannes Film Festival She is one of Europe’s most famous faces

C

Jake Coyle, The Associated Press

ANNES, France — The Cannes Film Festival, yet again, belongs to Léa Seydoux.

The French actress has already shared in a Palme d’Or at the festival, in 2013 for “Blue Is the Warmest Color,” which made her and Adèle Exarchopoulos the first actors to ever win Cannes’ top prize, which they shared with director Abdellatif Kechiche.

Last year, she had four films at the festival, but missed all of them because she tested positive for COVID-19. But this year, Seydoux gives two of the best performances of her career in a pair of films unveiled at Cannes: Mia Hansen-Love’s “One Fine Morning” and David Cronenberg’s “Crimes of the Future.” Together, they have only reinforced the view that Seydoux is the premier French actress of “If I didn’t have cinema, I would have been very her generation.

On a recent afternoon, a few blocks from Cannes’ sad,” she adds. “That’s why I work all the time. It’s a way to be connected.”

Palais des Festivals, Seydoux greeted a reporter In “One Fine Morning,” one of the standouts of cheerfully. How was she? “Great!” she answered.

Cannes, Seydoux plays a young widow raising a “Should I not be great?” daughter in Paris while tending to her elderly father, The 36-year-old Seydoux has already made a whose memory is slipping. After reconnecting with major mark in Hollywood, most an old friend, a passionate affair notably by taking the once follows. “One Fine Morning,” a stereotypical role of “Bond Girl” semi-autobiographical movie and stretching the character — a Hansen-Love wrote shortly “Bond Woman” she redefined before her own father died — across several films, adding a of COVID-19, throbs with the new dimension of depth to the Léa Seydoux has irreconcilable coexistence franchise. Seydoux was so good already made a of grief and love, death and that even James Bond wanted to major mark in rebirth, and life’s vexing settle down.

Hollywood, most impermanence. Hansen-Love, But it’s especially clear at this notably by taking the the “Bergman Island” filmmaker, year’s Cannes that Hollywood once stereotypical wrote it with Seydoux in mind. was only one stop of many in role of “Bond Girl” “She was maybe my favorite the fast-evolving, exceptionally and stretching the actress for this generation,” varied career of Seydoux, who character across explains Hansen-Love. “She’s has managed to be one of several films. enigmatic in a way that very few Europe’s most famous faces actresses are. She’s not trying to while still exuding a mysterious show things. She’s not affected.” melancholy on screen. She’s Leading up to this moment, ubiquitous and elusive at the Seydoux has experienced some same time. of the worst sides of the movie business. In 2017 “I carry a sadness,” Seydoux says, tracing it to she said Harvey Weinstein once forcibly tried to kiss a shy childhood. “Cinema for me is something her in a hotel room in a meeting that was ostensibly playful. It’s a real consolation because, in a way, I about a potential role. The filming technique of the transformed my sadness into an object of beauty. lesbian romance “Blue Is the Warmest Color,” in Or I tried to, anyway. It’s not like it works every which Kechiche would shoot up to 100 takes of a time.”

In fact,

Léa Seydoux poses for photographers upon arrival at the 75th anniversary celebration of the Cannes Film Festival. >AP Photo/ Daniel Cole

Cinema for me is something playful. It’s a real consolation because, in a way, I transformed my sadness into an object of beauty.

Léa Seydoux Actress

single shot, has also been questioned.

But Seydoux, who recently signed up to adapt the erotic novel “Emmanuelle” with “Happening” filmmaker Audrey Diwan, says she’s never hesitated to express her sexuality on screen. “One Fine Morning,” with the benefit of Hansen-Love’s perspective, is one of the most sensual films at Cannes.

“I felt that this movie was about passion,” says Seydoux. “I don’t have problems with nudity. It’s something I like to see as a spectator, as a viewer. I think it’s beautiful. I love sex scenes in films.”

“I’m not crazy about films that are ‘entertaining,’” says Seydoux. “I don’t think that I go to the cinema to be entertained. I know it’s a big thing in America.

I like to ask myself questions. I don’t like to be given answers. I don’t want to stop thinking. I think certain films are just to feed you with images.”

14

/ Wednesday, May 25, 2022

The 66th Year of the Festival Casals

Promises Nothing Short of Excellence Maestro Valdés signals the downbeat of a vibrant twoweek program

T

Zoe Landi Fontana, The Weekly Journal

@Landi_Zoe

he Festival Casals officially began last weekend with an inaugural concert by renowned international pianist Yefim Bronfman -who performed works by Bartok, Beethoven, and Chopin- in his first visit to the island in over 19 years.

This two-week-long festival is a celebration of the resilience, recovery, and rejuvenation of the island’s classical music community.

With the return of in-person concerts, the Pablo Casals Symphonic Hall (Sala Sinfónica Pablo Casals) at the Centro de Bellas Artes is expected to be packed with eager concert-goers, deprived of the orchestra’s melodies for two years during the pandemic. “A beautiful two weeks with great artists and great programs, following strict policies established by the government of Puerto Rico in terms of health protections,” Maestro Maximiano Valdés said of the festival in an interview with THE WEEKLY JOURNAL.

Highlights Of The Program

message there - of an independent woman who claims her liberty - and I think Martínez will embody that very well,” praised Maestro Valdés.

This weekend, the Orchestra will be accompanying the extraordinary violinist Joshua Bell and soprano Larisa Martínez, Bell’s wife, who hails from Puerto Rico. They will perform works by Roberto Sierra (a Puerto Rican composer), Mozart, Mendelssohn, Villa-Lobos, and Tchaikovsky. Come back the next day to hear Carmen Acevedo direct the Coralia, an acclaimed choir in both Europe and the U.S. It’s worth noting that ticket prices are quite moderate in comparison to what it would cost to attend performances Celebrating its by these same artists abroad.

This year, the festival’s emphasis is on Latin America and Puerto Rico, described Valdés, “We have an important number of Puerto Rican artists, and two performances from 50th anniversary, the other Latin American artists. A bit Opera of Puerto Rico, of novelty from past years.”

Supporting The Festival in co-production According to Maestro Valdés, Artistic director and conductor, with the Puerto the closing performance is not to Maestro Maximiano Valdés, Rico Symphony be missed. Celebrating its 50th has been with the Puerto Rico Orchestra, will stage anniversary, the Opera of Puerto Symphony Orchestra for over 13 Georges Bizet’s Rico, in coproduction with the years and has directed the Festival beloved story of Puerto Rico Symphony Orchestra, Casals for eight. “The time has passion and betrayal will stage Georges Bizet’s beloved flown. We don’t realize how fast - Carmen. story of passion and betrayal the tempo has gone by,” he said, Carmen. using the musical term ‘tempo’ to “Ana María Martínez - she’s illustrate the passage of time. a soprano, but the role is for a “We have to adjust to a new mezzosoprano. Her interpretation of Carmen reality - this reality is the audience. We have to alone is a reason to see it. There is an entire raise funds. The amount of popular music on the

In fact,

island is enormous, so we have to keep fighting to keep [its only classical music festival] alive. The important thing is that the festival continues, and we have better opportunities to raise money,” Valdés explained.

His vision is for the young students at the Puerto Rico Conservatory of Music to have a future on the island without having to go abroad in order to find opportunities after graduating. Valdés believes that every developed country should have a rich environment of classical music. “[Classical music is] the biggest artistic achievement of mankind. What we give to society is irreplaceable,” he told THE WEEKLY JOURNAL.

Yefim Bronfman performs at the Festival Casals. >Facebook, Festival Casals

15

/ Wednesday, May 25, 2022

They are back to the table

Puerto Rico Restaurant Week Returns

have in Puerto Rico. This year, we go back to the table with great enthusiasm and eager to offer this experience to diners,” Antonetti said.

Since its inception, Puerto Rico Restaurant Week has been about supporting local restaurants, and Enrique Muchacho and Juan A. Hernández, The Weekly Journal promoting them to tourists. This year’s event also fter a two-year hiatus caused by seeks to promote the recovery of the gastronomic industry after the challenges it has faced in recent the pandemic, diners will seat years. back at the table for the 9th “Since the beginning, we have operated with Puerto Rico Restaurant Week the goal of supporting local restaurants and (PRRW). With its new motto, boosting the profitability of their “Regresamos a businesses while providing the la mesa” (Going public with a unique opportunity back to the table), PRRW is staging to discover new places and visit another event to showcase the their favorite establishments,” island’s gastronomic landscape Antonetti noted. and support local restaurants.

This year’s event During the week-long event, “We are looking forward seeks to promote the participating restaurants to offering diners the most the recovery of will offer fixed price menus of representative and best dishes of the gastronomic $49 per person (excluding taxes our local cuisine,” said Gustavo industry after the and tips). Some restaurants will Antonetti, cofounder of PRRW. challenges it has also include a special cocktail, The event, which is scheduled faced in recent courtesy of Serrallés Distillers. to take place from June 1st to the years.

Although the event does not 12th, will have representation of require the purchase of tickets, more than 20 restaurants with reservations are required a wide range of menus so that directly with the restaurants. diners can experience new culinary Some of the participating offerings and establishments at restaurants are: Flora (787.224.4226), in affordable prices.

Aguadilla; El Grifo (787.666.8466), in Caguas; “We are very excited about the positive PYP (787.703.2210), in Caguas; El Rastro feedback from restaurant owners and chefs who (787.840.0767), in Ponce; and Graziani are taking part of this gastronomic event. The (787.722.1112), in San Juan. Those interested in menus are just a sample of the creativity that we

A

We are looking forward to offering diners the most representative and best dishes of our local cuisine.

Gustavo Antonetti Cofounder of PR Restaurant Week

In fact,

visiting any of the participating restaurants could visit the PRRW website at www.PRrestaurantweek. com.

The event will also serve to sponsor El Josco Bravo, an ecological farming project that also provides training to young farmers on ecologically sustainable farming techniques.

“We work daily to promote Puerto Rico food security and even though we are essentially farmers, we do not only grow vegetables but also develop new farmers,” said Ian Díaz Pagán, spokesperson for El Josco Bravo, which has trained more than 800 farmers since it was founded.

For her part, Paulina Salach, cofounder of PRRW, added that “since the beginning of PRRW, our objective has been to showcase the talent of our chefs, their restaurants and promote organic farming; with this event we have achieved each of these goals.”

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