tourism grows amid inflation

Tourism Continues to Grow in the Midst of Economic Crisis

Puerto Rico’s image shifts for various audiences

Zoe Landi Fontana, The Weekly Journal

Today’s forecast is sunny with clear skies. Tomorrow’s forecast is also sunny with clear skies. And the day after that…well, you get it. But are there clouds on the horizon for Puerto Rico’s tourism industry?

Travel research group Tourism Economics conservatively estimates that in 2022, non-resident visitor spending will increase by at least 21% compared to figures from 2021. These would be some of the highest in the island’s history. Unlike many other Caribbean destinations, Puerto Rico saw improvements in the tourism industry despite the pandemic. The US Travel Association found that while traveler spending in the US is 5% below 2019 figures, it is 10% higher for Puerto Rico.

“[Yet] despite the strong start to this year, the outlook for tourism is mixed with a few encouraging signs, offset by some very worrisome trends. Despite such strong labor numbers, most businesses report they simply cannot hire enough help. Airline enplanements have exceeded prior years, yet airlines are having to cut capacity due to pilot shortages and drastic increases in the price of fuel. Demand for travel is high, yet inflation is prompting many travelers to reconsider travel or scale back on their travel plans. Interest in our island by meeting planners is growing, but the need periods of our local hotel partners have changed significantly”, said Brad Dean, Chief Executive Officer of Discover Puerto Rico.

Covid is no longer the biggest concern for potential travelers, as economic issues flare up. With inflation at its highest levels since 1980 coupled with increased interest rates, consumers’ desire to partake in leisure travel has sharply declined. The June edition of the American Travel Sentiment Survey by Longwoods International showed that consumers are rethinking their leisure plans. 41% of consumers cited record-high gas prices will impact their decision to travel in the next six months. Another 36% reported that higher fuel costs and ticket prices are reducing the likelihood of booking any air travel for the rest of 2022.

Fortunately, as of July 1 hotel RevPAR (revenue per-available-room) is at a record of $209, an increase of 56.9% from the previous year. Independent rentals have increased RevPAR by 7.3%, year to date.

“This shows the growth we are seeing in the industry. Despite the economic challenges, the income from accommodations so far this year is 56% above 2021, which is the record year. We are seeing that all regions are experiencing the economic benefits that our visitors bring, driving economic development around the entire island,” Dean added.

Local And International Image

Sunny days on the beach and cinematic nights in Old San Juan set the scene for Discover Puerto Rico’s newest international campaign “Live Boricua”. This new brand campaign launched in May 2022 to enhance Puerto Rico’s image as a destination, focusing not only on what the island has to offer travelers, but who Puerto Rico is and how they can make it their own. According to Discover Puerto Rico, “Live Boricua”

Demand for travel is high, yet inflation is prompting many travelers to reconsider travel or scale back on their travel plans.

Brad Dean, CEO Discover Puerto Rico.

is an “immersive feeling and frame of mind that is at the DNA of the Puerto Rico experience and lifestyle”. The campaign helps visitors picture themselves on the island by highlighting iconic destinations and landmarks around the island, connecting the viewer to a tangible experience. Additionally, it brings consumers past the expected experience into a projected reality of connecting with locals and Puerto Rican culture.

Domestic tourism takes another route. “Isla Aventura” encourages people to get out and explore the island’s unique natural attractions such as the beaches, forest, rivers, and mountains by highlighting the diversity of experiences and their proximity.

Following Governor Pierluisi’s announcement last year on the allocation of $120 million in American Rescue Plan funds to strengthen the island’s internal and external promotion as a tourist destination, the “Isla Aventura” initiative, driven by the Puerto Rico Tourism Company (PRTC), aims to position Puerto Rico as the best and largest theme park in the Americas, not only featuring its natural attractions, but active tourism activities like snorkeling, kayaking, zip lining, hiking, horseback riding , and water parks as well.