The Weekly Journal - Wednesday, July 21, 2021

Wednesday, July 21-27, 2021 - // no. 117

Puerto Rico and the Caribbean

www.theweeklyjournal.com

Has COVID Recession Ended in Puerto Rico? P6 Tourism Wins With Open US Corridor P8 Amendments Filed for Acts 20/22 P10

Fixing

Puerto Rico’s Roads Nearly four years after Maria, still much work to do Rosario Fajardo and Giovanna Garofalo

Will We Need COVID Booster Shots? P14

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hether you are driving in San Juan, Caguas, Toa Alta or Añasco, we can all agree that most of Puerto Rico’s roads are in dire need of repairs. Uneven pavements, potholes galore, lack of street signs, recurrent flooding during heavy rains, and many dark roads at night mean that driving is a challenge for most local residents.

It may be hard to believe, but it has been nearly four years since Hurricane Maria devastated the island and its infrastructure, and yet government officials are still attending to much of these damages.

The good news is that help is on the way, as the federal government continues to allocate millions in transportation funds to help Puerto Rico, as well as the 50 states, improve the nation’s vital transportation infrastructure.

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A WEEK IN REVIEW FOMB REACHES AGREEMENTS WITH MORE PUERTO RICO CREDITORS

>Courtesy of the Puerto Rico Tourism Company

The Financial Oversight and Management Board (FOMB) filed its fifth amended Commonwealth Plan of Adjustment that reflects an agreement with the Official Committee of Unsecured Creditors (UCC) and a proposed agreement with three teachers’ unions. The agreement reached with the UCC will result in $575 million in cash payments to be made from 2021 to 2025, from which unsecured creditors will receive a pro rata recovery.

EDB REPORTS YEAR-ON-YEAR GROWTH IN MAY’S ECONOMIC ACTIVITY INDEX

CDC DOWNGRADES COVID-19 RISK IN PUERTO RICO TO ‘MODERATE’

The Economic Development Bank (EDB) reported a year-on-year increase of 7.9 percent in Puerto Rico’s Economic Activity Index for May 2021, which reached a maximum level of 119.4 points. During May 2021, two of the four components of the EAI (cement sales and electricity generation) increased by 8.4 percent and 1.8 percent, respectively, while non-agricultural salaried employment decreased by 0.3 percent and gasoline consumption fell 0.2 percent. These results were compared with April 2021 figures.

The U.S. Centers for Disease Control and Prevention (CDC) has downgraded the risk of contracting COVID-19 in Puerto Rico to Level 2, or “moderate.” This means that individuals who are fully vaccinated may travel to the island without restrictions. Visitors must still adhere to requirements of presenting a valid vaccination card and registering with the island’s Health Department upon arrival. The news bodes well for Puerto Rico’s tourism industry, which is already experiencing a solid recovery from the effects of the pandemic.

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CONTINUED FROM PAGE 1 The much-needed funds and construction work will also be a boon for the local economy.

The island’s Transportation secretary, Eileen Vélez Vega, confirmed to THE WEEKLY JOURNAL that the agency known as DTOP by is Spanish acronym, is hiring local companies as subcontractors for its multiple reconstruction projects, thus rebounding positively on the local economy.

Earlier this month, the Federal Emergency Management Agency (FEMA) announced another round of $299 million to rebuild the island’s roads and bridges. Regarding this recent allocation, the secretary reported that there are 100 projects islandwide for permanent works, for which 22 local companies were subcontracted through a Request for Proposal (RFP) process to submit their respective design bids.

“The other projects are being designed. The other funds remaining to be obligated include the two categories: design projects and projects ready to begin construction,” she stated, adding that $13 million have already been identified for projects that do not require a design.

Vélez acknowledged residents’ concerns about the slow progress of reconstruction work, as many roads were severely damaged by Maria in Sept.

2017, but she stressed that the agency did perform emergency works as part of the recovery stage, such as setting up road signs, security fences and reflectors, as well as addressing landslides.

“Projects have already been started. I can tell you, for example, the project for Highway 770 in Barranquitas, which is a bridge that was affected

by Hurricane Maria,” Vélez affirmed. “In the coming weeks, the bidding will be coming out for this project to begin the construction.”

The secretary said the agency is committed to improving the island’s transportation infrastructure with “safe and well-maintained roads.”

Landslides, which are a top priority for DTOP, are particularly time consuming because of bureaucratic processes. For instance, obtaining the appropriate permits to begin the necessary work if the landslide reaches private property or if the agency has to enter private property to acquire the land, explained Edwin González Montalvo, executive director of the DTOP’s Road and Transportation Authority (RTA).

Moreover, roughly $150 million of the nearly $502 million in FEMA funding for transportation were applied to emergency projects, which provided temporary relief to road infrastructure affected by the 2017 hurricane. González clarified that the RTA transferred $241 million of its approved funding to the Eastern Federal Lands Highway Division (EFLHD) - a branch within the Federal Highway Administration-, while the remaining $260 million are to be used by the RTA. “Of those $260 million that the [RTA] has, $237 million have already been obligated and $23 million remain to be obligated. And of the $237 million that are already obligated, $178 million have been disbursed,” he said.

While the executive director noted that the EFLHD has lagged in executing reconstruction

Unfortunately, many of Puerto Rico’s roads are riddled with potholes. >Archive

projects, he assured that “we have been in obligations represent permanent work projects to constant communication with them and they were address over 250 damaged areas across Puerto given instructions to carry out several of these Rico’s roads and bridges. projects.” Some of these include “several bids,” he An element that deals with highway safety is said, such as those to provide the replacement and installation signs along roads PR-52, PR-53, of thousands of road signs that and PR-1, 2 and 3. were affected by Maria. To that As for President Joe Biden’s end, FEMA earmarked over $28.3 titanic infrastructure plan, million for a project to replace González affirmed that it would signs on 238 highways in Puerto An element boost the RTA’s annual budget Rico, extending 496 miles from that deals with from $238 million to roughly San Juan to Aguadilla. highway safety is $340 million, according to the DTOP reported that over the replacement information collected during 300 signs and poles have been and installation of his meetings with Resident removed, while the installation thousands of road Commissioner Jenniffer of signs and plaques exceeds signs that were González and the Puerto Rico 3,000 units. The installation of affected by Maria.

Federal Affairs Administration in signs in the Ponce and Guayama To that end, FEMA Washington, D.C. regions will begin soon, while earmarked over $28.3 The increase would allow the the manufacturing of signs for million for a project entity to redistribute its budget the Humacao region continues. to replace signs to different segments that have The production of road signage on 238 highways been postponed for insufficient represents a positive impact on in Puerto Rico, funds. “In other words, if there the manufacturing sector, since extending 496 miles were projects that we could not some are made by contractors in from San Juan to fulfill because the funds were Humacao, Guayama, Mayagüez Aguadilla. limited, now one can move that and Ponce. money to be able to carry out the In addition, over $3.5 million necessary projects,” he asserted. was allocated to repair several roads in the central part of the island. This obligation includes $1.8 million to More FEMA Funds Allocated rebuild three segments of PR-612 in Utuado, FEMA announced that to date, the federal including a three-span bridge that suffered agency has obligated nearly $299 million to DTOP severe damage and serves as the main road for to repair damages and optimize state roads and residents of the Don Alonso and Caonillas Abajo bridges across the island. This includes nearly neighborhoods. It also includes $1.6 million to $92 million approved during 2021 to address repair nine segments of PR-531 in Jayuya. infrastructure in nearly 30 municipalities. The

In fact,

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Projects have already been started. I can tell you, for example, the project for Highway 770 in Barranquitas, which is a bridge that was affected by Hurricane Maria.

In the coming weeks, the bidding will be coming out for this project to begin the construction.

-Transportation Secretary Eileen Vélez Vega

Likewise, over $4.7 million was allocated to DTOP to repair several sections of PR-742 and PR-738 in Cayey. Furthermore, repairs will be completed on the PR-7731 Road in Cidra which provides access to main roads and businesses for about 9,000 residents of the Carite, Vegas, Montellano and Quebrada Arriba neighborhoods.

As of March 2021, work on 42 transportation projects was already underway on the island, with an estimated investment of $108.7 million, according to government officials. Among the municipalities benefiting from these road repairs were Jayuya, Yauco, Maricao and Barranquitas.

As per an executive order signed by Gov. Pedro Pierluisi in March 2021, construction crews working on projects that are funded by the federal

Construction crews will soon be a familiar sight on many roads and highways in Puerto Rico. >Josian E. Bruno Gómez

government now receive a minimum salary of $10.95 an hour. Puerto Rico’s minimum wage rate is $7.25 an hour, which is the same as the federal minimum rate.

Invest in America Act

Meanwhile, President Biden continues to tout his gigantic infrastructure plan and social services support for families, especially during the coronavirus pandemic, saying they would bolster

To date, the island has been allocated $299 million in FEMA funds for road works. >Archive

economic growth and help the middle class.

Speaking at the White House, the president called his plans a “blue-collar blueprint for building an American economy back… This is the best strategy to create millions of jobs and lift up middle class families, grow wages and keep prices affordable for the long term,” as quoted by The Associated Press.

H.R. 3684 Invest in America Act was passed in the U.S. House on July 1, by a bipartisan vote of 221-201. The bill is a $715 billion surface transportation reauthorization and water infrastructure bill, with more than $44 billion added during the amendment process to make even greater investments in infrastructure, including all-electric vehicles (EV) charging and passenger rail grant programs, among other additions.

“The American people are sick and tired of potholes, getting stuck in traffic, delayed buses and slow trains, lead-tainted pipes and sewers that back up— the result of decades of underinvestment in our infrastructure, our communities, and our future. The good news is that this is an American problem America can fix,” said House Committee on Transportation and Infrastructure Chair Peter DeFazio (D-OR).

The bill has moved on to the U.S. Senate, which is evaluating its own version of the measure.

The U.S. House bill included “transit specific” allocations across the nation. For Puerto Rico, an estimated $52.4 million local transportation projects were included. Among them are extending Avenida Ángel Castro Pérez (PR-122) between San Germán and Lajas; work on road connectors between Gurabo and Trujillo Alto; and various improvements on PR-2 (kms 9.0 and 10.0) PR-6 (km 0.0 to 0.3).

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Economist Heriberto Martínez assured that the island will continue to experience “a lot of liquidity” in the coop sector, banks and government. >Archive

Puerto Rico in Recovery Mode After COVID

But data missing on the island’s pandemic recession

A Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

lthough it is uncertain whether Puerto Rico has rebounded from the economic recession spurred by the COVID-19 pandemic, there are several indicators that point to a shortterm recovery, an economist

explained.

Heriberto Martínez Otero, director of the House Committee on Finance and Budget, explained to THE WEEKLY JOURNAL that, unlike the U.S. mainland and other industrial powers, Puerto Rico releases annual reports instead of quarterly insights. “In Puerto Rico, we have to wait until February or March [2022] for the growth data to come out to know if we ended the recession or not,” the economist said.

However, he noted that there is indeed a recovery, which he attributed to the reactivation of the commercial sector and federal funding, plus accumulated savings that were not spent while business operations were restricted.

“The relaxation of these restrictions, added to the possible savings by families that are again beginning to spend and going to stores and restaurants, is causing a rise in employment and that rise in employment definitely represents that there is already an economic reactivation again,” he stated.

In fact, the most recent data published by the P.R. Department of Labor and Human Resources indicates that the seasonally adjusted employment estimate in June 2021 reflected 980,000 workers.

When comparing this figure with the data for May 2021 (978,000), an increase of 2,000 people in the labor market was observed. In relation to June 2020 (971,000), this represents a year-on-year increase of 9,000 people employed.

Martínez added that there are sectors that have yet to take off, naming some tourism segments as an example, although these have been impacted globally and local tourism entities have affirmed that the island is poised to surpass pre-pandemic levels of prosperity in the sector. Moreover, he affirmed that all indicators point to shortterm recovery, lest this projection is hindered by another rise in COVID-19 cases or other circumstances.

“I think we are creating jobs, there are job offers that have not yet been filled, and there are going to be a lot of people who are going to move from [receiving] federal funds to look for those jobs.

The other important thing is that there are still billions in federal funds, either by FEMA, CDBG-DR or the different rescue plans. So, there is going to be a lot of liquidity in the cooperative system, a lot of liquidity in the local banking system, and a lot of liquidity in the government. That should be positive for the economy for at least the next three to four years,” Martínez asserted.

Shortest Recession in the US

Meanwhile, the recession that began in the U.S. with the onset of the coronavirus pandemic in early 2020, officially ended in April 2020.

That makes it the shortest downturn on record, according to the committee of economists that determines when recessions begin and end.

Previously, the shortest recession lasted six months, from January through June in 1980.

The U.S. economy reached a peak in February 2020, the National Bureau of Economic Research’s Business Cycle Dating Committee said. The

recession began the following month and ended in April. The NBER said the recession ended that month because that is when the economy reached its lowest point in terms of jobs and output. The end of the recession does not mean the economy has fully recovered. It only began to rebound in May 2020, the committee said.

The recovery has continued in fits and starts for the past year and by some measures is nearly complete. The economy’s output of goods and services likely reached its pre-pandemic level in the April-June quarter, analysts estimate.

On July 29, the federal government will release its first estimate of the economy’s gross domestic product — the total output of goods and services — for the second quarter. That will confirm whether the economy as a whole has reached its pre-pandemic level.

While output has likely fully recovered, the U.S. economy still has 6.8 million fewer jobs than before the pandemic. The unemployment rate remains elevated at 5.9 percent, compared with 3.5 percent before the downturn. The fact that output has likely fully recovered while jobs have not will raise concerns that companies have figured out how to produce goods and services with fewer people. Businesses have stepped up their investments in machinery, computers and software, which could enable them to automate some work.

Still, employers are also desperate to hire, and much of the jobs gap could be closed in the coming months. Employers added 850,000 jobs in June, the most in nearly a year, and many economists forecast hiring will remain at those levels in the coming months. Employers slashed more than 22 million jobs in March and April of last year, the sharpest cuts since World War II. But hiring resumed in May. -The Associated Press contributed to this story.

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Medicaid Fund Parity a Top Priority for Puerto Rico Gov’t Officials lobbying in D.C. for full access to federal healthcare program

In fact,

The Weekly Journal Staff

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ith Puerto Rico continually petitioning for more Medicaid funds, House Speaker Rafael Hernández affirmed that the legislative body will continue its efforts to achieve fund parity for the island to stabilize its health system.

“It is time to act, and we are optimistic that we can work together with Congress to fulfill the proposal of the administration of U.S. President Joe Biden, that we have full access to Medicaid on the island. Our health system needs a permanent solution to stabilize it,” he stated. On May 28, Biden formally requested Congress to provide Medicaid fund parity for Puerto Rico and to streamline equal access to the Supplemental Security Income (SSI) and food assistance.

Hernández announced that he will ask Biden “to do his good work and follow up on his initiative in the federal Congress. We also formally request Gov. Pedro Pierluisi not to give in to the fairness claim, and we make ourselves available to work together in this feat. These initiatives are [nonpartisan] and impact all socioeconomic sectors on our island. Therefore, we are all called to join forces and work as a team.”

He added that the Democratic Party has enough votes in Congress to approve the necessary language in the resolution for the federal budget, “and we need to take advantage of that juncture.”

The House Speaker explained that some of the programs that Puerto Rico is not part of, and could be accessed, are hospice services, improved pay for health professionals, and an increased number of people who qualify for the Medicaid program, among others.

“It is imperative to recognize the gigantic impact of receiving 83 percent Medicaid coverage for the central government’s budget.

For example, the budget approved last June in the legislative assembly, and signed by the governor, contemplates a contribution for the Vital [health insurance] plan of $1,555,721,000 from the General Fund and $557,535,000 from

The House Speaker explained that some of the programs that Puerto Rico is not part of, and could be accessed, are hospice services, improved pay for health professionals, and an increased number of people who qualify for the Medicaid program, among others.

House Speaker Rafael Hernández said that the central government could save $1 billion annually if Puerto Rico had full access to the federal Medicaid program. >Josian E. Bruno Gómez

federal funds, while in the previous budget that ended in June, only $316,134,000 were spent from the General Fund, with a federal contribution of $2,842,337,000,” he underscored.

Moreover, he stressed that the local government could save over $1 billion annually if Congress approves parity in Medicaid funding for Puerto Rico. According to Hernández, this measure would provide “stability and certainty” to the public healthcare system, thus “cementing the departure of the [Financial Oversight and Management] Board, together with a good restructuring of central government debts.”

This week, Hernández is in Washington, D.C., carrying out lobbying efforts in Congress and the White House with aims to achieve more resources for Puerto Rico.

Extended Benefits

Meanwhile, the Health Subcommittee of the U.S. House Committee on Energy and Commerce evaluated and approved last week H.R. 4406, “Supporting Medicaid in the U.S. Territories Act,” which would prevent Medicaid funds for the island

from running out at the end of this fiscal year in September.

During the markup, U.S. Rep. Cathy McMorris Rogers - the Republican leader in the committee - acknowledged the efforts of Resident Commissioner Jenniffer González to ensure that Medicaid beneficiaries in Puerto Rico do not lose access to that health benefit.

The resident commissioner has been advocating and working in a bipartisan manner to achieve this agreement that will extend the increase in funds and levels of the Federal Medical Assistance Percentage (FMAP) for five years for Puerto Rico to the current levels of 76 percent, providing stability to the health system. The annual limit is increased from $390 million to more than $2.7 billion until fiscal year 2026. In other words, the cap that was established for 2021 is maintained.

H.R. 4406 was authored by Florida Reps. Darren Soto (D-FL-9) and Gus Bilirakis (R-FL-12). The measure continues to advance in the legislative process and this week it will be fully reviewed by the U.S. Energy and Commerce Committee.

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Hotel Solace by the Sea >Courtesy of the PRTC

Puerto Rico Benefits from ‘Open Corridor’ to and from the U.S.

Three Ponce hotels undergoing major renovations Rosario Fajardo

A

rfajardo@wjournalpr.com

@RosarioWJournal

study by the Mastercard Economics Institute shows that while international travel continues to be restricted around the world due to the COVID-19 pandemic, Puerto Rico’s political relationship with the United States has given the island’s tourism sector a major boost.

“The limited border reopenings have proven to be challenging for travelers and the travel industry alike. But the select open corridors such as between Australia and New Zealand and between the U.S. and Latin America and the Caribbean are meeting and in some cases exceeding prepandemic levels,” according to the “Recovery Insights: Ready for Takeoff?“ report by Mastercard.

The reopening has been particularly strong in Puerto Rico and the U.S. Virgin Islands (USVI), which are sister U.S. territories that depend greatly on stateside visitors. As reported by THE WEEKLY JOURNAL, Grupo Aeroportuario del Sureste, whose Aerostar Airport Holdings company manages the Luis Muñoz Marín International Airport (SJU) in the San Juan metro area, has continued to report strong visitor numbers for the island’s main airport.

When compared to the pandemic levels of June 2020, passenger traffic has increased in Puerto Rico by a dramatic 372 percent. In June 2020,

during the height of the pandemic, only 214,009 from governments could all provide significant passenger arrivals were recorded at SJU. However, tailwinds for the continued travel recovery.” this number jumped to 1,009,754 last month, the company reported.

Ponce Revamping Hotel Offerings Since Americans have been able to save more As tourism in Puerto Rico continues to surge, during the pandemic, thanks in large part to the hospitality offerings in the southern city of increased federal financial assistance, there is a Ponce are being revamped with a total $9 million huge pent-up demand for travel. However, this is renovation work at three local hotels: Hotel Fox, balanced by a supply shortage of long-haul planes, Hotel Solace by the Sea and Hotel Meliá. pilots and other airline employees. As a result, According to Puerto Rico Tourism Company “the recovery of travel worldwide is likely to be (PRTC) Executive Director Carlos Mercado imbalanced, drawn out and non-linear,” according Santiago, the construction work by Ponce Prime to Mastercard.

Resorts LLC will create 180 local jobs. The three While the global travel recovery remains hotels have a total 229 rooms on offer. uneven, one-fifth of countries “The reconstruction of each of studied have returned to at least these hotels is excellent news for 90 percent of pre-pandemic levels the tourism industry, since they for domestic flight bookings. have particular characteristics that While some—including the distinguish them and, without a U.S., Australia and France—are doubt, contributes to the range As tourism in Puerto exceeding pre-pandemic domestic of alternatives that Ponce has to Rico continues to flight bookings, others—such offer to visitors, which significantly surge, the hospitality as Canada, Thailand and New strengthens the evolution of offerings in the Zealand—are at a fraction of tourism and the creation of southern city of where they were before the employment, which will greatly Ponce are being pandemic began. boost the economic development revamped with “While there’s been an of the entire southern region of a total $9 million impressive recovery in domestic Puerto Rico,” Mercado said. renovation work at air travel in a number of markets, Hotel Fox is known for its Pop three local hotels: the rebound won’t happen Art theme, featuring such icons as Hotel Fox, Hotel overnight. The pandemic brought Marilyn Monroe and Elvis Presley, Solace by the Sea the industry down to spending and is renovating its facilities at a and Hotel Meliá. levels not seen in over 15 years,” cost of nearly $2 million. said Bricklin Dwyer, Mastercard Hotel Solace by the Sea, located chief economist and head of the on the Caribbean Sea, is renovating Mastercard Economics Institute. “While a lot of at a cost of more than $2.8 million. Meanwhile, the uncertainty remains, pent-up savings, a desire to historic Meliá, located on Ponce’s main plaza, is venture farther from home, and the green light being renovated at a cost of nearly $4.5 million.

In fact,

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Bug Camp Exposes Students to Different Career Opportunities

student Diego Gómez, a 17-yearold from Caguas, was actually keenly interested in insects before participating in the program, and now wants to contribute locally to the field of entomology.

“The idea of the camp is to change the perspective that young people have of insects - that they are all pests, that they are undesirable. So, we go through the activities related to entomology, even working on the phobias that some of the youth have towards insects,” Martínez said.

Seeks to foster more professionals in entomology

R Giovanna Garofalo

ggarofalo@wjournalpr.com

eto Agrícola 4-H, a program under the Agricultural Extension Service of Puerto Rico, celebrated its second cohort of its annual Bug Camp, in which teenage students participated in a four-day program to learn about different areas of study.

Edda Martínez, an entomologist and coordinator for the program, explained that this year they focused on different insect-oriented careers.

Specifically, 21 students islandwide ages 15 to 18 participated in virtual lessons with a hands-on approach to taxonomy, beekeeping, entomology and even entomophagy, which revolves around the consumption of bugs as a rich source of nutrients.

“They were given materials to make the entomology box, to do all the beekeeping workshops... and they were given everything from the deli pack (of bug foods), and a video made by 4-H where they made brownies and cupcakes with cricket flour,” Martínez explained.

The Entomological Society of America estimates that 7,000 Americans work as professional entomologists in the U.S. mainland, which includes teaching about insects at the undergraduate and graduate level; working as extension entomologists; raising bees; working in forensics; enforcing quarantines and regulations; controlling insects; consulting on integrated pest management topics; and conducting research on taxonomy, biology, ecology, behavior and control.

The Economic Research Institute estimates the average annual salary for entomologists in Puerto Rico at $55,084, with the potential to grow to $63,858 in 2026. However, according

Among the various activities, students were encouraged to start their own insect collections. >Courtesy of Diego K. Gómez

to Martínez, there are no forensic entomologists in Puerto Rico because the students who decide to specialize in this field study abroad and do not return to the island. Bug Camp’s goal is to instill the importance and ecological roles of insects in ecosystems and to humanity, while exposing 4-H youth to other alternatives of study with aims to foster professionals in diverse entomological fields, including forensics.

Jafet Santos, a 16-year-old resident of Guánica who participated in Bug Camp, affirmed that he had no prior interest in insects or entomology, but that the experience made him reconsider his professional goals.

“We learned about different careers and I think that is very important because… sometimes we don’t see all the opportunities there are in different fields,” Santos said, noting that he would like to develop his career on the island. He added that entomology “is a fascinating field and what I like is that there are few discovered insects and many left to know, which encourages me to discover a new insect.”

Throughout the camp, he and other participants developed a collection of 20 bugs where the five most common classifications were represented, with materials donated

by Cortejo Agriscience. Fellow

Ali M Corp.

(San Sebastian, PR) is looking for an Import and Purchasing Manager.

Must have a Master’s Degree in Economics (or a foreign equivalent).

2 years’ experience as a Manager.

Knowledge of English and Chinese.

Please send resume to alimhr@yahoo.com

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Amendments Formally Proposed for Acts 20/22 Political leaders seek to balance interests amid debate

T

The Weekly Journal Staff

he spokesperson of the New Progressive Party (NPP) in the Senate, Thomas Rivera Schatz, introduced a new bill to amend Acts 20/22 by implementing new tax rates, in a bid to obtain greater government revenues and create new jobs, while providing attractive benefits for high-end investors.

The presented amendments contain two alternatives to be applied prospectively. The first scenario decrees a 12 percent tax rate for all capital earnings by every individual who relocates to Puerto Rico but is not investing or creating jobs on the island. The second offers a preferential tax rate of 5 percent on capital gains as long as it meets a minimum investment of $5 million and the creation of five to 10 jobs.

“There is no reason why today, whoever moves to Puerto Rico, should pay 0 percent when the national average is over 24 percent. The idea of these changes is to promote a bigger impact on the local economy, either through investment, job creation and higher income to the Treasury. It is important to make clear that this is prospective. In Puerto Rico, we are a jurisdiction of law and order and therefore, we will comply with the word that has been committed in the decrees granted,” the pro-statehood senator explained.

Rivera Schatz recognized the impact of said law, mainly in the real-estate market. “A greater openness is necessary over the years.

Contributions of 5 percent and 12 percent are very attractive when here, employees pay between 25 percent to 30 percent, and local entrepreneurs about 33 percent. It is about providing a fair and adequate balance. It is to remain attractive while investors contribute something more to the country,” he said.

He concurred with Economic Development Secretary Manuel Cidre in creating a balance between improving employment conditions and investments of large and small companies, as well as developing space that generates well-paid jobs.

NPP Sen. Thomas Rivera Schatz >Carlos Rivera Giusti

Treasury Calls for More Scrutiny

Meanwhile, Treasury Secretary Francisco Parés Alicea called on lawmakers to develop mechanisms for greater scrutiny on Acts 20/22 grantees. He noted that since 2017, the Treasury Department (Hacienda) began auditing grantees with initiatives like digitalization programs, cost measurements and the 100 percent electronic filing of income tax returns for individuals and corporations.

“Our audit program included hiring a tax expert who is helping us to define an action plan and the scope of the audits that we will work on starting in October. We also started conversations with the IRS (Internal Revenue Service) to collaborate on the processes that they do at the federal level, which is their jurisdiction. We have a Tax Coordination Agreement, which will increase the visibility of the decrees,” Parés said.

Parés noted that the agency will work with the IRS to regularly update the names of individuals who claim residence in Puerto Rico and benefit from the island’s incentive laws. Treasury will also disclose the exclusion requirements of Section 933 of the U.S. Internal Revenue Code regarding income sources from Puerto Rico and the residence rules under Section 937 to ensure that the interaction of both laws results in appropriate taxation in the U.S. mainland and Puerto Rico.

There is no reason why today, whoever moves to Puerto Rico, should pay zero percent when the national average is over 24 percent. The idea of these changes is to promote a bigger impact on the local economy, either through investment, job creation and higher income to the Treasury. It is important to make clear that this is prospective. In Puerto Rico, we are a jurisdiction of law and order and therefore, we will comply with the word that has been committed in the decrees granted.

-NPP. Sen. Thomas Rivera Schatz He said that Hacienda is in the process of integrating all the tax decrees under Laws 20 and 22 of 2012 and the information compiled by the Department of Economic Development and Commerce (DDEC by its Spanish acronym) into its SURI platform The official asked the Senate Committee that is evaluating Acts 20/22 to grant greater discretion to the Treasury secretary so that, prospectively, it would be a requirement to obtain the agency’s endorsement and input for the approval of the decrees. In addition, he said Treasury should be granted the power to regulate, in conjunction with DDEC, the tax provisions for decree holders under the Incentives Code, especially under the chapters of the export of services and individual investors, among other capacities.

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< The Weekly Journal > Wednesday, July 21, 2021

¡BUSCA TU NUEVO

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Francisco Blanch

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Leisure Sales Director at Discover Puerto Rico

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Relentlessly Educating Travel Advisors is Bringing Tourists Back to the Island

o paraphrase philosopher John Dewey, a mobile society is full of channels promoting change, and its members must be educated to adapt to those changes.

His comments speak to a group of people, right here in Puerto Rico, who are influencing change by educating others about our Island.

Think of Puerto Rico as a product.

And the first link in the channel that connects our spectacular Island with leisure travelers is the travel advisor. Even in today’s internet era, when consumers can book airlines and hotels with the click of a mouse or the touch of a button, the world’s million or so travel agents are regularly relied on for their knowledge and expertise, especially when individuals are unfamiliar with or overwhelmed by their leisure travel options.

Their role in helping consumers

>Courtesy of Royal Sonesta San Juan

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decide on where and when to book a trip is becoming even more critical in the wake of the COVID-19 pandemic.

Complicated by varying requirements or guidelines with respect to vaccinations, mask wearing, social distancing and COVID-19 tests, the business of booking is trickier than ever.

And that is why our team at Discover Puerto Rico, the Island’s destination marketing organization (DMO), has further increased our focus on educating and building strong relationships with travel advisors as part of our work in promoting our incredible, sun-kissed Caribbean paradise.

When COVID-19 closed in-person meetings with travel advisors here on the Island and at U.S. or international trade shows, we went exclusively virtual – offering dozens of webinars and promoting our Puerto Rico Travel Expert Program with incentives to complete online training courses to keep Puerto Rico top-of-mind with

independent travel advisors and those affiliated with major travel consortia, or organizations like ASTA, IATA, CLIA and others.

These courses have been wildly successful in turning travel advisors into experts on Puerto Rico, as 20,500 advisors have enrolled in and over 11,000 have graduated from our Puerto Rico Travel Expert program since its inception.

Based on experience conducting online educational webinars about Puerto Rico in the past year, I see just how valuable they will continue to be, even after COVID-19 becomes a distant memory. Unlike in-person trade shows, where you can meet one or a few advisors at a time, we have virtually “met” up to 300 travel advisors at once during a 45-minute virtual conference, an extremely efficient way of showcasing the rich history and culture, exceptional food, pristine beaches, majestic mountains and countless other attractions of Puerto Rico.

Targeted Efforts

Complementing our team’s work in promoting the Island through webinars, social media and live online events, Discover Puerto Rico also invests in select co-op partnerships (such as Costco, AAA, Virtuoso and other consortia) that enable us to share in the investment of directly accessing their members, and drive traffic to the various booking channels available to them.

These targeted efforts are always important but were especially meaningful during the pandemic so that consumers – eager to travel again and seeking advice from travel advisors – would be inspired to come to Puerto Rico as soon as they could.

And who would not want to come to Puerto Rico? As a U.S. territory, Puerto Rico has none of the restrictions often associated with other Caribbean destinations, such as passports or a COVID-19 test requirement to return to the mainland. That means it is a lot easier to come and go from our Island, and we made sure travel advisors were informed every time pandemicrelated restrictions changed.

I am thrilled to report that… our team’s hard work has paid off! According to data from Global Distribution System (GDS) sources that track results based on bookings by travel agencies, our 2021 second quarter results are showing a growth during the recovery, and reporting from our co-op efforts in most cases are well ahead of second quarter results from 2019.

We have been relentless in our outreach to travel advisors and have bolstered our interactions with them through education, social media, e-blasts and webinars. And we will continue to keep whispering in the ears of any travel advisor we can find; as more people get vaccinated and begin traveling again, they will be looking to travel professionals for suggestions for an easy trip to an amazing destination.

That, of course, is Puerto Rico.

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>Rouzes via gettyimages.com

/ Wednesday, July 21, 2021

Enjoy Avocados All Day sometimes used as a garnish, it can easily be the star.

1. An avocado chicken salad relies on the creaminess of the avocado to bind everything together without any mayonnaise or oil; scoop some onto a sandwich or salad for the perfect lunchtime meal.

2. For a warmer option, make a grilled cheese sandwich and add some avocado slices. This can be butter/sauce-free if you use a panini press or toaster oven. The heated avocado perfectly complements the melted cheese and adds depth to this otherwise typical sandwich.

How to incorporate this superfood into every meal

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Women’s Wellness

f you try to prepare nutritious and delicious meals as part of your wellness routine, no doubt you’ve come across lists of superfoods and healthier alternatives to typical ingredients. The avocado is one of these nutritional powerhouse foods that not only packs a delicious, creamy flavor punch but also acts as a substitute for other fats and oils in a variety of dishes.

Here is everything you need to know about why avocados should be on your plate more often and how to make that happen.

Health Benefits of Avocados

Many people think of avocados as a “superfood” but don’t know why. These creamy fruits are nutrient-dense and contain heart-healthy fats that have been shown to help reduce inflammation and protect against risks for heart disease. In addition to these healthier fats, avocados contain a long list of vitamins, including lutein and zeaxanthin for eye health and vitamin C for immunity.

As an added benefit, the high fiber content and omega 9 fats can help you feel full longer than many other fruits and vegetables! The combination of omega 9 fats, vitamins, and a good dose of fiber mean that avocados are a great choice for adding bulk, flavor, and variety to your meals.

Dinner There are many ways to use avocados for healthy and delicious recipes.

Breakfast

Get your day started on the right foot!

1. By now, everyone has heard about the avocado toast trend, and there’s a good reason!

This delicious breakfast is more filling and packs a heartier nutrient punch than a lot of toast alternatives. The best part of avocado toast is that you can experiment with various toppings, depending on your taste.

2. If you’d like to venture beyond the world of toast, however, avocado is a great side addition to other breakfast staples. Try them with eggs and even pancakes.

Lunch

Many of us gravitate towards salads and sandwiches at lunch, and while avocado is

Dinner often means comfort food that the whole family will enjoy, but that doesn’t mean you have to stay away from healthier ingredients!

1. For an easy vegetarian/vegan/dairy-free swap for a traditional pasta recipe, try using avocado in place of butter or cream for the sauce, you’ll have a healthier alternative to your favorite pasta dish, ready in only 15 minutes.

Snacks

Snacks are often the hardest food to plan because you want something delicious, nutritious, and easy. Using avocados in your snacks can help you feel full longer thanks to their high fiber content, and you’ll feel indulgent due to the creamy texture!

1. To satisfy a crunchy craving, try hummus with avocados to serve alongside pita chips or wholegrain crackers.

With so many options that highlight (or hide!) the avocado, you can incorporate this superfood into your meals every day!

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/ Wednesday, July 21, 2021

Are We Going to Need COVID-19 Booster Shots?

University of Pennsylvania immunologist Scott Hensley.

Another backup: T cells that kill virus-infected cells to help keep a breakthrough case from becoming severe. Lab studies signal antibodies aren’t as potent against the delta variant as they are against some earlier versions of the coronavirus but are still protective. Specialists worry more about the prospect of future mutants that might escape today’s vaccines, something preventable only by cracking down on viral spread everywhere.

An Explainer from AP

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The Associated Press

ust because Pfizer wants to offer COVID-19 vaccine boosters doesn’t mean people will be lining up anytime soon -- U.S. and international health authorities say that for now, the fully vaccinated seem well protected.

Globally, experts are watching closely to determine if and when people might need another shot. Many also suggest the priority for the time being should be vaccinations, noting that worrisome coronavirus mutants wouldn’t be popping up so fast if more of the U.S. and the rest of the world had gotten the initial round of shots.

“If you want to stop hearing about the variant of the week,” said Jennifer Nuzzo, a Johns Hopkins University public health specialist, “we need to do more work to make sure all countries have more access to vaccines.”

What’s prompting all the booster debate?

U.S. health officials have long said that people one day might need a booster -- after all, they do for many other vaccines. That’s why studies are underway to test different approaches: simple third doses, mix-and-match tests using a different brand for a third dose, or experimental boosters tweaked to better match different variants.

Recently, Pfizer and its German partner BioNTech announced that in August, they plan to seek Food and Drug Administration authorization of a third dose because it could boost levels of virus-fighting antibodies, possibly helping ward off worrisome mutants.

The companies haven’t publicly released data, and U.S. health officials issued a sharp response that boosters aren’t yet needed and that the government, not vaccine makers, will decide if and when that changes.

The World Health Organization said there is not enough evidence to show that third doses are needed. It said the scarce shots should be shared with poor countries instead of being used by rich countries as boosters.

What’s the evidence that vaccine protection remains strong?

An Associated Press analysis found nearly all COVID-19 deaths in the U.S. are occurring among the unvaccinated.

In the last few weeks, infections and hospitalizations have begun rising as the highly contagious delta variant spreads. The Centers for Disease Control and Prevention says the surges are driven by the least vaccinated parts of a country that has plenty of shots if people would only take them.

No vaccine is perfect, meaning fully vaccinated people occasionally will get infected, but those so-called breakthrough cases usually are mild.

Officials monitoring the need for boosters are watching closely for any jumps in serious breakthrough infections.

So far the news is good: The people first in line for vaccines back in December and January don’t seem to be at higher risk for breakthrough infections than those vaccinated more recently, the CDC’s Dr. Jay Butler said.

Is the booster question all about the new variants?

No, scientists also are watching to see how much vaccinated people’s overall immunity to the coronavirus wanes. That, too, could require a booster shot. Virus-fighting antibodies do gradually wane. That’s normal since the body doesn’t need to be on high alert forever.

But antibodies aren’t its only defense. By the time those levels drop, the body has formed backups. They include memory B cells that, the next time you’re exposed, “explode, and they start dividing like mad” to make new antibodies, said

How are other countries doing against the Delta variant?

Real-world data from England, Scotland, Canada and Israel shows that the vaccines most widely used in Western countries continue to provide strong protection. Researchers in Britain found two doses of the Pfizer vaccine, for example, are 96% protective against hospitalization with the delta variant and 88% effective against symptomatic infection.

Israel recently reported preliminary data suggesting protection against mild delta infection has dipped lower, to 64%. But protection against severe illness remained high.

There’s less information about how well other vaccines hold up against the delta variant. Thailand announced that health workers who had received two doses of a Chinese vaccine would be given a booster shot made by AstraZeneca.

Could some people need a booster before the rest of the population?

That’s possible. Israel just began dispensing third doses of the Pfizer vaccine to transplant recipients and other patients with weak immune systems. The reason: People who take certain immune-suppressing medications don’t react as strongly to any vaccinations -- not just COVID-19 vaccines -- as healthy people.

France already had a similar third-dose policy for the immunocompromised. Even though it’s not authorized in the U.S., some transplant recipients seek out a third dose in hopes of more protection.

It’s not yet proven if a third dose helps and if so, who needs one and when. The first large study of the strategy is beginning in thousands of patients in Norway.

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/ Wednesday, July 21, 2021

Surfing is popular in Puerto Rico’s northwestern coasts. >Archive

Olympic Surfing Exposes Whitewashed Native Hawaiian Roots Locally, a popular sport in such areas as Rincón and Isabela

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The Associated Press

ANTA CRUZ, Calif. — For some Native Hawaiians, surfing’s Olympic debut is both a celebration of a cultural touchstone invented by their ancestors, and an extension of the racial indignities seared into the history of the game and their

homeland.

The Tokyo Summer Games, which open July 23, serve as a proxy for that unresolved tension and resentment, according to the ethnic Hawaiians who lament that surfing and their identity have been “culturally appropriated” by white outsiders who now stand to benefit the most from the $10 billion industry.

“You had Native Hawaiians in the background being a part of the development of it and just not being really recognized,” said Isaiah Helekunihi Walker, a Hawaii historian and activist. “There’s an element of them taking over. That’s when there’s no more aloha.”

The Indigenous people of Hawaii traditionally viewed the act of stylishly riding ocean waves on a board for fun and competition as a spiritual art form and egalitarian national pastime that connected them to the land and sea.

White European settlers who first learned of the sport when they arrived to the island both vilified and capitalized on the sport. Christian missionaries disapproved of the nudity on display, yet white businessmen later ran a whites-only surf club on Waikiki beach.

Today, white people are still seen as the

leaders and authorities of the sport globally, as surfing’s evolution is now a legacy shaped by white perspectives: from practically Native Hawaiian birthright to censured water activity, and California counterculture symbol to global professional sports league. “It’s the paradox and hypocrisy of colonization,” said Walker, a BYU-Hawaii history professor who is Native Hawaiian.

White settlers first arrived on the island in the 1700s, bringing with them disease that nearly wiped out the Native Hawaiian population, conquest to take over the land and its bounty of natural resources, and racist attitudes that relegated the Indigenous population to secondclass citizenship.

Though it was three Native Hawaiian princes who first showed off surfing to the mainland in 1885 during a visit to Santa Cruz, Calif., white businessmen are credited with selling surfing and Hawaii as an exotic tourism commodity for the wealthy. That trajectory has since manifested into a professional sports league largely fronted by white athletes.

But the Native Hawaiians never gave up their sport and by the 1970s, there was a full-blown racial clash around surfing with well-documented fights in the ocean. The issue pitted Native Hawaiians and some white residents who grew up among them against the white Californian and Australian surfers who sought to exclude locals from the world’s best waves on their very own turf.

A White-Centered Sport?

Yet critics say the business and branding aspect of the sport and lifestyle largely remained white-centered. “When surfing started to become really popular, that triggered money and that triggered business people and things we’d never thought we’d have to deal with as people who surf in Hawaii,” said Walter Ritte, a longtime Native Hawaiian activist. “There’s no doubt that the control is not here in Hawaii.”

The effort to take back surfing’s narrative is why sovereignty activists applied for a Hawaii Kingdom national team to compete at the Olympics. Their longshot request hinges on the fact that they say there was no ratified treaty that ever formally dissolved Hawaii’s autonomy. The United States annexed Hawaii in 1898 after the overthrow of the Hawaiian monarchy by U.S.-backed forces in 1893.

A statement from the International Olympic Committee, which has ignored the request, noted only that applicants must be an “independent state recognized by the international community.”

This geopolitical dynamic will be on display when Carissa Moore and John John Florence are in the surf zone to compete for the U.S. Neither is eager to discuss their views on the matter but they are two of professional surfing’s biggest stars who have long competed under the Hawaii flag in the pro league, as the World Surf League recognizes Hawaii as a “sovereign surfing nation.” Moore as the reigning female world champion is also the only Olympic surfer who is ethnically Hawaiian.

Fernando Aguerre as president of the International Surfing Association, the Olympic governing body for surfing, pledged to honor Hawaii and Duke Kahanamoku, the godfather of modern surfing, during the Games. Like many surfing industry leaders, Aguerre, who is from Argentina, invokes the legend of Kahanamoku often, even noting that he named his son after the Native Hawaiian icon.

Kahanamoku was an Olympic swimmer who won five medals and introduced the sport via surfing exhibitions in places like California, New Jersey, Australia, New Zealand and Europe. He lobbied the IOC at the 1912 Summer Games in Stockholm to include it in the Olympics, and was the ultimate waterman, whose legacy also includes popularizing flutter swimming kicks and spreading the concept of lifeguarding and water rescue to the masses.

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