Wages paid in the industry have also increased by 34% over the past year
Puerto Rico's tourism industry is heading to close the year with new records of foreign visitors, traveler spending and jobs, placing the last twelve months as one of the best years in the history of this economic sector and solidifying the recovery on track after the saga of emergencies that began in 2020.
These milestones were achieved despite the negative impact of Hurricane Fiona between September and October, and were due, in large part, to the investment of $50 million in American Rescue Act (ARPA) funds. that have been integrated into the efforts to promote Puerto Rico as a tourist destination and that will be finished by the end of 2023.
“Tourism continues to lead the economic resurgence of Puerto Rico and, together, we have reached new records on this path. Visits, visitor spending, and employment levels meet or exceed 2021 levels, which, as you know, was the best year for Puerto Rican tourism. Compared to other Caribbean islands and other US states, Puerto Rico is performing better than our neighboring destinations,” said Brad Dean, CEO of Discover Puerto Rico, during a virtual event to inform the industry about the most recent events associated with tourism.
Alisha Valentine, director of Research and Analysis of Discover Puerto Rico explained that it is estimated that 2022 will close with a 7% increase in the number of visitors compared to what was registered in 2019, when the cruise industry attracted one in every three visitors who arrived on Puerto Rican soil. If the number of visitors is compared to last year, the increase is 10%. It is expected that in 2023 visiting cruise passengers will represent at least 80% of those who arrived in 2019.
Regarding visitor expenses, between January and October of this year travelers had contributed to the island's economy around $1.345 billion for a 30% increase, highlighted the director of Research and Analysis of Discover Puerto Rico. These income from accommodations represent $35 million more than what was collected by island accommodations in all of 2021, the year in which for the first time this type of business was able to invoice over $1,000 million.
All this produced more job opportunities in the industry. The Bureau of Labor Statistics estimates that by October 2022 in Puerto Rico there were 91,200 jobs in the recreation and accommodation sectors. This is the highest amount in the history of Puerto Rico in these sectors. Since January, each month a new record has been set for the number of jobs in the industry. In 2022, jobs in this sector represented an increase of 14.6% compared to 2019 pre-pandemic levels. In the United States, jobs in these sectors remain 4.6% below 2019.
Not only the number of job opportunities increased. The demand for labor and inflation allowed wages in these sectors to increase by 34% in the last year. This percentage is significantly higher than in other industrial sectors that barely show increases of 10%, Valentine pointed out.
2023 is shaping up to be a year with challenges, including international inflation problems and the recession that economists are profiling for the US economy. However, some metrics show a very optimistic side for the Puerto Rican industry. For example, more cruise ship visitors are on the horizon and planes scheduled to arrive in the first half of 2023 have 10% higher capacity compared to the same period last year. Similarly, the events and conventions market is resurging and there are more quotes requested for events and more hires.
“In the last three months we have participated in more than 75 trade shows, promotional tours and activations, all designed to position Puerto Rico as a premier destination in the Caribbean for leisure travel, meetings and events… It is no coincidence that the The best years in the history of tourism in Puerto Rico occur when we manage to double our budget by investing non-recurring federal funds in promoting our destination. Unfortunately, these funds will end in 2023, so we are exploring ways to continue this progress that together we have made as an industry," Dean concluded.