Puerto Rico Embarks on Ambitious Plan to Generate More Tourism

The Puerto Rico Tourism Company (PRTC) had a busy 2006. As the popularity of the Caribbean continues to increase and island nations are fighting for their share of tourism dollars, Puerto Rico devised a plan to carry it through 2011, with the main goal of elevating its status as a leading tourism destination in the Caribbean.

The PRTC is developing a brand strategy that focuses on highlighting all that the nation has to offer, especially beyond its beaches. This strategy coincides with the new branding of the southern region as Porta Caribe, a move that will benefit the region’s 15 municipalities.

The development comes after the branding of the western region in December 2004 as Porta del Sol. According to the PRTC, these brands were launched as part of Puerto Rico’s strategy to entice travelers to “Explore Beyond the Shore” and discover the diverse regions outside San Juan.

The following is an overview from the PRTC of industry developments in hotels, airline service and cruises.

Hotels
With several properties undergoing extensive renovations and the announcement of such properties as the ST. Regis, W Hotel and Sheraton Puerto Rico Convention Center Hotel, 2,308 rooms are being built, totaling an investment of $777 million. Puerto Rico is reaching its goal of 5,000 new rooms by 2008. During 2007, PRTC will work toward the development of 1,000 hotel rooms.

The Normandie Hotel, San Juan’s 173-room historic property, has completed an $8 million renovation. New features include wireless access, 7,000 square feet of meeting space, two 800-gallon fish tanks in the lobby, Art Deco furnishings, two restaurants and a spa. The hotel, opened in 1942 and known for its unique shape, resembling a luxury liner, is being acquired by Caribbean Property Group and will be transformed into a W Hotel.

The 51-room Plaza de Armas Hotel recently underwent renovations and will be converted into the Howard Johnson Plaza de Armas in Old San Juan.

LXR Luxury Resorts’ properties in Puerto Rico – El Conquistador Resort & Golden Door Spa, El San Juan Hotel & Casino and Condado Plaza Hotel & Casino – have begun extensive renovations that will take place over the next several years, with $50 million budgeted for the 570-room Condado Plaza alone.

The Water Club in San Juan has officially changed its name to San Juan Water & Beach Club Hotel and has added such amenities as bath and spa products from H20 Plus, clock radios with MP3 player connections, and Wi-Fi access.

The Paseo Caribe, the city’s world-class retail development, will make the adjacent Caribe Hilton in San Juan the largest property in Puerto Rico, with more than 900 rooms completed by press time. This will represent an increase of 240 rooms.  In addition, a 4,000-square-foot wedding hall will be built in the Las Olas Spa area, overlooking the ocean. The San Geronimo ballroom is also being renovated and will double in size. And the second phase of the Condado Lagoon Villas, the condo-hotel tower of the Caribe Hilton, is under construction and is scheduled to open in December.

Starwood Hotels will manage the renovated Martineau Bay Resort in Vieques, owned by the Reig Group. The hotel will close in April 2007 to finalize a $15 million renovation that will transform it into the first W Resort in the world, scheduled for completion in the fall. Starwood also will open the 500-room Sheraton Puerto Rico Convention Center Hotel as the anchor for the Puerto Rico Convention Center, which opened in Isla Grande in late 2005. The Sheraton Puerto Rico, opening in 2009, represents an investment of $209 million and will be the first hospitality and mixed-use development in the Convention Center District, located adjacent to the 580,000-square-foot facility.

San Juan Marriott Resort & Stellaris Casino has begun a $36.7 million renovation that will bring the property to the level of other luxury resorts on the island. The 402 rooms being renovated will gradually come back into service through March. The 123-room cabana wing will be renovated from August through November, but will remain open during the process. The finished project will include a grand lobby, an updated casino and a refreshed ballroom, and guestrooms will sport a new Latin-Caribbean look.

Courtyard by Marriott is currently building a 160-room hotel in Aguadilla. The hotel is scheduled to open in May. The Renaissance La Concha Hotel & Casino is scheduled to open by June. The 474-room property will offer 15,000 square feet of meeting space, a 15,000-square-foot casino, three restaurants, an oceanfront pool and a 5,000-square-foot fitness center on the beach.

Bahia Beach Resort & Golf Club, Puerto Rico’s first five-star development, is scheduled to open in 2008 and will include the St. Regis Resort & Residences Bahia Beach and a Robert Trent Jones Jr. golf course. The development has secured $500 million from investors.

The Condado Vanderbilt Hotel is scheduled to open by June 2009. The 300-room luxury property will feature 20,000 square feet of meeting space, a gourmet restaurant, a bistro, a spa and two oceanfront pools.

Plaza International, located near Luiz Munoz Marin International Airport in San Juan, started construction in November. The hotel will offer 264 guestrooms and 590,000 square feet of retail space.

The Punta Lima minimum-security prison in Naguabo was purchased by the PRTC for $8.2 million, and the site will be developed as the island’s first ecological hotel complex. A hotel will be developed and operated by a private company, but the land will remain in the PRTC’s hands.

Air Transportation
As for filling all these rooms, Puerto Rican officials believe that improving air access is essential, even though the island is already served by 23 airlines from 62 destinations. Airlift increased in 2006 by 2 percent, which the PRTC says represents an economic impact of $100 million. Following is a look at transportation initiatives and upgrades.

Luis Munoz Marin International Airport is undergoing capital improvements totaling $309 million through 2011. Of the 13 projects planned, the major improvements include the reconstruction of the 11,500-foot runway, the second-longest in the Caribbean; the rebuilding of terminal A; and renovations to all general aviation terminals. 

Rafael Hernandez Airport in Aguadilla recently opened its $10.1 million international terminal. The airport saw a spike in passenger traffic in 2005, to 253,730, up 10 percent from 2004.

Ponce Mercedita Airport in the southern region is also seeing traffic increases, and the Puerto Rico Port Authority has invested $2.5 million to renovate it. Passenger traffic to that airport was up 278 percent in 2005 over 2004.

As for air-service developments in the past year, in September, JetBlue added two routes from Orlando, with twice-daily nonstop flights to San Juan and once-a-day flights to Aguadilla. Continental now offers nonstop service to Ponce and Aguadilla from Newark, with daily flights. Delta has expanded service to Aguadilla and Ponce from Atlanta. The carrier is operating the service between Atlanta and Aguadilla four times weekly, and between Atlanta and Ponce twice a week.

In addition, Caribbean Sun Airlines expanded its service between San Juan and the Dominican Republic with the addition of the first flights to Santo Domingo. The service launched on July 19 and includes eight daily nonstops.

Cruises 
Puerto Rico also will be banking on some developments in the cruise industry. The San Juan Waterfront project got underway last month. This will combine parks, hotels, residences, commerce, recreation areas and a mega-yacht marina in Puerta de Tierra. The first phase will take six years to complete, at a cost of up to $19.5 million from the Authority and an additional $137 million from the private sector. San Juan currently has six piers able to handle the largest cruise ships.

Other renovations and expansion include new facilities at the Pan American pier in Isla Grande, managed by Royal Caribbean International, and a completely renovated Pier #4, managed by Carnival Cruise Lines. Ponce’s Port of the Americas was expected to be completed by press time.

Last month, Carnival’s 2,642-passenger Carnival Destiny launched a seven-day southern Caribbean schedule from San Juan, featuring calls at five destinations. The Crown Princess, the recently inaugurated ship in Princess Cruises’ fleet, is scheduled to make 10 visits to San Juan by April 2007. The cruise will then visit San Juan 12 times during the summer season, between May and September. The estimated economic impact of the Crown Princess to the island is approximately $4.2 million during this initial phase. Also in 2007, two Royal Caribbean mega-ships will port in San Juan.

In addition, Island Venture is offering roundtrip transportation to Caja de Muertos from Ponce. The fares are $15 for adults and $10 for children aboard the 125-passenger vessel.

And as if all these developments weren’t enough, in November the government finalized the designation of the San Juan Cultural District, designed to allow parks, plazas, theaters, museums and other venues to be enjoyed by both tourists and locals. This is the first of several Cultural Districts that will be created throughout Puerto Rico to improve access to many cultural attractions.