Luxury tourism industry execs: Puerto Rico has potential to compete globally

Puerto Rico has the potential to compete with other global destinations when it comes to luxury tourism, but private sector companies must work together – and the government must do its part – to make that a reality, two local industry players stated at the recent Puerto Rico ICON Conference.

During the panel “Double Down on Puerto Rico, Playing the Long Game,” moderated by Ricky Santana, co-founder of the Puerto Rico ICON Institute; Rolando Padua, president of Paulson Puerto Rico; and Federico Stubbe Jr., chief executive officer of PRISA Group, discussed the impact of market changes on new luxury projects, efforts to adapt to evolving resale markets and sustainable development practices.

In his presentation, Stubbe emphasized the potential Puerto Rico has to compete with other markets. He explained that the island’s diverse offerings give it a competitive advantage over other markets such as Miami.

“We understand that there are many challenges, but as businessmen, we cannot allow particular interests to stagnate the development of Puerto Rico; we must dare to think and act with courage and determination for the benefit of future generations,” he said.

“An example of this is the high-quality, large-scale coastal developments, which have become a very important engine of tourist and residential development for Puerto Rico. A positive attitude toward them must permeate, including on the part of the Government of Puerto Rico,” he added.

For his part, Padua pointed out Puerto Rico’s potential to stand out globally in different areas, such as luxury tourism, and the importance of supporting and maximizing available resources.

The development of projects like Vanderbilt Residences and Ocean Drive aims to address the shortage of hotel rooms required to make Puerto Rico competitive on the global stage, according to industry executives. During a two-day event attended by nearly 200 participants, including entrepreneurs and business leaders, the executives emphasized the importance of unity among local companies for Puerto Rico's future.

The executives highlighted their commitment to reinvesting profits in Puerto Rico, creating a sustainable ecosystem for economic development and job creation. They discussed various niche projects, including ventures in health care, regional tourism, entertainment, and commerce, aimed at attracting foreign investment and generating employment opportunities.

However, the executives acknowledged challenges in the industry, particularly the complex permitting process in Puerto Rico, which hampers infrastructure development and limits affordable housing options. They emphasized the importance of collaboration between the private sector and the government to overcome these challenges, foster economic growth, and position Puerto Rico as a favorable tourist destination.

Despite obstacles, the executives expressed confidence in Puerto Rico's potential to compete globally, stressing the need for unity among local entrepreneurs and a collaborative approach to tackle both internal and external challenges. They called for the government's involvement in educating residents about the benefits brought by businesses operating under Act 60 and highlighted the necessity of embracing competition for the collective betterment of Puerto Rico.