University Microfilms, Inc., Ann Arbor, Michigan the ROLE of the COIX0NVJEALTH GOVERNMENT in the GROWTH and DEVELOPMENT of the PUERTO RICO TOUHTST IHDUSTRT
Total Page:16
File Type:pdf, Size:1020Kb
ThU dissertation has b#«n microfilmed wearily as received 67-2498 MINGS, Robert Charles, 1935- THE ROLE OF THE COMMONWEALTH GOVERNMENT IN THE GROWTH AND DEVELOPMENT OF THE PUERTO RICO TOURIST INDUSTRY. The Ohio State University, Ph.D„ 1966 G eography University Microfilms, Inc., Ann Arbor, Michigan THE ROLE OF THE COIX0NVJEALTH GOVERNMENT IN THE GROWTH AND DEVELOPMENT OF THE PUERTO RICO TOUHTST IHDUSTRT DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University * IJy R obert CrMLngs, B.S., M.A.T. The Ohio State University 1966 Approved hF ACKNOWLEDGEMENTS The cordial and unlimited cooperation extended by members of the Puerto Rican Government made this study possible. The untiring assist- ance of Mr. Hector Berrios of the Puerto Rico Government Development Bank was most valuable. Considerable help was provided by Dr. Rafael Pico,. President of the Puerto Rico Government Development Bank; Mr. Miguel % Barasorda, Director, Division of Facility Development, Department of Tourism; Mr, Roberto Bouret, Executive Director of the Puerto Rico Hotel Association; and Miss Mirsonia Rivera Boucher, economist, Office of Eco nomic Research, Economic Development Administration. The names of other Puerto Rican people who have made significant contributions to this study are too numerous to list. My adviser, Dr. John R. Randall, deserves special thanks for his advice and patience. Also, I am grateful to Dr. Edward J. Taaffe and Dr. George P. Patten for their comments and suggestions. The drafting work of Mr. Terry Campbell and Mr. Richard Cotterman is appreciated very much. The criticism s and suggestions of colleagues, Dr. Stanley D. Brunn and Dr. James 0. Wheeler have been very helpful. Dr. Wheeler's assist ance on the quantitative technique used in Chapter II warrants separate m ention. Most of all, I am grateful to my family for their encouragement, patience and faith. i i February 25, 1935 Born - Chicago, Illinois 1957 B.S., Indiana University, Bloomington, Indiana 1958 M.A.T., Indiana University, Bloomington, Indiana 1959 Map Compiler, United States Army, Corps of Engineers 1959-1960 Public School Teacher, Palos Park, Illinois 1960-1961 Public School Teacher, Hammond, Indiana 1961-1962 Graduate Assistant, Department of Geography The Ohio State University, Columbus, Ohio 1962-1963 Assistant Instructor, Department of Geography The Ohio State University, Columbus, Ohio 196b Field Work, Commonwealth of Puerto Rico 196^-1966 Instructor, Department of Geography, The Ohio State University, Columbus, Ohio MAJOR FIELDS OF STUDY Political-Cultural Geography Political-Economic Geography Geography of Latin America CONTENTS Page ACKNOW1EDGEMENTS VITA i i i TABLES v i ILLUSTRATIONS v i i CHAPTER I INTRODUCTION 1 Rationale for Studying Government and Tourism • • . • 1 Geographic Framework......................................... * ...................... ^ Research Design ................................... 5 Background Developments ................................................... 6 I I GOVERNSffiNT INFLUENCE ON THE GROWTH RATE OF THE TOURIST INDUSTRY 17 Part I Activities of Government Agencies .............................18 Economic Development A dm inistration ......................................18 Department of Tourism .................................................................19 P uerto R ico I n d u s t r i a l Development Company . 32 Ports Authority .............................................................. * 37 Office of Information ..................................................... 38 Office of Economic Research ................................... UO Government Development Bank ................................... UO Office of Industrial Tax Exemption ...................................... h3 Parks and Recreation Adm inistration ......................................U5 Institute of C ulture ..................................................................... U7 Department of H ealth ...................... U8 Planning B oard ...................................................................................U9 Tertiary Agents................................................................................... J?2 Part II Growth Rate of the Puerto Rico Tourist In d u s try ••••*•••••••••••*••••• $7 Part III The Interrelationship between the Govern ment Programs and the Growth of to u ris m ............................. 72 Non-Governmental .............................................................. 73 Government Programs ..........................................................................77 Sum m ation ............................................................................ 86 I I I GOVERNMENT INFLUENCE ON THE LOCATION OF THE TOURIST INDUSTRY..................................* ........................................87 Part I Activities of Government Agencies ............................. 88 Economic Development A dm inistration ................................ 88 Department of Tourism ........................................................... 88 i v Puerto Rico Industrial Development Comoany 92 Other EDA Offices ................................ 93 Industrial Tax Exemption Office • . 9h Government Development Bank • . • • 9h Planning Board • • • • • ................... 99 Department of Public '.Yorks . • • . 98 Parks and Recreation Administration 99 Part II The Areal Pattern ................... 203 Part III Analysis of the Areal Pattern and Government A ctivities ....................... 110 S um m ation ................................ .......................... llU IV GOVERNMENT INFLUENCE ON THE QUALITY OF THE TOURIST INDUSTRY 118 High Level of S anitation .......................................................120 YJide Range of Prices ............................... 122 Complete Honesty in G am bling .............................................. 128 F irst Class Standards of Service and Accommodation 231 Preservation of a Native Style Tourism ........................ 139 Summation ..... ................................ .. 1L2 V SUMMARY AND CONCLUSIONS lhh Synthesis of Findings .............. llili Recommendations for Future Government Action . 1U9 Future Investigations . ................... ••••.. 1L7 APPENDIX 190 SELECTED BIBLIOGRAPHY 163 TABLES T able Page 1 Hotels and Guest Houses Assisted by the Commonwealth Government 2U 2- Restaurants Assisted by the Commonwealth Government 26 3 Annual Number of Graduates from the Puerto Rico Hotel School 28 U Expenditures of the Department of Tourism, 1953-196U 30 Pridco Tourist Loans 3U 6 Government Development Bank Tourist Loans h2 7 GDB Loans for the Restoration of Old San Juan h 2 8 Expansion of Highways in Puerto Rico $3 9 Occupancy Rate for Tourist Hotels in Metropolitan San Juan 82 10 Comparative Hotel Occupancy Rates for Puerto Rico and Florida 82 11 Gambling Zone D ifferentials 90 12 Summation of Tourist Industry Growth Pattern 112 13 Average Room Rates 125 H i Some Common Commercial Entertainment Found at Resort Areas 139 v i ILLUSTRATIONS F ig u re Page 1 Number of Visitors, 19lt7-196h 98 2 Cruise Ships and Passengers, 1991-196U 60 3 Non-Resident Tourist Days, 19U7-196U 61 h V is ito r E x p e n d itu re s, 19U7-1961* 62 9 Investment in Tourist Facilities, 19U8-1963 6U 6 Number of Tourist Class Hotel Rocms, 19U9-196U 69 7 Growth of Tourist Hotels, 19U9-196U 66 8 Number of Restaurants, G ift Shops and Car Rental Establishments, 19U9-196U 67 9 Hotel Employment, 1999-196U 69 10 Costs and Benefits of Tourism, 1991-1963 70 11 Annual V isitors to Selected Caribbean Islands 76 12 Origin and Amount of Investment for Tourist Facilities, 19U9-1963 80 13 Growth of Non-Resident Tourists and Available Rooms, 19U9-196U 83 Hi Cumulative Growth of Tourist Investment, 1990-1963 8U 19 licensing Zones for Gambling Casinos 91 16 Tax Exemption Zones, 1961-1963 91 17 Tax Exemption Zones in Effect since June 13, 1963 91 18 Area Affected by Resolution P-lli8 97 19 Proposed La Ruta Route 100 20 Fomento Recreativo Development Projects 101 21 Room Increases According to Location 101* 22 Growth of Tourist Hotel Rooms According to Location 109 23 Proportional Location of Hotel Rooms 106 v i l 2k T o u ris t H otel Rooms* 1950 107: 25 Tourist Hotel Rooms, 1957 107 26 Tourist Hotel Rooms, 196U 107 27 Guest Registrations for Selected San Juan and Island Tourist H o tels 108 28 Employment in Hotels According to Location 109 29 Comparative Occupancy Rates for Hotels in San Juan and Those on the Island 115 30 Animal Tourist Expenditures Her Day, 19h7-196L 126 31 Income Levels of Non-Resident Hotel V isitors 127 32 Condominium Construction in San Juan, 1961-1961* 111 v i i i CHAPTER I INTRODUCTION i Rationale for Studying the Influence of Government on the Development of Tourism The potentialities of tourism as a contributor to national economies * have been recognized by many economists and political institutions. Inter national organizations such as the United Nations, the Pan American Union and the Caribbean Commission have sponsored numerous conferences and studies in order to facilitate the growth of regional and worldwide touristytrade. Many Caribbean Islands have benefited from the develop ment of their respective tourist resources. Currently, efforts are under way to develop these resources more fully and profitably. Several factors favor the development of tourism as a supplement to the underdeveloped economies of the Caribbean. Few Caribbean Islands are endowed with mineral resources.