caribbeanbusiness.pr THURSDAY, MARCH 1, 2012 WEEKLY $2.00 ©2012 CASIANO COMMUNICATIONS INC. RReservationeservation cconfirmedonfirmed SStringtring ooff nnewew hhotelsotels aandnd ddirectirect fl iightsghts ttoo ggiveive nnewew By John Marino llifeife ttoo PPuertouerto RRicoico ttourismourism pages 12-16 TOP STORY INSIDE SPECIAL FEATURE Paseo Caribe is Rise in U.S. economy, P.R. auto sales back, but this point to stronger local economy pages 10, 34 time, to sell units Historic summit kicks off energy-saving and complete revolution at government agencies page 35 construction New blockbuster pneumonia vaccine a page 2 big boost for the aged and Pfi zer page 38 Special Feature March 1,2012 Pages 21-29 For up-to-the-minute local, national, internationalernational and economic news in English, go to caribbeanbusiness.pr now on 12 CARIBBEAN BUSINESS THURSDAY, MARCH 1, 2012 Optimism returns as tourism & looks for growth again En la edición de MARZO, Buenavida te trae el recetario Manjares. Descubre por qué Puerto Rico se considera el destino máximo de la gastronomia caribeña. Industry champions push for more hotels, Los más reconocidos chefs se dan a la tarea de enaltecer la cocina boricua mediante las más suculentas recetas. Conoce además lo más novedoso en cruises and airlines, but presses to enact DMO plan productos, bebidas y enseres. BY JOHN MARINO with hotel earnings, visitor arrivals say new hotel investment of about Secretary José R. Pérez-Riera point- [email protected] and overall investment suffering. $1.5 billion will boost total hotel ed to the government’s “active” air Recently, however, the tourism sec- rooms on the island to the 15,000 and sea access program, the new ith more than a billion dol- tor has begun to shake off the bad mark and revamp the all-important cruise incentives law and the upcom- Wlars of new hotel projects in news with signs of improvement and luxury resort segment. ing concession for Luis Muñoz Marín the pipeline, and an aggressive push a growing confi dence that more posi- “We want to develop the cruise International Airport (LMMIA) as to attract more cruiseships and air tive developments lie ahead. sector, air access and our hotel room signs of that improvement. Búscalas en tu puesto de revistas favorito! routes to Puerto Rico, it’s looking “Puerto Rico’s position as the Puerto Rico government offi cials inventory,” said Puerto Rico Tour- * like government and private industry gateway to the Caribbean is being O suscríbete ahora mismo por solo $15.25 al año (12 ejemplares). fi nally mean business about grow- are trumpeting the fact that Puerto ism Co. Executive Director Mario strengthened,” he said. ing the island’s all-important tourism Rico sold 3.079 million hotel room González Lafuente. “It is an inte- While the Puerto Rico Hotel Llama hoy al: 787.728.7670 (Metro) ● 1.800.981.2185 (Isla, sin cargos) industry. nights last year, and hotel occupancy grated vision that looks to improve & Tourism Association (PRH- Like other sectors of the economy, averaged 69.6%, the highest rate on our tourism product overall.” TA) recognizes and supports the o visítanos en www.casiano.pr local tourism has taken its hits during record, according to the Government Economic Development & Com- *Impuestos incluidos Puerto Rico’s six-year depression, Development Bank (GDB). And they merce (DDEC by its Spanish initials) Continues on next page FRONT PAGE 13 CARIBBEAN BUSINESS THURSDAY, MARCH 1, 2012 Continued from previous page Poesia began making biweekly announcements in the near future, visits to San Juan as part of its East- Paige said, pointing to the passage government’s efforts to attract more ern Caribbean itineraries. of new cruise industry incentives last cruise and air connections, and spur Royal Caribbean has been evalu- summer and Puerto Rico’s hosting hotel development, its top official re- ating Ponce as a port in the Carib- of a major cruise convention later in iterated that the most important need bean, but no confirmation has been the year, which has generated a lot of the industry is a consistent mar- made regarding a set itinerary, while of excitement about the island within keting effort through the creation of the Fortuño administration has been the industry. a destination marketing organization working closely with the company to The October staging of the FCCA (DMO), an idea that was proposed make Pier 3 in Old San Juan compli- Conference was a “huge milestone” by Gov. Luis Fortuño at last year’s ant with its Oasis-class vessel. for the destination, Pérez-Riera said. tourism convention but hasn’t yet Meanwhile, the 4,000-passenger The government promoted cruise been followed up. The DMO would Disney Fantasy is slated to begin market improvements to all attend- be controlled by the private sector visiting San Juan later this year. ing cruiseline chief executives, in- and would avoid the problem of the Last month, Carnival said it would cluding Micky Arison of Carnival tourism industry campaign chang- move its 2,974-passenger Carnival Corp., Adam Goldstein of RCCL, ing every time a new administration Valor from Miami to San Juan next Richard Fein of RCL, Richard Sasso takes office. year, making it the newest and larg- of MSC, Kevin Sheehan of NCL and “We have to get to the root of the est ship ever to sail year-round out of Dan Hanrahan of Celebrity. problem and create demand for the the Puerto Rico capital, the company Paige said the cruise market suf- destination. Only professionally said. The move is part of the cruise fered over the past several years as designed programs by a DMO will accomplish this. Then a lot of these Mario González Lafuente, other things—more airlift, more Puerto Rico Tourism cruises and more hotel rooms—will Co. executive director fall into place,” said Ismael Vega, PRHTA board president. “This isn’t to criticize the Tourism Co., which of these were visitors on homeport has done great campaigns and jobs ships. Homeport visitors typically under different administrations. It is spend more and often combine their just that we need consistency, and cruise with a hotel stay on the is- we need tourism industry executives, land. In the first 11 months of 2011, with many years of worldwide tour- some 972,065 cruiseship visitors ism experience, creating and over- visited Puerto Rico, but 460,510 of seeing these campaigns.” these were on homeport vessels. The However, despite the continuing FCCA had estimated that a total of challenges facing tourism, many 1.17 million cruise passengers vis- in the industry are expressing op- ited Puerto Rico last year. industry leader’s strategy to boost its the local Ports Authority raised fees timism regarding efforts to attract During the current fiscal year end- presence in the Southern Caribbean without improving its facilities or more cruises and airlines and boost ing June 30, total cruiseship passen- in 2013. It will replace the smaller, service, and the private sector also the island’s hotel inventory. gers are expected to increase 9% to 2,758-passenger Carnival Victory, failed to invest in its product in the 1,272,741, according to the DDEC. which will move to Miami. false belief that the cruiselines would SHIFTING INTO CRUI S E CONTROL A 25% increase in in-transit passen- “This is a good indication that the continue to come regardless. Nowhere is the enthusiasm more ger movement stems from increased cruise industry is moving in the right Today, she sees a different palpable than in the cruiseship mar- calls by Norwegian Cruise Lines, direction in Puerto Rico,” Pérez-Ri- attitude. ket, which appears to be on the re- Holland America, MSC and Carnival era said of the announcement. “We have an excellent relation- bound after years in decline. Over- Cruises, according to the DDEC. Puerto Rico’s $245 million cruise ship,” she said. “Puerto Rico has all cruiseship visitors are still down Last year, Puerto Rico welcomed industry brings in nearly 1.2 million set the stage with the new cruise from their peak in 2007, according to a brand new ship whose itinerary passengers per year and promotes incentives. All the executives were official statistics, but there has been included San Juan, the Celebrity more than 4,000 direct and indi- very impressed and enthused. There a big surge in passengers in the all- Silhouette, as well as the inaugural rect jobs on the island, according to are going to be many positive de- important homeport cruiseship seg- berth of the luxury Azamara Journey. the DDEC. A cruiseship carries an velopments from the convention. ment over the past two years. The Celebrity Eclipse also recently average 2,550 passengers and 480 There is now mutual respect and “The proof is in the pudding. made its inaugural call and has now crewmembers, who spend a total of appreciation.” Cruiselines are coming back to regularly scheduled visits to San $285,773 during a port-of-call visit, The incentives (see sidebar) are a Puerto Rico, or they are substitut- Juan. according to the FCCA. Passengers model for other destinations to fol- ing bigger ships for smaller ships,” This year, the luxury line Sea spend about $100 apiece, while low, Paige said. said Michelle Paige, president of the Dream Yacht Club has expanded crewmembers about $150. Puerto Rico has taken other steps to Florida-Caribbean Cruise Associa- its San Juan homeport itineraries The government of Puerto Rico is bolster relations with the industry. tion (FCCA). “There is a lot of en- to include different stops in Puerto also negotiating with a number of These include resolving an eight- thusiasm in the pipeline.” Rico such as Fajardo, Ponce, Caja cruiselines to bring new business or year-old legal case with Carnival In 2007, there were 1.437 million de Muertos and Mayagüez, as well expand their presence here, officials Corp.