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CARIBBEAN: Puerto Rico losing share of tourist market

The Associated Press

October 15, 2006

More vacationers are choosing to wile away their Caribbean holidays in the Dominican Republic and other Caribbean destinations rather than Puerto Rico, an industry group in the U.S. territory says.

Puerto Rico, which was the region's most popular vacation spot for four decades, until the island recently lost its top rank to the Dominican Republic, has not worked to increase the number of hotel rooms or tourism jobs, according to a study commissioned by the Puerto Rico Hotel and Tourism Association.

"Our focus now is on acting and working jointly with all of the industry's components ... to develop a first-rate product that can help Puerto Rico regain its leadership as a tourist destination in the Caribbean," said Wilhelm Sack, outgoing board chairman of the 500-member association.

Puerto Rico's weak performance comes as other Caribbean nations with lower operating costs are successfully courting travelers - including a growing number of new upscale vacationers - and investing significant resources to enhance their tourism infrastructure and hotel room counts, according to the study.

The Dominican Republic, which leads the Caribbean with 674 hotels offering nearly 60,000 rooms, has earmarked money for developing beaches, new golf courses, all-inclusive resorts and other attractions. Meanwhile, the tourism sector in Puerto Rico, which has 12,700 rooms in 145 hotels, has remained largely stagnant, officials said.