Caribbean Hospitality After COVID: Reimagining Travel for a New Era

Headshot of Brad Dean

Caribbean Hospitality After COVID: Reimagining Travel for a New Era

In the spring of 2020, the global hospitality industry came to an abrupt halt.

Borders closed. Airlines grounded their fleets. Cruise ships sat idle. Hotels that had welcomed guests for generations suddenly stood empty. For a region where tourism represents one of the largest contributors to GDP, employment, and foreign investment, the uncertainty was unlike anything the Caribbean had ever experienced.

While much of the industry focused on managing the immediate crisis, AG&T believed it was equally important to begin asking a different question:

What would Caribbean hospitality look like after COVID?

To help answer that question, AG&T partnered with the Urban Land Institute Caribbean Council to launch a series of thought leadership conversations featuring many of the region’s leading voices in tourism, finance, hospitality, manufacturing, and economic development.

One of the most memorable discussions featured Brad Dean, then CEO of Discover Puerto Rico, Puerto Rico’s Destination Marketing Organization.

Rather than focusing solely on the challenges of the pandemic, the conversation explored how the industry could emerge stronger, more resilient, and better prepared for the future.

Brad Dean offered a perspective that has become increasingly relevant in the years since.

“This downtime gives the travel industry our George Bailey moment. We have all seen that without travel it’s pretty ugly. There is far greater value to travel than most of us ever realized. Travel lifts spirits. It connects people. It leads to progress.”

Those words resonated deeply throughout the Caribbean.

Travel is more than hotel occupancy or airline arrivals. It supports small businesses, restaurants, taxi drivers, artisans, tour operators, construction workers, architects, engineers, farmers, entertainers, and countless entrepreneurs whose livelihoods depend upon a vibrant visitor economy.

The pandemic reminded us that hospitality is not simply an industry—it is an ecosystem.

Creating Dialogue During Uncertainty

Throughout the pandemic, AG&T recognized that one of the greatest needs facing the Caribbean was the exchange of ideas.

As uncertainty grew, we brought together leaders from government, international finance, hospitality, manufacturing, infrastructure, and development to discuss not only recovery, but the long-term future of the region.

These conversations explored topics including:

  • The future of Caribbean hospitality

  • Tourism recovery strategies

  • Public-private partnerships

  • Sustainable destination development

  • Capital markets and investment

  • Resilient infrastructure

  • Manufacturing and supply chains

  • Puerto Rico’s role within the U.S. economy

  • The evolution of luxury hospitality

The objective was never simply to host webinars.

It was to create a forum where industry leaders could share ideas, challenge conventional thinking, and help shape the future of Caribbean development.

From Recovery to Renaissance

Looking back, many of the themes discussed during those early conversations proved remarkably accurate.

The Caribbean has experienced one of the strongest tourism recoveries anywhere in the world. Puerto Rico has reached record visitation levels, international hospitality brands continue expanding throughout the region, luxury resort development has accelerated, and institutional investment has returned to Caribbean hospitality with renewed confidence.

Today’s hospitality industry is fundamentally different from the one that entered 2020.

Developers place greater emphasis on wellness, sustainability, outdoor experiences, resilient design, mixed-use destinations, branded residences, and authentic cultural experiences. Investors have also recognized that the Caribbean’s long-term fundamentals—including strong tourism demand, limited luxury inventory, and growing global interest in experiential travel—remain exceptionally compelling.

AG&T’s Commitment to Caribbean Thought Leadership

For AG&T, these conversations reflected our broader mission.

As a Caribbean real estate development and capital advisory firm, we believe that leadership means more than executing successful projects. It means creating opportunities for dialogue, sharing knowledge across markets, and connecting investors, developers, hospitality brands, government leaders, and financial institutions throughout the Caribbean and the mainland United States.

Whether through our work with the Urban Land Institute, partnerships with Bisnow, industry conferences, investor forums, or conversations with leaders such as Brad Dean, AG&T remains committed to advancing ideas that strengthen Caribbean hospitality and encourage long-term investment across the region.

The pandemic tested every assumption about travel.

It also reminded us why travel matters.

Because hospitality is ultimately about people—and the connections that bring communities, cultures, and economies together.

 

Manufacturing 2.0 with Manuel Laboy

Puerto Rico's Economic Transformation: A Conversation with Secretary Manuel Laboy

 Economic development is driven by leadership, vision, and the ability to anticipate where investment is heading.

 

In this exclusive interview, Manuel Laboy, then Secretary of the Puerto Rico Department of Economic Development and Commerce (DEDC), shares his vision for positioning Puerto Rico as one of the most competitive jurisdictions in the Americas for manufacturing, life sciences, logistics, and industrial investment.

Our discussion explores many of the initiatives that were reshaping Puerto Rico’s economy, including the expansion of pharmaceutical and medical device manufacturing, Opportunity Zones, public-private partnerships, tax incentives, infrastructure investment, and regulatory reforms designed to attract new private capital. Secretary Laboy also discusses the significance of new legislation affecting foreign cargo and why he viewed it as a potential game changer for the island’s long-term competitiveness.

For AG&T, interviews such as this are part of our ongoing commitment to understanding the policies, market dynamics, and public-sector initiatives that influence real estate and economic development throughout the Caribbean.

Our longstanding relationships with government leaders, institutional investors, developers, and financial institutions allow us to provide clients with perspectives that extend beyond individual transactions. By engaging directly with the people shaping economic policy, we help clients better understand the opportunities, challenges, and strategic direction of the markets in which they invest.

Whether advising on industrial development, mixed-use projects, hospitality, or large-scale investment opportunities, AG&T believes informed decisions begin with informed conversations.

Watch the interview with Secretary Manuel Laboy to gain insight into Puerto Rico’s economic development strategy and the policies that continue to influence investment across the island.

Section 936 and the Case for Reinvesting in Puerto Rico’s Manufacturing Base

Zaida Feliciano Queens College

Section 936 and the Case for Reinvesting in Puerto Rico’s Manufacturing Base

 

The repeal of Section 936 remains one of the most consequential economic policy decisions of the last three decades. It hollowed out Puerto Rico’s manufacturing base, precipitated a fifteen-year economic crisis on the island, and — critically for U.S. supply chain security — pushed critical manufacturing offshore to Mexico, Ireland, Latin America, and China.

Understanding this history is essential to understanding the opportunity Puerto Rico presents to institutional capital today.

What Section 936 Was

Section 936 of the U.S. Internal Revenue Code, enacted in the 1970s, provided federal tax credits to U.S. corporations operating in Puerto Rico. It was designed to encourage industrial investment on the island, and it worked. By the mid-1990s, Puerto Rico had become one of the world’s most concentrated centers of pharmaceutical manufacturing, biomedical devices, and precision industrial production.

The incentive was phased out beginning in 1996 and fully eliminated by 2006.

The Consequences

In their landmark National Bureau of Economic Research paper, “U.S. Multinationals in Puerto Rico and the Repeal of Section 936 Tax Exemption for U.S. Corporations,” economics professor Zadia Feliciano of Queens College and co-author Andrew Green analyzed the effects of the phase-out on Puerto Rico’s manufacturing sector — measuring the impact on establishments, value added, employment, and wages.

Their findings quantified what the island already knew:

  • Manufacturing employment declined sharply
  • Multinational corporations relocated production offshore
  • Wages compressed
  • The island entered what would become a decade-and-a-half of negative economic growth

The consequences extended beyond Puerto Rico. Critical U.S. supply chains — pharmaceutical ingredients, medical devices, protective equipment — moved to foreign jurisdictions where the U.S. government has neither regulatory oversight nor security guarantees.

Why This Matters Now

The Food and Drug Administration has repeatedly expressed concern about U.S. dependence on foreign medical supply chains — particularly on China. Recent geopolitical shifts have accelerated the reshoring conversation across pharmaceutical manufacturing, semiconductors, and defense-critical industries.

Puerto Rico is uniquely positioned to answer that call.

The infrastructure remains in place:

  • 49 FDA-approved pharmaceutical plants currently operating on the island
  • 25% of all U.S. pharmaceutical exports are produced in Puerto Rico — more than any state
  • Cold-chain logistics infrastructure already built out for high-value pharmaceutical exports
  • A workforce experienced in regulated manufacturing — decades of institutional knowledge that cannot be quickly rebuilt elsewhere

For institutional capital thinking about industrial reshoring, Puerto Rico offers something no other jurisdiction can: existing FDA-registered facilities, an experienced labor force, and U.S. jurisdiction — with the potential for renewed federal incentive frameworks.

The Forward Case

The manufacturing tax framework that supported Puerto Rico’s rise has been replaced in part by newer instruments — Act 60, Opportunity Zones, and various targeted incentives. But none has fully restored the strategic advantage Section 936 provided.

For allocators, developers, and policymakers, the question is no longer whether critical manufacturing should return to U.S. soil. That consensus has largely formed. The question is where.

Puerto Rico’s answer: infrastructure is already here, workforce is already trained, regulatory jurisdiction is already U.S.

The learning curve for a company evaluating pharmaceutical production in Puerto Rico is dramatically shorter than for any other U.S. region.

AG&T’s Perspective

At AG&T, we have advised on Caribbean development for nearly three decades — through the pre-936 boom, the post-repeal contraction, the 2017 hurricanes, and the current recovery. We have watched capital allocation cycles play out in real time.

Our conviction is straightforward: Puerto Rico’s manufacturing base is a strategic U.S. asset that has been consistently undervalued. As institutional capital rethinks supply chain resilience, ESG alignment, and long-term industrial strategy, the island’s mature manufacturing ecosystem deserves renewed attention.

The next generation of U.S. industrial policy will be shaped by decisions made in the next five to ten years. Puerto Rico should be central to that conversation.

AG&T is a Caribbean real estate capital advisor founded in 1998. Principal-led, AG&T has been involved in over 55 development projects across Puerto Rico, Sint Maarten, Costa Rica, the Dominican Republic, and other Caribbean markets — connecting institutional capital with regional opportunity. Contact us to discuss Caribbean manufacturing, hospitality, and infrastructure investment.

 

Connecting Global Capital with Caribbean Opportunity

Connecting Global Capital with Caribbean Opportunity

For more than three decades, AG&T has helped position Caribbean hospitality and real estate projects before institutional investors, family offices, hotel brands, and international buyers from around the world.

Long before cross-border investment became commonplace in Caribbean real estate, AG&T recognized that the region’s most exceptional projects deserved a global audience.

One example was the 2017 China–Puerto Rico Investment Forum, where business leaders, institutional investors, government officials, and developers gathered in San Juan to explore investment opportunities throughout Puerto Rico. The conference reflected growing international interest in the island’s unique position as a U.S. jurisdiction with Caribbean geography, a sophisticated legal framework, and significant long-term development potential.

Representing AG&T, Adam Greenfader presented two of Puerto Rico’s premier hospitality developments—Royal Isabela Resort and Coco Beach Golf & Residences—highlighting the island’s emerging luxury hospitality market, expanding tourism industry, and opportunities for international investment.

The discussions extended well beyond individual projects. Investors were interested in understanding Puerto Rico’s competitive advantages, including its strategic location, access to the U.S. market, tax incentive programs, skilled bilingual workforce, and growing hospitality sector. For many attendees, Puerto Rico represented a gateway into both the U.S. economy and the broader Caribbean region.

For AG&T, participating in international investment forums has always been about more than marketing properties.

It is about building relationships.

Over the years, AG&T has worked with developers, institutional investors, family offices, hotel operators, lenders, and private equity groups throughout North America, Europe, Latin America, the Middle East, and Asia, helping connect Caribbean opportunities with global sources of capital.

Those relationships often continue long after the conference concludes.

In the case of Royal Isabela Resort, AG&T’s involvement ultimately extended beyond introducing the project to international investors. The firm later successfully represented the ownership in the sale of the resort, demonstrating that effective investment promotion is not simply about creating exposure—it is about delivering successful transactions.

Today, AG&T continues to advise hospitality owners, developers, and investors across Puerto Rico and the Caribbean, helping position projects for institutional capital, strategic partnerships, and long-term value creation.

Markets evolve. Sources of capital change. New investors emerge.

What remains constant is AG&T’s commitment to connecting exceptional Caribbean developments with the global investment community and helping create projects that strengthen local economies while showcasing the extraordinary opportunities the region has to offer.

Urban Land Institute SE Florida and Builders’ Association of Puerto Rico Join Forces

June 2016 – The Urban Land Institute (ULI) and the Builders’ Association of Puerto Rico (ACPR) met to discuss their new alliance for the South East Florida and Caribbean Region during the annual ULI Conference in Aventura, Florida.

“We are very excited to have the ACPR become part of our group. “Members of The Builders’ Association of Puerto Rico (ACPR) have for years taken leadership roles in both local and national committees”, expressed Julie Medley, Executive Director of The Urban Land Institute – SE Florida/Caribbean.

The ACPR has been Puerto Rico’s preeminent real estate organization for developers, investors and builders since 1951. The president of the Builders’ Association of Puerto Rico, Arch. Ricardo Alvarez Díaz, sees great opportunities in Puerto Rico today and is enthusiastic about this new alliance.   “The ULI is such an important organization in our industry and we are very enthusiastic about its incredible vision and resources,” expressed Arch. Alvarez Díaz.

“We are very committed to helping our members on both sides of the “pond” learn and be able to seize these opportunities, and it was for these reasons that we created the Florida Liaison Committee,” expressed Adam Greenfader, chairperson of the committee.

The ULI will be holding its Latin America Conference on October 5-7, 2016 for those interested in development in Puerto Rico and the Caribbean-LATAM region as whole. It will host top leaders and decision makers from hundreds of its ULI members and non-members who are active in the land use and real estate industry in South America, Mexico, the Caribbean, and Puerto Rico.

Please contact Adam Greenfader managing partner at AG&T for more information at 305.363.8833.