Puerto Rico Elects to be # 51?

The current territorial status received 1.3% (6,820) votes, independence 1.5% (7,773) votes, and 97% (502,375) votes for Statehood, according to the State Election Commission.

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This is the first time in Puerto Rico history that a Statehood referendum receives such an overwhelming majority of voters. 

 “The votes are what dictate what the steps to follow will be; in this case, a strong majority determined that we would reject the colony and favor statehood,” governor Ricardo Rosello said.

This process of petitioning Statehood will be effected under the “Tennessee Plan” whereby the governor will designate seven members to go to Congress and request Puerto Rico to become the 51st State.  

According to Resident Commissioner Jennifer González, the June 11, 2017 turn-out of 23% of registered voters (516,968) is in line with several states that were the last to achieved admission. 

  • Arizona – In 1911, a participation of 15,489 voters of a population of 217,000, for a 7% electoral participation.
  • Hawaii  – In 1940, 35% electoral participation.
  • Alaska – In 1946,  a participation of 16,375 voters of a population of 75,000, for a 21% electoral participation.  

 

 

 

 

Puerto Rico Has Higher Overall ADR and Occupancy than the Caribbean Market.

The Caribbean has seen five consecutive years of growth in occupancy, ADR, and RevPAR. The U.S. remains the largest feeder market.

A-Boutique hotel-01

 

It appears that even with the Puerto Rican debt crisis well underway, tourism has not been negatively impacted. This no doubt results from the economic strength of the mainland and its status as the primary source of Puerto Rico’s visitors.

The next charts display historical data for Puerto Rico and the overall Caribbean hotel market from 2010 to 2015, the most recent annual data available. General trends in occupancy, ADR, and RevPAR can be observed from these comparisons.

The past recession impacted the Caribbean and Puerto Rico to a significant degree. Declines were visible through 2010, but the market has seen strong gains since.

According to STR and CBRE Report, Puerto Rico followed this trend, with ADR growth fueling RevPAR gains in 2013, negating a slight decline in occupancy.

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Puerto Rico Vs. Caribbean RevPAR Trends

 

Conversely, Puerto Rico’s RevPAR gain in 2014 was driven by occupancy. It is important to note that Puerto Rico generally has higher overall ADR and occupancy than the Caribbean market average.

 

PUERTO RICO PUSHING FOR HANDS OFF REDEVELOPMENT

As Puerto Rico continues to work around the $70B public debt crisis that threatens its economy, the commonwealth’s governor, Ricardo Rossello Nevares, and another key economic development official are pushing for private development that could help tip the economic scales. Gov. Ricardo Rossello said the island nation is pushing public-private partnerships to help various redevelopments in the country that will ultimately lead to job creation. With the economic crisis, Puerto Rico’s unemployment rate topped 12% as of January.

“Open for business means we are going to foster economic growth and private investment,” said Manuel Laboy, secretary of economic development and commerce of Puerto Rico, during a Bisnow event focused on Latin American investment and development last week in Miami. “It means that the government needs to be out of the way.” Laboy said the government has targeted to grow tourism from being 7% of the total economy to 15% within five years. “That means that we’ll need more hotels. That means that we’ll need more facilities,” he said.

Neighborhood

Coco Beach Residences

Jay Smith, president of nFusion Consultancy, already is a believer in the Puerto Rico recovery story. His firm specializes in “broken” projects for a value-add play. “Those opportunities in the United States are virtually gone,” Smith said. “They are very thin.” The firm invested in Coco Beach, a 1000-acre oceanfront project that holds a 36-hole golf course that hosts the PGA tour. Smith told Bisnow in a previous interview that nFusion is marketing a development plan for a hotel and up to 1,000 homes as well as a small town center for a mixed-use community. “Ultimately, we’ll sell it or partner with a developer, most likely from the United States,” he said.

Because of the bond crisis, Smith said real estate values have bottomed out and are ripe for investing. That is helped by Puerto Rico having a seamless regulatory environment, much of which is run by U.S. government entities. “It’s a very similar and, seems to me, much less risky environment,” he said.

 

Puerto Rico Tourism Optimistic in 2017

SAN JUAN – Citing a 96% reduction in the number of new Zika cases since the peak in October, the Puerto Rico Tourism Co. (PRTC) is optimistic heading into 2017. The PRTC launched an educational outreach program in February to dissipate “the fears and communicate the real facts” about Zika, its newest press release reads. Collaborating with the Puerto Rico Hotel & Tourism Association (PRHTA) as well as Meet Puerto Rico, the PRTC presented it “Facts not Fear,” campaign. “Communicating the reality that Zika was not growing nearly as rapidly as the CDC had projected, the PRTC worked to change the Zika conversation, and emphasize the reality that reported cases are a fraction of what was projected. Cases are now at about 1 percent of Puerto Rico’s 3.5 million population versus forecasts that 25% of Puerto Ricans would eventually have the virus by the end of the year,” according to the Tourism Co.’s statement. “The dramatic decrease in the number of Zika cases in Puerto Rico is a testament to our integrated aggressive program to inform and disseminate the facts and allay the fears. The PRTC worked incredibly hard with the industry and health officials to communicate accurate and precise messages about Zika to the public,” Ingrid Rivera Rocafort, executive director of the PRTC, says in the published statement. “Ultimately, our team has been successful in not only educating our residents but protecting our visitors and our critical tourism industry.” Tourism annually contributes nearly $4 billion to Puerto Rico’s economy and was the first industry to come out of the island’s five-year recession, the public corporation explains in its release. “Since the start of Zika, total hotel registrations from Jan.-Sept. in 2016 are 1.6% above 2015 and 10 million passengers are expected to be welcomed by Puerto Rico airports by the end of 2016,” it reads.

Broadway star Chita Rivera, TV host Maía Celeste, baseball stars Carlos Correa and Iván Rodríguez, and Olympic gold medalist Mónica Puig also helped spread the word about how travelers can experience Puerto Rico worry-free. Medical influencers as well delivered the PRTC’s message. These included the late epidemiologist Dr. D.A. Henderson, scholar at the UPMC Center for Health Security in Baltimore, Maryland; Dr. Jason James, chief of obstetrics and gynecology at Baptist Hospital in Miami; and Dr. Joseph Rosado, a primary care and emergency care physician in Orange City, FL. In addition, the World Health Organization declared in November that the Zika virus was no longer considered an international public health emergency, the PRTC adds in its release. “Our collaborative efforts to date in 2016 have been effective in allaying fears, controlling Zika and the data backs it up,” notes Clarisa Jimenez, president and CEO of the PRHTA, assures in the written statement. “It is imperative that we keep our foot on the gas pedal and aggressively continue Tourism Co.:

A Fiscal Plan Towards Economic Recovery

Old San Juan

 

On October 14, the Commonwealth of Puerto Rico submitted its Fiscal plan. Here is my summary: 

Only with a change in federal policy and a change in the trajectory of the island’s economy toward real growth, will there be money for  debt service – while not jeopardizing the Commonwealth’s ability to provide essential services. 

 

  • U..S. citizens living in Puerto Rico must receive the same level of healthcare funding as citizens living in the 50 statesThe Commonwealth Can Achieve Efficiency Gains by Consolidating Overlapping Agencies and by Further Centralizing Procurement to Capture Cost Savings
  • Complete large-scale strategic projects to improve accesses and competitiveness including the Northwest Corridor (PR-22 highway from Hatillo to Aguadilla), the redevelopment of Roosevelts Roads, and the Caguas Commuter Rail
  • Position Puerto Rico as one of the premiere travel destinations of the world for local, domestic and foreign travelers by supporting the financing of 9 hotel construction projects currently on hold
  • Attract economic development, private investment, and tourism by expanding the Port of the Americas value added zone, improving the Aguadilla airport, and expanding the Panamericano docks to attract Quantum-like mega cruise ships.

 

 

Click here to see the Commonwealth of Puerto Rico Fiscal Plan : https://issuu.com/adamgreenfader/docs/fiscal_plan_v_final

Adam Greenfader Named Chairman Florida Puerto Rico Builders Association

Adam Greenfader
 
  San Juan, Puerto Rico Adam Greenfader was recently named Chairman of the Florida Liaison Committee of the Puerto Rico Builders Association (PR Builders Association). For over sixty years, the PR Builders Association has been the island’s leading professional construction and development group. The PR Builders is responsible for government lobbying and networking. The Builders Association consists of high-level professionals in the residential, hospitality, industrial and commercial sectors.

“We are honored to have Adam Greenfader chair this new committee. Mr. Greenfader has been part of our organization for many years, is a tested professional in both markets and has a wealth of knowledge that will be a great asset,” exclaims Arch. Ricardo Álvarez-Díaz, president of the Builders of Puerto Rico.

The Mission of the Florida Liaison Committee is to be a bridge between Florida and Puerto Rico. The goal is to support  builders, bankers, investors and other professionals. The committee aims to facilitate access to services, information, and key contacts. “Our goal is that the PR Builders Association is seen as a first and most important stop for anyone that wants to expand to either market,” says Adam Greenfader. In the last couple of years, with the passing of laws 20 and 22, Puerto Rico has seen a significant increase of interest from companies and individuals from the US mainland. There are also great opportunities for Puerto Rican companies that want to export their services and products, and use Florida as a first stepping-stone. The Florida Liaison team is in the process of developing key stakeholders relationships and organizing its events for 2016 in both Florida and Puerto Rico. If either you or your company is interested in participating, you may contact Mr. Adam Greenfader at adamgreenfader@gmail.com or call the Builders Association at 787.751.1471. Learn more about the Puerto Rico Builders association here.   
  San Juan, Puerto Rico Por más de sesenta años, la Asociación de Constructores ha sido el principal grupo profesional de construcción y desarrollo. Esta organización ha sido responsable de promover el intercambio de información entre desarrolladores, inversionistas, miembros asociados y profesionales, en el desarrollo y la construcción de Puerto Rico. La Asociación de Constructores consiste en profesionales de alto nivel en el sector residencial, hotelero, industrial y comercial.

“Nos sentimos honrados de tener a Adam Greenfader dirigiendo este comité. El Sr. Greenfader ha sido parte de nuestra organización por muchos años, y es un profesional con gran conocimiento de ambos mercados”, indica el Arq. Ricardo Álvarez-Díaz, presidente de la Asociación de Constructores de Hogares.

La misión del Comité de Enlace de la Florida es la de ser un puente entre la Florida y Puerto Rico, apoyando y anudando lazos y relaciones entre constructores, banqueros, inversionistas y otros profesionales en ambos países. El objetivo del comité es facilitar el acceso a servicios, información y contactos claves. “Nuestra meta es que la Asociación de Constructores de Puerto Rico sea vista como el primer y más importante paso para la persona y/o empresa que desee expandir su negocio a cualquiera de estos mercados”, explica Adam Greenfader. Durante los últimos años, Puerto Rico ha visto un aumento significativo en el interés de empresas e individuos del continente de los Estados Unidos con la implementación de las leyes 20 y 22. Existen además, grandes oportunidades para empresas puertorriqueñas que deseen exportar sus servicios y productos. Éstos ven a la Florida como un buen primer paso. El equipo del Comité de Enlace de la Florida está en proceso de desarrollar relaciones profesionales y organizar sus eventos para el 2016 en Florida y Puerto Rico. De estar interesado en ser parte del comité, puede contactar al Sr. Greenfader por correo electrónico adamgreenfader@gmail.com o llamar a la Asociación de Constructores al 787.751.1471.