Puerto Rico Financial issues

I wonder if the financial troubles that Puerto Rico is presently having affect the port for future cruises this year. Will the san juan stores be open? Tours? etc

I wonder if the financial troubles that Puerto Rico is presently having affect the port for future cruises this year. Will the san juan stores be open? Tours? etc

Everything will be fine. I think the local government may raise some taxes...but it will not affect future cruises. The government is in a tough spot. Tourism is the major economic activity, and they must compete with other Caribbean destinations on price/value.

Not worried at all. Island is not about to just close up.

May not spend as much since the sales tax was raise to 11.5%. that is a little high.

May not spend as much since the sales tax was raise to 11.5%. that is a little high.

True. But if you really go on a spree you can solve the crisis single-handed. Be a hero!

Everything will be fine. I think the local government may raise some taxes...but it will not affect future cruises. The government is in a tough spot. Tourism is the major economic activity, and they must compete with other Caribbean destinations on price/value.

Although we love tourists and the tourism business they bring, the industry accounts for only 6% of our GDP. So, no. Tourism is not the major economic activity here. Having said that, we're are trying to increase that to at least 10%.

Except for a sales tax increase (which in theory visitors shouldn't pay as their purchases are for export), you should see no effect in your tourism experience in Puerto Rico. The two top attractions (El Yunque and the San Juan National Historic Site) are run by the U.S. Federal government. The main international airport is run by a private company.

This "financial crisis" in reality is just a central Puerto Rican government liquidity problem.

Except for a sales tax increase (which in theory visitors shouldn't pay as their purchases are for export), you should see no effect in your tourism experience in Puerto Rico. The two top attractions (El Yunque and the San Juan National Historic Site) are run by the U.S. Federal government. The main international airport is run by a private company.

 

This "financial crisis" in reality is just a central Puerto Rican government liquidity problem.

Okay, so let's say I want to go on a food tour. Are the restaurants still open? The news reports are that employees are being cut for every business. The population is dwindling because people are moving to New York and Florida. I have to wonder if the closing of schools and increased poverty will cause an upswing in crime against tourists?

Of course, I'm not there, so please understand that this is what's being reported in the media.

http://www.businessinsider.com/misery-is-deepening-in-puerto-rico-2015-8

Okay, so let's say I want to go on a food tour. Are the restaurants still open? The news reports are that employees are being cut for every business. The population is dwindling because people are moving to New York and Florida. I have to wonder if the closing of schools and increased poverty will cause an upswing in crime against tourists?

 

Of course, I'm not there, so please understand that this is what's being reported in the media.

 

http://www.businessinsider.com/misery-is-deepening-in-puerto-rico-2015-8

We just came back a few weeks ago. If you didn't know there was a crisis, you would not be able to tell. The one crisis you can see is the drought.

I know Aviator can be more clear, but the private sector is doing fine.

Okay, so let's say I want to go on a food tour. Are the restaurants still open? The news reports are that employees are being cut for every business. The population is dwindling because people are moving to New York and Florida. I have to wonder if the closing of schools and increased poverty will cause an upswing in crime against tourists?

 

Of course, I'm not there, so please understand that this is what's being reported in the media.

 

http://www.businessinsider.com/misery-is-deepening-in-puerto-rico-2015-8

I saw that article earlier today. It's full of dramatic generalizations but very little substance. Yes, Puerto Rico has been in an economic recession since 2006, and it shows. But businesses that have endured the recession remain strong (including mine). Yes, our population is down from its recent peak, but we are still "overpopulated" according to some standards. There's not a shortage of labor, that's for sure. Crime is actually down from some disturbing trends from 2010- 11 that were thankfully reversed in time. If you read travel reviews for Puerto Rico from 2006 to today, they will actually sound a lot better than reviews from before 2006. Why? I'm not sure, but I dare say that our main attributes, the ones that make Puerto Rico attractive to over 5 million visitors every year remain intact. This is government liquidity problem. Same thing that's happening in Chicago and New York City, except that we have acknowledged the problem. In fact, Puerto Rico's current debt is about 70% of GDP. If I were you, I would be worrying more about the U.S. Debt, which stands now at over 104% of GDP. The only difference is that you can print more worthless paper money. We can't.

Thank you for your concern.

I think the biggest hits from this financial "crisis" for mainland based folks will be to holders of state specific muni bond funds in high tax states, were portfolio managers reached for yield when the bonds from the "home" state were too rich or not in enough supply. For people on the island, it'll be higher taxes, less employment and maybe higher utility costs ( bond settlements have a habit of getting pushed through to consumers one way or another). For tourists, not spending their muni fund $ on the trip, I doubt if you'll see any effect. Look at Greece. The country and its citizens were/are reeling and on the verge of a deep depression, but those crazy European (and some US) tourists are still flocking there.

Aromas is one of my favorite restaurants in Old San Juan, so I am saddened to read his business is suffering. This restaurant is a stop on some of the food tours.

Hope to eat there when I visit next month.

Tourism is one of Puerto Rico's biggest revenue driver. All tourist related facilities will be operating same as always.

I think the biggest hits from this financial "crisis" for mainland based folks will be to holders of state specific muni bond funds in high tax states, were portfolio managers reached for yield when the bonds from the "home" state were too rich or not in enough supply. For people on the island, it'll be higher taxes, less employment and maybe higher utility costs ( bond settlements have a habit of getting pushed through to consumers one way or another). For tourists, not spending their muni fund $ on the trip, I doubt if you'll see any effect. Look at Greece. The country and its citizens were/are reeling and on the verge of a deep depression, but those crazy European (and some US) tourists are still flocking there.

:confused: Why not go to Greece now? It's a fantastic place to visit. The history, the Acropolis, the Platka, the food, the weather, the people........... the list of reasons to visit Athens/Greece is lengthy. We visited three times and I'd go back happily.

:confused: Why not go to Greece now? It's a fantastic place to visit. The history, the Acropolis, the Platka, the food, the weather, the people........... the list of reasons to visit Athens/Greece is lengthy. We visited three times and I'd go back happily.

 

No reason not too. The point of my comments was that the Greek Financial crisis has had no impact on tourism and little impact on tourists, and it certainly didn't scare anyone away.

Puerto Rico is fine! Everything normal. I live here. Best restaurants, sites and fun!