Puerto Rico has long been celebrated as a premier travel destination, thanks to its rich history, stunning natural landscapes, vibrant culture, and strategic location as a gateway between North America, Latin America, and the Caribbean. But beyond its appeal to vacationers, the island offers an unparalleled investment opportunity in the tourism and hospitality sector. With a rapidly growing industry, competitive tax incentives, and a government committed to fostering business development, Puerto Rico is an ideal location for companies looking to thrive in this dynamic space. 

A Thriving and Expanding Industry

Puerto Rico’s tourism and hospitality sector has demonstrated remarkable growth in recent years. Notably, Puerto Rico leads the Caribbean in attracting international tourists, accounting for nearly 64% of global tourist arrivals, surpassing destinations like the Dominican Republic and the Bahamas. In 2024 alone, the industry saw significant advancements from the previous year: 

• Lodging revenue increased by 9% 

• Visitor spending rose by 4%, reaching a total of $2.5 billion 

• Air passenger arrivals grew by 9% 

• Lodging demand increased by 7% 

These statistics underscore a robust upward trajectory fueled by strong visitor interest and strategic investments. The island’s appeal spans a diverse range of travelers, from luxury tourists to eco-adventurers, ensuring steady demand across various market segments. 

Competitive Advantages for Investors

Puerto Rico stands out among global tourism destinations due to its unique blend of natural and cultural assets, modern infrastructure, and business-friendly policies, gaining international recognition. Recently, the U.S. Department of Commerce named the island the fastest-growing U.S. jurisdiction in visitor numbers since 2020, and the United Nations (UN) ranked Puerto Rico the second destination in the world with the highest growth in post-pandemic tourist arrivals, with only Qatar ranking higher.  

These recognitions further underscore the island’s appeal and competitive advantages, which include:  

• Unparalleled Incentives under the Puerto Rico Incentives Code (Act 60), offering: 
  • 4% corporate tax on eligible income 
  • Up to 75% exemption on real estate, personal property, and municipal taxes
  • 50%-75% salary coverage for on-the-job training via the Workforce Innovation and Opportunity Act (WIOA) 
  • Up to 100% exemption on taxes for construction materials and operational goods 
• Global Connectivity, with over 120 daily nonstop flights to major cities in the U.S., Europe, and Latin America, makes it one of the most accessible Caribbean destinations. 
• World-class infrastructure, including modern airports, ports, and over 160 hotels featuring brands like Ritz-Carlton, St. Regis, Hyatt, Hilton, Marriott, Fairmont, and more.  
• A Skilled, Bilingual Workforce with extensive experience in hospitality, known for delivering exceptional guest experiences. 

For many investors, these incentives are game-changers, allowing them to elevate their projects beyond what would have been possible elsewhere. 

Major Investment Driving Growth

As Puerto Rico continues to attract more visitors, the hospitality sector is evolving to meet rising traveler expectations. Recent high-profile projects demonstrate the confidence that global hospitality leaders have in Puerto Rico’s potential, aligning with global trends in luxury and sustainable tourism: 

• Mandarin Oriental is opening its first property in the western municipality of Cabo Rojo as part of the $2 billion Esencia resort development, which will establish a world-class residential and tourist destination. 

• Four Seasons will replace the St. Regis Bahia Beach Resort in Río Grande, positioning Puerto Rico as an ultra-luxury destination alongside Monaco and Miami. 

• Auberge Resorts Collection is developing Moncayo in the easter town of Fajardo, revitalizing over 1,100 acres with a luxury hotel and residences. 

• Hilton Hotels has multiple projects underway, including a dual-brand property in San Juan’s Convention District and the Hilton Garden Inn in Dorado. 

An Unmatched Visitor Experience

Puerto Rico’s tourism appeal is rooted in its unique offerings: 

• Natural Wonders: Home to El Yunque, the only tropical rainforest in the U.S. National Forest System, and three of the world’s five bioluminescent bays. 

• Cultural Richness: Visitors can explore Old San Juan, the oldest city in the Americas, and enjoy world-renowned cuisine that blends Taíno, African, and Spanish influences. Puerto Rico also boasts a thriving entertainment scene with numerous museums, exciting nightlife, live music venues featuring a complete spectrum of local and international rhythms, and cultural festivals that showcase the island’s dynamic heritage. 

• Pristine Beaches: With 300 beaches, including Flamenco Beach in the island municipality of Culebra, ranked among the world’s top 10. 

A Future Built on Collaboration and Innovation

Puerto Rico’s government and private sector work together to ensure the continued success of the tourism and hospitality industry. Public-private partnerships, workforce development programs, and targeted investments in infrastructure create an environment where businesses can thrive. From eco-tourism and luxury travel to MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism, the opportunities are vast and varied. 

Make the Move

Investing in Puerto Rico’s tourism and hospitality sector is not just a smart financial decision—it’s an opportunity to be part of the island’s transformation into a global destination for innovation, luxury, and cultural exchange. Discover how Puerto Rico’s unique value proposition can help your business succeed by reading through our Tourism and Hospitality sector overview.