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Showing posts with label obama. Show all posts
Showing posts with label obama. Show all posts

Wednesday, March 16, 2016

Will A New Cuba Hurt Puerto Rican Tourism?


Feature

Bill Alvarez

Old Havana, Cuba
Old Havana, Cuba
Source: Wikimedia
Varadero Beach, Cuba
Varadero Beach, Cuba
President Obama  surprised America and the world last year by revealing that he wants to start the process of normalizing relations with Cuba. This piece of news came shortly after the announcement that US contractor Alan Gross -- who had been held prisoner in Cuba for years -- was being exchanged for three Cuban spies who had been incarcerated in the US. This all represents a huge change in US-Cuba relations, which have been extremely strained -- to say the least -- since the communist takeover of the early 1960s. After more than 50 years of isolation, a trade embargo and practically no diplomatic contact between the two nations, Cuba now seems poised to further open itself to the world, especially to its giant, powerful neighbor to the north. Many Americans have been travelling to Cuba for years, although not officially as tourists. With an expected opening of Cuba-US trade and diplomacy, the number of Americans visiting Cuba will almost certainly skyrocket. But what does this mean for fellow Caribbean island Puerto Rico, and its tourism sector?
Puerto Ricans in the travel and tourism industries have long feared an "opening" of Cuba. Although seen by most as inevitable, such an opening always carried with it the threat of Cuba stealing whatever thunder Puerto Rico has as a Spanish-speaking, Caribbean destination. And there indeed are some real reasons to worry. If Cuba opens itself up to American tourism, visitors will find a destination with beaches, old buildings and natural attractions just as good as the ones in Puerto Rico, along with a great musical scene, cheap and delicious rum and premium coffee and cigars. And on top of that, everything will be cheaper than it is in PR. For the American tourist looking for a more "genuine" travel experience, Cuba offers practically no tacky American fast food joints or big box stores (for now!), relatively little crime or extreme poverty and a slower pace. As it is, millions of tourists from around the world already enjoy what Cuba has to offer. Cuba received 2.8 million tourists in 2013 (not counting any Americans or Cubans). While Puerto Rico received more visitors in 2013 (3.2 million), it did not have to deal with a commercial embargo, nor was it diplomatically isolated from much of the world. More ominously, in March 2014 (the most recent month for which we have data), Cuba received more visitors than Puerto Rico did (359,384 vs 182,599 arrivals). So you could say that the problems for PR on the tourism front have already started.
Luquillo, Puerto Rico
Luquillo, Puerto Rico
Old San Juan, PR
Old San Juan, PR
This is all not to say that Cuba does not face serious challenges, not only in the tourism sector, but across the board. Aging infrastructure is probably the largest obstacle. Also, some of that non-consumerist charm that Cuba has may also serve to repel certain potential visitors, especially convenience-conscious Americans, who expect destinations to have wifi, digital cable, 24 hour restaurants and other amenities. As tourism increases, a rise in crime and other social ills can also be expected, and to some extent this is already being seen. But can Cuba become a modern, state-of-the-art, world-class destination within the next decade? It absolutely can. And unless other Caribbean destinations like Puerto Rico can keep up, Cuba will steal a good part of their tourist arrivals.
Puerto Rico has long been trying to step up its tourism game, with mixed results. Unfortunately for the island, electricity costs have always been (and continue to be) relatively high, and labor costs are higher than in the rest of the area. Add to this potential visitors' concerns over the island's much-publicized imploding economy and its crime rate, and it's easy to see how someone trying to pick a Caribbean spot for vacation in the near future will find it easier to just choose Cuba. The one thing PR will still have over Cuba is that travel to the island from the US requires no passport (as it is a US territory) and American visitors can come with the knowledge that they have the safety of being under the US flag. That, however, doesn't seem to have helped PR take any tourist arrivals from emerging destinations like the Dominican Republic. While the tourism picture in Puerto Rico has shown some improvement, and continues to do so in some areas (cheaper real estate may be one driver), it's going to have to become very creative and diligent in the medium and long term in order to not lose scores of tourist arrivals to an ascendant Cuba. Whatever the case, Americans visiting the Caribbean in the following years will have one more option when choosing a destination.

Monday, October 26, 2015

The Obama Administration Has No Shame















Commentary

by Richard Lawless


The Obama administration along with leading democrats are preparing 
to throw tens of thousands hard working Americans under the bus. The 
Administration is pushing hard for bankruptcy protection for Puerto Rico. 

This action would allow the government of Puerto Rico to cancel all 
active contracts with American companies and better negotiate the is-
lands staggering debt with its bondholders. These hardworking Ameri-
can families played by the rules and risk their capital to do business 
in Puerto Rico.

It is estimated that there are between 30-40 billion dollars of active con-
tracts with the government of Puerto Rico.  How many American fami-
lies will be ruined by this?  How many hardworking Americans will lose 
their retirement funds when the island defaults on their bonds?

The administration says it does not matter.  What matters is the Puerto
Rican vote. There is no limit to what wealth the administration will des-
troy or American treasure it will give away to guarantee reelection.

Puerto Rico is one of the most corrupt countries in the world. There are 
so many investigations going on in Puerto Rico that most of the U.S. 
Government agencies are constantly adding to staff to keep up. It app-
ears that the DOJ has been asked to “slow walk” critical investigations 
into billions of dollars in Puerto Rico bond fraud and billions in stolen pu-
blic monies.  The administration cannot risk having these investigations 
get in the way of its efforts to win bankruptcy protection and additional 
taxpayer money for the island.


Richard Lawless is CEO of Commercial Solar Power, Inc. in Temecula, CA. The opinions expressed 
in the preceding commentary are exclusively his own.


Puerto Rico News Digest For October 26, 2015


WATER RATIONING OVER FOR LA PLATA





















Puerto Rico's water utility, AAA, has announced the end of  water
rationing for users served by the La Plata reservoir, due to heavy and
consistent rains over the area over the last few weeks. Rationing offi-
cially ended yesterday (Sunday), as rains over the weekend brought
the reservoir close to the point of overflowing. The Carraízo reser-
voir, which serves parts of the San Juan metro area along with La
Plata, had to have some of its floodgates opened to let out excess
water.


OBAMA RESCUE PLAN COULD EXCEED $5B/YEAR


From The San Juan Daily Star:

"The prospects for the Obama Administration plan moving forward
appear to be slim. The U.S. Treasury on Wednesday released a list
of proposals it wants Congress to enact to help the U.S. territory,
such as healthcare funding measures, tax and bankruptcy legislati-
on, and the earned income tax credit for residents. But without bi-
partisan support in Congress, Treasury is limited in what it can ach-
ieve, and anything that smells like a bailout for the island, struggling
with a $70 billion debt, is unlikely to get support, according to
Reuters..."


SECRETARY OF STATE BERNIER RESIGNS


From Caribbean Business:

"Puerto Rico State Secretary David Bernier announced Sunday that
his resignation will be effective Oct. 30. Bernier said, "I intend to as-
pire to elective office and I want my judgment and not a date to de-
termine my decision...As far as I'm concerned, I now have the nece-
ssary space, uninvolved with government to determine how I can ser-
ve the country," he said, emphasizing that he will not face the gover-
nor in the primaries, while also ruling out challenging Héctor O'Neill,
the mayor of Guaynabo, where Bernier resides..."


POPULAR & ORIENTAL REDUCE GOV'T EXPOSURE


From News Is My Business:

"Puerto Rico’s two largest banks — Banco Popular and Oriental —
confirmed separately on Friday that they’re working to reduce their
exposure to risk associated with the island’s government, which they
have financed in different capacities over the years. During discussi-
ons with analysts about their quarterly results, the top executives at
each bank said they are watching over the government’s declining li-
quidity and threat of a shutdown or default on its upcoming bond pay-
ments..."


Friday, October 23, 2015

Puerto Rico News Digest For October 23, 2015


FEDS RAID HOUSING PROJECT

















As reported this morning by El Nuevo Dia, federal agents have been
carrying out an operation since early this morning at Los Claveles
public housing project in Trujillo Alto. Agents are serving four sea-
rch warrants from the Immigration and Customs Enforcement agen-
cy (ICE). The operation has to do with drug trafficking and money
laundering, but ICE did not provide much in the way of further de-
tails, other than to say that illegal material was found among the
four apartments that were searched.  


PREPA TO PROPOSE 4 CENT RATE HIKE


From The San Juan Daily Star:

"The Puerto Rico Electric Power Authority (PREPA) plans to sub-
mit a new rate structure calling for a hike of around four cents, sour-
ces inside the utility said. The utility is still working on a study that
will help it decide what would be the appropriate rate. However, the
four-cent hike was the same as proposed by one of the utility’s insu-
rance companies. PREPA Chief Restructuring Offi cer Lisa Donahue
said on Tuesday that with the savings and cuts that have been made
at the utility, it expects to be able to submit a reasonable rate struct-
ure..."


SANDERS & WARREN BLAST VULTURE FUNDS


From News Is My Business:

"The two most prominent progressives in the U.S. Senate urged the
federal government Thursday to help Puerto Rico stand up against
the “vultures” they largely blame for the island’s current fiscal night-
mare. Sen. Bernie Sanders (I-VT), the chief rival of candidate Hilla-
ry Clinton for the 2016 Democratic presidential nomination, took ti-
me out of his packed campaign schedule to engage five witnesses —
including Puerto Rico Gov. Alejandro García-Padilla — who testifi-
ed at a hearing by the Senate Committee on Energy and Natural Re-
sources. Sanders, reeling off a raft of statistics on Puerto Rico’s de-
mographic and fiscal decline, called the island’s 56 percent poverty
rate among children a “human tragedy..."


OBAMA SEEKS BANKRUPTCY FOR PR


From The Chicago Tribune:

"President Barack Obama is pressing for Congress to give Puerto Rico
sweeping powers to reduce its $73 billion debt burden through bank-
ruptcy, escalating administration involvement as the Caribbean island's
access to cash dries up. Puerto Rico would be provided with a form of
bankruptcy protection not now available to American territories. Ad-
ministration officials also called for lawmakers late Wednesday to in-
crease health-care funding for Puerto Rico, extend tax credits to the
poor and put independent oversight in place to monitor the govern-
ment's budget..."


POPULAR POSTS $84.7 MILLION PROFIT


From Caribbean Business:

"Popular Inc. on Friday reported third-quarter net income of $84.7 mi-
llion. The Hato Rey, Puerto Rico-based bank said it had earnings of 82
cents per share. Earnings, adjusted for one-time gains and costs, were
90 cents per share. The a company that runs Banco Popular and other
banks in Puerto Rico and the U.S. posted revenue of $481.8 million in
the period..."


Wednesday, May 27, 2015

Will A New Cuba Hurt Puerto Rican Tourism?

Feature
Bill Alvarez

Old Havana, Cuba
Old Havana, Cuba
Source: Wikimedia
Varadero Beach, Cuba
Varadero Beach, Cuba
President Obama recently surprised America and the world by revealing that he wants to start the process of normalizing relations with Cuba. This piece of news came shortly after the announcement that US contractor Alan Gross -- who had been held prisoner in Cuba for years -- was being exchanged for three Cuban spies who had been incarcerated in the US. This all represents a huge change in US-Cuba relations, which have been extremely strained -- to say the least -- since the communist takeover of the early 1960s. After more than 50 years of isolation, a trade embargo and practically no diplomatic contact between the two nations, Cuba now seems poised to further open itself to the world, especially to its giant, powerful neighbor to the north. Many Americans have been travelling to Cuba for years, although not officially as tourists. With an expected opening of Cuba-US trade and diplomacy, the number of Americans visiting Cuba will almost certainly skyrocket. But what does this mean for fellow Caribbean island Puerto Rico, and its tourism sector?
Puerto Ricans in the travel and tourism industries have long feared an "opening" of Cuba. Although seen by most as inevitable, such an opening always carried with it the threat of Cuba stealing whatever thunder Puerto Rico has as a Spanish-speaking, Caribbean destination. And there indeed are some real reasons to worry. If Cuba opens itself up to American tourism, visitors will find a destination with beaches, old buildings and natural attractions just as good as the ones in Puerto Rico, along with a great musical scene, cheap and delicious rum and premium coffee and cigars. And on top of that, everything will be cheaper than it is in PR. For the American tourist looking for a more "genuine" travel experience, Cuba offers practically no tacky American fast food joints or big box stores (for now!), relatively little crime or extreme poverty and a slower pace. As it is, millions of tourists from around the world already enjoy what Cuba has to offer. Cuba received 2.8 million tourists in 2013 (not counting any Americans or Cubans). While Puerto Rico received more visitors in 2013 (3.2 million), it did not have to deal with a commercial embargo, nor was it diplomatically isolated from much of the world. More ominously, in March 2014 (the most recent month for which we have data), Cuba received more visitors than Puerto Rico did (359,384 vs 182,599 arrivals). So you could say that the problems for PR on the tourism front have already started.
Luquillo, Puerto Rico
Luquillo, Puerto Rico
Old San Juan, PR
Old San Juan, PR
This is all not to say that Cuba does not face serious challenges, not only in the tourism sector, but across the board. Aging infrastructure is probably the largest obstacle. Also, some of that non-consumerist charm that Cuba has may also serve to repel certain potential visitors, especially convenience-conscious Americans, who expect destinations to have wifi, digital cable, 24 hour restaurants and other amenities. As tourism increases, a rise in crime and other social ills can also be expected, and to some extent this is already being seen. But can Cuba become a modern, state-of-the-art, world-class destination within the next decade? It absolutely can. And unless other Caribbean destinations like Puerto Rico can keep up, Cuba will steal a good part of their tourist arrivals.
Puerto Rico has long been trying to step up its tourism game, with mixed results. Unfortunately for the island, electricity costs have always been (and continue to be) relatively high, and labor costs are higher than in the rest of the area. Add to this potential visitors' concerns over the island's much-publicized imploding economy and its crime rate, and it's easy to see how someone trying to pick a Caribbean spot for vacation in the near future will find it easier to just choose Cuba. The one thing PR will still have over Cuba is that travel to the island from the US requires no passport (as it is a US territory) and American visitors can come with the knowledge that they have the safety of being under the US flag. That, however, doesn't seem to have helped PR take any tourist arrivals from emerging destinations like the Dominican Republic. While the tourism picture in Puerto Rico has shown some improvement, and continues to do so in some areas (cheaper real estate may be one driver), it's going to have to become very creative and diligent in the medium and long term in order to not lose scores of tourist arrivals to an ascendant Cuba. Whatever the case, Americans visiting the Caribbean in the following years will have one more option when choosing a destination.