Operator News
Puerto Rico – Puerto Rico’s casinos are the ‘future of tourism’
By Phil - 27 January 2017
The 18 casinos located in hotels currently operating in Puerto Rico contribute US$156m to the island’s treasury, according to a report presented by the Puerto Rican Association of Hotels and Tourism (PRHTA).
The report, however, highlighted the fact that the rise in illegal gaming is putting the casino sector at risk. The industry has been hit by the growth of illegal gaming and there could be as many as 45,000 illegal slot machines as attachments to small businesses. In addition according to the report, the 30,000 video lotteries which could be installed in Puerto Rico would also have a negative effect on casinos as well as horse race betting shops all over Puerto Rico. The government has been looking at ways to legalise VLT’s as VLT’s would bring in additional US$100m per year to government coffers. However this has been met with fierce resistance by local gaming operators, who argue that allowing video lotteries on the island would put 5,000 jobs at risk. According to the study sales for the casinos on the island stand at $265m per year and they generate 3,000 direct jobs and 5,000 indirect jobs. For this reason the study recommends scrapping the idea of permitting VLT’s altogether.
The study also confirms the need for the country to prioritise the development of the tourist industry in order to attain economic stability. The study “Tourism: an engine of economic growth” revealed that about two decades ago Puerto Rico received 30 per cent of tourists and visitors to The Caribbean region but now only receives 14 per cent. However there are still opportunities for growth according to the report.
Miguel Vega, President of the Board of Directors of the PRHTA said: “For 67 years, the PRHTA has been fighting so that the direct impact this sector has on job creation and economic growth is recognised . . . today, we are once again demonstrating where we are, what is the true importance of this industry and what we need to do to improve Puerto Rico’s economy as soon as possible.” The organisation is in talks with Governor Ricardo Rosselló for the need to establish a – a Destination Marketing Organization (DMO) or Convention and Visitors Bureau (CVB) which will promote Puerto Rico in order to increase the number of visitors.
Economist Gustavo Vélez, President of the company Inteligencia Económica which compiled the report affirmed that tourism was the only economic sector that had continued to grow while the rest of the economy continues to contract.
This month it was also revealed that another casino has been forced to close in Puerto Rico due to the country’s worsening economic crisis. The casino in the Hotel San Juan will not open on February 5 as had previously been planned once remodelling work on the hotel is complete. The decision means that 100 workers will lose their jobs.
This is the seventh casino to close in the last two years. The casino industry is a major contributor to the Tourism Board as well as the only State University on the island. Resources made from the casino industry have diminished significantly over recent years. The country has been going through a decade-long economic crisis and the island is no longer able to serve fully its public debt of about US$71.5bn.
