Puerto Rico to Grant Incentive for Cruise Lines

When Caribbean and Latin American countries are debating whether to set or raise fees on cruises, the government of Puerto Rico has approved the creation of a US$10.7 million fiscal incentive package for the cruise industry, which includes breaks on port taxes, other provisions and fees for ships making San Juan its homeport.

Currently, all cruise passengers pay a US$13.25 head tax in San Juan. As part of the program, the Puerto Rico Tourism Company (PRTC) will return to the cruise lines a $2.95 destination incentive for each passenger who visits San Juan.

In addition, cruise lines that bring between 10,000 and 139,000 passengers will receive a US$2 per passenger refund; those that bring more will get a US$4.50 per person break.

Cruise ships that use San Juan as a frequent homeport will receive a US$1 per passenger discount, in addition to a discount on fees for ships that stay longer than eight hours. Companies also get a 10% discount on local food, beverages and manufactured goods.

Tourism authorities in the island are trying to increase the number of visitors from 1.3 million to 1.7 million annually and increase the economic impact of the cruise industry from US$300 million to US$500 million over a five-year period.