Puerto Rico Tourism Company´s Budget for Fiscal Year 2006 Peaks $119 Million

The Puerto Rican agency´s budget will reach $119 million in fiscal 2006, from $104.3 million in fiscal 2005, an increase of 14%. Since fiscal 2001, the Tourism Co.´s total budget has increased by a whopping 59 percent, from $74.7 million to $119 million.

Despite its multimillion-dollar budget, the Tourism Co. has fallen short of its expectations to increase the island´s tourism industry and its contribution to the local economy. Stats obtained from the Tourism Co. indicate a mere 10.3 percent increase in hotel stays from fiscal 2001 to fiscal 2004.

The number of hotel visitors is the only sector within the local tourism industry reporting an increase. Cruise ships, inns, and other forms of lodging have decreased by 18,600 visitors over the past four years. From 2001 to 2004, tourist expenditures in Puerto Rico have grown 25%, from $2.4 billion to $3 billion.

The Tourism Co. is a public corporation, hailing funds from the Commonwealth´s central government while at the same time generating its own funds. The Puerto Rico Tourism Development Act of 1993 was enacted to provide the government with adequate tools to develop tourism infrastructure, marketing, and promotional campaigns, as well as serving as liaison for business entrepreneurs in the hotel industry who want to invest in the island´s tourism industry.