(Bloomberg) -- When winter rolls around, travelers predictably turn their attention to beaches. And this year, it’s the destination that comedian Tony Hinchcliffe called “a floating island of garbage in the middle of the ocean” that’s experiencing outsize demand from Americans planning a warm island vacation. Talk about trashing stereotypes.
Puerto Rico has recovered overseas visitors (excluding those from Canada and Mexico) faster than any US state or territory—a staggering 85% increase over its 2019 overseas inbound visitor levels as of 2023, according to an October study from the US National Travel and Tourism Office. There are now more daily flights from the US West Coast, and hotel bookings are 6% higher so far in this last quarter of 2024 year-over-year.
It’s a trifecta of tourism growth: more visitors, but also longer stays and a higher spend that reached a record $9.8 billion in 2023, boosting small businesses as well as major brands. “We don’t have a slow season in Puerto Rico anymore,” says Brad Dean, chief executive officer at Discover Puerto Rico.
Even if they’re not booking, people are dreaming about “La Isla.” By tracking flight searches for trips between November 2024 and February 2025, a measure of “inspirational” demand,” tourism intelligence company Mabrian Technologies reports Puerto Rico is up 9% compared with the same period last year and leads Barbados, the Dominican Republic, Jamaica and the Bahamas in the Caribbean proper. Only Costa Rica ranked higher in the wider region.
Dean attributes Puerto Rico’s ongoing tourism growth to a strategic effort to reposition the island’s brand as more than a sun-and-sea destination, starting back in 2018. That led to the Live Boricua campaign, which began in 2022 and leaned heavily on culture, history and cuisine and was, Dean says, “a pretty bold departure” in the way Puerto Rico was showcased to travelers. He adds that at least $2 billion in tourism spend is linked to this campaign.
“We [also] haven’t shied away from actively embracing the LGBTQ+ community, and that has opened up Puerto Rico to audiences that may not have considered the Caribbean before,” Dean says.
Hotels are preparing to meet this growing demand: A number of established boutique properties are undergoing upgrades valued between $4 million and more than $50 million, including Hotel El Convento; La Concha, which will join the Marriott Autograph Collection; Condado Vanderbilt Hotel; and the Wyndham Grand Rio Mar.
That’s in addition to ultra-chic options that are coming online in 2025, including the adults-only Alma San Juan, with rooms overlooking Plaza Colón in the heart of Old San Juan, and the five-star Veranó boutique hotel in San Juan’s trendy Santurce neighborhood. The beachfront Ritz-Carlton San Juan in Isla Verde will also be reopening seven years after Hurricane Maria decimated the island.
The travel industry’s success is helping boost employment on the island, to the tune of 101,000 leisure and hospitality jobs as of September 2024, a 26% increase over pre-pandemic levels, according to the US Bureau of Labor Statistics.
Efforts to promote Puerto Rico’s provinces beyond the San Juan metro area—such as surfing hub Rincón on the west coast, historical Ponce on the south coast and Orocovis for nature and coffee haciendas in the central mountains—have spread the demand to small businesses previously ignored by the travel industry.
Take Sheila Osorio, who leads workshops on Afro-Puerto Rican bomba music and dance at Taller Nzambi, in the town of Loíza, 15 miles east of San Juan; or Wanda Otero, founder of cheese-producing company Vaca Negra in Hatillo, an hour’s drive west of Old San Juan, where you can join a cheesemaking workshop and indulge in artisanal cheese tastings. “The list of businesses involved in tourism has gone from 650 in 2018 to 6,100, many of which are artists and artisans,” Dean says.
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While New Yorkers and Miami residents have always been the largest visitor demographic, Dean says more mainland Americans now realize that going to Puerto Rico means passport-free travel to enjoy beaches, as well as opportunities to dine in Michelin-rated restaurants, hike the only rainforest in the US and kayak in a bioluminescent bay.
Visitors from Chicago and Dallas, for example, have increased by approximately 40% from July 1, 2023, to June 30, 2024, compared with the same period in 2022-2023, and more travelers are expected from Denver now that United Airlines Holdings Inc. has kicked off its first nonstop service to San Juan, beginning on Oct. 29.
Previously, beach destinations that were easy to reach on direct flights from Denver included Mexico, Belize and California, but now Puerto Rico joins that list with a 5.5-hour nonstop route that cuts more than two hours from the next-best option. Given United Airlines’ hub in San Francisco, it could mean more travelers from the Golden State in the near future, too.
In December, US airlines will have 3,000 more seats per day to the territory compared with the same period last year, for a total of 84,731—surpassing even Mexico and the Dominican Republic in air capacity, according to data from aviation analytics firm Cirium. Luis Muñoz Marín International Airport, the island’s primary gateway, is projecting a record volume of 13 million passengers by yearend—far surpassing the 9.4 million it saw in 2019.
As for Hinchcliffe’s “floating island of garbage” line, Dean says it was “a terribly insensitive attempt at humor” that transformed outrage into a marketing silver lining, with an outpouring of positive public sentiment and content on Puerto Rico all over social media. Success, as that old chestnut goes, may be the best revenge.
“It was probably the most efficient influencer campaign we’ve ever had,” Dean says, “a groundswell of visitors who posted their photos and videos and said, ‘This is the Puerto Rico that I know.’”
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