Puerto Rico has the potential to compete with other global destinations when it comes to luxury tourism, but private sector companies must work together – and the government must do its part – to make that a reality, two local industry players stated at the recent Puerto Rico ICON Conference.
During the panel “Double Down on Puerto Rico, Playing the Long Game,” moderated by Ricky Santana, co-founder of the Puerto Rico ICON Institute; Rolando Padua, president of Paulson Puerto Rico; and Federico Stubbe Jr., chief executive officer of PRISA Group, discussed the impact of market changes on new luxury projects, efforts to adapt to evolving resale markets and sustainable development practices.
In his presentation, Stubbe emphasized the potential Puerto Rico has to compete with other markets. He explained that the island’s diverse offerings give it a competitive advantage over other markets such as Miami.
“We understand that there are many challenges, but as businessmen, we cannot allow particular interests to stagnate the development of Puerto Rico; we must dare to think and act with courage and determination for the benefit of future generations,” he said.
“An example of this is the high-quality, large-scale coastal developments, which have become a very important engine of tourist and residential development for Puerto Rico. A positive attitude toward them must permeate, including on the part of the Government of Puerto Rico,” he added.
For his part, Padua pointed out Puerto Rico’s potential to stand out globally in different areas, such as luxury tourism, and the importance of supporting and maximizing available resources.
He noted that projects such as Vanderbilt Residences and Ocean Drive are aimed at addressing the shortage of hotel rooms necessary to make the island competitive internationally.“The development of condo hotels on the island places us at the forefront of other markets and creates added value in the tourism industry,” Padua said. “To promote diverse economic development, which addresses diverse needs, our company has invested in a diverse portfolio ranging from hotels, real estate and commercial offices to the automotive industry.”
Nearly 200 attendees participated in the two-day event, including entrepreneurs and business leaders. The event provided a platform for sharing ideas, experiences and strategies related to Puerto Rico’s unique business landscape, along with the challenges and opportunities that the market faces.In their presentations, both Padua and Stubbe emphasized the importance of two local companies that should not be seen as competitors but should present a united front, working for Puerto Rico’s future.
“We’re always adjusting as the market changes. Since 2012, we have had great achievements in adapting in developments, real estate sales and diversification. John Paulson has led significant hotel transactions that totaled $1.5 billion in Arizona, Hawaii and California; $150 million in Miami; and $1.25 billion in Orlando and Phoenix, to provide a few examples,” said Padua.
“In Puerto Rico, our business principle is always to reinvest profits in the island. This way, we create an ecosystem of sustainable economic development and job creation, which allows us to plan our long-term investments,” he added.
Stubbe discussed the market opportunities and how PRISA Group has found niche projects. Among them are the creation of Dorado Health in the health care area; regional tourism with Fairfield by Marriott Luquillo Beach & El Tropical Casino; entertainment and commerce with Distrito T-Mobile; and the Popular Campus office project.
However, the executive noted that the industry faces certain obstacles.
The complex permitting process in Puerto Rico hinders infrastructure progress, limiting developable areas and contributing to a shortage of affordable housing. Small and medium enterprises face nearly insurmountable obstacles, hindering Puerto Rico's forward momentum, according to developer Stubbe. Despite challenges, he believes Puerto Rico can compete as a tourist destination and urges unity among entrepreneurs for internal progress. Stubbe emphasizes the importance of welcoming competition, government communication, and education on the benefits Act 60 participants bring to nonprofits and communities.
