Tourism Expected to Sustain Record Growth Run, as Discover Puerto Rico Bets on Europe, AI and a Puerto Rican Christmas

FIRST IN A TWO-PART SERIES ON THE VISITOR ECONOMY. See companion story here.

Puerto Rico’s tourism industry is on track to post another record-breaking year, fueled by sustained marketing efforts, growing international interest, rising visitor spending and strong demand across hotels, short-term rentals and cruise travel.

In an aside with Caribbean Business, Jorge L. Pérez, chief executive officer of Discover Puerto Rico, said the destination’s continued success, with sixth growth years in a row, is the result of a long-term strategy centered on consistent branding, close coordination with government stakeholders and the island’s unique visitor experience.

Beyond the figures released at the organization’s industry update this week, Pérez and his team laid out a playbook that reaches past the island’s core U.S. market: a push into Europe, a Christmas campaign built on Puerto Rican traditions, pre- and post-cruise packages, and an artificial intelligence strategy built for the way travelers now plan trips.

“To have a consistent promotion and marketing of the destination, with a consistent message, with a branding, and a brand from Puerto Rico, that has been part of the success,” Pérez said.

He pointed to Discover Puerto Rico’s partnership with the Puerto Rico Tourism Co. and a shared vision to both protect the island’s dominant U.S. market while aggressively expanding into Europe.

“We see that the U.S. market is 85% of our visitors, but we see a huge potential in Europe,” he said. “Travelers from Spain have increased by 22% in the last year. From the United Kingdom, it has increased by 14%. We have to maintain the U.S. visitors, but there is a lot of growth in Europe, there is a lot of interest in Puerto Rico.”

That European push has a major showcase ahead. Puerto Rico will be the partner jurisdiction at FITUR 2027, the international tourism fair in Madrid, as Caribbean Business has reported.

But the executive stressed that no marketing campaign can substitute for the experience visitors receive once they arrive. The island’s culture, gastronomy and hospitality create positive impressions that encourage repeat visitation and generate word-of-mouth promotion among travelers when they return home.

“When people come, they have a unique experience, the warmth of our people, our gastronomy, our culture,” Pérez said. “They return to their places of origin, to their families, to their community, and they say, ‘Wow, Puerto Rico is something else.'”

That combination of effective promotion and positive visitor experiences, he adds, along with a coordinated effort among industry stakeholders, has helped drive growth across tourism metrics since 2019.

Tourism’s expanding economic impact

Addressing criticism that the government should spend time growing the manufacturing sector as tourism jobs pay low wages, Pérez emphasized the sector’s contribution to employment and economic development.

Tourism currently supports roughly 105,000 direct jobs, he said. Hotels and related businesses increasingly employ accountants, finance professionals, engineers and other specialists, creating new career opportunities that are attracting young professionals.

The tourism sector, he argued, has evolved beyond its traditional reputation as a source of temporary or entry-level employment.

“Now they are becoming full-time jobs,” he said. “There are professionals, accountants, financiers, engineers, who used to look for other industries, who are now integrating into hotels.”

If those projections hold, Puerto Rico will extend one of the strongest tourism growth streaks in its history, driven by aggressive destination marketing, expanding international visibility, record accommodation revenues and sustained traveler demand even amid a more uncertain economic environment.

He said career opportunities continue to expand as the sector grows.

“We are seeing a change,” Pérez said. “And certainly as tourism continues to grow, opportunities will continue to grow. Our main reason is to continue creating economic development.”

The numbers support his argument. Leisure and hospitality payrolls now exceed manufacturing’s roughly 81,500 jobs in August, according to U.S. Bureau of Labor Statistics data cited by Caribbean Business, and Foundation for Puerto Rico’s Visitor Economy Performance (VEP) model counts more than 100,000 direct leisure and hospitality jobs, rising to as many as 115,000 when visitor-dependent work in transportation, retail, tours and culture is included.

Housing those professionals is now part of the industry’s agenda: at San Juan’s newly rebranded Harbor District, developers this week said they are pricing homes for two-income professional households, as Caribbean Business reports in this companion story.

Top destination for 2027

Building on that outlook, Scarlette Espinal Fanjul, who became vice president of marketing at Discover Puerto Rico in September, outlined an ambitious promotional agenda intended to strengthen the island’s visibility in key markets and showcase Puerto Rico’s cultural identity to potential visitors.

In her first major presentation since assuming the role, Espinal Fanjul credited Discover Puerto Rico’s broader team and industry partners for the destination’s recent accomplishments. Among the latest successes, she highlighted Puerto Rico’s inclusion on National Geographic’s Best of the World list for 2027, placing the island alongside leading global destinations and providing valuable international exposure.

She said the recognition reflects not only Discover Puerto Rico’s efforts, but also the experiences provided by businesses and residents throughout the island.

“Yesterday we learned that we made National Geographic’s Best World List for 2027 as one of the best destinations in the world,” Espinal Fanjul said. “National Geographic has enormous credibility. We are on that list with destinations from Ireland and all over the world, and Puerto Rico is there. We are very proud and very honored.”

The magazine’s list of 25 destinations singles out the island’s mix of cultures and community-driven traditions, and illustrates Puerto Rico’s entry with a vejigante at the Santiago Apóstol festivities in Loíza, according to Metro, Caribbean Business’ sister publication.

Selling Puerto Rico’s Christmas to the world

A major component of Discover Puerto Rico’s upcoming strategy centers on showcasing the island’s extended holiday season through a campaign designed around authentic Puerto Rican Christmas traditions.

Under the organization’s “Awaken Your Senses” platform, the campaign will feature parrandas, traditional music, local cuisine, artisans, family gatherings and colorful Puerto Rican imagery intended to differentiate the island from competing destinations.

The initiative will include a Puerto Rican Christmas market on New York City’s High Line on Dec. 3, shortly after the Rockefeller Center tree-lighting ceremony. The event will feature artisans and cultural experiences designed to introduce prospective travelers to Puerto Rican traditions.

Discover Puerto Rico also plans to highlight holiday experiences through a dedicated online hub where tourism businesses can promote seasonal offerings, restaurants and activities.

The campaign’s international reach will extend to the Latin Grammys, where Discover Puerto Rico plans to showcase the island’s holiday traditions through special activations, cultural presentations and media outreach.

“When people come, they have a unique experience, the warmth of our people, our gastronomy, our culture. They return to their places of origin, to their families, to their community, and they say, ‘Wow, Puerto Rico is something else.'”

Jorge Pérez, CEO of Discover Puerto Rico

The organization also expects coverage from journalists in markets including Colombia, Mexico and Spain, broadening its exposure beyond the continental United States.

Marketing efforts are increasingly being designed around data collection and direct consumer engagement. Espinal Fanjul said Discover Puerto Rico will use contests and promotions more frequently as obtaining traveler data becomes more challenging, allowing the organization to communicate directly with prospective visitors and better understand consumer interests.

AI, digital content, cruise tourism

The organization is also expanding its content strategy through partnerships with entertainment producers and digital creators. One current initiative involves collaboration with the reality television program “Love Undercover,” which filmed portions of its production in southwestern Puerto Rico and is helping generate media exposure for the destination.

Another focuses on Discover Puerto Rico’s YouTube channel, where the first content pillar emphasizes culinary tourism by telling the stories behind local restaurants and unique dining experiences.

Cruise tourism is another priority area. With additional luxury cruise lines expected to use San Juan as a homeport, Discover Puerto Rico is developing pre- and post-cruise stay packages designed to encourage travelers to extend their visits on the island.

Hotels and tourism businesses are being invited to participate in those packages, which will be promoted through dedicated digital platforms and marketing campaigns.

AI is becoming a central component of the organization’s long-term strategy. Citing research showing that a majority of U.S. travelers are already using AI tools to plan trips, Espinal Fanjul said Discover Puerto Rico is ensuring its content is optimized for AI platforms such as ChatGPT, Claude, Perplexity and Gemini.

The organization is developing an AI-powered concierge for its website that will deliver personalized recommendations based on visitor preferences while directly connecting travelers with tourism businesses whose information is maintained on the platform.

The marketing chief also highlighted several partnerships intended to generate visitor spending and hotel demand. These include the upcoming Puerto Rico Bowl, expected to attract visitors from key U.S. markets, and Discover Puerto Rico’s collaboration with Cirque du Soleil on a Puerto Rico-exclusive production that is being promoted through hotel packages and public relations efforts.

That production, “Le Lo Lai,” is a 30-show residency to be held at the Coca-Cola Music Hall from Feb. 12 to April 4, 2027, presented by PRISA Group’s new events unit, PRISA Presents. The production represents an investment of more than $10 million, and Cirque management estimates its economic impact at $63 million, as Caribbean Business has reported.

The venue sits in San Juan’s Convention Center District, which this week unveiled its Harbor District plan to add hotel rooms, housing and pedestrian links to the bay.

Strong numbers support industry optimism

While Discover Puerto Rico’s leadership outlined strategies and campaigns, Laressa Morales, the organization’s director of research and analytics, presented data showing that the industry’s growth extends well beyond marketing metrics.

“The year continues at a strong pace, and the only metric that requires attention is arrivals,” Morales said.

Through September, lodging revenue rose 6% compared with the same period last year, lodging demand increased 4%, and cruise passenger volume surged 27%, making cruise tourism the fastest-growing segment of the industry.

“In summary, we come from a 2025 that marked the fifth consecutive year of records for tourism on the island, and 2026 is surpassing almost all of those results,” she said.

Airlift remains the main challenge

The primary weakness identified by Morales involves passenger arrivals through Luis Muñoz Marín International Airport.

Through September, San Juan had received nearly 5.1 million passengers, approximately 162,000 fewer than during the same period in 2025.

“The decline responds to three factors: route adjustments, lower seat capacity and the exit of Spirit Airlines from the market in May 2026,” she said.

Despite the decrease, she emphasized that passenger volume remains significantly above pre-pandemic levels and that airlines such as American, JetBlue, Avelo and Frontier have continued adding seats to the Puerto Rico market.

She also noted that new routes announced for Aguadilla and Ponce should help ease regional access constraints.

Spreading growth beyond San Juan

Those regional routes matter to an industry that is increasingly organizing itself around decentralization. Growth remains concentrated in the San Juan metro area, which Foundation for Puerto Rico says cannot absorb it alone.

The foundation estimates that about 90% of spending at small inns, short-term rentals and family visits stays on the island, compared with 60% at large hotels and 40% for cruise passengers.

The private sector is moving on that premise. The Puerto Rico Chamber of Commerce launched a permanent Tourism Committee in September with regional integration among its six priorities, and independent operators gathered at the Rebook Hospitality Conference that month to position short-term rentals, about 47% of the island’s lodging inventory, as a way to distribute visitors island-wide, as Caribbean Business reported.

“If we’re competing separately, we lose. If we’re collaborating, we shape the future,” Rebook producer Pedro Fernández said at the time.

Foundation for Puerto Rico is piloting the approach in the east, which drew more than 2 million visitors and about $1.3 billion in direct spending in 2024, by linking anchors such as El Yunque, Vieques, Culebra and the former Roosevelt Roads base with small local operators. Discover Puerto Rico’s booking data suggests the region is already responding.

Hotels, rentals, cruises breaking records

The industry continues to generate historic levels of demand and revenue. Looking ahead, booking trends suggest that demand will remain strong through the upcoming winter season. As of Oct. 11, hotel reservations for November and December were already ahead of last year’s pace, while short-term rental bookings showed double-digit gains across most months through March.

The eastern region of Puerto Rico, in particular, is expected to benefit from accelerated booking growth and strong visitor demand.

According to Morales, travelers booked approximately 6.4 million room nights through September, evenly divided between hotels and short-term rentals. Both categories posted roughly 4% growth over the previous year.

“The valuable thing is the balance,” she said. “Hotels added 3.3 million room nights and short-term rentals 3.1 million room nights, and both grew 4%.”

Puerto Rico’s lodging demand increased roughly 5.5%, compared with a national average of 1.8%.

“We have the highest growth among all states and three times the national average,” Morales said. “We are not growing because everyone is growing. We are growing even while other destinations have been declining.”

Combined lodging revenue surpassed $1.6 billion through September, while room-tax collections reached a record $163.6 million during fiscal year 2025-26.

“The room-tax collection is perhaps one of the best proofs of the value this industry brings to the economy of the country,” she said.

Meanwhile, cruise tourism generated some of the strongest gains. Through September, the Port of San Juan welcomed 1.3 million cruise passengers, exceeding pre-pandemic benchmarks and setting a new record for the period.

“For businesses on the island, these cruise arrivals represent more visitors on the streets, more visitors in stores, restaurants and attractions,” Morales said.

Employment, future bookings, point to growth

Employment has followed the industry’s upward trajectory. The leisure and hospitality sector reached 104,600 jobs in August, a 5% increase from 2025.

“That growth leads all states, and by a lot,” Morales said. “We are growing five times faster than the national average.”

Future bookings are equally encouraging. Hotel reservations for November and December are already running ahead of last year’s pace, while short-term rental bookings are posting double-digit growth into early 2027.

Puerto Rico is also expected to benefit from an 8% increase in scheduled airline seat capacity during the peak October-to-March travel season.

Even with concerns about inflation, higher airfares and a more cautious consumer, Morales said travel demand remains remarkably resilient.

“The headline is that confidence is weakening, but travel is holding up,” she said.

Another record year within reach

Looking ahead, Discover Puerto Rico projects the island will receive approximately 13.7 million total visitors in 2026, including 8.9 million nonresident travelers who are expected to generate roughly $9.5 billion in direct visitor spending.

Foundation for Puerto Rico’s VEP model uses behavioral data and local prices rather than departure-gate counts. VEP estimates the island draws about 6 million visitors a year, spending more than $8 billion, and projects 8 million visitors and about $12 billion in spending by 2030. It puts daily spend per visitor at $264 in 2024 and $280 in 2025, higher than other counts. The methods differ, but both point to an industry still gaining ground.

“We hope that 2026 will be the sixth record year for the island,” Morales said. “We expect to publish those results very soon.”

If those projections hold, Puerto Rico will extend one of the strongest tourism growth streaks in its history, driven by aggressive destination marketing, expanding international visibility, record accommodation revenues and sustained traveler demand even amid a more uncertain economic environment.