Find out the industry projections for 2025
In the second half of last year, a slowdown was observed in the demand for overnight stays and in hotel and short-term rental revenues. Ongoing conflicts, inflation, and general elections in Puerto Rico, the United States, and other jurisdictions contributed to a deceleration in the visitor economy’s growth rate. For the first time since 2021, double-digit growth was not recorded.
As an industry, we have been operating from a position of strength. Earlier in the year, the U.S. Department of Commerce ranked Puerto Rico as the fastest-growing U.S. jurisdiction in visitor numbers since 2020. Meanwhile, UN Tourism placed the island second worldwide, with only Qatar—host of the 2022 FIFA World Cup—ranking higher.
In response to this slowdown, the industry adapted by implementing new sales strategies. In many cases, this involved launching special offers, temporary discounts, or rate adjustments, particularly in the short-term rental sector.
Discover Puerto Rico also adjusted its operations. We developed agreements with Expedia to highlight Puerto Rican accommodations on the platform. Our sales strategy through travel agents was strengthened. A large-scale billboard campaign was executed in key traveler markets. Public relations efforts were intensified, along with special activations featuring the New York Yankees, Van Leeuwen Ice Cream, artists Devon Rodríguez and Juan Salgado, among others. Ultimately, we ensured that Puerto Rico remained top-of-mind for travelers, emphasizing that the time to book was now.
As a result, December rebounded, surpassing the performance of previous years. The year 2024 ended with increases in lodging revenues (+8%), passenger arrivals to the island (+8%), and overnight stay demand (+7%). This growth was accompanied by an increase in available accommodations, particularly in the short-term rental sector—an unmistakable sign of industry expansion.
Momentum has continued since then. As of January 20, hotel bookings for January and February, recorded through TravelClick, were tracking ahead of 2024 levels. While March is still catching up to last year’s numbers, it already has a reserved occupancy rate of 40%.
The pace of bookings for the second quarter (April–June) remains healthy. With more than two months before the period begins, bookings already indicate an occupancy rate exceeding 22%.
However, the third quarter (July–September) is showing extraordinary growth. This period is typically the slowest for tourism due to hurricane season. Yet, room bookings are significantly outpacing 2024 levels (+25%), largely driven by the series of concerts announced by reggaeton star Bad Bunny.
Tourism Economics estimates that Puerto Rico’s tourism industry will experience an economic performance increase ranging between 1% and 5%. However, this estimate does not yet factor in the potential impact of the concert series, which is expected to attract at least 60,000 additional visitors in 2025.