Garnet Capital Advisors Blog

Puerto Rico was devastated in September 2017 by Hurricane Maria, the worst hurricane in 85 years. But hotels and restaurants have rebuilt and are aggressively courting tourists for the coming year. The tourism industry is responsible for 7% of Puerto Rico’s GDP, and its rebound is economic good news for the island and banks who do business with it.

More than a year ago, Hurricane Maria hit Puerto Rico, the strongest hurricane to hit the island in 85 years. It caused an estimated $94 billion worth of damage to Puerto Rico but now hotels and restaurants are open for business on the island. 

Puerto Rico is rebuilding from the devastating hurricane last year.

Tourism Open and Ready for Business

But Puerto Rico is on the rebound. Although some remnants of the devastation can still be seen, the tourism industry, particularly, is ready and eager for new business. And that’s good news economically, as the tourism industry employs an estimated 63,500 people on the island and accounts for 7% of the territory’s gross domestic product (GDP). 

In fact, despite the devastation Hurricane Maria left in its wake, the turnaround of $94 billion in damage can be an upswing in business in the island as it rebuilds, benefiting banks and investors.

Hotels, resorts, and restaurants are open for business.

Most of the island’s hotels and restaurants have recovered and are open for tourists who visit this winter and into 2019. In fact, four new luxury resorts are opening across the island, which will increase the tourism business even more.

Restaurants and tourism-oriented businesses are also benefiting from the optimism and commitment to rebuild that grew up in the wake of the storm. Restaurants are stressing hip, Caribbean-influenced food and drink, and art galleries and music venues are attracting visitors to the island.

While most of the tourism business is centered along the beaches and in San Juan, there is also burgeoning business in the interior of the island. Many ventures are committed to attracting eco-tourists, with such sports as night kayaking showing off phosphorescence in the seas. Although the interior is not as far along the rebuilding path as the beach resorts and San Juan, the evidence is that the chance to see the interior is popular with a niche of tourists.

In short, Puerto Rico is on the rebound; tourism is up, the island is rebuilding and poised for a dramatic recovery. That can only be good for business.

How a Loan Sale Advisor Can Help

With businesses reopening and tourism and other cash flows reawakening, it may be time to reassess your view of investing in Puerto Rico. For investors buying portfolios of performing and noperforming loans, Puerto Rico and its pace of rebuilding has turned into a vibrant market worth looking into.

If you want to explore investments as a result of events in Puerto Rico, the loan sale advisors at Garnet Capital can help. Sign up for our newsletter for more information today.