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EMPLOYMENT thus helping to improve its overall infrastructure, TOURISM
Unlike other Caribbean islands Puerto Rico has a but also the island’s workforce increased its skills As the Puerto Rican economy has matured it has
diversified economic base. In the last decade, Puerto and education levels. As previously mentioned, the become less reliant on tourism, although the indus-
Rico has seen the strongest growth in the services improving education of the workforce is evidenced try continues to grow. Because of the cash nature of
and FIRE (Finance, Insurance, and Real Estate) by the fact that Puerto Rico’s percentage of students the tourism industry, much of the revenue generated
sectors. Puerto Rico’s labor force consists of enrolling in higher education has been ranked sixth by tourism goes unreported. Having undergone
1.1 million people with an unemployment rate of in the world, according to the World Bank. steady growth over the last several years, tourism
14% as of year-end 2014, higher than Puerto Rico’s The workforce’s improved skill level has created a remains the island’s main service trade. In 2014
historical average due to the recent recession. more entrepreneurial, small business environment there were approximately 725,000 non-resident
where large manufacturing operations are playing hotel guests, 0.4% greater than in 2013. That same
an increasingly smaller role in the island’s economy. year, visitors spent an estimated $2.4 billion in Puer-
MANUFACTURING The proliferation of these small companies has to Rico. Strong tourism fundamentals have led to the
Heavy industry and manufacturing has replaced served to both diversify and strengthen the foun- development of many new hotel rooms. Today there
agriculture as the greatest contributors to Puerto dation of the Puerto Rican economy. Corporations are approximately 14,000 hotel rooms on the island,
Rico’s income due in large part to “Operation that were originally drawn to the island for its tax up more than 16% from 2000. The long run trend
Bootstrap” which, since the 1940’s, has attracted incentives are now staying for its affordable, highly in new hotel construction is expected to continue,
U.S. firms through the use of tax exemptions. The educated, English speaking workforce, its stable po- although not at the same pace as in the 1990’s.
manufacturing sector has recently placed an in- litical environment, its absence of currency risk, and New hotels recently opened on the island include
creased emphasis on higher wage, high technology its positive economic and demographic prospects. the five-star Dorado Ritz-Carlton Reserve, St. Regis
industries, such as pharmaceuticals, electronics, These factors as well as diversification of the econo- Resort & Residences, W Hotel Vieques, Vanderbilt
computers, microprocessors, professional and sci- my and the local government’s willingness to create Hotel, and La Concha Hotel. All of these factors help
entific instruments, and high technology machinery incentives for foreign investment will continue to to increase tourism levels and raise the overall
and equipment. Other products manufactured on fuel Puerto Rico’s positive economic momentum. awareness of the island.
the island include processed foods, textiles, clothing,
rum, petrochemicals and refined oil (using crude oil
from Venezuela). Puerto Rico sustains over 2,300
diversified industrial plants, inducing many leading
Fortune 500 multinationals, producing a range of
products from apparel and computer motherboards
to pharmaceuticals and medical devices.
A combination of Federal and state tax incentives
helped attract millions of dollars of investments,

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