Discover Puerto Rico, the island’s Destination Marketing Organization (DMO), was unsuccessful in its request to increase its budget from $58 million to $86 million for fiscal year 2026–2027.

The organization, however, hopes to maintain the same funding level it has operated with over the past two years through a special $28 million appropriation that the Puerto Rico Tourism Company (PRTC) will seek from the Financial Oversight and Management Board (FOMB).

At the same time, the organization is still awaiting the renewal of its government contract, which has yet to be approved.

If the special appropriation is authorized, the DMO’s budget would consist of the $30 million it receives under Act 17 of 2017, plus an additional $28 million from surplus hotel occupancy tax (“room tax”) revenues—a funding mechanism that was also used during the previous two fiscal years following an initial allocation of federal funds.

Discover Puerto Rico President and CEO Jorge Pérez told El Nuevo Día in a telephone interview that the organization requested a larger budget than in previous fiscal years to strengthen Puerto Rico’s tourism marketing strategy amid growing competition among destinations and an international environment shaped by geopolitical tensions that have affected travelers’ intentions.

Although he acknowledged that the requested increase was not approved, Pérez said the DMO had already developed an operating plan based on a $58 million budget and is confident it can execute that plan if the special appropriation receives the FOMB’s approval.

"With $58 million, we will be able to carry out an effective plan," Pérez said during the interview.

However, he warned that maintaining the same budget could contribute to an expected 3% to 5% decline in certain tourism indicators due to rising advertising, marketing, and service costs.

Pérez said the DMO remains confident that Puerto Rico’s tourism industry will continue to grow.

He explained that the request for an $86 million budget was intended to capitalize on the island’s growing popularity as a travel destination and respond to increased promotional spending by competitors such as the Dominican Republic, Florida, Jamaica, and California, whose tourism marketing budgets range from $72 million to $100 million.

He added that, since 2019, Puerto Rico has recorded annual tourism growth of 8% to 10%, while other mature destinations have grown by 2% to 3%.

Pérez said his greatest concerns for the new fiscal year are geopolitical developments that could affect travel demand, higher oil prices, and perceptions of the United States as a safe travel destination.

Regarding spending, he noted that 87% of Discover Puerto Rico’s budget is allocated to marketing and sales initiatives, while the remaining 13% covers administrative expenses—well below the 50% maximum permitted by law.

He added that the United States will remain the organization’s primary market, accounting for approximately 80% of visitors to the island, while promotional efforts in Europe, particularly Spain, will continue to expand.

Pérez also said that the proposed extension of the organization’s contract through 2033 remains under government review. The measure has already been approved by the Puerto Rico Tourism Company’s Board of Directors and must now be evaluated by the Financial Oversight and Management Board.

He reiterated that extending the contract is urgent because conventions and group events are typically booked three to five years in advance.

Regarding the recent departure of Glorianna Yamín, the DMO’s Vice President of Marketing, Pérez revealed that the recruitment process has already begun and that the organization has received dozens of applications.

"The position has generated incredible interest because people feel honored to represent Puerto Rico," he said.

Separately, Destinations International held its annual convention last weekend in Portland, Oregon, bringing together destination marketing organizations from around the world.

Although Pérez did not attend because he accompanied Carlos Beltrán during his National Baseball Hall of Fame induction in Cooperstown, he said five members of Discover Puerto Rico participated in the conference and that he plans to attend the organization’s upcoming annual CEOs conference.

"It was a unique, once-in-a-lifetime event with tremendous significance for Puerto Rico and for our destination positioning strategy," Pérez said, referring to the Major League Baseball Hall of Fame induction ceremony.

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This content was translated from Spanish to English using artificial intelligence and was reviewed by an editor before being published.