Updates on PR Economy and Medical

I know this is in the mind of most people, here are some articles that I think will be interesting to read.

Finances for medical: http://insurancenewsnet.com/oarticle/20 … -rico.html

Turism: Seems we are depending a lot on Cruise Ships, looks like we are getting more and bigger ones which should be good. However I am not convinced that Cruise ships is the best for the island, after all they are only in the island for a few hours so there is little opportunity for them to consume much of anything. I personally think that attracting them to our hotels and gusthouses would make it a better deal for PR instead of Cruise Ships. http://skift.com/2015/11/14/san-juans-n … ise-ships/

Unemployment and Hourly wage: There is a debate about the possibility of making $15.00 and in some cases $12.00 an hour a required minimum. I think it would be a disaster for poor states and for Puerto Rico. Yes, some people that are lucky enough to keep their jobs will make a better living, but a lot of others will loose their job because the employers will not be able to afford them. Those that keep their job will also end up doing the job of the ones that become unemployed.   http://www.vox.com/policy-and-politics/ … nimum-wage

Debt Relief: I was a little surprised about this article since I been hearing that the republicans were either ignoring or against helping PR. http://fortune.com/2015/11/20/puerto-rico-default-debt/

*** Read the above and see if in your case you should panic or if there is hope at the end of the tunnel. I personally think that things will get better but that there will be some bumps in the road.

What do you think?
Fingers Crossed
Rey

Rey,

Having lived in Sitka, Alaska (hence my blog name) for many years, I am familiar with the effect of tourism from cruise ships on a local community.

Sitka is known as the "jewel" of Alaska, a very scenic small fishing town located on Baranof Island in southeast Alaska.  Accessible only by air and water.

It is known for its beauty, idilic setting on the ocean with rugged mountains and wilderness.   It is close to the "inside passage" from Washington state to Alaska.   

The inside passage is a beautiful sailing route and is used by both the public ferry system and commercial shipping, and tour / cruise lines.    The cruise ships have an impact on the local economy, community and state.   When the ships arrive in town and unload hundreds, or thousands of tourists into the town it has an instant over crowded impact on the downtown area.

The tourists spend money on t shirts, art, souvenirs, food, etc, - and yes they support lots of small business that sell this stuff to them from various small shops and street side vendors.  The tourists also wander aimlessly through the town, looking at homes and sights - it is not uncommon for them to look into homes, peeking into front windows and doorways to see the "natives".   They can be pretty rude at times too, and a nuisance blocking the streets with so many tourists that the locals have difficulty driving thru town to get to work.

But cruise ships don't stay long, after a few hours they load up and sail away.  The tourists don't rent hotel rooms,  cars, or stay for a nice dinner or support the community like conventional tourism.   

PR is better off getting tourists to fly in, stay a week or two and see the whole island.   The tourists will enjoy it better and the island economy will benefit more.

Sitka

I agree, that it would benefit PR much more if they made a destination to stay and enjoy.  Maybe advertise different places to stay in PR or have some all inclusive options as many people prefer that.

I guess the 3 of us are in agreement, cruise ships benefit the cruise ships the most and partially small vendors in the vecinity for just a few hours.

When I was growing up those cruise ships were not there, most of the turists came in and stayed in hotels and took trips around the island which helped a much larger set of businesses and they left a lot more money in the island.

We need to advertice the island diferently, as a whole. Not just stop at old SanJuan, but come see the island, it beaches and attractions so they can come for a few days or weeks and not like a bunch of ants when you disturb the nest in a hoard the spreads from the center of the nest/ship.

Hope the industry starts to get better ideas than just Cruise ships. Lots of hotels have closed their casinos too and a lot of restaurants have closed. Malls are not getting the tourists either. This needs to change, the whole island needs more income.

I also read about doing cruises to the west of the island, I think Mayaguez, to me it is not worth it. All that dredging and oil from the ships does a lot of damage to the area. Also some of you were talking about how peaseful the west side was, not so peaseful if all those cruise ships, specially the huge ones come in droves.

Many cruises begin and end in San Juan. The trick would be to have these cruisers extend their vacation here, before or after the cruise.

frogrock wrote:

Many cruises begin and end in San Juan. The trick would be to have these cruisers extend their vacation here, before or after the cruise.


Good idea Carroll.

yea, I didn't know that was being proposed.  I would oppose any attempt to bring cruise ship tourism to the west end of the island based on my experience..

Mayaguez had a small cruise ships that went to Dominica. However that stopped that    have no idea why.

sandrarduncan wrote:

Mayaguez had a small cruise ships that went to Dominica. However that stopped that    have no idea why.


They stopped because of the drug smuggling and car transportation. Specially stolen ones, it got so bad that years ago most of the cars stolen in the island would end up in SD. Feds crack down on the cruise company and some of them even end up in jail.

frogrock wrote:

Many cruises begin and end in San Juan. The trick would be to have these cruisers extend their vacation here, before or after the cruise.


That's already happening, at least with cruise passengers from Germany.
The last time I flew back to PR from Europe I was flying Condor, a German charter company (daughter of Lufthansa).
I talked to the agent in Frankfurt, trying to get a better seat, and asked why all those Germans were flying to PR. The answer was: "Cruise packages". They're selling packages with a stay in a hotel, excursions and a Caribbean cruise and according to the agent all flights are sold out.

That is good, Gary!  More help for the economy.

I just got back to the Island and  had two guests from Germany. He was the brother who stayed with us last year. It is not quit a cruise quantity but every little bit helps.

Gary wrote:
frogrock wrote:

Many cruises begin and end in San Juan. The trick would be to have these cruisers extend their vacation here, before or after the cruise.


That's already happening, at least with cruise passengers from Germany.
The last time I flew back to PR from Europe I was flying Condor, a German charter company (daughter of Lufthansa).
I talked to the agent in Frankfurt, trying to get a better seat, and asked why all those Germans were flying to PR. The answer was: "Cruise packages". They're selling packages with a stay in a hotel, excursions and a Caribbean cruise and according to the agent all flights are sold out.


A lot of Germans know English and they tend to like to practice it, some even know Spanish, living in Europe where all sorts of other countries are only a car ride away helps them learn multiple languages.

This sounds like the right thing to do Gary, we need more europeans to come to the island, stay and go on tours of the island. The more countries that visit us the better.

ReyP wrote:

This sounds like the right thing to do Gary, we need more europeans to come to the island, stay and go on tours of the island. The more countries that visit us the better.


The problem with attracting more tourism is the cheap all-in resorts in the Dominican Republic. No way we can compete with that. The cruise packages are interesting for Europeans though. They advertise that it's better to depart from San Juan since it's already in the Caribbean (doh!) so the tourists get to spend more time in the neighborhood and don't have to pay for two times a day on sea from and to Miami.

About Germans speaking English, when I lived there I really needed to get fluent in German fast. Out of the larger cities or away from the US and British barracks English is not so common.

Gary wrote:
ReyP wrote:

This sounds like the right thing to do Gary, we need more europeans to come to the island, stay and go on tours of the island. The more countries that visit us the better.


The problem with attracting more tourism is the cheap all-in resorts in the Dominican Republic. No way we can compete with that. The cruise packages are interesting for Europeans though. They advertise that it's better to depart from San Juan since it's already in the Caribbean (doh!) so the tourists get to spend more time in the neighborhood and don't have to pay for two times a day on sea from and to Miami.

About Germans speaking English, when I lived there I really needed to get fluent in German fast. Out of the larger cities or away from the US and British barracks English is not so common.


I was stationed in Heidelberg which get a LOT of tourists, When I tried to speak German, most people there would address me in English (bad German on my part), they all wanted to practice their English. Maybe it was my bad German, but their excuse was they wanted to practice their English. Yes less so outside tourist areas, either  way I had a blast and was considering extending my 2 year tour as I had more fun in Germany than in most places in the US.

Yeah, that happens to me here on the island when I speak Spanish. When they see me and even more when they hear me most locals think "Gringo!" and there's always someone around who speaks English.

I liked Germany. Actually if I was to return to Europe I would rather go to Germany than to Holland, I think.

If you want to go to Germany you better do it soon. The refugees are rapididly coming there in droves and there will come a day when there won't be many true Germans left. Saw a video on it the other night. Pretty scary. Disclaimer: I'm not anti immigrant, just passing along some info.

GreggK wrote:

If you want to go to Germany you better do it soon. The refugees are rapididly coming there in droves and there will come a day when there won't be many true Germans left. Saw a video on it the other night. Pretty scary. Disclaimer: I'm not anti immigrant, just passing along some info.


Yeah I'm following the news from Europe, too. I read Dutch, British and German news on a daily basis.

Right now there's a large wave of refugees from the Middle East because of the war(s) over there, all over Europe. Somehow those people need shelter and Germany is taking in a lot of them. History shows that after the situation in their home land gets better, many refugees go back.

Right now I don't have the intention to leave Puerto Rico, still mainly happy here. :)

I dont think wife will let you leave PR

ReyP wrote:

I dont think wife will let you leave PR


You could be right there and without her I won't go anyway.

Apart from that, I happen to like this island. :)

Gary, Get your contacts in Europe to advertise long stays in the island and make some money in the process.
You can give them where to stay, day trips to different places and make deals in the island and get a percentage.

I may decide to get a realtor license in PR and cashin on the glut of properties available.
May also use that knowledge to buy several properties for short term rentals.

Having lived in German from 2001-2005, speaking German is a plus but a smile and gestures would help in a pinch. I like the idea of adding a resort/hotel stay to a cruise packages or day packages on a more frequent basis like other Caribbean Islands. When we stayed at the InterContinental Resort a few years back in San Juan it was overrun with cruise passengers. It can get a bit hairy with non cruise patrons and cruisers staying at the same hotel but I generates income. I felt as if it added additional stress to the staff with just the everyday runnings of the resort.

Treats7985 wrote:

Having lived in German from 2001-2005, speaking German is a plus but a smile and gestures would help in a pinch.


I guess it depends on where you live and what you do for a living. I was in a small town and had mainly German customers. Not speaking the language was no option for me. :)

Treats7985 wrote:

It can get a bit hairy with non cruise patrons and cruisers staying at the same hotel but I generates income. I felt as if it added additional stress to the staff with just the everyday runnings of the resort.


That's interesting, I never would have expected that tourists would be acting different based upon that. What was the cause for this, can you elaborate a little?

ReyP wrote:

Gary, Get your contacts in Europe to advertise long stays in the island and make some money in the process.
You can give them where to stay, day trips to different places and make deals in the island and get a percentage.


I've been thinking of that, I even bought a domain (caribischevakantie.nl -- carribbean vaction in Dutch) a couple of years ago but never got to make the website. I should get that site going!

Gary wrote:
ReyP wrote:

Gary, Get your contacts in Europe to advertise long stays in the island and make some money in the process.
You can give them where to stay, day trips to different places and make deals in the island and get a percentage.


I've been thinking of that, I even bought a domain (caribischevakantie.nl -- carribbean vaction in Dutch) a couple of years ago but never got to make the website. I should get that site going!


Lets talk when I am in the island, I have some ideas that may interest you.

ReyP wrote:

Lets talk when I am in the island, I have some ideas that may interest you.


We will -- looking forward to it!

Gary,
We lived "sheltered" lives in Germany. We were not allowed to live off base in Germany during our tour there. We lived in Weisbaden for a year and Hanau for three years.  I lived and worked on base at a DoDDS-School. English was the predominant language spoken on base. I recognize that to secure a job and be productive citizen in German Society, speaking German was a must. I knew just enough phrases to get by. My husband was able to navigate the German language with greater success. We loved to patronize shops and eateries in our community. Due to the proximity of the base to the local community, the language barrier did not impact our lives.

My family and I traveled throughout Europe and visited several cities in Germany. One regret is not learning the  language. We plan on going back some day since our son Ahren was born there.

We are a family that enjoys taking cruises. Over the years, our vacation stays at resorts in Puerto Rico, Jamaica, Bahamas, Florida, and other places have coincided with cruisers. Some resorts either participate in offering day passes or before/after cruise stays. Although the resorts generate additional revenue, the resources are stretched thin often to the detriment of resort guests.

My limited observations and minor hiccups:
1. The ambiance of the resort sometime changes due to rowdy patrons. Usually the resort staff just ignore the behaviors....
2. Staff is overworked due to a larger influx of people at one time and it appeared as if some of their attitudes changed...and not for the better...At one resort staff members were counting down the boat arrivals...
3. Limited services such as the Kids clubs are closed or certain spa packages are offered when the boats are docked.
4. Patrons have to change wrist bands daily to get pool towels and to ensure pool towels were returned daily.
5. The food menu is repeated/recycled quickly to offer cruisers some of the resorts "island" favorite dishes...
6. Resort vendors ratchet up their prices.
7. Limit staff equals longer wait time for everything...
8. And the list could go on...

The thoughts listed above are from my limited perspective. Our resort stays are usually from 5 days to several weeks when we travel as a family.

Thanks for explaining, Treats.  It sounds like you enjoyed Germany --so did I. For me as a Dutch native getting fluent in  German wasn't as complicated since back in the days we had to take three foreign languages in high school (English, French and German) so I had a solid basis. Also, German and Dutch are closely related and many words are very similar. The German grammar is a lot more complicated though..

About Cruise tourists with a day package in a resort, yes that can get too crowded fast, I now understand what you meant. :)

My 2 years in Germany were a little diferent, I lived on base in Heidelgerg, but I could live off base if I was footing the bill. I had a German girlfriend so I was on base only when required. My job was special, basically I worked around the clock 2 weeks in a row with very littke sleep and was off 2 weeks out of every month (plus vacations on top of that). So I was running all over the place with my girlfriend or with Tito Puentes Band as their photographer for their tour in Germany. I learned enough german to get by but that was about 30 years ago so I remember just a few words now. I spend a lot of time at coffee shops and fests, clubs, parks, and other places meeting people and having a good time. Most people were not aware I was in the Army as I wored civilian clothes, I had long hair and a beard due to my special assignment.
Needless to say I meet a lot of civilians in Germany. I almost did not come back to the states. Most people were very friendly, mostly old folks were a bit hard to swallow, they seem to liked the old Nazi times and did not liked those that were not pure germans. But lucky for me I had little interaction with them, most time I was with peopke 35 and under and those were nice and friendly.

A lot of Germans did a bit of vacationing in Spain and France, not sure when they started coming to the caribean in large numbers.

Married military personnel had to live on base. That was the only option given to us during his tour from 2001-2005.

Understood Treats, I was luckythat I was single and were not allowed to let others know I was military. So to me it was mostly party time.

The Ceiba, Roosevelt Road project does have a lot of potential for at least the east coast and Ceiba in particular. Bringing back jobs that were lost when the base was closed.
http://rooseveltroads.pr.govhttp://www.reuters.com/article/2015/08/ … lzjMyZc.97

I was just reading some news.

A)It seems that municipal workers in Arecibo were payed with a rubber check. There was insufficient funds in the account. Now the government is in recess until Monday. Unknown if this was an actual mistake or if they municipal government of Arecibo does not have the funds.

B) Also reading about some business being raided due to lack of remittance to the government of the taxes (IVU) collected. Some businesses were in arrears 18 to 24 months. No wonder PR is broke, they can't even collect the taxes. The fact that they let it go that long without doing anything says a lot!!!! They should be watching who does not send it in every 30-90 days and knock on their door day 91. If they don't collect taxes, tickets, property taxes, etc, then how do they expect to have any money? Some of these businesses need remit over 1 million dollars, which is unlikely they have, likely spend it.

:(:(

Rey,

This is been happening for years. That's the problem with the government been reactive instead of been proactive. If they will enforce the taxes and have inspectors in place to meet compliance the revenue will be much better. This affect the people, we pay the taxes and the store owner keep the money instead of paying it to the government as per law. Then after years os stealing, they declare bankruptcy and keep the money. This is not the first new I read regarding this issue. Every seller have to use one of those atm machines to collect the taxes, how come it is not configured to sent the collected money back to the government?

Death by a thousand cuts, most of them self inflicted!
In a his day and age the taxes from the vendors should be done daily or in real time.
Yes here in the states many businesses do the same, go out of business and never pay the business taxes or social security taxes they collected from the workers. In my opinion owners of businesses that control the finances should be jailed if taxes are not payed, specially the social security taxes employees payed.
Small businesses that can be automated, should have the taxes collected by the bank when a deposit is made, the remainder then goes to the business account, but goverment gets payed first. Maybe ill come up with cash register that supports this in a secured manner, LOL.

You will be making a killer!!!

But I agree, in this electronic age, there should be no excuse for a business not to deposit the taxes collected in a timely fashion. There are plenty of accounting software that will give the business a up to the minute report eith a break down of collection. If the business uses one of those atm machines, it will tell them the amount of collected taxes. For what I read it is the government fault, in the forms that the business report to the government even give them the option to keep the money and make a payment later. It should not be that way, the business should be forced to deposit the money at the time of reporting earnings. If you are running a business and needs to use the tax money's to run it you are not running a good business.

Absolutly, however more businesses would likely switch to cash only so they can rob the system and not use banks. This would also result in more business owners being rob at home where they keep the cash since they are not using banks. That would serve the right.

All taxes should be payed daily, contributions to SSN at payroll time, contributions to 403b, 401k, etc at payroll time. Imagine paying Ssn and contributing to a 401k and the owner rubbing the money. When you try to retire you find that the goverment did not received the money, so you get no SSN. Wow.

Too many laws including laws in incorporation and banking laws would need to change, but it is great to dream.
Maybe I should run for president?

They are not only robbing the goveement, they are robbing tge customers and the employees, mandatory jail sentense and seizure of all properties, including home vehicles and personal bank accounts. Hell ill take even their cementary plot and resell it.

ReyP for Prez!