The Impact of Short-Term Rentals (STR) on Puerto Rico's Economy
Short-term rentals (STR) have experienced significant growth in Puerto Rico in 2023, reflecting an upward trend in the island's tourism and hospitality industry.
Let's delve into key data points that reveal the significant impact of STR on the local economy.
21,000 Estimated Units: An estimated total of 21,000 short-term rental units, including apartments, houses, and other accommodation options, representing a 15% increase from the previous year.
42,000 Estimated Rooms: With approximately two rooms per unit, there is an estimated total of 42,000 available rooms, accounting for 60% of the total room inventory on the island.
14,775 Registered Units: The Puerto Rico Tourism Company (PRTC) reports a total of 5,910 registered entities as STR operators, with an average of 2.5 units per entity, totaling 14,775 registered units.
$680 Million in Owner Rental Income: Rental income for owners accounts for 37% of the total, reaching an impressive $680 million.
2.6 Million Room-Nights: Demand for STR accommodation reaches 2.6 million room-nights, representing 39% of total accommodation demand.
$950 Million in Visitor Spending Income: Visitor spending, including restaurants, tours, transportation, shopping, etc., amounts to $950 million.
$1.6 Billion in Total Direct Impact on Visitor Economy: The total direct impact of STR on the visitor economy is estimated at $1.6 billion, highlighting its significant contribution to the tourism sector.
$36 Million in Room Tax for CTPR: Hotel tax revenue amounts to $36 million for the Puerto Rico Tourism Company (CTPR), representing a significant increase compared to previous years.
26,000 Employees in the STR Industry: A total of 26,000 employees are involved in STR management, including owners, operators, maintenance staff, among others.
Hosts and Properties: There are 6,753 listed hosts, with an average of 2 properties per host. 95% of hosts manage between 1 and 10 properties, while only 5% manage more than 10 properties.
Host Demographics: 53% of STR hosts are women, and 20% are aged over 55, demonstrating demographic diversity within the industry.
Accommodation Trends: 60% of rental units are apartments, 34% are houses or villas, and 6% are other options such as glamping or boat rentals.
Geographical Distribution: While STRs are present across the island, there is a high concentration in areas such as San Juan, the West Area, and the East Area, reflecting the popularity of these destinations among visitors.
Occupancy and Rates: The annual occupancy rate stands at 55%, with an average daily rate (ADR) of $224, indicating stability in rates and demand compared to previous years.
In summary, short-term rentals continue to play a crucial role in Puerto Rico's economy, generating significant income, employment, and contributing to the development of the tourism sector on the island. Their positive impact is reflected in various aspects, from increased income for owners to expanded accommodation options for visitors, solidifying their position as an attractive option in the hospitality market.
