AGP Executive Report

Puerto Rico Air Connectivity: Southwest Airlines is adding new Puerto Rico routes, launching service from Indianapolis and starting tickets for Columbus, Ohio, with an estimated $2.3M economic impact and about 3,130 extra passengers at SJU. Tourism & Hospitality Investment: La Concha Resort broke ground on LUXE AZUL, a $6.5M beach club in Condado expected to create 20+ direct and 100+ indirect jobs, positioning the resort for expanded dining and entertainment. Local Business Expansion: Sobao opened its fifth Puerto Rico restaurant in Guaynabo, investing over $300,000 and creating 25 jobs as the brand grows in one of the island’s busiest commercial corridors. Workforce & Economy: Puerto Rico’s job market shows record-low unemployment at 5.6%, while officials push more people back into the labor force amid new challenges tied to AI. Industry Branding: Made in Puerto Rico named Pedro Rosaly as its new president/CEO, aiming to turn the “Made in Puerto Rico” label into a broader business movement and expand services, training, and international reach. Energy Policy Watch: Federal funding news includes support for coal plant upgrades, including mention of a Puerto Rico coal-fired plant modernization effort in Guayama.

Aviation & Tourism: Norwegian Cruise Line will redeploy the Norwegian Viva to PortMiami for the 2027-28 winter season, canceling its planned Southern Caribbean cruises from San Juan and offering refunds plus cruise credits. Air Connectivity: Southwest expands in Puerto Rico with new routes from Indianapolis and Columbus, adding an estimated $2.3M in economic impact and about 3,130 passengers. Local Business Growth: Sobao opens its fifth restaurant, launching in Guaynabo with a $300,000+ investment and 25 jobs. Hospitality & Construction: La Concha Resort breaks ground on LUXE AZUL Beach Club in Condado, a $6.5M project expected to create 20 direct and 100+ indirect jobs. Industry Organization: Made in Puerto Rico names Pedro Rosaly as new president/CEO, aiming to grow membership, training, collaboration, and international market reach. Food Safety: Urgent Salmonella-related food recalls and logistics oversight concerns are prompting consumers to check products closely. Consumer Protection: DACO says recent supermarket expiration-date complaints haven’t turned up irregularities in inspections, while continuing surveillance. Labor & Economy: Puerto Rico’s unemployment rate is reported at a record low 5.6%, alongside efforts to pull more people back into the workforce.

Air Connectivity & Jobs: Southwest Airlines added new Puerto Rico routes, launching service from Indianapolis and starting Columbus, Ohio ticket sales, projecting about $2.3M in economic impact and 3,130 more passengers. Local Business Expansion: Sobao opened its fifth restaurant, entering Guaynabo with a $300,000+ investment and 25 direct jobs. Tourism & Hospitality Investment: La Concha Resort broke ground on LUXE AZUL Beach Club in Condado, a $6.5M project expected to create 20+ direct and 100+ indirect jobs. Agriculture & Community Funding: Puerto Rico’s Resident Commissioner said the U.S. House approved FY2027 appropriations covering PAN nutrition support and community/agriculture projects, including $803,000 for Hormigueros landfill remediation. Manufacturing/Trade Support: Made in Puerto Rico named Pedro Rosaly as new president/CEO, aiming to expand membership, training, collaboration, and international market initiatives. Labor Market Watch: A new report cites Puerto Rico’s unemployment rate at a record-low 5.6%, with the labor participation rate at 44%. Consumer Protection: DACO said supermarket expiration-date complaints are under active inspection and that recent visits found no irregularities.

Made in Puerto Rico Leadership: Islandwide Group CEO Pedro Rosaly takes over as president and CEO, aiming to turn the group into a broader “movement” for local businesses and workers—expanding enrollment, training, collaboration, and international market push amid inflation. Tourism & Hospitality Investment: La Concha Resort broke ground on LUXE AZUL Beach Club in Condado, a $6.5M project expected to create 20 direct and 100+ indirect jobs. Healthcare Infrastructure: Mayagüez launched a $6.2M renovation at San Antonio Hospital, upgrading patient rooms, PICU, delivery, and operating rooms. Consumer Protection Watch: DACO says supermarket inspections found no evidence of tampered expiration dates or damaged goods, though it will keep monitoring after social media complaints. Pharma Workforce Spotlight: Yilda M. Acevedo, founder of PharmPR Inc., was recognized for operational excellence and regulatory compliance leadership in Puerto Rico’s pharmaceutical manufacturing sector. Connectivity Rewards: T-Mobile Puerto Rico marked 10 years of T-Mobile Tuesdays with expanded member benefits and promotions. Energy Policy Signal: Federal coal funding plans include upgrades tied to Puerto Rico’s Guayama coal plant, keeping the island in the national energy debate.

Consumer Protection: Puerto Rico’s DACO says recent social media complaints about supermarkets allegedly hiding or removing expiration dates and selling damaged goods have not turned up irregularities in inspections, but it will keep monitoring. Hurricane Readiness & Retail Compliance: DACO has launched a 400-plus business enforcement operation for the 2026 hurricane season, checking labeling, availability, pricing trends, and emergency-supply readiness across supermarkets, hardware, pharmacies, and fuel retailers. Energy & Grid Resilience: A Puerto Rico House committee chair inspected the Monacillos Transmission Control Center to verify LUMA Energy’s storm/hurricane preparedness, backup systems, and contingency operations. Agriculture & Food Security: A new law (Law 102-2026) lets DNER issue special non-sport hunting permits to farmers to control wild hogs harming crops, coordinating with agriculture and other agencies on capture and disposal. Healthcare Infrastructure: Mayagüez has started a $6.28M renovation at San Antonio Hospital, upgrading patient rooms, PICU, delivery, and operating rooms. Pharma Workforce Spotlight: Chemical engineer Yilda M. Acevedo, founder of PharmPR Inc., was recognized for pharmaceutical manufacturing and regulatory compliance leadership and for advancing women in Puerto Rico’s science and engineering pipeline.

Hospitality Investment: Henderson Park completed its acquisition of Hyatt Regency Grand Reserve in Río Grande, Puerto Rico, with Pyramid Global Hospitality tapped as operator—adding a 579-room beachfront resort to a growing portfolio of hotels and keys. Energy & Infrastructure: A corrosion-design framework is being promoted to extend the life of coastal PV and BESS systems, arguing salt air and humidity can cut equipment service life beyond standard screening. Music Industry (Latin Market): Concord announced a strategic partnership with Lito Music, aiming to build a globally competitive Latin reggaetón label and catalog. Tech & Business Services: Liberty Business says it’s expanding in Puerto Rico with “Liberty Business in a Box,” bundling connectivity, cybersecurity, IoT and AI for industries like healthcare, finance, retail and hospitality. Regional Trade/Ag: The U.S. imposed new sanctions on Cuban President Miguel Díaz-Canel and others, escalating pressure amid fuel shortages and blackouts that ripple across Caribbean supply chains. Local Tourism/Industry: Puerto Rico’s winter cruise season reportedly hit 1.3M passengers and a 43% jump, signaling continued demand for port and visitor services.

Hospitality Investment: Henderson Park completed its acquisition of Hyatt Regency Grand Reserve in Río Grande, Puerto Rico, with Pyramid Global Hospitality set to operate the 579-room beachfront resort—an expansion that signals continued capital flow into island tourism. Local Governance & Procurement: Puerto Rico’s Financial Oversight and Management Board ordered mayors’ groups to stop implementing Acts 141-2024 and 215-2024, warning the measures could violate PROMESA and put federal funding at risk. Energy & Innovation: Nicole Gonzalez, a former NASA engineer, is advancing Raya Power’s modular solar approach through the Bravo Family Foundation’s Venture Fellowship, aiming to widen access for renters and outage-prone communities. Tech for Business: Liberty Business says it’s pushing digital transformation in Puerto Rico with cloud, cybersecurity, IoT and AI offerings tailored to industries like hospitality, healthcare and finance. Military & Local Industry: Fort Buchanan met with the Puerto Rico Chamber of Commerce to boost local small-business participation in federal contracting, highlighting the base’s $500M+ operating budget impact. Music & Talent Pipeline: YouTube Music’s Foundry Class of 2026 includes Puerto Rico’s RaiNao, positioning the island’s artists for broader global discovery. Legal/Politics: A court dismissed Sen. Luis Javier Hernández Ortiz’s bid to force the Justice Department to release archived integrity cases, citing lack of standing. Industry Dispute (Lithium): A co-founder sued EnergyX in federal court over alleged ouster and lost equity tied to its lithium extraction plans in the Texarkana region.

Tourism & Hospitality: Dorado moves ahead with a new Wyndham Garden beachfront hotel deal, a 53-room project slated to open in December 2026, aiming to boost the municipality’s visitor economy. Streaming Distribution: Hemisphere Media Group expands WAPA+—its Puerto Rico-focused FAST channel—onto Amazon Prime Video, widening reach for locally produced news and entertainment. Cruise Industry: Norwegian Cruise Line cancels seven months of Norwegian Viva sailings from San Juan (Jan–July 2028) due to port availability, offering full refunds and future cruise credits. Local Environment & Construction: DRNA advances nearly $950,000 to rehabilitate Piñones State Forest kiosks, moving through final design-proposal evaluation for food kiosks in Loíza. Co-ops & Finance: Puerto Rico credit unions hold steady in Q1 2026, with an ETI Financial Stability Index score of 0.57 as delinquency falls and capitalization strengthens. Workforce Development: Maritime Training Center in Danville reports 13,000+ graduates since opening, training Puerto Rico and others for submarine-industry jobs tied to welding, CNC, and additive manufacturing. Energy & Grid: LUMA’s May report flags factors slowing grid stabilization.

Tourism & Hospitality: Dorado signed an agreement to bring a Wyndham Garden hotel to its Costa de Oro beachfront, a 53-room project aimed at boosting visitor traffic and local jobs ahead of a December 2026 opening. Live Entertainment Demand: A Tu Música Convention panel said streaming may have changed music habits, but live events are still pulling audiences back—especially as people prioritize concerts and festivals. Finance: Puerto Rico’s credit unions held steady in Q1 2026, with an ETI index score of 0.57 as delinquency eased and capitalization improved. Energy & Shipping: Puerto Rico received nearly 2 million barrels of fuel under a cabotage waiver, with 1.8 million barrels reported from April 25–May 27, while Norwegian Cruise Line canceled months of Viva sailings from San Juan due to port availability. Public Works & Environment: DRNA advanced nearly $950,000 to rehabilitate Piñones State Forest kiosks, moving through design-proposal evaluation. Food & Agriculture: Resident Commissioner Hernández Rivera highlighted a House appropriations bill that could fund Puerto Rico’s nutrition, agriculture, and emergency preparedness, including about $3.06B for PAN. Trade & Industry: PRSI reported tariffs hit $919.7M in 2025, up 288.66%, with the biggest burden falling on construction and manufacturing inputs.

Cruise Tourism Watch: Norwegian Cruise Line canceled about three months of sailings on its Norwegian Viva that were set to depart Lisbon for San Juan, Puerto Rico, then homeport there, redeploying the ship to Miami; the line offered full refunds and 10% future credits, while Puerto Rico tourism analysts warn of roughly $17M in projected losses for fiscal 2028. Trade & Industry Costs: Puerto Rico paid $919.7M in import tariffs in 2025—up 288.66% year over year and the highest in 15 years—driven by higher effective tariff rates, with the heaviest burden falling on goods used by construction and manufacturing. Housing Finance: Mortgage delinquency in Puerto Rico hit historic lows as of Dec. 2025, with 30-day delinquency at 3% and 60-day at 1%, tied to pandemic-era refinancings and a tighter pool of borrowers. Energy & Resilience: The CT–Puerto Rico Trade Commission’s first meeting added an energy focus, citing LUMA grid instability and high costs, as commissioners set subcommittees for economy, tourism, housing, education, and healthcare. Local Business & Growth: Don Q announced two new premium rum expressions—Reserva and Reserva Especial—aimed at expanding high-end options from Destilería Serrallés.

Mortgage Market: Puerto Rico’s 30-day mortgage delinquency slid to 3% (60-day 1%, 90-day 2%) as refinancings, rental-income use, and tougher borrower selection keep defaults unusually low. Cruise Tourism: Norwegian Cruise Line will cancel Norwegian Viva departures from Puerto Rico for 2027-2028, with the tourism sector warning of about $17M in economic impact for FY2028 as the ship shifts excursions from Miami. Retail & Payments: Bad Bunny concerts in Lisbon boosted business revenue 8.01% on show days, with food retail seeing the biggest lift—an example of how major music events can move consumer spending. Local Business Expansion: Tres Santos Mezcal marks its first anniversary in Puerto Rico, now in 250+ bars and restaurants, and plans a distributor alliance to push into supermarkets and more retail channels. Energy Reliability: WAPA in the U.S. Virgin Islands said a Randolph Harley Power Plant failure triggered cascading technical issues, causing widespread outages across St. Thomas and St. John. Agriculture Policy: A proposed 12-month moratorium would pause enforcement against street vendors in Puerto Rico’s state right-of-way to create a more “humane” transition process for small merchants and farmers.

Inflation & Retirement: AARP’s José R. Acarón says Puerto Rico’s older adults are still getting squeezed as inflation erodes purchasing power, with Social Security COLA (2.6% for 2026) only cushioning the blow. Energy & Shipping: A new Gulf Coast analysis links Trump-era partial Jones Act suspensions to more fuel shipments to places including Puerto Rico, reshaping crude and product flows via foreign-flag waivers. Local Spirits Growth: Tres Santos Mezcal marks its first year in Puerto Rico with rapid expansion to 250+ bars, restaurants, and specialty outlets, and plans a distributor alliance to push into supermarkets and retail. Tourism Demand: Puerto Rico’s cruise season is reported as one of its strongest ever, with 1.3 million passengers and a 43% jump tied to 515 ship calls. Governance & Cost of Living: Puerto Rico’s ombudsman Edwin García Feliciano urges an urgent, united push to force the oversight board to address the high cost of living’s real-world damage to families and seniors. Grid Stabilization: LUMA’s May report points to factors slowing grid stabilization, keeping reliability pressure on the island’s power system.

Puerto Rico Tourism & Hospitality: Puerto Rico’s cruise season is surging, with reports citing a 43% jump in cruise passengers during winter and 1.3 million passengers across 515 ship calls, signaling stronger demand for island ports and on-the-ground services. Energy & Grid Reliability: LUMA’s latest update points to factors slowing grid stabilization, while separate coverage highlights how frequent outages remain a regional challenge (including a blackout affecting St. Thomas and St. John in the U.S. Virgin Islands). Local Governance & Cost of Living: Puerto Rico’s ombudsman Edwin García Feliciano is pressing for an aggressive, unified stance to force the Financial Oversight and Management Board to address the human impact of high living costs. Aviation & Connectivity: Caribbean regional aviation is reshaping around emerging hubs, with new interline arrangements and route changes affecting how travelers connect across the Eastern Caribbean. Construction & Public Safety: A call for structural inspection of an unfinished hotel after a nearby collapse underscores ongoing risks in stalled projects and the need for enforcement. Business & Retail: Hecho en Puerto Rico named Pedro Rosaly as new president, while a Puerto Rican startup is launching an AI assistant aimed at helping businesses manage internal knowledge.

Cost of Living Pressure: Puerto Rico’s ombudsman Edwin García Feliciano urged La Fortaleza and lawmakers to present a united front to force the Financial Oversight and Management Board to address the “economic devastation” driving high living costs for families. Tourism & Ports: Puerto Rico’s winter cruise season surged to 1,360,937 passengers, up 43% year over year, with 515 cruise operations and more port calls—signaling stronger confidence from major cruise lines. Energy Reliability in the Region: A total blackout hit St. Thomas and St. John in the U.S. Virgin Islands, underscoring ongoing generation and maintenance strain that also affects regional business continuity. Local Governance & Infrastructure: Puerto Rico’s fiscal board placed conditions on municipal land plans amid permitting reform, adding friction to development timelines. Culture & Community: A free screening of the acclaimed Puerto Rican film “Esta isla” at Casa Pueblo’s Solar Cinema in Adjuntas ties local arts to environmental activism.

Electric Reliability Shock: A total blackout hit St. Thomas and St. John in the U.S. Virgin Islands early Sunday for the second time this weekend, blamed on loss of generation at a power plant, underscoring how aging infrastructure and deferred maintenance keep outages frequent. Tourism & Ports: Puerto Rico’s winter cruise season surged to 1,360,937 passengers (+43%) with 515 cruise operations/port calls (+34.1%), signaling stronger confidence from major cruise lines. Aviation Market Signals: A Caribbean regional aviation realignment is accelerating as carriers adjust routes and partnerships, including an interline agreement effective June 1 as Caribbean Airlines exits key markets. Energy Policy Debate: A push to end daylight saving time would let states opt out permanently, but Puerto Rico and other territories are already on year-round standard time—raising questions about how federal rules will interact with local control. Local Culture & Community: A free screening of the Puerto Rican film “Esta isla” at Casa Pueblo’s Solar Cinema in Adjuntas ties film, environmental activism, and local engagement together. Manufacturing/Ag Research: Scientists traced upland cotton domestication to Mexico’s Yucatán region, using genomes that include wild cotton from Puerto Rico and nearby islands.

Puerto Rico Tourism & Ports: Puerto Rico closed its 2025-2026 winter cruise season with record momentum—1.36M passengers in Old San Juan (+43%) and 515 cruise operations/calls (+34.1%), underscoring the island’s growing role as a Caribbean hub. Energy & Grid Stability: LUMA’s May report points to factors slowing grid stabilization, keeping pressure on reliability improvements. Maritime Security: U.S. Coast Guard and partners apprehended eight stowaways in San Juan Harbor (four Chinese, four Dominican), transferring them to CBP for processing. Local Development & Housing: Dream of homeownership remains elusive in Puerto Rico, while housing affordability concerns persist. Industry & Infrastructure: NAVFAC Atlantic awarded a $480M environmental action services contract for long-term restoration work supporting Navy and Marine Corps sites. Culture & Community: Casa Pueblo’s Solar Cinema will host a free screening of the award-winning Puerto Rican film “Esta isla,” with a post-screening discussion. Business & Compliance Tech: Pet travel platform PadsPass CEO Lauren Anders Brown will speak at Caribbean Week in New York, pitching digital tools to streamline pet travel documentation. Defense Readiness: The 24th Marine Expeditionary Unit assumed mission as Littoral Combat Force-24, supporting USSOUTHCOM with crisis response and disaster relief readiness.