AGP Executive Report

Puerto Rico Tourism: The Puerto Rico Tourism Company says May 2026 delivered a new cruise passenger record, with 1,827,010 visitors arriving at San Juan and Ponce—topping the prior high of 1,814,157 set in FY2019—crediting coordinated public-private efforts to keep the island competitive. Infrastructure & Utilities: Puerto Rico’s broader strain on essential services remains in focus as coverage highlights severe water shortages alongside earlier power outage concerns, underscoring the need for faster resilience planning. Cybersecurity & Business Risk: PRITS is urging companies to monitor accounts after an Evertec cybersecurity incident, a reminder that operational continuity and customer data protection are now core business priorities. Governance & Oversight: A separate development in the region: the Sandiganbayan dismissed Cebu City graft cases tied to 2021 solid waste contracts after prosecutors failed to properly allege criminal intent—an outcome that may interest Puerto Rico firms watching procurement and compliance trends. Energy Policy Watch: A U.S. federal push for $850M in coal plant modernization and new capacity signals continued policy swings that could affect energy costs and planning across U.S. territories.

Tourism & Trade: Puerto Rico hit a new cruise milestone, welcoming 1,827,010 cruise visitors by the end of May 2026—topping the prior record of 1,814,157 and signaling fresh momentum for the island’s hospitality-driven economy. Public Services & Cost of Living: Severe water shortages are disrupting daily life across Puerto Rico, including San Juan, with officials activating the National Guard and residents forced to buy potable water and rely on emergency deliveries. Business & Risk: A new report flags Puerto Rico’s exposure to cyber risk after Evertec’s cybersecurity incident, urging closer monitoring of accounts. Energy & Infrastructure: Governor Jenniffer González Colón is weighing managerial changes at PRASA as the territory faces ongoing utility reliability pressures. Policy & Finance: Oversight board scrutiny is drawing attention to Puerto Rico recovery taxes, while economists warn that the end of federal aid could pressure tax revenues. Security & Enforcement: U.S. authorities report major cocaine seizures tied to maritime interdictions, underscoring ongoing cross-border enforcement that can affect regional trade and logistics.

Water Crisis in Puerto Rico: Thousands of residents are facing severe water shortages, prompting the governor to activate the National Guard and emergency responders as San Juan communities struggle to get potable water and some residents report health impacts. Cybersecurity & Business Risk: Puerto Rico’s PRITS is urging monitoring of accounts after an Evertec cybersecurity incident, a reminder for companies to tighten defenses and incident response. Tourism Momentum: Puerto Rico set a new cruise passenger record in May, signaling continued demand for Caribbean travel and potential spillover for local hotels, ports, and suppliers. Energy & Infrastructure Watch: The week also included broader U.S. energy policy moves that could affect costs and reliability—relevant for Puerto Rico’s power planning as the island weighs grid resilience and fuel supply. Local Economy Signals: San Juan is set to allocate $5 million to encourage business growth, while Puerto Rico’s sports-betting industry continues expanding as another revenue stream for the local economy.

Water Crisis: Thousands of Puerto Ricans are facing severe water shortages, with the governor activating the National Guard as residents in major cities like San Juan report intermittent service and are forced to buy potable water and rely on laundromats. Public Finance & Local Projects: The Fiscal Control Board approved $7.29 million for permanent improvement projects across 17 Puerto Rico municipalities, targeting infrastructure, economic development, health, and public safety. Tourism & Demand Signals: Puerto Rico set a new cruise passenger record in May, pointing to continued momentum in Caribbean tourism. Energy & Operations: LUMA is asking the PREB to pause a pair of determinations, citing legal and operational risks—another reminder of how grid decisions can ripple into everyday business. Trade & Enforcement: U.S. Customs in Cincinnati seized $19M in counterfeit designer watches and accessories shipped to Puerto Rico, underscoring ongoing IP and supply-chain enforcement. Business Climate: Sports betting continues to grow in Puerto Rico, adding another revenue stream for the local economy.

Municipal Infrastructure Boost: Puerto Rico’s Fiscal Control Board approved $7.29M for permanent improvement projects across 17 municipalities, with funds drawn from FY2026 allocations and 2025 carryover to back infrastructure, economic development, health, and public safety. Trade & Enforcement: U.S. Customs at Cincinnati seized a shipment bound for Puerto Rico with $19.26M in counterfeit luxury goods, including Rolex, Cartier, Prada and Gucci items, underscoring ongoing IP enforcement tied to cross-border commerce. Energy Policy Pressure: Renewable groups sued the Pentagon over alleged delays in national security reviews for onshore wind farms, warning of stalled $47B in investment and thousands of jobs—an issue that could ripple into Puerto Rico’s broader energy planning debates. Local Business & Finance: Puerto Rico’s cruise surge continues to set records, with May bringing another milestone for passenger growth as tourism demand lifts the island’s travel-linked economy. AI in Schools: Parents and teachers pushed back on generative AI rollout in public schools, adding to the growing policy pressure around how technology is used in education.

Local Economic Push: San Juan will allocate $5 million to spur new business creation and expansion in priority sectors, routing support through the Business Concierge at Plaza Las Américas to speed permits and incentives. Business Growth & Trade: The DDEC and the Puerto Rico Chamber of Commerce teamed up to publish a free Puerto Rico Export Manual aimed at helping local firms break into international markets. Connectivity: Claro Puerto Rico won top honors from Opensignal for best mobile coverage experience and #1 5G video experience in Puerto Rico. Infrastructure Strain: Severe water shortages hit parts of San Juan and other major cities, with the governor activating the National Guard and officials citing long-standing maintenance and investment gaps. Public Safety & Courts: A Chester man accused of a workplace shooting that killed two is on trial for murder in Delaware County. Aviation & Tourism: Southwest Airlines is adding more Caribbean service, including new Puerto Rico routes for winter 2027. Sanctions & Energy: The U.S. announced sanctions against Cuba’s state oil and gas company Cupet, raising concerns about deeper regional fuel shortages. Trade Enforcement: CBP seized a shipment of counterfeit luxury goods headed to Puerto Rico, including Rolex and Prada items.

Energy & Cost Pressures: Economists warn Puerto Rico and the U.S. could see more price increases as energy costs climb amid oil-market tension. U.S.-Cuba Tensions: The U.S. announced sanctions on Cuba’s state oil and gas firm Cupet, a move expected to raise fuel and political pressure. Trade Enforcement: CBP seized a $19.26M shipment of counterfeit luxury watches, sunglasses and accessories headed to Puerto Rico. Local Defense & Jobs: Fort Buchanan marked the Army’s 251st Birthday with a live island broadcast highlighting its role in the Caribbean. Air Connectivity: Southwest announced new Caribbean service including first-time Columbus–San Juan flights for winter 2027. Tourism & Cruise Demand: Puerto Rico set a new cruise passenger record in May, while Royal Caribbean added a La Romana port call on a San Juan sailing. Politics & Status: Resident Commissioner Hernández Rivera introduced a Puerto Rico self-determination act to let voters choose statehood, independence, sovereignty or improved commonwealth status. Sports Betting Growth: The sports betting industry continues expanding in Puerto Rico.

Energy & Regulation: LUMA Energy asked Puerto Rico’s Energy Bureau (PREB) to pause two parts of its Final Rate Order—an external legal counsel fee cap and blanket denial of FY2026 Title III cost recovery—warning enforcement could disrupt PREPA bankruptcy work and ongoing proceedings. Public Finance & Oversight: Puerto Rico’s Comptroller’s Office trained 300+ auditors on rising cyberthreats, fraud, and forensic auditing, signaling tighter scrutiny of how public funds are protected. Tourism & Trade: Puerto Rico set a new cruise passenger record in May, reaching 1,827,010 visitors through San Juan and Ponce piers—surpassing the 2019 benchmark and pointing to another year-end milestone. Consumer Watch: Economic uncertainty is changing spending: food budgets fell 5% to $363/month and household spending dropped 14%, even as food prices keep rising. Sports Betting Growth: T-Mobile District is partnering with BetMGM, adding betting kiosks across the venue to turn games into a broader entertainment draw. Governance & Status: Resident Commissioner Pablo José Hernández Rivera introduced a “Puerto Rico Democratic Self-Determination Act” to let voters choose statehood, independence, sovereignty/free association, or improved commonwealth status, with PROMESA ending within two years if commonwealth prevails.

Tax & Oversight: Puerto Rico’s recovery taxes are under scrutiny after critics say a 2024 Act 215 could raise construction excise costs and slow FEMA-funded rebuilding, with the oversight board warning municipalities not to implement it without PROMESA compliance. Local Economy Watch: A new MIDA consumer snapshot finds Puerto Ricans cutting monthly spending, with many viewing the outlook negatively and a third considering leaving the island; the study also flags rising use of weight-loss (GLP-1) medications. Real Estate & Incentives: The Senate is demanding details on the Opus Miramar luxury project, including any tax decrees and communications tied to developers, as lawmakers probe whether incentives were handled properly. Business & Tourism: ORO Hotel & Residences in Hato Rey unveiled its “Barrilito Bar” partnership with Ron del Barrilito, aiming to deepen the luxury experience with a signature rum concept. Energy & Policy: Separately, the Trump administration announced $850M for coal plant modernization and two new plants, a move that renews debate over subsidies and grid reliability.

Puerto Rico Economy & Spending: A new MIDA consumer snapshot says Puerto Ricans are cutting monthly spending, with food down 5% and household goods down 14%, while 31% say they’re worse off than last year and a third consider leaving within 1–3 years. Local Governance & Tax Scrutiny: The Senate is demanding details from DDEC on the Opus Miramar luxury project in San Juan’s Convention Center District, including any Law 60-2019 tax decrees and communications with developers and lobbyists. Energy & Federal Policy: Puerto Rico is also being positioned as a key U.S. strategic hub in the Caribbean as tensions with Cuba rise, with officials citing readiness by air and sea. Banking & Courts: A bankruptcy ruling involving Firstbank Puerto Rico and a debtor’s failure to sell a residence is being challenged, with the dispute centered on whether the court properly justified granting stay relief. Business & Growth: National Retail Solutions/IDT marked major milestones at the NYSE, highlighting its point-of-sale and business tools that serve independent retailers across Puerto Rico. Tourism & Development Debate: A new analysis argues Puerto Rico’s tourism boom is reshaping development through tax incentives that can function like financial assets, with local communities feeling the impact.

Puerto Rico Infrastructure: Ferrovial won a $1.08 billion U.S. Army Corps of Engineers contract to expand and upgrade the Río Piedras channel in San Juan, widening it to cut flood risk and reinforcing canal walls with deep concrete piles; the Puerto Nuevo flood-control program is expected to run about six years and support 10,000+ jobs. Bankruptcy & Healthcare: A federal judge in Puerto Rico authorized the sale of Hospital del Maestro as part of its 2025 restructuring, approving a $15.6 million deal that transfers administrative and governance control to González Group LLC. Digital Assets Policy: U.S. lawmakers unveiled a new digital-asset taxation framework aimed at reducing reporting burdens and clarifying rules for common crypto transactions, with a hearing expected soon by the House Ways and Means Committee. Tourism & Real Estate: A report argues Puerto Rico’s tourism boom is increasingly tied to tax incentives that function like financial assets, reshaping development and displacing communities as luxury projects expand. Local Business & Jobs: Puerto Rico’s Made in Puerto Rico push highlights business expansion efforts and inflation-fighting initiatives. Sports & Culture: Puerto Rican radio host “Molusco” is set for U.S. syndication via a new partnership, expanding the show’s reach beyond the island.

Tourism & Travel (Ponce): Ponce is seeing a lift in visitors, driven by expanded air connectivity, more cruise calls, and walkable heritage sites like the Ponce Museum of Art and Serrallés Castle, with 18,019 visitors via Mercedita in 2025 and over 19,000 in early 2026. Hospitality (Puerto Rico): Henderson Park says it has completed its acquisition of the Hyatt Regency Grand Reserve in Río Grande, Puerto Rico, in a joint venture with Pyramid Global Hospitality, adding a 579-room resort to its portfolio. Sports Business (Puerto Rico ties): A Phoenix NBL team is still waiting on defensive standout John Brown’s return, noting his post-season run with Puerto Rico’s Santeros de Aguada in the BSN. Public Policy & Governance: Philippine Senate President Pro Tempore Sherwin Gatchalian points to official records showing a 12-member quorum precedent, arguing it supports the legitimacy of a June 3 session. Regional Economy (Labor/Markets): Singapore employers scaled back hiring expectations for Q3, but many still plan to pay premiums for AI and critical thinking skills.

Puerto Rico Business & Economy: Henderson Park and Pyramid Global Hospitality completed the acquisition of the Hyatt Regency Grand Reserve in Río Grande, Puerto Rico—Henderson Park’s first island investment—adding a 579-room beachfront resort to its portfolio, with Pyramid set to operate the property. Aviation & Travel: A US-registered Gulfstream G200 executive jet crashed in the Dominican Republic while attempting an emergency landing after mechanical issues shortly after takeoff; both pilots were killed, and the flight was reportedly headed to pick up Yadier Molina and family in Texas before returning to Puerto Rico. Local Business & Compliance: Puerto Rico’s oversight board certified its own fiscal plan for UPR after rejecting the government’s proposal, while the fiscal board authorized a $14 million loan for the Housing Department tied to the Miramar hotel. Labor & Hiring Pressure: More young people are seeking summer jobs as the high cost of living squeezes household budgets, with a reported rise in minor work-permit applications. Sports & Culture: Puerto Rico’s Day at the Ballpark returns for 2026, starting June 9 at Citi Field, celebrating the island’s 128-year baseball legacy with music, art, and community activations. Regulatory Watch: ICE updated how Form I-9 violations are classified, expanding potential employer exposure and raising the stakes for audits.

Aviation Tragedy: A US-registered Gulfstream G200 carrying two American pilots crashed during an emergency landing attempt at La Romana International Airport in the Dominican Republic, killing both crew members; the jet was registered to Aibonito Aviation in San Juan, Puerto Rico, and had been chartered to pick up baseball legend Yadier Molina and his family for a flight back to Puerto Rico. Health Watch: Medicare Fraud Prevention Week highlights common scams targeting beneficiaries, urging Puerto Rico residents to review Medicare notices, avoid sharing Medicare numbers, and report suspicious activity to the Senior Medicare Patrol. Air Connectivity for PR: Southwest Airlines launched nonstop service from Indianapolis to San Juan and added a new Columbus, Ohio route, projecting about $2.3M in economic impact and roughly 3,130 additional passenger arrivals. Business & Policy: Puerto Rico’s private sector group CUD criticized the sudden departure of DDEC secretary Sebastián Negrón Reichard, warning about lost continuity and stability for economic reforms. Tourism Safety: The Puerto Rico Tourism Company rolled out SwimSafe P.R. 2.0 to strengthen water safety across the island. Legal/Regulatory: Puerto Rico’s high court clarified how to enforce assigned non-competes and exclusivity provisions in independent contractor relationships.

Air Connectivity Boost: Southwest Airlines launched nonstop service from Indianapolis to San Juan and began ticket sales for new Columbus, Ohio–San Juan flights, with Puerto Rico Tourism Company projecting about $2.3M in economic impact and roughly 3,130 additional passenger arrivals via Luis Muñoz Marín International Airport. Local Business Expansion: Sobao opened its fifth Puerto Rico location in Guaynabo, investing over $300,000 and creating 25 jobs, aiming to grow from Puerto Rico while serving Plaza Caparra visitors and nearby residents. Federal Funding for Puerto Rico: Resident Commissioner Pablo José Hernández said the U.S. House approved the FY2027 appropriations bill covering Agriculture, Rural Development, FDA and related agencies, including funding for PAN and community projects, with CPF allocations such as $803,000 for Hormigueros landfill remediation and expansion. Legal/Competition Watch: Puerto Rico’s high court clarified how to enforce assigned non-compete and exclusivity clauses in independent contractor relationships. Tourism Disruption: Norwegian Cruise Line canceled Norwegian Viva itineraries from San Juan for late 2027–early 2028, offering refunds and future cruise credit. Food Safety Alert: Federal regulators and major retailers issued urgent Salmonella-related recalls, including Motor City Pizza Co. 5 Cheese Bread, urging shoppers to check batches and packaging.

Air Connectivity Boost: Southwest Airlines launched a new nonstop from Indianapolis to San Juan on June 6 and added Columbus, Ohio service, targeting about $2.3M in economic impact and roughly 3,130 extra passenger arrivals via SJU. Tourism 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. Retail Expansion: Sobao opened its fifth restaurant in Guaynabo (over $300,000 investment), creating 25 direct jobs and bringing its locally rooted menu to Plaza Caparra. Food Safety Watch: Federal regulators and major retailers issued urgent Salmonella-related recalls, including Motor City Pizza Co. 5 Cheese Bread, urging shoppers to check labels and discard affected batches. Business Policy & Governance: CUD criticized the sudden resignation of DDEC Secretary Sebastián Negrón Reichard, warning about lost continuity and asking for stability as leadership transitions. Legislative Funding: Puerto Rico’s Resident Commissioner said the U.S. House approved FY2027 appropriations covering PAN nutrition assistance and community/agriculture projects, including landfill remediation funding for Hormigueros. Legal/Competition: Puerto Rico’s High Court clarified how non-compete and exclusivity clauses should be enforced in independent contractor relationships. Cruise Disruption: Princess Cruises reported a temporary main-power loss on the Caribbean Princess while sailing from San Juan, leaving guests without air conditioning for about 1 hour 15 minutes.