It’s more than just an island vacation destination. Puerto Rico offers a lot of good benefits, especially for United States citizens and businesses. Between the cost of living, tax rates, and other incentives, there are many good reasons for doing business in Puerto Rico.
Why is Puerto Rico a Good Place to Do Business?
There is a large potential market for your goods and services. Puerto Rico’s northeastern Caribbean location draws travelers to the island. Its sandy beaches and year-round tropical climate make it an appealing destination. With few storms and year-round pleasant temperatures, Puerto Rico is close to the mainland United States of America, Central America, and South America.
Tourists return to enjoy the excursions, the region’s rainforest activities, caves, and active Caribbean night clubs and bars.
Tourism is responsible for billions of dollars in revenue annually. In 2010, over ten million people flew into Puerto Rican airports. Those who visit spend money supporting the island’s many American businesses.
By 2019, tourist consumption had generated over five and a half billion US dollars in Puerto Rico.
Travelers from all over the world come to experience Puerto Rico’s unique rainforest, the many tourist sightseeing activities, caves, excursion, and active Caribbean nightlife. The tropical climate, local foods, and tourist-oriented shopping and activities make it a natural tourist draw. While they are there, tourists enjoy the low sales taxes afforded by Puerto Rico’s economy.
Puerto Rico is a protected United States Territory. Thus, it offers appealing incentives to American corporations. These perks encourage them to locate a business in Puerto Rico. Most other Caribbean countries do not provide this financial encouragement.
Puerto Rico also offers businesses duty-free imports. Property taxes are low. Real estate is relatively inexpensive, and corporate tax rates are appealing. Moreover, during your first year of doing business in Puerto Rico, both real estate and personal property taxes are exempt. This encourages businesses to set up their companies there. Other incentives are proposed by laws 20 and 22. These provide notable savings for Americans who relocate to Puerto Rico.
Higher education is very inexpensive in Puerto Rico. Consequently, many of the island residents have college degrees. When setting up a business, American can hire well-educated employees. Even though the workforce is highly educated, the hourly rate is still below American mainland standards.
Anxious for entrepreneurs to relocate to Puerto Rico, the island offers some exciting opportunities.
Its many attractive qualities make Puerto Rico an ideal location for businesses to launch new products and services. Visitors are well acquainted with established brands and anxious to spend their money on these brands that are so much a part of the American culture.
Challenges of Doing Business in Puerto Rico
While there are many advantages to consider in starting a Puerto Rico business, there are also some potential problems.
The economy in Puerto Rico is not as stable as it once was. The island is in the grips of economic uncertainty. It’s continuing to rebuild.
Taxes have increased. This may be catastrophic for small-to-medium-sized businesses.
This past July, Puerto Rico’s sales tax was increased from seven to eleven and a half percent in an effort to increase Puerto Rico’s revenue. This has made tourist shopping not nearly as appealing. As a result, tourist spending is down significantly.
CNBC also notes that the cost of living in Puerto Rico has risen sharply. Employees are now demanding higher wages to make ends meet.
Puerto Rico labor is not the bargain it once was. It is now subject to the same federal minimum wage laws as mainland America. Hence labor has increased over most other Caribbean islands.
Why Billboard Advertising is Effective in Puerto Rico
In both traditional and digital formats, billboard advertising has been very effective in Puerto Rico.
Billboards are so appealing in this island paradise because of the high density of both vehicle and foot traffic.
Puerto Rico has a new, sophisticated highway system. The island also has a love of cars not unlike mainland USA.
Traffic density on Puerto Rico’s roads is almost 750 cars per thousand inhabitants. It is little wonder that companies large and small make use of outdoor advertising. These billboards are viewed by thousands of locals and tourists every day.
In a survey, one in every four Puerto Rican travelers said they were motivated to visit a business on the day they viewed its billboard.
When it comes to outdoor advertising, Puerto Rico is a natural Caribbean magnet. It is home to such large advertisers as Coca-Cola, Wal-Mart, Sears, and Macy’s. In addition, hotel chains like Hilton, Marriott, and Holiday Inn use billboards to attract the attention of both locals and tourists.
Imagine thousands of tourists basking in the sun year-round on Puerto Rico’s beaches. They are a ready market for international retail chains, pharmaceutical companies, restaurants, and nightlife facilities.
Billboards are an effective way to increase brand recognition, launch a new product, or highlight a special event.
Challenges of Billboard Advertising
As in real estate, billboard advertising is dependent upon location.
If your company does not do its research beforehand, you may erect a billboard where your target market is not going to see it.
Placement is crucial to outdoor advertising success.
The message must be seen and read in the few seconds it takes to drive by your billboard. So, what you have to say must be catchy, engaging, and memorable.
The graphics and design of your billboard must reflect the image of your brand. It must be unique enough to provide lasting brand recognition.
In outdoor advertising, color, size, and special effects make a billboard effective.
While billboards are a relatively inexpensive way to advertise, you still need to consider how to get the most from your brand’s advertising dollar.
Why Hire an Outdoor Advertising Media Specialist?
An outdoor advertising media specialist can deliver an effective message to your target market. The trained media specialists are experts at finding the best location. They know how to create a message that is memorable and can be internalized in the short time it takes to drive by the billboard. Media specialists offer an advertising medium that builds brand recognition, brand clarity, and encourages viewers to become consumers.
Talk to an outdoor advertising media specialist about how to make the most effective use of your advertising dollars. For more information on how to make your advertising budget more effective, contact bMedia Group. bMedia are experts in doing business in Puerto Rico.