Carlos Mercado Santiago, executive director of the Puerto Rico Tourism Company, told the incoming administration's transition committee that the island's tourism sector has rebounded above pre-pandemic levels and now shows "the greatest connectivity in our history." He said passenger volumes have risen from about 9.95 million in 2019 to a projection approaching 14 million in 2024 and called the cruise sector's contribution "significant," citing recent operations that produced about $30 million in local impact.

Why it matters: Committee members regarded the growth figures as evidence of recovery but raised questions about oversight and value for money after learning the tourism board has approved a recommended extension to the Destination Marketing Organization contract. That extension, as described by witnesses, would create multi-year commitments that the committee said merit audit review and transparent documentation before being finalized.

Mercado outlined near-term opportunities to expand nonstop air service from under-served U.S. domestic markets (from Texas to West Coast secondary cities) and to add international gateways beyond Madrid. He also described a push to diversify the island's tourism geography through cruise validation operations in Ponce and newly enabled ports (including Salinas), and a hotel pipeline that included roughly 1,700 rooms opened and about 1,700 more under construction.

On promotion and budgets, Mercado said the Tourism Company's board maintains a discretionary promotion fund of about $8 million annually used for domestic-campaign work and platforms such as 'VoyTuristeando.' He characterized hotel-occupancy and regional economic-activity measures as the primary performance metrics for those initiatives.

Committee members pressed for details on the DMO contract. Mercado clarified the contract had not been signed, but the tourism board approved a recommendation to extend operations and the Fiscal Oversight Board had provided additional annual funding in recent budgets. Committee members asked for the board's audit reports and contract paperwork; one member urged the board to let the incoming governor and transition team review any extension, saying it "gives the impression" that a long-term commitment could limit future administrations' oversight.

Next steps: Committee members requested documents and audits (quarterly reports, contracts, payroll and spending lists) and asked that the tourism agency deliver a list of priority negotiations and projects for the incoming administration's first 120 days.

Quotes: "hemos aumentado desde el dos mil diecinueve ... a sobre catorce que vamos a estar completando durante las próximas dos semanas para el veinte veinticuatro," Carlos Mercado Santiago; "la junta de turismo aprob' una extension de ese contrato y no se ha firmado," a committee questioner summarizing the board action.

Ending: The tourism director was excused after the panel recognized the sector's recovery and the committee set follow-up deliverables for the incoming team.