Puerto Rico's Casinos Face Hardship with Approaching Capital Curfew
Business leaders in Puerto Rico, including merchants and casinos, agree on the need to reduce crime in the U.S. territory. However, they have contrasting views on whether San Juan's new Public Order Code (POC) will address the issue of violence in the capital city. While there's unanimity on the impact of the law on casino revenues, opinions diverge on the efficacy of the measure in dealing with the issue of crime.
The government of San Juan is introducing a new ordinance to alter the city's nightlife. The law was passed last Tuesday and will take effect in San Juan come November. The primary objective of the POC is to ensure safety on the streets by limiting alcohol consumption and curtailing nighttime movement.
Yet, the leader of a retailers association mentioned that a study commissioned by the municipality concluded that most crimes in San Juan occur during the day or before midnight.
The POC bars the sale of alcoholic beverages from Monday to Friday after 1:00 a.m., and even earlier on weekends and federal holidays. Another significant restriction for casinos is the prohibition of movement for anyone, whether locals or tourists, at dawn.
Adverse Impact on Businesses
The new compulsory law poses a direct threat to San Juan's casinos and hotels as a significant percentage of their operations are conducted during these hours. These establishments cater to tourists and visitors staying in other hotels, and the curfew impacts these patrons' freedom of movement.
The Sheraton Hotel in San Juan houses Casino Metro, a popular and vibrant casino in the area. Casino Metro's General Manager, Ismael Vega, stated in a response that 90% of the casino's business comes from gamblers staying at other properties. The curfew runs contrary to the casino's 24/7 operating license.
Casino del Mar at the La Concha Resort is another venue affected. Its manager, Sigfrido de Jesús, highlighted that 80% of the patrons are locals, and the remaining 20% are tourists.
The new municipal ordinance defines a hotel guest as an individual registered in the hotel with an assigned room. This stands in contrast to Puerto Rico's official definition, which encompasses any person present on a lodging establishment premises to have fun and relish facilities like restaurants, swimming pools, bars, and casinos. The inconsistency between the definitions could generate confusion and agitation among tourists, both local and foreign. It's likely to make some of them hesitant to venture out of their hotel rooms.
An economic setback
The cessation of alcohol sales extends beyond liquor-based businesses. The pairing of alcohol and food sales is common, and a decline in alcohol sales sees a simultaneous dip in food sales. This leads to a reduction in employment opportunities and a sluggish economy.
Groups including the Restaurant Association of Puerto Rico (ASORE) and the United Retailers Center have voiced their concerns. They estimate the POC could negatively impact the economy and stifle job creation.
Statistics from the Bureau of Employment Statistics in 2021 showed that San Juan was home to close to 11,300 business establishments across various sectors, a 6% increase from the number in 2020. The number of workers employed at drinking establishments, including bars and lounge venues, reached 1,336 throughout Puerto Rico, with around 381 employed in San Juan itself. Over the past six years, the number of jobs in these establishments in San Juan has grown by roughly 150%. However, the new measure could reverse this trend.
As San Juan crafted the POC, it sought input from hospitality companies and associations such as ASORE. They all voiced their concerns about the economic consequences the changes might cause. Despite these warnings, the city government opted to go ahead with the legislation.
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Source: www.casino.org
