Puerto Rico to finally enter medical-tourism field, aggressively court foreign investors.
The government is getting close to announcing new initiatives aimed at making Puerto Rico a world leader in medical tourism and the island an attractive destination for foreign investors, Secretary of State David Bernier told CARIBBEAN BUSINESS.
Both efforts are being propelled by a new public policy of the administration of Gov. Alejandro García Padilla that calls for increased coordination between different government agencies.
“We’ve been hearing about medical tourism for years. Now we are finally going to have it,” Bernier said. “I anticipate that in a very short time Puerto Rico will be positioned as a leader in the field of medical tourism without doubt.”
The Economic Development & Commerce (DDEC by its Spanish acronym), State and Health departments, and the Tourism Co. are involved in the effort.
“This effort is being mapped out, and we will see results,” he said.
Currently, government and private sector officials are defining a “process mechanism” that will carry out a sustained marketing push for medical tourism, Bernier said. He declined to release more details saying an announcement on the plan was expected shortly.
The effort will create the environment for new projects, including hotels, aimed at the sector and new medical-tourism facilities to be developed. Bernier confirmed that there is a proposal to redevelop the former Normandie Hotel in Puerto Rico into a medical-tourism hotel.
Meanwhile, the government is also finishing up plans to formally request becoming a regional center in the U.S. government’s EB-5 (Employment-Based, Fifth-Preference Category) Immigrant Investor Pilot Program. Begun in 1992, it grants U.S. residency to foreigners who make investments and create jobs in the U.S.
Rural areas with low population density or depressed urban areas where the unemployment rate exceeds 150% of the national average, can also qualify to host EB-5 regional centers, which allows for greater flexibility and gives destinations priority in receiving visas.
Puerto Rico is looking at a model used in the state of Vermont, distinguished by the participation of the state government, which is one of the most successful in the country.
“There are multiple proposals being considered. We are analyzing with the DDEC, what model will be best for Puerto Rico,” Bernier said.
Bernier confirmed that the government is analyzing creating an “open-ended” regional center that would be run in conjunction with the government and private investors. The idea would be to create a venture capital fund run by the Government Development Bank to fund projects selected by the DDEC.
CARIBBEAN BUSINESS sources have indicated that the target is to attract 10,000 investors from Latin America, raising $5 billion. One proposed use of those funds would be to set up a real-estate investment trust to buy bad loans from local banks, which have an estimated $7 billion on their books. Other potential projects include renewable-energy plants, tourism developments and infrastructure works.
DDEC Secretary Alberto Bacó Bagué told CARIBBEAN BUSINESS the government would be seeking “expedited” approval from federal officials because of the program’s success in other jurisdictions.
Within a regional center, foreign investors must invest at least $500,000 and their investment must create 10 or more direct or indirect jobs, with an economic analysis to back up the claims. The EB-5 program currently makes 10,000 EB-5 visas available annually, with 3,000 reserved for designated regional centers. There are currently 210 approved designated regional centers operating in 37 states and other U.S. jurisdictions.
Private entities on their own can also pursue EB-5 regional center status. Omega Puerto Rico Regional Center was approved last month by the U.S. Citizenship & Immigration Services (USCIS) for a project involving 350 units of assisted living, memory care and skilled nursing for elderly residents. At least two other projects have requested becoming a regional center from the USCIS and are waiting for a decision, according to sources.
source: http://www.caribbeanbusinesspr.com / Caribbean Business / Home> This Week / by John Marino marino@caribbeanbusinesspr.com / Vol.41, No. 20 / May 30th, 2013
