Bad Bunny’s Residency: Boosting Tourism, Investment, and Global Exposure for the Island

Experts reflect on Puerto Rico’s potential to host large-scale events with billion-dollar impact

Bad Bunny’s residency has extended the peak of Puerto Rico’s tourist season —which typically ends in September— generating a “multiplier effect” on the local economy and placing the country brand on the global entertainment tourism map, experts interviewed by THE NEWS JOURNAL agreed.

In fact, in 2024, around 30% of tourists included nightlife events and concerts among their activities, both in large venues and smaller spaces, said Ricardo Cortés, spokesperson for Discover Puerto Rico.

“Around 70% of people who regularly travel view some type of trip anchored in a concert positively, and 40% use concerts specifically as a way to explore a destination,” he stated.

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The executive asserts that the concert series No me quiero ir de aquí not only “tests the destination’s capacity” but also “puts it on the map in the international market,” alongside cities globally recognized for hosting large-scale events, such as Las Vegas and New York.

According to an April study led by economist Indira Luciano Montalvo, Bad Bunny’s residency is expected to generate an estimated economic impact of $53.5 million for the island, of which $27 million corresponds to the direct economic impact from attendees’ spending on goods and services such as food, transportation, and lodging.

The projected indirect impact reached $26.5 million, and spending associated with audience attendance—excluding ticket sales—would generate approximately $3.1 million in Sales and Use Tax revenue.

The associate professor in the Department of Economics at the University of Puerto Rico, Río Piedras Campus, admitted to THE NEWS JOURNAL that her estimates were “too conservative” because they did not fully capture the magnitude of audience spending and event production.

“In the longer term, there is also the element of Puerto Rico’s image or brand that is created, which can turn current activity into future economic activity and potentially help sustain what is happening now over the long term,” she said, anticipating it could surpass $200 billion.

Promoter and partner at Move Concerts, Alejandro Pabón, told this outlet in June that the production of No me quiero ir de aquí was expected to be more expensive than the P FKN R tour held in 2021 at Hiram Bithorn Stadium, also in San Juan, which had an investment of $10 million.

Data provided by the Puerto Rico Tourism Company indicates that the residency, which began on July 11 and ends on September 14, has generated an estimated economic impact of over $200 million.

In July, hotel occupancy rose 6%, reaching 85% compared to 79% recorded last year. For August, a 10.1% increase is expected (from 74.9% to 85%), and in September, 12.2% (from 51.8% to 64%). For short-term rentals or Airbnbs, an increase of 26% is projected during weekends with shows.

Tourism estimates that approximately two million people will pass through Luis Muñoz Marín International Airport in San Juan due to the event, with 40% of that traffic composed of international visitors.

According to Tourism Director Willianette Robles, Discover Puerto Rico and the company Vibee also reported package sales that generated more than 37,500 room nights across 34 hotels.

“Traditionally, we have received visitors interested in sun, beach, and culture. However, during these months, we have seen a shift toward a younger, more diverse, and global audience, attracted by musical and cultural experiences,” said Robles.

The most recent Discover Puerto Rico Industry Report, which analyzed consumer patterns until July 20, confirmed that total lodging demand (hotels + short-term rentals) reached 4,181,132 nights in June, an increase of 7% compared to 3,912,650 nights registered last year, generating $1.158 billion in revenue. In 2024, lodging expenditures amounted to $1.069 billion, compared to $974 million in 2023.

Committed hotel occupancy for July was 79%, a -1% decrease from the previous year. For August, hotel bookings rose 12%, and for September, 16%. Regarding short-term rentals, bookings for August totaled 219,588 nights and for September, 67,013 nights.

Regarding air traffic, there was a 7% increase compared to 2024, recording 3,577,216 passengers up to June, compared to 3,358,022 for the same date last year.

Although earnings figures for other industries linked to the residency period were not provided, in 2024 the gastronomy sector generated $4.278 billion, accommodation $2.007 billion, air transportation $1.898 billion, retail $1.519 billion, and arts, entertainment, and recreation $602 million.

“We’re starting this quarter with an event that attracts and drives additional tourism during a low season, following the concert series. October, November, and December also look mostly positive, both for hotels and short-term rentals,” added Cortés.

It’s worth noting that, in 2024, the year in which Puerto Rico received 11.7 million visitors, direct tourism spending generated a total economic impact of $18.0 billion. This included $8.6 billion in total Gross Domestic Product (GDP) and $5.7 billion in direct GPD, which supported 141,000 total jobs and generated $1.3 billion in state and local taxes. 

Phenomenon or business model?

According to creative economy expert Javier Hernández, Puerto Rico has historically been a protagonist in the musical ecosystem, particularly in areas of creation and production in genres such as salsa, merengue, and urban music.

“Everyone wants to come here (to Puerto Rico) to see Ismael Rivera’s tomb, go to National Salsa Day, go to Ponce to see Héctor Lavoe’s tomb, where he grew up… The residency has been very successful in designing the complete package: the artist, the show, the city… This enhances the visitor experience because they are better prepared to arrive in the city,” the professor noted.

Meanwhile, Luciano Montalvo emphasized that Puerto Rico’s “resources” have traditionally been the main tourist attraction, “a very traditional Caribbean tourism model: sun, beach, hotel.”

However, she welcomes the idea of diversifying the local productive structure, while aware that it promotes economic development. “When we do well in these industries, of course, they will generate growth, employment, production. However, when these industries weaken, the entire productive structure will weaken,” the economist warned.

So, what’s missing?

Interviewees pointed to infrastructure as the common denominator to consolidate entertainment tourism in Puerto Rico.

“We have to be consistent in the long term and ensure that our infrastructure works. That is purely the government’s responsibility. We can produce; we have the talent, technical, artistic, and production skills. But electrical infrastructure, transportation, roads, air traffic—those are exclusively the government’s responsibility,” Hernández stated.

For the creative economy expert, “the key is to understand that this must happen at many scales, like a massive event in the Coliseum, but also with festivals in towns, as well as live music ecosystems in cities, in public squares. There has to be a system where we have enough tourism products for the stay… Bad Bunny’s residency might happen again, but there could be a shorter residency by another artist.”

Meanwhile, the Tourism Director warned that this type of tourism is guided by trends and mass consumption patterns, requiring strategic planning.

“Puerto Rico already had a strong reputation as the birthplace of great musical talents and a captivating destination...(The residency) is an opportunity to continue developing entertainment tourism as a stable and sustainable industry, as long as we keep investing in infrastructure, local talent, and cultural promotion… It is key to continue developing authentic and innovative offerings, invest in local talent, decentralize tourism, and strengthen our public-private partnerships,” Robles said.

Luciano Montalvo highlighted that these initiatives can boost local production. “Perhaps this vision of the industry being more directed toward elevating and showcasing our heritage and culture could lead to more local production linked to providing services to local visitors. On the other hand, it also has regional development implications. In other words, it will really bring benefits to communities across Puerto Rico.”

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