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 Last Month, meeting planners received another incentive to organize meetings, conventions, trade shows and other events in Puerto Rico. That new incentive is on incentive items and other giveaways—products and materials that under Commonwealth law, a sales tax had to be paid when leaving Puerto Rico. This "incentive item tax" is no more.

In September, Anibal Acevedo Vila, Governor of Puerto Rico, signed a new law exempting promotional and other incentive items—such as Key chains, pens, notebooks, hats, cups, mugs and t-shirts—from sales and use taxes in the Commonwealth of Puerto Rico. The law also exempts from these taxes non-giveaway items, such as products and display materials typically used be exhibitors at an event.

Removing this burden from both meeting exhibitors and attendees increases the appeal of Puerto Rico as a destination, an accomplishment applauded by the Puerto Rico Convention, a two-year old state-of-the-art venue that has become both a nucleus of a revitalized San Juan and the driving force behind Puerto Rico becoming the leading meetings destinations in the region.

"This change reflects recognition on the part of the Acevedo Vila Administration that Puerto Rico is back in the very competitive convention and trade show business which has already produced significant economic impact for the local economy through the early success of the Puerto Rico Convention Center," said Thom Connors, Senior Regional Vice President, SMG Latin America, operators of the Puerto Rico Convention Center.

According to Connors, since the opening of the Puerto Rico Convention Center in November, it has hosted more than 681 events with over 50,000 attendees. In June, the Puerto Rico Convention Center indicated, that during its first ‘full year,’ in operation, the financial results of the venue were nearly 30 percent above projections. "The Puerto Rico Convention Center is the most important convention and trade show venue in the Caribbean," Connors added. "Governmental initiatives like the approval of this bill are important tools to ensure the continuing success of the Center as a strategic tool for the Island’s economic growth."

In addition to fueling the success of the Puerto Rico Convention Center, the new tax laws, which are now in keeping with other destinations, increases the island’s appeal to meeting planners. "For show organizers and exhibitors alike, this change will allow exhibit material being transported to events held in Puerto Rico to move similarly to shipments to any convention center in the mainland U.S.," said Blythe Hess, Executive Vice-President of EAX, Worldwide.

"This is a significant step which brings local regulation more in-line with accepted industry practices," said Manuel Sanchez Biscome, Executive Director of the Convention Center District Authority.