Ex-Discover Puerto Rico CEO warns against not renewing DMO contract
Brad Dean and others tell Skift delays could jeopardize $101 million in meeting and convention business.
Puerto Rico’s tourism industry is facing uncertainty as the contract for Discover Puerto Rico, the island’s destination marketing organization (DMO), is set to expire in June 2028. Concerns over whether it will be renewed have put millions of dollars in potential meeting and convention business at risk, according to a report by travel news outlet Skift.
The uncertainty has already begun affecting the island’s ability to attract long-term event bookings, a key sector of the tourism economy. Brad Dean, former CEO of Discover Puerto Rico, warned that the issue is creating challenges for meeting planners looking to organize conventions in Puerto Rico.
“This is a big problem for Puerto Rico and the industry, and it puts meeting planners in a really difficult predicament,” Dean told Skift. “There is currently $101 million of meeting and convention business on the table extending beyond that contract period.”
Large-scale conventions, which bring thousands of visitors to the island, are often booked years in advance. Without clarity on the future of Discover Puerto Rico, planners may look elsewhere for more stable destinations, according to industry experts.
Discover Puerto Rico has formally requested an extension of its contract, but approval depends on both its board of directors and the Puerto Rican government. So far, no confirmation has been given.
“The governor of Puerto Rico was elected by the people, and she has every right and the responsibility to review the contract,” Dean said. “But meeting planners need to know their global partners are prepared for what they’ve committed to.”
Dean also emphasized that the uncertainty is forcing Discover Puerto Rico into a difficult position.
“They are making promises they may not be able to fulfill,” he said, adding that his last 90 days as CEO were “a fire drill of informing planners” about the expiring contract.
While Dean recently left his position to become CEO of Explore St. Louis, he expressed concern over how political inaction could affect Puerto Rico’s tourism sector.
“It was very disheartening to watch my sales team work diligently to book business and make major commitments only to let bureaucrats twiddle their thumbs, wondering if the island needs that business,” he said. “It certainly created a lot of challenges over the past year, and I can’t say we’ve lost business just yet because it’s early in the day. But it’s a terrible precedent for our industry.”
Puerto Rico’s tourism industry has seen significant growth in recent years. Since the pandemic, visitor demand for lodging has increased by 50% compared to 2018, according to Discover Puerto Rico.
The tourism industry’s success has been attributed in part to Discover Puerto Rico’s marketing efforts. Industry leaders, including Don Welsh, president and CEO of Destinations International, have voiced support for keeping the DMO in its current structure.
“This is a decision for the governor to make,” Welsh told Skift. “However, given the record results and highly competitive market for attracting leisure tourists and business travelers, I believe it’s most prudent for Discover Puerto Rico to remain in its current structure.”
Welsh also noted that operating as a nonprofit rather than a government entity helps attract and retain top-tier talent.
“Unfortunately, in recent years, I’ve witnessed several talented leaders leaving Discover Puerto Rico,” he said, citing the departures of Dean and former Chief Marketing Officer Leah Chandler as examples.
While former Puerto Rico Gov. Pedro Pierluisi had previously supported renewing the contract, some government officials have been critical of Discover Puerto Rico’s role.
Rep. Angel Matos, for example, filed a lawsuit in 2019 against the DMO, demanding access to its operational expenses, which he claimed were excessive and lacked transparency.
