House Bill 72 aims to modernize travel industry regulations in Puerto Rico
The proposed amendments seek to consolidate travel agent roles, address technological changes and improve consumer protections.
The Puerto Rico House Tourism Committee has been referred House Bill 72, authored by Popular Democratic Party (PDP) Rep. José “Conny” Varela, which aims to amend Act 10 of 1970, also known as the Puerto Rico Government Economic Development and Commerce Department Tourism Office Act.
The bill seeks to define the role of a travel agent, introduce new definitions, grant additional powers to the Tourism Office executive director, require a Travel Agency Bond, adjust regulations to accommodate new business models and “address other related purposes.”
The legislation acknowledges that travel agents and travel wholesalers have long played a crucial role in the tourism industry, providing professional services that improve vacation planning and experiences. However, like many other industries, travel agencies have been affected by economic changes and technological advancements.
“The widespread proliferation of the use of technological means has popularized online businesses, where people choose to make travel reservations over the internet,” the bill states. “Technological means have intensified direct marketing, where the customer is urged to contact companies that operate from abroad and vice versa. These factors have resulted in the need for the industry to explore new ways to promote its businesses, so it is imperative to make current regulations more flexible” and adaptable to new changes.
Currently, travel agents and travel and excursion wholesalers are regulated separately.
“In a nutshell, the travel and excursion wholesaler is dedicated to the preparation of tourism packages by contracting the service providers, which will be sold exclusively to the general public through a travel agent,” the legislation states. “To boost this industry, it is necessary to eliminate the differences between the functions carried out by the travel agent and the travel and excursion wholesaler, offering a license that allows both functions to be consolidated.”
Under the proposed changes, a new figure of travel agent would be authorized by the Tourism Office to carry out the entire service chain, including contracting product suppliers, distributing and selling them to the public. The legislation asserts this change will promote more efficient supervision, streamline procedures, reduce bureaucracy, and avoid unfair competition between travel agents and travel and excursion wholesalers.
Businesses would have the choice to operate fully in the service chain or focus exclusively on selling packages prepared by another authorized travel agent. The legislation also addresses the jurisdictional gap with online bookings, stating that any entity offering services to Puerto Rican residents, even if based abroad, must obtain authorization from the Tourism Office. This requirement is intended to ensure equal conditions for local and foreign operators and extends consumer protections.
Economic Development and Commerce (DDEC, in Spanish) Secretary Sebastián Negrón-Reichard confirmed that the agency is reviewing the bill.
“As part of our commitment to economic development and the tourism industry, we will carefully evaluate this measure to analyze its impact on the business ecosystem, sector competitiveness and consumer protection,” Negrón-Reichard told News is my Business.
“We will continue engaging with the affected sectors to gather input that will contribute to a comprehensive assessment of the proposal. The DDEC reaffirms its willingness to collaborate with the Legislative Assembly and all relevant sectors throughout the legislative process to ensure that any regulatory changes align with the needs of the tourism sector and Puerto Rico’s economic development,” the secretary added.
Industry support
Puerto Rico Hotel and Tourism Association (PRHTA) President Clarisa Jiménez also weighed in on the bill.
“In response to global trends and technological advances, it is essential to establish a regulatory framework that facilitates the coexistence and development of all sectors of the travel industry,” Jiménez said. “We believe that any legislation must respond to the needs of the sector without representing an additional burden for the government or generating bureaucracy that affects the provision of these essential services for tourism.”
Organizations representing travel agents in Puerto Rico, such as the American Association of Travel Agents and the Puerto Rican Association of Travel Agents, have expressed the need to update regulations, sparking a debate about redefining roles within the industry.
“We are confident that legislation will be achieved that meets the needs of wholesalers, travel agencies and online travel agents within a single regulatory framework that continues to drive the growth of the sector,” Jiménez told News is my Business.
The boom in online bookings has led many consumers to purchase travel services from foreign suppliers. When issues arise, these customers often lack protection, given that Puerto Rico’s Tourism Office does not have jurisdiction over businesses operating abroad.
“With this new regulation, the person or entity located outside Puerto Rico, but that sells, by any means, to residents of Puerto Rico, must obtain authorization from the Tourism Office. This way, both those who offer services from abroad and in Puerto Rico will operate under equal conditions,” the bill states.
Consumer protection
The legislation also mandates that all travel agents obtain and maintain a Travel Agency Bond, a financial safeguard ensuring compensation for customers in cases of contractual breaches. For agents, the bond would serve as a guarantee against risks associated with their business operations.
“The proposed changes will help boost the economy in Puerto Rico by making regulations more flexible and encouraging small businesses, and, more importantly, contribute to the protection of the public interest,” the bill concludes.
Among its provisions, the bill calls for establishing and maintaining a registry of authorized travel agents, including records of cancellations and suspensions. It also proposes amending Article 5 to expand the Tourism Office’s regulatory authority over any entity selling or offering travel-related services — including transportation, lodging, entertainment and excursions — whether to residents or nonresidents of Puerto Rico. This would include travel membership clubs that provide advisory, booking and sales services for tourism products.
