San Juan mayor reports growth driven by new businesses, public policies
Puerto Rico’s capital granted 51 decrees, leading to some $38 million in investments and 1,600 jobs, Mayor Miguel Romero said.
San Juan Mayor Miguel Romero highlighted the positive economic development results of Puerto Rico’s capital, crediting the favorable impact of public policies implemented during his administration.
Romero emphasized the success of the Capital Entrepreneurship Program in revitalizing economic activity and job creation, leading to an increase in new establishments.
The municipality granted 51 decrees to stimulate the economy, facilitating more than $38 million in investments and creating more than 1,600 new jobs. In comparison, a news release says, only 17 decrees were granted under the previous administration’s two terms.
San Juan’s labor force is estimated at approximately 145,856 people, with an unemployment rate of 3.6% as of June, a significant decrease from the 7.5% unemployment rate in June 2021.
Romero also noted that as of December 2023, there were 12,928 registered establishments in the capital, marking an 18% increase compared to 2020 and an increase of 1,434 businesses from the pre-pandemic period.
In terms of retail sales, March saw an average increase of $137 million from 2019 to the present, with December 2023 recording the highest sales since December 2018, totaling $856 million.
A collaborative agreement with the Treasury Department, providing the municipality with three monthly reports on corporate returns, Sales and Use Tax (IVU, in Spanish), and merchant registries, has strengthened San Juan’s capacity to meet its economic objectives, the mayor said.
Formalized on June 8, 2022, and renewed until June 30, 2029, the agreement marks the first time the Treasury Department has shared such data with a municipality.
The audited data of the municipal business tax, known as “patente,” also reflect significant growth. Collections reached $146.5 million in fiscal year 2024 and $179 million in fiscal 2025, representing a 22.2% increase.
Similarly, municipal IVU collections grew from $68 million in the fiscal 2024 to $70.7 million in the fiscal 2025, a 4.2% increase. These items collectively reflect a revenue increase of $35.3 million, or 16.4%.
Construction tax collections increased by 97.31% when comparing fiscal years 2022 with 2024, rising from $16,024 to $31,616 during Romero’s administration. This growth indicates ongoing construction projects in San Juan, ranging from housing and infrastructure to permanent improvements.
Additionally, the municipality conducted a comparative analysis with data from the Treasury Department, including 1,009 businesses in San Juan from January to June 2023 and the same period in 2024.
The study revealed increases in total sales across key economic sectors, demonstrating economic growth and a revitalization of commerce in the capital following the approval of the public order code. Specifically, the study found:
- Liquor stores: 25% increase in sales
- Gasoline service stations: 18% increase in sales
- Fuel service stations: 67% increase in sales
- Cafeterias, bars and pubs: 24% increase in sales
- Full-service restaurants: 36% increase in sales
- Hotels and motels: 27% increase in sales
These businesses generated $544,689 in sales between January and June 2024, compared to the same period in 2023, reflecting a 32% growth. The municipal administration said this demonstrates the positive impact of its initiatives to promote investment, including the implementation of the Code of Public Order of the Municipality of San Juan in November.
“This 32% increase in sales is a clear indication that the public policies implemented by our administration are working,” Romero said. “Not only have we managed to improve the quality of life in our San Juan communities, but we have also promoted the economic development of our city. This balance is crucial for San Juan to continue advancing in a sustainable and safe manner, ensuring that all sectors of our society benefit from it.”
The agreement with the Treasury Department, effective for five years, has been key in projecting and planning more efficiently, the administration said. Among the reports of economic activity, a 14% increase in new businesses reflects the confidence of businesses in establishing themselves in San Juan and the support provided to entrepreneurs to develop and grow their initiatives.
“Despite the challenges we face, we have seen how the capital city continues to be an epicenter of economic activity,” Romero said.
In response to initial concerns that the public order code could negatively affect sales, Romero stated: “From the beginning, we knew that these measures would strengthen our economy. We carried out an exhaustive analysis before its implementation in line with the realities of the capital. The results speak for themselves. Far from affecting sales, we have seen significant growth, which shows that a safe and orderly environment is key to economic development.”
The public order code, which includes a series of regulations to “maintain peace and order” in public spaces, has significantly contributed to creating an “environment conducive to commerce and tourism, increasing the influx of visitors to San Juan’s commercial areas and consequently, strengthening the local economy,” the release adds.
