El San Juan Hotel offers clarifying statements about casino closure
El San Juan Hotel announced last Friday that due to the difficult economic and industry dynamics, it has decided not to reopen its casino when it reopens on Sunday, February 5, 2017. “In recent months, El San Juan has undergone one of the most extensive renovations since the property was opened in 1958.
The aim was to honor the original elegance and opulence of this iconic property while revitalizing its magical energy new era of service, “said Andro Nodarse-Leon of León Mayer & Co., co-owner of the hotel. “We are pleased that since the temporary closure of our doors in mid-August, more than 500 local construction workers have been working in El San Juan to make our vision for the hotel a reality.”
“As the renovation of El San Juan Hotel reaches its final phase, we face the difficult decision not to reopen our casino on February 5,” Nodarse-Leon continued. “The El San Juan Hotel will continue to be a preferred destination for the 500 hotel staff with a bright future. We are proud that, thanks to the investment made, we have created some 60 new jobs and are expected to create more jobs over the next two years. ”
The hotel employs approx. 500 employees and the numerous retail outlets and restaurants that also belong to El San Juan employ a further 150 employees.
We remain on the road to the eagerly awaited reopening on February 5, 2017 and look forward to serving our guests from around the world.
Casinos in Puerto Rico, including the El San Juan Hotel, have faced several major challenges in recent years that have already led to the closure of other casinos on the island, including: Growing competition in an emerging casino market in the US, which has negatively impacted the demand for casinos in Puerto Rico.
Increasing competition from unregulated, untaxed slot machines across the island, even outside hotel casinos.
Uncertainty about the added impact of introducing a video lottery system across the island. A burdensome, based on the revenue of slot machines tax structure, which is becoming increasingly difficult with decreasing industry volumes. The presence of Zika in Puerto Rico has led to significant losses in the financial performance of the island’s tourism industry.
As the virus dissipates and the World Health Organization (WHO) recently stated that Zika is no longer a worldwide emergency, Zika’s impact on the financial performance of hotels and casinos in Puerto Rico in 2017 will still be the pace of the future Room reservations for 2017 are behind the historical level.
The casino provides severance payments to its union and non-union employees to help them manage the transition to other opportunities. El San Juan Hotel has not identified any specific plans for the casino area and will review all options by 2017.