Puerto Rico poised to profit from new passport rules

SAN JUAN, Puerto Rico — Bride-to-be Megan Ziemba was weighing two Caribbean destinations for her winter wedding when the U.S. government stepped in and tipped the balance.

Ziemba chose a colonial mansion in Puerto Rico, where her 100 guests won't have to worry about a new U.S. passport requirement, designed to boost security, that has given the U.S. territory an edge in the crowded Caribbean tourism market.

American air travelers have long have been able to visit most islands, plus Mexico and Canada, with only a driver's license (and a birth certificate or other document to show citizenship, even though it wasn't always requested at borders). Starting Tuesday, air travelers to those areas will have to show a passport upon their return to the States. That poses a problem for the more than 70 percent of U.S. citizens who don't have one, and poses a threat to some tourism-dependent nations.

While the new rules require a passport for air travel, Americans won't need one for sea or land travel to those areas, at least not until 2008, when another round of regulations is expected to take effect. That's good news for Americans who prefer cruises and those within easy driving distance of Canada or Mexico.

On many Caribbean islands, the passport rule has conjured fears of economic ruin. While governments lobbied Washington for a deadline extension, tourism boards have launched campaigns encouraging Americans to sign up for passports.

U.S. territories, however, welcomed the measure. Puerto Rico is aggressively branding itself as a no-passport destination with a $36 million advertising campaign on the U.S. mainland.

Said Ziemba, a 27-year-old New Yorker, of her choice of Puerto Rico: "We have a lot of family coming down and I know they don't have passports.

The U.S. Virgin Islands — another U.S. territory for which no passport is required — has labeled itself "America's Caribbean."

The pitch has aggravated rivalries in the region's $23 billion tourism industry. The U.S.-administered islands, which joined a regional campaign to delay the measure, now face accusations of betrayal from sister islands.

"The technical term is breaking ranks," said Basil Smith, director of Jamaica's tourism board. "I do recognize their tremendous competitive advantage, and frankly I wish Jamaica had such a competitive advantage."

Analysts say Puerto Rico will likely experience a jump in bookings, at least initially, with losses expected elsewhere.

Americans account for more than half the tourists in the Caribbean overall but it's 87 percent in the Bahamas and 73 percent in Jamaica — destinations expected to experience the most severe effects of the new passport rule.

With first-time applicants typically waiting six weeks for a passport, the islands say their greatest loss will be last-minute getaways. For budget travelers, cost could also be a factor — passports cost $97, or $82 for children.

Hotels and tour operators have responded with incentives such as a free day-trip at The Arawak Beach Inn in Anguilla or discounts and a free massage and cocktail at the Ladera Resort in St. Lucia.

At Club Peace & Plenty, a resort on the Bahamian island of Exuma that has already had cancellations from Americans who learned about the rule too late, a family can be reimbursed for the cost of obtaining up to four new passports.

In Mexico, Marriott resorts have offered $100 traveler's checks for first-time passport users.