Puerto Rico tourism industry lags rivals, offers little relief from debt crisis

Pedestrians pass an abandoned hotel in the tourist area of San Juan, Puerto Rico, July 18, 2015. REUTERS/Alvin Baez

(Reuters) - Puerto Rico may sport palm trees, pristine beaches and glorious weather but its tourism industry is losing out to rival Caribbean islands - and that is holding the U.S. territory back at a time when its deeply troubled economy most needs a fillip.

Hoteliers blame a variety of issues for Puerto Rico lagging in both the growth of visitors and hotel rooms: mandatory staff perks, high construction and electricity costs, as well as plenty of red tape.