Puerto Rico’s hotel sector has slashed its room rates by 40% in a bid to confront the economic crisis, which has cut traveller numbers worldwide.

Puerto Rican hotels reduced their average room price to $133 a night last year while hotel occupancy stood at modest 63.7% in January.

Puerto Rico has 166 hotels with a total of 14,000 rooms, according to laht.com.

The hotel industry provides 7% of revenues to the Caribbean island’s economy.