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Don't Want a Passport? Head for Puerto Rico Luxury Vacation Rentals

January 19, 2006. One of the biggest travel stories this month has been the impending passport rule change, which will require all American citizens traveling to Canada, Mexico, the Caribbean, and Central and South America to show passports upon reentry. Polls indicate two-thirds of Americans don't have passports, and tourism officials in many of those countries worry the bureaucracy will dissuade Americans from traveling.

Not the U.S. territories of Puerto Rico and the U.S. Virgin Islands, however. They're preparing for a boom, according to an Associated Press article. Because of their territory status, they are exempt from the rule.

"Puerto Rico is aggressively branding itself as a no-passport destination with a $36 million advertising campaign on the U.S. mainland. The U.S . Virgin Islands has labeled itself 'America's Caribbean,'" according to the article.

The article cites a 2005 study from the Caribbean Hotel Association predicting tourism revenue losses as high as $2.6 billion and 188,000 lost jobs. Destinations that depend disproportionately on Americans will suffer the most, according to the article, which notes "Americans account for more than half the tourists in the region overall but it's 87 percent in the Bahamas and 73 percent in Jamaica…"

Obtaining a passport is not difficult, but requires some time, paperwork and fees (passports cost $97). For travelers, the worry has actually created some benefits. Many resort destinations and tourism operators offer discounts and reimbursements for those who will have to get a passport.