What’s in a Name?
Exclusive Q&A by Huáscar Robles

Dressed in an impeccable suit, Donald Trump entered the Ritz Carlton ballroom and sat down flanked by his children Ivanka, Eric and Donald Jr.  The ballroom filled to capacity; television cameras and reporters festooned the front row. The brouhaha could have easily been confused with a J-Lo sighting, but it was in fact a reception for one of the world’s foremost businessmen.  

That day, developer Arturo Díaz announced Trump’s investment in the Coco Beach Golf & Country Club in Río Grande, and a change in name to Trump International Golf Club and Residences, a lofty name indeed. It was ideal to kick off Puerto Rico’s first ever PGA tour event. Trump’s hand in Puerto Rico’s real estate and the Puerto Rico Open    provided a shot in the arm for the island’s stagnant tourism industry.

Those lofty expectations were met in the shape of an $18 million injection to the island’s economy and exposure in over 200 countries via the Golf Channel broadcast of the event. 

Trump returns this year to the second edition of the Puerto Rico Open, where he’ll be playing with Gov. Luis Fortuño in the Pro Am. He’s been eyeing his investment and despite an island recession longer than the one in the continental United States, the maverick entrepreneur is optimistic about Puerto Rico’s financial recovery. But is Puerto Rico really a viable luxury travel destination?

And is Mr. Trump’s involvement enough to bolster our economy?
Depending on how you see it, Trump could be described as a wise businessman or the luckiest son of a gun in the world. After joining his father’s company, Trump Organization, he began developing all over Manhattan, doubling the profit for many of his developments. When recession hit in the late ‘80s, Trump filed for business bankruptcy on more than one occasion. But he always recuperated, restructuring his debt or conceding partial ownership in return for favorable loan terms.  Just last February, Trump Resorts Entertainment, which owns casinos in Atlantic City, New Jersey, filed for bankruptcy. Bond holders and board members refused his offer to purchase the company, but were careful to keep Trump’s name on the casino, the one thing that could keep them afloat on the turbulent economic waters of the gaming business.

Some projects are extremely successful; some are failures, such as the Trump Towers Tampa, where construction was halted, according to a Wall Street Journal report.
Despite these setbacks, his empire grows exponentially well beyond his Manhattan real estate. And why? Trump can rely on his most important asset of all: his name.
His brand-licensing business earns him 8 to 15 percent of developers’ gross sales in exchange for the use of his name.  His two eldest children, Donald Jr. and Ivanka, run this part of the Trump empire. One such property is at the Dominican Republic’s Cap Cana project, where Trump Farallon Estates lay at the highest, most desirable location.
Today, Forbes estimates Trump’s net worth at $3 billion. He has authored several books, including “The Art of the Comeback” and “The Way to the Top.” He is also the host and executive producer of the reality show “The Apprentice,” and he is the owner of the Miss Universe franchise that created a prevailing bond between Trump and Puerto Rico. Trump’s interest in the island goes beyond his appreciation of our Boricua beauties. 
Since Trump’s involvement, $2.8 million have been invested in improvements to the golf course. [See story “Green Acres” p. 48] The first edition of the Puerto Rico Open last year hosted 70,000 spectators. This year, the Open begins on March 9 and lasts for six days. Organizers of the event expect more than 75,000 visitors and the injection to the local economy should reach $20 million. 

Ahead, the businessman shares his view on the current economic meltdown and why he thinks Puerto Rico has what it takes to survive.

The country is experiencing a financial and economic crisis. What are some of the challenges that your company faces and how will these be handled?

The world has been affected by this crisis and what is now required is that we all work together to correct it. The imbalance had been there for some time. Fortunately, the Trump Organization is well diversified and I’ve continued to invest in real estate. We are all required to be vigilant with the world economic situation. 

With everyone cutting back, including the rich and famous, what is the outlook for the top-of-the-line real estate ventures you are known for?

Things have slowed down everywhere, which is to be expected. Everything is cyclical; I’ve seen bad markets before. This is more serious but I remain optimistic that it will even out. It may take a while. 

Do you agree that the meltdown of credit and financial markets is the most serious problem facing the global economy?

It certainly seems that way. It has been like a tsunami that is caused by a massive earthquake, a jolt to the system. The effects are just beginning to show themselves. 

When do you expect that the economy will bottom out and begin to show signs of recovery?

I don’t think it has bottomed out yet, although I would hope it has. I would guess it will take about two years to see a full recovery. 

Negative economic conditions have had an impact on Trump Resorts Entertainment, which has filed for bankruptcy for a third time. What does the future hold for that operation and your holdings overall?

That represented less than 1 percent of my net worth and I had offered to buy them out, but they chose otherwise, which doesn’t make a lot of sense to me. I think they’ll have some problems in this economy. However, gambling has been around for a long time and it has managed to survive some bad times. People like to gamble, always have, always will, and I don’t see that going away. 

Puerto Rico has been in recession longer than the U.S. Are you still bullish about business development on the island?

Puerto Rico is a beautiful island, another thing people don’t get tired of. I don’t see that
appeal diminishing. 

What is the philosophy behind the Donald Trump “Way to Wealth” Seminars? How can they help average people improve their financial situations and, perhaps, change their perspectives on starting new ventures?

The seminars provide guidelines for people who may not have had an adequate financial education. Experts streamline possible courses of action for those interested in increasing their knowledge and therefore increasing their chance of success. 

You have targeted the Caribbean as a part of the world ripe for real estate development. Why? 

It’s incredibly beautiful as well as accessible. It’s ideal. 

Your acquisitions run the gamut from hospitality to luxury private dwellings to golf courses. What do you think your impact will be on Puerto Rico’s economic future?

The Trump brand is known worldwide for being the gold standard, and that brings prominence to the places I choose to develop. It puts them solidly on the map as destination points.  

Overdevelopment is a major problem in Puerto Rico. How do your projects contribute to sustainable green development?

We are always ecologically sensitive, and I often hire experts to make sure the balance is being maintained. In Scotland, for example, I hired an esteemed geomorphologist to study the sand dunes on my property to make sure they wouldn’t be damaged by my development.  

What made Desiree Lowry and Luis Vigoreaux right for the Miss Puerto Rico Universe operation?

They have what it takes to make it a successful operation—passion, knowledge and insight.   

— R.S. and P.S.R. contributed to this story.