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Bermuda has been selected as the venue for the 2017 America’s Cup sailing competition, beating out San Diego in a highly competitive bidding process, the Associated Press is reporting. The AP information was said to be obtained on condition of anonymity from “a source close to the selection process.”

Bermuda tourism officials have previously targeted hosting the America’s Cup, considered the world’s premiere international sailing event, as a key step in the country’s efforts to revive its flagging tourism industry. America's Cup officials have scheduled a Dec. 2 press conference in New York on to announce the venue selection.

Bermuda’s selection, if the AP report proves accurate, was said to have been made by Larry Ellison, Oracle Team USA’s billionaire owner. As the defending America’s Cup champion, Oracle retained the right to choose the subsequent venue.

Bermuda media reports have highlighted the advantages team members would purportedly enjoy were the America’s Cup events held in Bermuda, including reported tax-free status for regatta participants.

An America’s Cup in Bermuda would also mark the first time in the regatta's 163-year history that a U.S. title holder opted for an America's Cup outside of the United States, in effect sailing in foreign waters by choice rather than necessity.

Bermuda had earlier this month won designation as host of the America’s Cup World Series, scheduled for Oct.16 to 18, 2015. That regatta marks the first stage of events for teams vying to compete in for the America’s Cup.

Michael Dunkley, Bermuda’s premier, has previously described Bermuda’s hosting the America’s Cup of “unprecedented” value to the country in economic terms. The AP report claims San Francisco realized $346 million for hosting Team Oracle’s successful 2013 defense of the title. Shore-side attendance reportedly totaled 700,000 spectators.  

As Dunkley has noted, Bermuda will face infrastructure-related hurdles in accommodating the wave of tourists associated with an international event. Bermuda has not built a new major hotel or resort property in generations and Dunkley said last month the territory needs to construct the facilities that will be required to host the event.

Logistical and transportation-related challenges also threaten the process. Tourists are banned from renting cars and while there is an extensive public bus system, and ferries, the services are shared with residents and delays and service shortages have at times occurred.