Sector-specific Dossier Tourism Sector - CEI-RD

Sector-specific Dossier
Tourism Sector
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Tourism Sector
SUMMARY
The Dominican Republic boasts more than 500 kilometers of sunny beaches with
turquoise waters and a large cultural heritage —buildings, streets and structures of
great historical richness. Spectacular spots that remain intact and the warmth of our
people have helped us build one of the largest tourism sectors in the region, and we
are now the top golf and tourism destination in the Caribbean.
The country’s strategic location provides excellent links to the rest of the Americas and
to the world, a great advantage for tourism development: we have the largest number
of airline and sea connections in the Caribbean. We currently dispatch 250
international flights per day via eight airports, and our 12 seaports allow us to ship cargo
at a quicker pace than the rest of the countries in the region, which translates into
competitive costs. On top of that, our highway network connects the country quickly
and safely.
The Dominican Republic has a competitive and widespread hotel offer, qualified labor,
an infrastructure developed with tourism in mind, as well as a legal and institutional
framework that promotes and guarantees a flow of investment to the sector.
Apart from traditional tourism projects, we are promoting and supporting other types of
specialized models, such as:
• Cruise-ship tourism. The Dominican Republic currently welcomes several top cruise
lines, such as Royal Caribbean, Norwegian Cruise Line, Aida, Holland American, Costa
Cruise Lines, Carnival Cruise, Azamara Cruise, MSC, SeaBound, The World, Silver Cloud,
Regent, Oceania, SilverSea and Club Med, among others. This activity, with incoming
passengers mostly from the United States, Germany and France, has invigorated the
local economy. In 2013, the country received 424,000 tourists through the country’s
main four ports, La Romana, Samaná, Don Diego and Sans Souci —the latter two in
Santo Domingo.
Soon, the country will have a new cruise terminal in Puerto Plata, with an important $65
million investment from the Carnival Corporation group for the construction of the
Amber Cove Terminal, with a capacity for up to 8,000 visitors and 2,000 crew members
per day.
The northeast area will also be invigorated thanks to a new cruise terminal, the Samaná
Bay Tourist Terminal, developed through an investment of $8.4 million from Terminales
Marítimas de Samaná (TEMARSAM SRL) in a 57,000 mts2 lot, owned by the Dominican
State. The project has received support from several major cruise lines.
• Medical tourism. The Dominican Republic complies with the required medical facilities
to engage in this type of tourism, including highly qualified medical specialists and
modern health centers that provide high-quality care at competitive prices.
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Tourism Sector
Compared to other high-potential countries in the area, the Dominican Republic offers
an enticing cost-benefit offer on high-demand procedures, from cardiovascular surgery
to gastric bypass, and cosmetic and dental surgery.
• Ecotourism. The Dominican Republic has a wide array of ecologically diverse areas.
This natural collage plays an important part in the market, since our landscapes can
become the perfect backdrops for exciting adventure tourism activities and
ecotourism.
• Golf Tourism. The Dominican Republic has become a top destination in golf tourism:
last year, the country, with 32 golf courses, was named the No. 1 golf destination in the
Caribbean and Latin America by the International Association of Golf Tour Operators.
• Real Estate Tourism. The incentives for the tourism industry have allowed for the design
and development of real estate tourism projects, such as Metro and Playa Grande,
among others. It has also bolstered the expansion of emblematic projects, such as
Casa de Campo and Punta Cana.
SECTOR GROWTH AND OTHER TRENDS
Between 2005 and 2013, the tourism sector sustained a growth rate average of 4.1
percent, mainly due to the growing influx of tourists that choose the Dominican
Republic as a holiday destination, and the resulting increase in revenue from tourism
activities —a byproduct of the joint promotional activities led by the public and private
sectors in international markets.
In 2013, hotel activity in the country reached 68,542 rooms, with an occupancy rate of
nearly 72 percent. The Dominican Republic welcomed 4,689,770 non-resident tourists
by air, mostly from the United States (39 percent), Canada (17 percent), Europe (28
percent) and other markets (16 percent). According to preliminary data from the
Central Bank of the Dominican Republic, between January and October of 2014, a
total of 4,214,764 non-resident tourists arrived by air, mostly from the United States.
Number of Hotel Rooms, Hotel Occupancy Rate, Number of Tourists
Revenue and Jobs Created by the Tourism Industry, 2000-2014
(US$MM)
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Tourism Sector
Jobs Created
Hotel
Number
of
Occupanc
Hotel Rooms
Number
y Rate
of Tourists
Tourism
Revenues
(Units)
(%)
(US$ MM)
Labor
2000
51,916
70.2
3,325,335
2,860.20
2001
54,034
66.3
3,199,318
2002
54,730
62.8
2003
56,531
2004
Period
Total
Direct
Indirect
167,170
47,763
119,407
2,798.30
154,106
44,031
110,075
3,131,179
2,730.40
157,388
44,968
112,420
72.7
3,583,847
3,127.80
164,694
47,055
117,639
59,035
74.2
3,783,628
3,151.60
171,478
48,994
122,484
2005
60,088
73.9
4,081,295
3,518.30
172,116
49,176
122,940
2006
63,549
73
4,383,765
3,916.80
188,289
53,797
134,492
2007
65,072
72.2
4,428,005
4,064.20
190,259
54,359
135,900
2008
66,192
70.4
4,398,743
4,165.90
195,519
55,863
139,656
2009
67,197
66
4,414,756
4,048.80
196,199
56,057
140,142
2010
66,968
66.6
4,586,264
4,209.10
195,371
55,820
139,551
2011
66,348
69.3
4,306,431
4,436.10
201,597
57,599
143,998
2012
66,323
70.3
4,562,606
4,736.30
201,235
57,496
143,739
2013*
68,542
71.7
4,689,770
5,064.10
216,543
61,869
154,674
20141*
68,496
76.0
4,214,764
4,285.30
N/A
N/A
N/A
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Tourism Sector
Source: Central Bank of the Dominican Republic (BCRD) //(*) Data subject to review //
1January-September 2014 period
The tourism sector generated a total of 216,543 jobs nationwide in 2013, both direct
(28.6 percent) and indirect (71.4 percent). This represented a growth of 7.6 percent
compared to the amount of jobs created in 2012 (201,235).
Between January and October of 2014, a total of 4,631,982 resident and non-resident
tourists arrived by air, which represented an expansion of 8.62 percent compared to
2013 —that’s 399,053 additional passengers via our airport terminals, which leads to a
positive forecast in terms of tourism revenue for the following months.
Relationship with Foreign Investment
Between 2004-2013, Foreign Direct Investment ascended to $2,310.9 million, or 8.9
percent of the total amount of FDI registered in the country within that period —tourism,
therefore, is the fourth largest economic sector in terms of fundraising.
Foreign Direct Investment in the Tourism Sector
2004 - 2013* (US$MM)
Cumulative FDI $2,310.9MM
Source: Central Bank of the Dominican Republic
(*) Preliminary data, subject to ratification
In 2004 total investment in the sector was barely $137.6 million, but an unprecedented
amount —$541 million— was reached in 2007. The tourism sector in the Dominican
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Tourism Sector
Republic is strongly linked to the development of important real estate projects
nationwide.
The sector’s development has been propelled by sizable investments from hotel chains
from Spain, Mexico, France and the United States, among others.
LEGAL FRAMEWORK - INCENTIVES
Law 158-01 on the Promotion of Tourism Development encourages the expansion of the
tourism industry by providing large fiscal incentives for tourism activity in the country for
a period of 15 years. Said law, and its regulations, provide full exemption on ITBIS,
national and municipal taxes, property tax and wealth tax, among others.
GOVERNMENT INSTITUTIONS LINKED TO THE SECTOR
• Dominican Ministry of Tourism. The catalyst for the country’s tourism environment, the
entity is responsible for planning, programming and organizing activities related to the
sector, according to the objectives, goals and national policies set in place by the
Executive. The Ministry determines and supervises the country’s tourism hubs, guiding
the projects in terms of infrastructure regulations, design and construction.
sectur.gob.do
• Tourism Promotion Council (CONFOTUR). Entity in charge of the evaluation and
approval of the tourism projects that may benefit from the sector’s incentives within its
legal framework. dpp-sectur.gov.do
• Unified Investment Window (VUI-RD). Its main functions are coordinating and
managing paperwork and documentations related to the request of permits, licenses
and certifications from corresponding government institutions, so as to simplify the
process of investing in this and other sectors of national interest. vuird.gob.do
MAIN FOREIGN COMPANIES IN THE COUNTRY
The country receives investment from prestigious hotel chains, with more than 670
projects. Among them:
• Barceló Hotels & Resorts
• Secrets Resorts & Spas
• Riu
• Holiday Inn
• Wyndham Resorts
• Ocean Blue and Sand
• Hilton Hotels & Resorts
• Cirsa
• Courtyard Marriott
• Oasis Hotels & Resorts
• Be Live Hotels
• Meliá Hotels
• Hard Rock Hotel & Casino
• Accor Hotels
• Sheraton Hotels
• Breathless Resorts and Spa
• Crowne Plaza
• The Westin Punta Cana Resort & Club
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Several projects are currently under construction. Some of them are:
•
•
•
•
JW Marriott
Ocoa Bay
Extreme Park Punta Cana
Hotel Casas del XVI
• Downtown Punta Cana
• Real Intercontinental
• Embassy Suites by Hilton
WHY THE DR? TESTIMONIALS
“Nearly 20 years ago, my father took us around this jungle in Río San Juan, on the
Dominican Republic’s northern coast, and told us ‘This is where we’ll build the hotel.’
There was this tiny hotel in the area, with some small cabins. We, his daughters, were so
surprised. We asked ourselves, ‘Here, right in the middle of the jungle?’ and yet thanks
to that idea, his great vision and, above all, his courage, my father decided to bet on
the Dominican hotel industry. The Dominican Republic is his home. It’s the same thing
with us: We feel there’s Dominican blood running through our veins. We love the
people: I feel their warmth and we’ve felt very loved in this country.” — Isabel Piñero,
VP of Communications and Marketing, Grupo Piñero | Source: arecoa.com on May 27,
2014
“This country generates trust. I think its economy is quite stable in terms of growth, and
its government truly promotes foreign investment and generates the appropriate
conditions for it. It also provides a system of tax incentives for investment, which is very
helpful funds-wise, for viability purposes.” — Ricardo Poma, President, Poma Group |
Source: Diario Libre. September 16, 2014.
“Real Hotels & Resorts is very careful when selecting the markets where it participates,
since it looks for dynamic, economically active and growing markets that can provide
us long-term sustainable reliability.” — Fernando Poma, Executive VP, Real Hotels &
Resort | Source: Listín Diario. September 12, 2013.
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