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Articles

The Development Boom in the Dominican Republic.

4/8/2022

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By Kristina M. D'Amico
Director at HVS Miami
7 April 2022
Historical Demand to the Dominican Republic
The Dominican Republic is one of the fastest growing economies in the Caribbean and the most popular tourist destination in the Caribbean region. Its tropical climate, white-sand beaches, diverse mountainous landscape, and colonial history attracts visitors from around the world. The country has 28 provinces spread across six main regions, with the East & Southeast region, which encompasses the cities of Punta Cana and Bávaro, serving as the most popular tourist destination and offering nearly 50% of all hotel rooms in the country.
Over the last 20 years, the Dominican Republic has performed extremely well in terms of occupancy, with historical levels above 70%, other than in the period after September 11, 2001, in the period after the Great Recession in 2009, and during the COVID-19 pandemic.
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Occupancy History for the Dominican Republic— Photo by Dominican Republic Central Bank, ASONAHORES, Ministerio de Turismo
The Dominican Republic closed its borders to international tourist arrivals on March 19, 2020, reopening on July 1, 2020. However, given the multitude of resort options and evolving entry protocols to aid in the rebound of tourism, the country had a strong recovery from the downturn caused by COVID-19. By the end of 2021, the number of stopover arrivals had increased 126% over 2020, reaching 63% of the stopovers that were recorded in 2019.
The success in visitation to the Dominican Republic is partly attributed to the proactive tourism efforts by the country, including the investment by the Ministry of Tourism in promoting the destination. In addition, the government of the Dominican Republic provides a variety of incentives for new development, which has greatly aided in the increase of room supply over the last 20 years; total available hotel rooms have nearly doubled during that period. Given this growth, the government continues to improve the infrastructure of the country with improvement or construction of roads and airports, ultimately providing better access to many parts of the country and enhancing tourism potential.
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    Jim Hepple is an Assistant Professor at the University of Aruba and is Managing Director of Tourism Analytics.

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