He tourism has positioned itself as the main economic activity of the Dominican Republicbut it is due to the multiplier effect of the industry: its direct, indirect and induced results have led it to contribute almost 20% of the gross domestic product (GDP) of the country
When observing the contributions that the tourism injects into dominican economy directly – excluding the indirect and induced impact generated by the industry through its purchases from other sectors of the services segment, and the jobs generated as a result of that productive chain–, these represented 6.9% of the GDP in 2023, according to estimates from the Association of Hotels and Tourism of the Dominican Republic (Asonahores).
Although this percentage has been growing over the years, this figure had a sharp drop with the pandemic of covid-19, so that 6.9% is just one percentage point more than what the tourist activity to the GDP for 1996, according to the data presented this Thursday by the hotel union.
Your president, David Llibrehighlighted this fact in a press conference with journalists, in which he explained that the repeal of the Law 158-01 of Development to Tourism Promotion, as proposed in the project of tax reformwould impact not only hotel complexes that want to invest in the Dominican Republicbut also to all productive chain around the tourismwhich exceeds the direct contributions of the activity to the dominican economy.
He explained that the induced contributions to the dominican economy represent around 9.6% of the GDPwhile the indirect ones are 2.8%, adding contributions equivalent to 19.3% of the domestic product.
“We have always talked about those figures, between 16% and 19% of the GDPbut that is when we add directly, indirectly and induced (…), the tourism has a economic spill greater than other industries,” Llibre recalled.
The executive also indicated that the tourism It is a sector that contributes to the stability will changeinjecting dollars through the investment foreign direct (FDI) in projects and initiatives to support the sector.
He explained that, although the tourism Dominican Republic has grown significantly in recent years, both public sector and the private sector must think together about the strategies to generate to increase their tourist flow.
Although the arrival of 10 million visitors in 2023 represents a goal achievedthis amount represented only 0.6% of the total tourists at a global level, which adds up to 1,406 million people around the world.
“It has been said that we have reached a level of maturity, however, we are taking baby steps. We are crawling, we have everything ahead of useverything to be done,” he pointed out.
A break to growth
Llibre maintained that, for these reasons, it is necessary to analyze how the repeal of the current incentive schemebeyond the sector tourismto all dominican economy.
“He tourism It is not just a hotel complex, the tourism real estate or an excursion package, it’s all productive chain that it generates, are all those companies to which the tourism buys from them, which allows them to maintain their staff,” he remarked, insisting that this is the model on which the dominican economy.
“We are a tourist country,” he concluded, remembering that the Dominican Republic compete with 24 others countries in Latin America and the Caribbean that have tax exemptions that seek to attract foreign capital to their tourist destinations.
