Tourism in POP

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Sunkissed

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Hi, I have been reading and enjoying the DR1 forums for months now and have finally decided to get involved. It has been very entertaining to say the least but boy is it informative....there's an awful lot of knowledge within these here pages...thanks to you all.

My reason for posting is I'd really like some honest opinions as to the tourist situation in Puerto Plata at the moment. I've been looking to buy a small apartment (translates to cheap) to use mainly for myself, family and friends for holidays...yes sorry I am only a tourist (for now - but I live in hope!)...but also to rent out to others in the hopes it will pay for itself. I first visited the area over 2 years ago and have been back 6 times to date - I love the place and although I realise I'm not always seeing the real DR I have been out and about with locals who I made friends with. I stayed in the All inclusives a couple of times and recent visits were to private apartment rentals in Torre Alta and Bayardo. One thing I THINK I've noticed is the drop in visitor numbers. I have been sent info on a few really nice properties in Cabarete so far and I am really tempted, but before I take the plunge financially I need to know that I'm doing the right thing, and that I will be able to rent out for a good part of the year. Realtors and salespeople all sing the same tune that tourism is unaffected by the current economical climate, but I'm not so sure. As mentioned earlier I do have some friends out there who tell me that hotels are closing and that employment within tourism areas is not good at the moment. I thought I'd ask if anybody had any feelings either way..Is it a good or bad move. It will just be good to get an across the board view.

Thanks
 
Robert

Robert

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Tourism is way down, just like many other parts of the world.

Off season, I'm sure rental owners are seeing some pretty low occupancy rates.

You need time to build up clients and referrals.
Plus you need to spend on marketing the property and obviously have someone competent and trustworthy to manage it when you're not here.

I suggest you spend some time here before investing in property.
Speak to owners, get to know the area and find out what renters are actually looking for.
 
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Expat-in-Cabarete

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Jan 17, 2009
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Tourism is down in Cabarete as elsewhere. I have a friend who owns an apartment here and has had a very hard time renting it in the past few years, despite him asking for a low rent. FYI, it's a 3 bedroom at the Royal Residence.

There's another place that I know that at least last season were fully rented in high season, and ways in advance, but the rent you get in 3 months won't even cover the condo fees for half a year. This is at Wind Chimes.

If I were to think of buying an apartment in the hopes of covering condo fees and a mortgage, the only place I would research is Velero. It's run like a hotel and occupancy is pretty good.
 
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Sunkissed

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Thanks both, you just confirmed that what my friends told me and I suppose what I already thought myself was the truth and the salespeople...well they're just trying to make a living!! Its good to get a second/third opinion. I think I'll sit back and wait for a while longer and see if and when things improve a little, maybe use the time for a bit more research. I guess I can always save up and book another holiday in the mean time....
 
Conchman

Conchman

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Tourism has been declining here since the year 2000, at least according to the Central Bank statistics. There may have been one or two years where there was a small increase over the year before, but the decreases are much bigger. So basically from about 900,000 tourists per year in 2000 to about 500,000 per year in 2009. 2010 should continue the trend, havn't checked the Central Banks website yet but those numbers for the whole year may not be there yet. On the bright side, I think we have hit bottom and it will come back slowly, but who knows.
 
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Sunkissed

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Hi Conchman, thanks and those figures have really surprised me, it's quite sad. I just looked at the thread showing the Puerto Plata photos from this morning and the area really is naturally beautiful. I live in the UK and our tour operators here quote much higher tourism figures, although that does cover the whole of DR - the shareout isn't fair! That said there are less and less operators in the UK selling DR now as more and more resorts open up in other countries in the Caribbean. I love the area and I hope the decreasing trend stops soon and goes in the other direction.
 
Conchman

Conchman

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the biggest competitor for Puerto Plata tourism right now is the Punta Cana area, why go to POP when you get can get a room in a nicer hotel with nicer beach for the same price?
 
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Shiraz72

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Feb 10, 2010
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I've seen a decline over this year from when I came down last year at the same time. I've been told that several of the resorts in Playa Dorada are at risk of closing due to low tourism and when I went out on the catamaran excursion the staff were telling me that they have less and less people... the crew was cut down to a small handfull and they cut back on the amount of liquor they provide etc. It's sad. My boyfriend's cousin owns a nice house in Cofenba/Costambar which he rents out and it' been vacant for a couple months now. Another friend is building her house next door which she plans to rent out. I hope they are both able to find tenants.
 
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ohmmmm

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Jun 11, 2010
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I think that you want to buy low and sell high. Look for a property near the water or in a good location with proximity to town and amenities. If you can accept a relatively low income for some time then you may have a winner when the next trend up comes. Property prices in tourist areas typically have a cyclical nature... This current downturn will be longer than most, but that does not mean you can't find a good deal. I have a property on the beach and it's nearly always full. Keep an eye out for good property, make low offers and be optimistic. If its meant to be, if you visualize it and if you take some actions it will happen.
 
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