New airport Taxes

The surcharge goes into effect 1 November. I believe that what has been stipulated is that the charge will be applied to airfares, and not to the tourist card.

Dolores said:

The surcharge goes into effect 1 November. I believe that what has been stipulated is that the charge will be applied to airfares, and not to the tourist card.

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Same ten bux though.

Not sure it will discourage tourism but just increase income to steal a bit higher.

It has become clear that the DR government will increase tourism taxes continuously until tax revenue from tourism decreases. Basic economics says that these taxes will hit critical mass at some point, and overall government revenue will start going down.

When will that happen? I would think to look at the overall value of a DR all-inclusive compared to Cancun or Montego Bay, including the cost of airfares and taxes.

I would not assume that it is better to include the new tax in airfares rather than increasing the cost of the tourist card. Most don't know about the tourist card until they get to the DR.

Taxes truly for infrastructure?

What part of the tourism infrastructure will these taxes be applied toward? If the tax is necessary (which I doubt), couldn't it be used in a more proficient way? Though I'm not a Dominican citizen, wouldn't it help ALL if the tax was used toward beach cleanup, street improvement, electricity provision, education, better medical services, etc.... All of these possibilities would improve the island and benefit not only tourism but the islanders.

The tourist industry is complaining, but since it is signed they should advocate how it is to be used. Yes, I know some of the money may come up "missing" and a few government officials may open up new villas.

Just ranting :devious:

This is just one more thing to add to the continuing list of reasons to reconsider traveling to the DR as often as I do. It's really not the $10. It's the ongoing assault. From the value of the peso, to the closing of well visited establishments in Boca Chica, to the imposition of additional taxes, it's just getting to be a bit too much. What's next?!

Simbul said:

What part of the tourism infrastructure will these taxes be applied toward? If the tax is necessary (which I doubt), couldn't it be used in a more proficient way? Though I'm not a Dominican citizen, wouldn't it help ALL if the tax was used toward beach cleanup, street improvement, electricity provision, education, better medical services, etc.... All of these possibilities would improve the island and benefit not only tourism but the islanders.

The tourist industry is complaining, but since it is signed they should advocate how it is to be used. Yes, I know some of the money may come up "missing" and a few government officials may open up new villas.

Just ranting :devious:

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That's why the industry is complaining, Simbul. They wouldn't if they thought this new revenue would actually be used well, and go into improvements that attract more tourists, but past experience suggests otherwise...

When will people around the globe (USA,DR, all of Africa, etc, ad nasueum).....finally realize that "the government" is not your friend!!!!....when?,when?,when?....the more money they take from you, the more money they have to make sure they can screw you again...whether this money comes from external loans or this money comes from internal taxes......it don't matter a lick....it's still the same...whether is Hippo's crass way of stealing, or its Leonel's deft machinations, the bottom line is still the same....they are both taking you money at alarming rates.

As long as the government and its conspirators (both domestic and foreign) continue to take your money....it doesn't matter who is in power...PLD,PRD,PRSC...don't matter, cause you are SOL.

It is not OK to raise taxes, especially for the reasons given. I have been wrting this for months now. I alerted from last year, and now its becoming more and more obvious.

When will the intelligentia in the DR finally step up to the plate (those not corrupt, of course)?

Do we have published numbers for visitors over the past year compared with other years? From our experience on the North Coast, I would venture a guess that non-AI traffic is considerably down.. The general feeling of the vendors specifically in Cabarete is that they're looking towards a very dismal season with general prices where they are and these new taxes.

And Mondongo, I think if mankind can find the alternative to 'government' we will have taken a great step forward. Any ideas?

Chris, Yes indeed government is needed. But the less of it you have, the more easily you can contain corruption. What dissapoints me is how easily we acceed to PLD/IMF claims that they have to continue to pillage your pockets and mine (as a traveller to the DR).

The DR populace has to resist, not abet, the govt's attemps to interfere with your money and your freedoms. I have seen only a modicum of protest here on this board. It appears that we will do the same thing we did with Hippo........start screaming after the horses are out of the barn.

We have to learn to deductive and proactive....rather than reactionary. But, alas, I understand I am just spittin' in the wind here...

Unfortunately, it will take a dive in tourism to wake up the pencil pushing tax raising beauracrats to bring taxes back down to sustainable levels. The DR is pricing itself right out of the market. Lets face it, people come here (especially the north coast) because its cheap. You take that away, and people will go to Cancun and Cuba where beaches/hotels/services are (perceived) better.

Per DR1 Travel News,

Puerto Plata benefits from (tourism) funds[FONT=Verdana, Arial]
Puerto Plata is the main beneficiary of the newly created tourism area infrastructure fund managed by the Ministry of Tourism. The Ministry of Tourism is investing RD$1 billion of the airport surcharge funds generated as of this year through April 2007 in Puerto Plata. Fund manager Jose Gabriel Aponte said that RD$9 billion is being used to eliminate the Maggiolo garbage dump, which will be replaced with another in Caraballo, Montellano, with a price tag of US$7 million, as reported in El Caribe. The funds are also being used to build the Avenida Isabel de Torres that leads to the cable car, at a cost of RD$118 million. In addition, millions will be spent on building sidewalks and paving roads in residential areas. The program also includes rainwater and sewage piping installations leading to the treatment plant in the area of the Malecon of Puerto Plata.
Several hundred million have been programmed to be spent on improving sanitation systems in Juan Dolio, another area of intensive construction of new dwellings. [DR1 Travel News][/FONT]

It is agreed by most that I have read on this and other threads that the DR is taking the "easy" way out of the economic problem it was faced with.
That easy way ahas been to increase taxes across the board in all areas of business and endeavor while at the same time increasing the governmental expendatures up to and beyound the capability of that government to repay over a reasonable period of time. The results have been that the government is constantly scrambling to meet current debts with future money while continuing to conduct "business as usual".
Don't know how long it will take for the indebtedness to catch up with them, but that'll happen.
What is needed is austerity in the conduct of government and I don't think this, or any other Dominican government has the balls to do that. Too many fingers in the pie that are searching for the plums therein.

Texas Bill