Good luck with that one. People in the expensive high end resorts will be putting money into the resort owners pockets they wont be shopping outside the resort. Large hotels will be much the same as what now are AI's. They will have their own rooms with restaurants, places to shop, direct access to the beach which will be serviced by them. There won't be any outside competition thus meaning the local economy wont see much of it if anything.
This assumption is based on what facts?
Have you been to Punta Cana in the last 12 months?
It's booming. Most of the smart educated Dominicans involved in tourism are moving east. This part of the country offers some great opportunities and prospects. The east coast is growing rapidly and is very different to the rest of the DR. It's more like Orlando, it looks new and was built from scratch so avoided many of the issues that plague other parts of the country.
Unfortunately DR tourism for many years has been low end and tour operator driven. This model is not sustainable. The DR has no option but to change, it cannot afford to keep chasing this market.
The US$ yield in the low end market is very low, so resort operators and owners do not always have the funds to invest in a better product to increase their US$ yield. All you end up with is low end resorts with cheap tourists. The resort spends as little as possible on operating costs and the tourists spend as little as possible on their vacation.
A high end product helps lift the mid-range market. It creates desire and that in-turn brings in more quality tourists. This is why Punta Cana is marketed as Punta Cana and not the Dominican Republic
Look at a little town like Cabrera, it's booming due to high end tourism.
The place looks great, it's clean, local Dominican businesses are doing well, the mayor is very supportive, the local tourism and business owners work together to better the community. It's a model of success. This type of tourism is sustainable and growing.
The difference is a typical family will spend US$20,000 for a 2 week vacation in Cabrera as opposed to a similar size family that will spend US$2,000 going to Playa Dorada. The US$20,000 family will inject a lot more money back into the local community, because they are a different type of tourist, they get out and about, they come for a different experience. They go home, they talk about their excellent vacation, cute town of Cabrera etc etc. The referral and repeat business in this market is huge.
High end tourism is relatively new to the DR and it comes with it's own set of issues etc etc. But most people involved in tourism will tell you it's better for the country and locals benefit more from this type of tourism. The DR has a long way to go, but right now it has same fantastic products and has created a buzz that is attracting huge investors. All this activity can only be good, the question still remains is it sustainable and can the DR continue to compete in the market?
My opinion... Yes, despite the possibility of Cuba opening up in the near future.
