Of course they could, and from what I am being told the DGII has this in its sights. The issue is that if you paid the US$ 85 a night for the apartment in the Zona, plus the Propina Legal plus the ITBIS, you would be at $108.80 per night. And for that price you could choose from a wide range of 4 (and probably 5) star hotels right now.
The other point is that in the same way that even the guy who can't work out 5+5 without a calculator still seems able to calculate his Prestaciones if you fire him, everyone who works in a hotel watches out for their 10% and will hot-foot it to the Secretaria if they think they're not getting it. There are odd places you come across which employ Haitians and Venezuelans illegally and don't pay the Propina Legal, but most legit places also pay out the Propina in full.
Are you saying that you believe that the major A-1 resorts are paying their staff the 10% tip on all of their bookings? So what do you think that would amount to - per staff member? Any idea? I had always heard that folks were lucky to make 5-8000 pesos a month working at an A1 (not that that was not considered a reasonable salary in many parts - certainly the security guards at the US Embassy were paid that) .. How are the Propina's distributed?
It is not that the hotels were employing Haitians illegally - I assume that most of the hotels who employ Haitians are using Haitians who have proper cedillas.. It was the construction of the hotels - and in particular the Bahia Portillo - that I was speaking of. Most of the construction that I saw going on in the DR - even in SD - was using Haitians. But things may have changed since I left in 2016.
And - yes - perhaps the $108. would get me one room - but not a two bedroom condo with a living room and kitchen. For us who are budget minded having one's own kitchen saves a lot -- means that one can have some meals in. Dining out in SD was as expensive as in the US (except for some real finds).
The idea of having a "home" - a place with a living room, and two bedrooms, where a family can hang out - is simply not going to be replaced except perhaps in the most expensive high end places.
But -- well - I am still open to hearing about the deals...