Business leaders warns of Puerto Plata?s tourism decline

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Robert

Robert

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No kidding, like we didn't know this already. With 80% of the ones remaining just surviving.
It's no different in the South, Santo Domingo etc.

Unfortunately I see the DR getting a lot worse before it get's better. Especially with the lack of
planning and foresight from those that have the power to make a difference.

As opposed to markets that have "real" tourism, that's not AI and that's supported and planned.

Foreign tourism to Colombia up 10%

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Economy - 15 June 2010, 9:01 AM

Business leaders warns of Puerto Plata?s tourism decline

PUERTO PLATA, Dominican Republic.- Tourism business leader Jose Polanco said Monday that 50 percent of the businesses related to tourism have closed their doors due to the crisis he said affects the province.

He said the decline is evident despite that tourism was the base of the local economy just a few years ago, and which together with the rest of the North region contributed 51 percent of its currency income. ?As the years pass we see tourism?s setback in this region, to the point that 50 percent of the businesses related to tourism has had to close their doors."

Polanco listed hotels, bars, gift shops, handicrafts, transport companies among the businesses he said no longer operate in Puerto Plata, Sos?a and Cost?mbar.

He complained that the latest administrations haven?t placed the necessary importance on Puerto Plata and demanded that a Tourism Ministry policy to recover that industry.

Polanco said the crisis also affects real estate tourism, with large numbers of foreigners who buy houses and lots, and called for the construction of a modern cruise ship and freight terminals in the local port, to invigorate the local economy.
 
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Gabriela

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[/QUOTE]Polanco said the crisis also affects real estate tourism, with large numbers of foreigners who buy houses and lots, and called for the construction of a modern cruise ship and freight terminals in the local port, to invigorate the local economy.[/QUOTE]

I once worked with a wise accountant, who explained The Greater Fool Theory to me. Most real estate transactions involve the GFT and of course someone always gets stuck at the end of the line. As for cruise ships, my strongest memory of the Haitian disaster is a photo of tourists frolicking in the water off a peninsula the cruise line had rented for them, even while bodies were still being brought out of the rubble in Port au Prince. Tourism is a hit and run business, which avoids returning to the scene of the crime.
Dominicans need to build a sustainable economy, free of dependency on tourism. Tourism is a one-crop base for economic growth--just like sugar.
 
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Malibook

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Robert said:
No kidding, like we didn't know this already. With 80% of the ones remaining just surviving.
It's no different in the South, Santo Domingo etc.

Unfortunately I see the DR getting a lot worse before it get's better. Especially with the lack of
planning and foresight from those that have the power to make a difference.

As opposed to markets that have "real" tourism, that's not AI and that's supported and planned.
Click to expand...
Are you trying to rain on Pichardo's parade? :cheeky:

I am sure he will soon explain how this is all irrelevant. :tired:

Perhaps all of those businesses catered to the low end riff-raff tourists and the high end luxury businesses are booming with desired rich tourists. :tired:

Or as Nals will say, they had nothing to do with the internal economy which is doing great and is all that matters. :tired:
 
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AlterEgo

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Coincidentally, yesterday my daughter forwarded an e-mail to me that she received from CheapCaribbean.com - $499 pp to an all inclusive resort in Puerto Plata for 7 nights, including airfare! I'm used to seeing those bargain-basement prices for Punta Cana/Bavaro resorts, but I think it's the first time I've seen Puerto Plata 'on sale':

Cheap Caribbean | Attractions

AE
 
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rio2003

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This is something I often allude to and have seen happening over the years. It used to be commonplace here in the UK to speak to someone at least once or twice a week who had just been/just about to go to the DR. Not any more.
It has fallen off the radar as a holiday destination for us.

Tourists complained of having been "pestered" time and again - from sellers on the beach, girls wanting to braid their hair on excursions, being carted from one cheap souvenir place to another, timeshare, sorry vacation club, hassling in the hotels and the list goes on.

It is a shame, but it was always going to end in tears because it all got too greedy.

Even though there continues to be "tourist knocking" on here from certain quarters there cannot be many people who have chosen to move and settle in the DR who did not start as tourists.
:ermm:


Rio
 
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Chip

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Tourism is down because the economy is depressed. I'm in the construction business and in 2009 I made less than half of what I did in 2007.

No doubt Dominicans could do better in helping tourism grow but regardless of that when the economy recovers (in few years) so will tourism as well.
 
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rio2003

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Chip said:
Tourism is down because the economy is depressed. I'm in the construction business and in 2009 I made less than half of what I did in 2007.

No doubt Dominicans could do better in helping tourism grow but regardless of that when the economy recovers (in few years) so will tourism as well.
Click to expand...


I disagree Chip - I think it is too easy, and wrong, to blame the depressed economy or the credit crunch. A cop out.
If I can buy, right now, 2 weeks in an AI in Puerto Plata for 370 US and it still isn't selling, then there is something very wrong. People are still taking holidays, but are choosing more carefully. They want value for their money yet want to come home saying "What a great holiday".
This isn't something that has happened in the last year or so, it has been gradually creeping up over the last 5 or 6 years. The head in the sand mentality has crept up and bit the DR on the bum, I am afraid.
I don't understand what construction has to do with tourism and how you can compare the two.

Rio
 
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Ken

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I don't think that the economy is the main reason, either. And I agree with Robert and others who expect it to get worse before it gets better.

There has been no planning and the only goal has been to build as many hotels, etc., as possible. To fill all these hotels the owners signed contracts with tour operators who provide cheap packages, AI. These tour operators have kept pressing for lower prices, and finding locations with prices cheaper than the DR. Now we have too many hotels, a reputation as a destination for cheap vacations, and very little to offer more affluent tourists who are looking for a higher quality experience.

We also have government that over spends and keeps adding taxes that directly affect the tourists.

The Dominican Republic has brought this on itself and should not expect the drought will end as soon as the international economy improves. All the economic downturn did was to expedite the decline in tourism.
 
Robert

Robert

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rio2003 said:
I disagree Chip - I think it is too easy, and wrong, to blame the depressed economy or the credit crunch. A cop out.
If I can buy, right now, 2 weeks in an AI in Puerto Plata for 370 US and it still isn't selling, then there is something very wrong. People are still taking holidays, but are choosing more carefully. They want value for their money yet want to come home saying "What a great holiday".
This isn't something that has happened in the last year or so, it has been gradually creeping up over the last 5 or 6 years. The head in the sand mentality has crept up and bit the DR on the bum, I am afraid.
I don't understand what construction has to do with tourism and how you can compare the two.

Rio
Click to expand...

I agree with you 100%. Credit crunch is a cop out. Sure it hasn't helped, but it's primarily the lack of planning, foresight and investment that has been the slow death of tourism in some areas of the country.

We talk to clients daily. We get a lot of feedback regarding tourism.

Toursim might be doing ok in Punta Cana/Bavaro, but what is the $ yield like? How much money are hotels really making? What level of discounting are they having to do to get tour operator business?

Lipstick on a pig tourism...
 
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CFA123

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Chip, there's more at play than the economy.

Playa Dorada is by and large old and run down. The shopping mall is a joke. The beach and golf course are nothing special. Other than to save money or due to misdirection by a travel agent, I can't see why anyone would choose it as a destination over Punta Cana, Bavaro, Samana Peninsula (or other countries).

Playa Dorada AI's & the north coast in general snoozed while the Punta Cana / Bavaro expansion was going on - I don't think they'll attract high volume visitors any time soon.

Sosua, Cofresi, Cabarete, Samana have their own unique attractions and I can see them as destinations for tourists looking for a specific experience... but not in extremely high volume.

I'm afraid Playa Dorada will continue it's slow deterioration to the point that it eventually shuts down. I can't envision new hotel ventures there when other more interesting & growing places exist to invest one's money.

Maybe Playa Dorada would make a nice senior citizens / assisted living encampment. Sort of a Century Village on the north coast. Just need to add some shuffleboard. ;)
 
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BushBaby

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CFA123 said:
Maybe Playa Dorada would make a nice senior citizens / assisted living encampment. Sort of a Century Village on the north coast. Just need to add some shuffleboard. ;)
Click to expand...

OMG!!!! Now you have done it CFA ..........
I can't get this image of playing golf behind a fourball that is using Zimmer Frames (those metal framed supports the older citizens use for walking about places) out of my mind!! Bad on the dryest of days when carts can get onto the fairway ............ but days when we have to leave the cart on the pathway!!!! Ayeeeee yayee Yayeeeee!!!

I do agree with the overall concept of why tourism into Playa Dorada is so bad though - we have allowed the service to decline, the 'Welcome' to get less warm, the outings to be more staid & the City of Puerto Plata to become an afterthought. Time for the local businesses to think of new promotional/marketing directions & Minister of Tourism to get a very healthy 'Kick In The Butt' I would suggest! ~ Grahame.
 
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el forastero

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Why don't they just turn 5 or 6 of the North Coast AIs into senior assisted residential care facilities or nursing homes for aged North Americans or Brits who can afford to avoid state-run facilities back home, and maintain one other AI for visiting family members to stay in? The seniors could finish out their remaining days planted out in the tropical sun on a chaise.

They could get rid of the animation teams, turn the clubs into Bingo halls, and hire a few nurses to look after the residents. For those old codgers still able to get up and go, they could seek out some monthly excitement by taking a shuttle to town on Senior Citizen day held midweek to balance out business, jejejeje.
 
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CFA123

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el forastero said:
Why don't they just turn 5 or 6 of the North Coast AIs into senior assisted residential care facilities or nursing homes for aged North Americans or Brits who can afford to avoid state-run facilities back home, and maintain one other AI for visiting family members to stay in? The seniors could finish out their remaining days planted out in the tropical sun on a chaise.

They could get rid of the animation teams, turn the clubs into Bingo halls, and hire a few nurses to look after the residents. For those old codgers still able to get up and go, they could seek out some monthly excitement by taking a shuttle to town on Senior Citizen day held midweek to balance out business, jejejeje.
Click to expand...

Good medical care & coverage by one's insurance would likely be the first major hurdles to overcome.

And hey, u think the old codgers want to do away with the animation teams?
May need to name it the re-animation team, though.
 
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ffritz

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All joking about the seniors apart there are some valid points to be stressed.

We're in Costambar & right now the town is not so much asleep as comatose. As bar owners we are naturally suffering, as all are.

However ...

Some time ago a wise chap told me a truism I haven't forgotten :-

"If you put on quality entertainment/events, the people of Costambar WILL turn out because they are starved of such things."

The town is a microcosm of the entire North Coast & business owners would do well to heed these wise words.
 
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Chip

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If you guys think the state of the world economy is not affecting tourism here in the DR all I can say is you are uninformed.

I have a 600 bedroom hotel casino resort project in Saint Croix and one in Bahamas, a couple in St Lucia all on hold. People aren't traveling as much and banks aren't lending money due to the crunch and lack of demand.

I wonder if you guiys have anything other than hearsay to back up your claims.
 
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greydread

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As opposed to markets that have "real" tourism, that's not AI and that's supported and planned.

Foreign tourism to Colombia up 10%
Click to expand...



Everything we need to know is in the opening post. Colombia is being perceived as becoming safer. In other places...not so much.
 
Robert

Robert

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Chip said:
If you guys think the state of the world economy is not affecting tourism here in the DR all I can say is you are uninformed.

I have a 600 bedroom hotel casino resort project in Saint Croix and one in Bahamas, a couple in St Lucia all on hold. People aren't traveling as much and banks aren't lending money due to the crunch and lack of demand.

I wonder if you guiys have anything other than hearsay to back up your claims.
Click to expand...

Nobody said the world economy is not effecting tourism.
I don't think anyone on this board is that blind.

But...

As I and others have said. Tourism in the DR has a much bigger issue than the world economy. Even when the economy bounces back, they DR is going to struggle. The world economy issues have just excellerated the inevitable.

It lacks vision, planning, branding and the will of those that can make a difference, to step up and make a difference. This has been echoed all over the place for a long time.

I have lost count the amount of branding, planning etc initiatives that have been knocked on the head due to "agendas" etc.

anything other than hearsay
Click to expand...

- How about being involved in toursim here for 12 years and seeing whats happened. Being one of the countries largest promoters (millions of people have had their eyes opened to the DR by DR1).
- Client list as long as your arm and talking to them about whats going on and how their businesses have been effected and changed in the past 5-6 years?
- Friends that are buyers at hotels, friends in the Ministry of Tourism etc?

Should I go on?

Some of us live it, daily....
 
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CFA123

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Chip said:
If you guys think the state of the world economy is not affecting tourism here in the DR all I can say is you are uninformed.

I have a 600 bedroom hotel casino resort project in Saint Croix and one in Bahamas, a couple in St Lucia all on hold. People aren't traveling as much and banks aren't lending money due to the crunch and lack of demand.

I wonder if you guiys have anything other than hearsay to back up your claims.
Click to expand...

Chip, you're right on everything. In every thread. Not sure what we were thinking. Mods, please delete all posts but Chip's.

We're not talking new projects in St Croix or the Bahamas. We're talking Pto Plata's declining tourism. I don't think a single poster said the economy didn't play a part. What they've said is that there are other reasons contributing to why #'s aren't better than they are.
 
Robert

Robert

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greydread said:
Everything we need to know is in the opening post. Colombia is being perceived as becoming safer. In other places...not so much.
Click to expand...

Plus Colombia has done an excellent job of marketing itself, combined with a very effective branding campaign.

They have a plan that has vision, passionate, long term, well coordinated and is supported by all sectors, not just tourism related.

I have been to Colombia a bunch of times, spoke to people in tourism there and watched as they have grown. It's very impressive!
 
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Chip

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No doubt the dunderheads at the tourism office and local municipalities aren't doing more - then again when have they ever done anything in this country other than the bare minimum?

I'm pretty certain the tourism ministry is aware of what is going on in tourism in general and are no doubt blaming the economy. IMO when they can no longer justify the drop in tourists to the flailing economy they'll act.
 
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