Interesting article in the latest issue of The North Coast AdScene reports that a recently released study by the Department of Dominican Internal Revenue indicates that 80% of the AIs in the country operated at a loss during the period 2005-2009. The full report is said to be available on the Internal Revenue's website Direccion General de Impuestos Internos
No doubt that some of the conclusions were based on creative bookkeeping by the resorts, but the lack of sufficient maintenance at many of these resorts seems to support the idea that revenue is low.
My observation of the few hotels I have had contact with suggests that a major reason are the contracts the hotels make with the tourism companies in Europe and elsewhere at prices that are not adequate to make a profit.
No doubt that some of the conclusions were based on creative bookkeeping by the resorts, but the lack of sufficient maintenance at many of these resorts seems to support the idea that revenue is low.
My observation of the few hotels I have had contact with suggests that a major reason are the contracts the hotels make with the tourism companies in Europe and elsewhere at prices that are not adequate to make a profit.