here we go again

el siglo reports that another 29 hotels in the sosua-cabarete area are about to close.ocupations are as low as 16%.
not the best of times to open up a new hotel.

16% occupancy and 29 more hotels closing? This doesn't sound like the glowing reports issued that claim 70% plus occupancy and the need for more rooms (50,000+ now). Maybe the wake-up call to limit new hotel construction is being sounded a little too late.
And according to the recent news article about the new airport at El Catey, more development (hotels) is planned for the north coast in the airport's proximity. This is just what is needed,...more hotels to drive an already-staggering tourist industry to it's knees.
The government better borrow all the money it can. It's going to need it to prop up the economy when the profitability in tourism goes down the tubes.

Tourism could and should be increased and better marketed. The word competition speaks for itself. The country can benefit greatly by expanding its friendly services and improving its variety of options. Many have already spoken about all inclusive and European options as an example. That may even open its doors so that guest can move around and enjoy many hotels instead of being prohibited by watch man from entering the other neighboring hotels even within the same complex. The opening may even increase the shows and beverage options and revenues. First class hotels may bring in the a different class of tourist while the present one can continue to attract tourist on a stricter budget. Protectionism sometimes leads to complaisance which lead to defensiveness. Those two together create spiral negative consequences.

Pepe, we ent all through this on May 30. Refer to the Thread of Americans vs. Cuba and the other related thread back down the board.
At that time, I opined that the DR not only needed a vigorous and coherent tourist marketing program but that the industry needed a growth management plan to further improve the health of the tourist industry and position the DR to be able to withstand outside competition for tourist dollars. Without these two key ingrediants, tourism in the DR remains a risky business subject to the whims of the world's vacationing public.

My case in point is do protectionism destroys the competitive edge needed to self improve present services by excluding those that are willing. Therefore I?ll get the most I can from you while providing the less amount possible because you have no choice the customer has no choice.

The choice becomes places other than the DR. You have the most beautiful resource needed, nice pleasant and willing to serve people at a price lower than most of your competitors. The DR already has an edge, low cost of employment, therefore improve infrastructures services and don?t be afraid of competition. Welcome it and just be better.

I'm sure some of participants here (DR1) will find fault with my (possibly annoying habit *~* so sue me constant mucking around in the archives and the reposting of old messages. Having said that here's my latest

~~~ The following message is a redo (edited) of a pervious post addressing the future of tourism in the DR. ~~~

This from Andy's post: http://dr1.com/board/index.cgi?read=55321

>>> "In some sectors of business, capitalism with little or no restraints is good. However the hospitality industry in the Dominican Republic is still very much in its infancy and needs a well-defined (and continuing) set of guidelines and controls in which to operate if it is to grow and prosper.
I COMPLETELY AGREE with Se?or Prieto and those like him who see the writing on the wall." <<<

I think this short statement is all telling, "those like him who see the writing on the wall", when Cuba opens up ( no US sanctions) they will be the 500 lb. gorilla on the door step of tourism in the DR. Why? The cost of doing business in Cuba is considerably/ some what less and the "cogelo suave" * way of life in the DR gives the Cubans an even break in competitiveness and eventually they will become a major threat to certain segments of DR tourism. The Cubans will eat for breakfast some of the mediocre AIs in the DR, after all Cuba has just as much to offer (as a lo end econbox tropical vacation destination) as the DR when you think about it.

I think there should be a moratorium on opening up certain NEW areas to mega AI development and instead major capital improvements should be made on existing facilities, as is being done in the Punta Cana area. I think upgrading existing properties is a much wiser use of developers money.

In "Marketing 101" there is always a lecture titled "Sell the Sizzle not the Stake!". To my way of thinking spending money on an international vacation should produce a very memorable and pleasant result. What the hell kind of experience will you have staying in a run down half empty resort with bad food and the deteriorating hulks of boarded up mega AIs on either side of the dump you are stuck with? Kind of hard to book you a return visit to "The Vacation from Hell", remember your trying to sell "sizzle". . .

Regards,

. . . CES

* from Clara's post: "I think it is all part of our 'cogelo suave' way of living"
http://dr1.com/board/index.cgi?read=55186

Click on link: > > >

Drop in US Travel

And add the decling US economy and you have serious consequences

I don't recall for sure, but didn't DR1 report that for the first time the US provided more tourists than any other Country to the DR

No argument there. You just do not grow a business and more important an industry by protecting it from competition through protectionism and exclusion. Competing will create jobs right within the industry. A very simple example there are not many hotels that service (sell) beverage to those on the beach chairs. Why because tourist have no choice because they bought the all inclusive.

On the other tourist can buy the all inclusive while being afforded the opportunity to choose, they will in addition beverage and foods at other resorts. They may like the services and decide to come and stay at that resort. Word of mouth marketing

Instead through protectionism we exclude and preclude tourist from even entering the common areas of hotels. They are denied and rejected entrance to a hotel. Is that how we sell a product? Is that how we make them welcome?

Who says Cuba will ever open-up?

Is it just wishful thinking on the part of the Americans or is there some other reason that makes people believe that after Castro there won't be another "Castro?"

Re: Drop in US Travel

No, the USA has provided the majority of entries to the Dominican Republic for years. The problem is that for much of the time Sectur and Infratur did not differentiate those who travelled from the U.S. as Dominican-Americans visiting family and friends versus those who were travelling as legitimate "tourists" to resorts or other tourist destinations. I believe that if this issue is sorted out you would find the real U.S. tourists numbers below those of Germans, Canadians, and possibly those from the U.K. as well.

Cuba Is WIDE OPEN!!!

You're politically motivate ban on travel there means nothing.
Hotels are being built constantly and the Euros and Canadians are making money hand over fist.
The Canadians are into everything you could think of, Transportation, Mining even Organic Farming.

Re: Cuba Is WIDE OPEN!!!

It's a drop in the bucket compared to what US gaming industry will build