Will DR Peso depreciation = More tourists revenue ??

Formosano2000

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Mar 5, 2003
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Knee-jerk reaction would seem to say yes, but after some thinking, the reality may be a lot more complicated.

I believe most DR hotels and beach resorts quote in US dollars. So a room that went for US$50 a night in 2000 will still go for US$50 now, even though peso as slid from $16 to $29 now.

So what's the attraction for foreign tourists if they are not benefiting from the peso depreciation ? In fact, if I had to pay the same price, I might not want to come to DR anymore because of the worry of instability/crime due to economic woes.

On the other hand, take Argentina, which has benefitted tremendously because foreign tourists have been flocking there due to Argentine peso depreciation from US$1=AR$1 to US$1=AR$3 and many hotels that don't price in US$ seem like a bargain to foreigners and so fill up fast.

Obviously, if tourists venture out of DR beach resorts and eat at local restaurants and buy at local shops, they will befefit from the cheaper prices because most local restaurants/shop don't price their item in US$ equivalent. But how many tourists who come to DR actually venture out of beach resorts and contribute to the local economy ?

Europeans will still have a much cheaper deal due to the rising EURO value, but for other tourists with US$, I don't see how DR has become any more attractive despite the peso devaluation.

Any thoughts ?
 

Escott

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Jan 14, 2002
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Everything has its ups and downs. Just like the Euro, eh?

I don't think it is any more of a bargain than it was before. Real Estate has been coming down for years. Is that a bargain or just the UP and Down cycle? Trick is to buy at the bottom and sell at the top. That gives you the edge. Let me warm up my chrystal ball.

I stay in a place that prices in US Dollars when I am in the country. I think it is all tied to the Dollar. All currencies fluctuate, and look at the Canadian Dollar. These people think that they are in good shape because one woman told me that "My Canadian dollar hasn't depreciated in 8 years in the DR". Well if it hasn't APPRECIATED it has depreciated and she couldn't tell the difference nor understand.

Regards
Scott
 

Peter & Alex

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May 3, 2003
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Prices in Dollars

You are quite right to say that the tourists in the AI's don't benefit from the dollar/peso rate as many of them never get to go out and even spend a peso! Bad news for the DR and the local businesses though as all the holiday dollars are paid elsewhere and even the hotels/resorts, we understand, only receive a meagre portion with which to feed and water the guests!
With the dollar/peso rate so bad at the moment we have a few unscrupulous restaurant owners who suddenly started quoting their daily specials in US$? As local residents, particularly in Cabarete, we should make these miscreants aware of our displeasure. We do!!!!
 

Golo100

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Jan 5, 2002
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Fools Gold

It doesnt matter. DR prices are being adjusted to new dollar values. Prices are going up to catch up to the dollar overvaluation. Take airline tickets....we are paying more to travel to Puerto Rico than people travelling from the U. S. to Europe already.

TW