Hotel Cambio Fee and TAx

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choudini

New member
Jul 29, 2005
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This forum is a great source of information. Thank you all who contribute to it.

I want to understand why hotels can charge a higher rate of exchange than a bank or on the street.
Do they have to pay a tax or fee for providing this service? If so what is it?
What Dominican agency would they have to report to if they do at all?

I realize this may be different town to town. I am specifically refering to Cabarete, where I understand the street rates are all the same due to some agreement with ??? and no fee, no commission.
What is the specific arrangement in Cabarete regarding exchanging money and setting rates?

Thank you in advanced for your information.
Choudra
 
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HOWMAR

Silver
Jan 28, 2004
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choudini said:
This forum is a great source of information. Thank you all who contribute to it.

I want to understand why hotels can charge a higher rate of exchange than a bank or on the street.
Do they have to pay a tax or fee for providing this service? If so what is it?
What Dominican agency would they have to report to if they do at all?

I realize this may be different town to town. I am specifically refering to Cabarete, where I understand the street rates are all the same due to some agreement with ??? and no fee, no commission.
What is the specific arrangement in Cabarete regarding exchanging money and setting rates?

Thank you in advanced for your information.
Choudra
Click to expand...
It's call the Law of Supply and Demand. What a willing purchaser will pay to a willing seller. The hotel cambios are free to charge whatever the traffic will bear. They know that most tourists won't take the time to shop the exchange rate. Also there is the added overhead of being located in the hotel. The cambio has to pay rent to the hotel for the exchange window, probably many times higher than the rent for a location in town.
 
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rellosk

Silver
Mar 18, 2002
4,169
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HOWMAR said:
...The hotel cambios are free to charge whatever the traffic will bear.
Click to expand...
It's the same with the street cambios. Last time I was in Sosua, I went in a cambio to exchange money and I asked the guy what the rate was and he said 26 (the prevailing rate at the time was about 29). I started to walk out and he asked me to quote him a rate. I continued walking and he followed me outside and said 28.50.
 
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ricktoronto

Grande Pollo en Boca Chica
Jan 9, 2002
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choudini said:
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I want to understand why hotels can charge a higher rate of exchange than a bank or on the street.
Choudra
Click to expand...

The same reason a 50 cent can of soda costs $5.00 in a hotel mini bar outside the DR.

People are dumb enough to pay it.

As for the cambios in hotels vs. the street, the tour companies intimidate enough people not to leave the resort (fearmongering) then overcharge them on the pesos they need to buy souveniers in the htoel shop, that are overpriced as well. Great racket.
 
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Bob K

Silver
Aug 16, 2004
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The do it because then can and the tourist will pay for the convience.

Bob K
 
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