Correct. People that visit the DR and overstay are an insignificant part of the overall economy. But they think they are important.
I agree that compared to AI tourists, snowbirds are a small portion of the tourist dollars generated here, but that doesn't mean that the DR isn't interested in this segement of overall tourist dollars.
Take ecotourism for example. That would be an even smaller portion of overall tourism, but the DR is actively promoting it. Just recently, the DR Civil Aviation authorities merged their flight planning software to allow American and Canadian private pilots to file electronic flight plans - the first country in the Caribbean to do so. This is being done to help promote general aviation here. This segement of tourism is miniscule compared to snowbirds, but the DR is still interested in promoting it.
This whole overstay system was put in place twenty some years ago as a way of circumventing the law to allow and further promote snowbird tourists. It also generates millions of dollars annually to DGM's budget - something that they will be very reluctant to give up. My bet is they won't give up the overstay system until they find a way to issue longer term visas.