DR hotel occupancy rate is dropping....

[Hipocrito Mejia]

For those that want to argue about the economic conditions in the US and how they may affect the tourism numbers, you have to consider that in certain terms, perception is sometimes more significant than what the actual major economic indicators may tell you.

For the average tourist coming to DR (US middle class), vacations are a luxury that are paid with discretionary disposable income. Look at the US consumer confidence index for the past 12 months, and you will see that it has been bouncing up and down. In essence, this tells a greater story about the sentiments of the "average tourist" than the other major economic indicators. The average Joe is concerned about the current and short term future job market conditions and how this will affect their income. Add the rising fuel and energy costs, and the increased cost of living to this, and you will find that the potential "average tourist" is more cautious about spending that discretionary disposable income on a vacation.

 

[qgrande]

I agree with cobraboy that oversupply of hotel beds might be a reason too, this is drops in occupancy rate we're talking about. In the capital construction is going on on a crazy scale, and investors don't seem to mind having their torres stay empty for long periods of time. Construction is cheap, drugs money needs to be laundered, etc. Maybe the same principle is partly responsible for the oocupancy rate drop in tourist areas?

 

[cobraboy]

For those that want to argue about the economic conditions in the US and how they may affect the tourism numbers, you have to consider that in certain terms, perception is sometimes more significant than what the actual major economic indicators may tell you.

For the average tourist coming to DR (US middle class), vacations are a luxury that are paid with discretionary disposable income. Look at the US consumer confidence index for the past 12 months, and you will see that it has been bouncing up and down. In essence, this tells a greater story about the sentiments of the "average tourist" than the other major economic indicators. The average Joe is concerned about the current and short term future job market conditions and how this will affect their income. Add the rising fuel and energy costs, and the increased cost of living to this, and you will find that the potential "average tourist" is more cautious about spending that discretionary disposable income on a vacation.

What about Europeans? How does the perception of the US economy effect them?

 

[Hipocrito Mejia]

What about Europeans? How does the perception of the US economy effect them?

If you look at their situation, you will find that the average middle class households in European countries are very much concerned about the same issues.

 

[KeithF]

Why is it sad?!

But less tourists - should be welcome.

The tourists don't 'just benefit' the top 5%. Have you noticed the jobs people have preparing the food for the tourists? Or serving the food? Or cleaning the rooms? And where does the food come from? Less tourists=less demand for food, coffee, beer. So less need for people to produce that food/coffee/beer. Basic supply and demand will result in the price of that food going down, (relative to inflation). So the stuff the farmer NEEDS goes up but he can't sell his produce at the same level. So, he's going to make cut backs on 'non-essentials'... like pens and paper for his kids at school. Or the family that sends the kid to school in the morning and shoe shine in the afternoon suddenly have to send him out morning and afternoon to hawk harder. It's the tourist dollar that *could* save the country. The Dom Rep was 'reclassified' from 'third world' to 'emerging economy'. Those developments are on the back of the tourist dollar. Take those dollars out of the equation and you'll be heading backwards pretty damn quick. Take the kids out of the limited amount of education that they are already getting and you are heading backwards too.

So the tourists go, what replaces them? Farming, coffee and sugar exports I'd guess are running at about their peak as far as bringing money in to the country is concerned, so what else? Drugs look pretty profitable in DR? How about open cast mining etc? That will improve the ecology.

Like it or not, the Dom Reps future lies in the hands of tourists. An improved level of tourist spending, the country goes up for everyone. Reduced numbers AND spending, the country is in trouble for everyone.

The country I live in is a 'tax haven'. When I first moved here there was a lot of opposition to the finance sector that was increasing in size and 'taking over' from traditional economy, such as fishing and farming. The population has almost doubled in the following 15 years. Fishing and farming couldn't hope to replace the finance industry if it pulled out. So even the most die-hard 'anti-finance' have come to accept that even though they dislike it, the countries future lies in a successful finance industry. Schools are great, health is not bad, new hospital etc. You are facing the same. So, you can tilt at windmills all you want. But the sooner you accept that the Dominican Republic's future lies in tourism, the better.

Unless you can actually identify what else the country can do?

 

[amparocorp]

at this moment i am trying to find a flight from JFK NY to SDQ,,,,,,,,,i can find a flight to europe cheaper...................same story this november past and again in march......................maybe that has something to do with it?

 

[Conchman]

The Bahamas has also seen a downturn in tourism, but there they are more affected by the US Passport situation since most tourists are Americans. Increase in airfares is also a factor, along with annoying security measures.

 

[El_Uruguayo]

from today's DR1 headlines:

Tourism sector not concerned
The vice president of the National Hotel and Restaurant Association (ASONAHORES), Arturo Villanueva, says that the tourism industry is not concerned about the regional decline of tourism reported by the Caribbean Tourism Association. He said that the tourism sector has successfully begun the process of diversifying the options and offers for tourists. Villanueva made these statements in response to a 2006 report featured in the Wall Street Journal that found that tourism in the region had declined by 3.8% and also declined internationally by 5%.

The trend is not DR specific.

 

[bob saunders]

They are complaining about the same sort of drop at niagara falls. Security issues, higher Canadian dollars, less spare money, more expensive gas, fear, inflation lots of reasons.

 

[vegasdiva]

Bob Saunders lists the reasons. Not just in Canada, but America, too. Here's a link to one of today's top stories on MSN.com about travel from US this summer.
Summer Travel Trends: Beaches Popular, Prices Rise - MSN Travel Articles
Summer Travel Trends: Beaches Popular, Prices Rise - MSN Travel Articles

Also agree with amparocorp, prices of flights not budging and seem to be inching upward. Electricity just went up again. Postage, too. Fuel costs are affecting everyone everywhere.

I'm not an economist, but it seems in a country whose #1 industry is tourism, the lack of it is going to hurt. Is it possible that Villanueva's comments (tourism industry not concerned) are just positive spin? Similarly, I don't buy "the press" about america's economy being strong. Maybe it's not in the dumps, but "average americans" are concerned here. Just do a search on recent press/news about mortgage/banking and housing industries.

 

[cobraboy]

Similarly, I don't buy "the press" about america's economy being strong. Maybe it's not in the dumps, but "average americans" are concerned here. Just do a search on recent press/news about mortgage/banking and housing industries.

I'm not a "professional" economist, but my education is in economics.

I am not trying to argue your point.

But in EVERY economy at ANY point in time, there are sectors doing well, and sectors doing poorly. The guy working in the last buggy whip factory thought the economy was in the crapper. Henry Ford thought otherwise at the same time.

"The economy", nor the press, is responsible for folks buying too much house, at too high a price, with a poor mortgage products (like some of those interest only ARM's with a teaser rate for a year or two, negative amortization included). Individuals are. No one I know of are forcing people into poor personal choices. I have read where Ben Bernanke said the sub-prime mortgage situation will not have long-term effect on the overall economy (but they might have an effect on the mortgage company who packaged them with recourse). Additionally, there are segments of the housing market that surprised economists the last couple of months, especially new starts. There is a problem everywhere (even the DR, especially the north coast) of bloated current inventories. But the market will sort things out, and there will be a price equilibrium where the demand for that inventory will reduce the supply.

The reality of economic conditions, and the perception of economic conditions are two different things. If a person doesn't really understand the economy, the enormity and complexity of it, their opinions can be easily swayed by handsome and pretty talking heads on television.

 

[incredible]

Man, batich - you have a VERY odd perspective.

Not much of a devotee of real-world economics, are you? To say that tourism only benefits hotels and restaurants is..well...is infantile.

Exactly WHERE should all these people "go to work", who currently eek out a few bucks hawking tshirts on the beach?

And crime is not a direct result of poverty? Tell that to the folks in South Central LA, Liberty City, etc.

It hasn't occurred to you to ponder a little? Hmmm....tourism way down, crime way up, simultaneously? Reckon there's any sort of connection?

Mark Twain had some outstanding advice. "It's better to remain silent, and have people think you're a fool, than to open your mouth, and remove all doubt."

But maybe it's just me....maybe is better to ignore facts, and just tell everyone to go get a job - without recalling that DR unemployment is pretty high. This means- there aren't tons of jobs out there, even IF your friends, the tshirt hawkers, weren't too lazy to work. Let's stick to your plan- preserve the natural beauty, while crime escalates to the point that no one is safe trying to enjoy it. Yea- that's the ticket. We can all admire the natural beauty from the safety of our armored cars...

Agreed i bet no tourists go to parts of the Captal like Captillo or bad parts of Villa Mella, the crime there is horrible ....

 

[aegap]

Samana having the sharpest fall off isn't necesseraly a bad thing - it could probably be mostly explained by the hude number of rooms that have been added lately, in expectation of the new international airport eventually taking off ..which will happen, but it takes time. i.e. I bet the actually number of tourist visiting Samana actually incresed modestly.

The numbers for Punta Cana are amazing, - about two thousands rooms added every year, yet the occupancy rate actually increase to a level that would make many resort areas around the world very envious:

2006: 92% occupancy rate!
2007: 93% occupancy rate!

Bayahibe/La Romana fall off is neglegible, particularly given the area's great room occupation rate:

2007: 92.6% occupancy rate!

In fact, I believe DR is doing better than the Caribbean as a whole. Something that'd be amazing, given the fact DR is the Caribbean's number one destination.

 

[aegap]

from today's DR1 headlines:

Tourism sector not concerned
The vice president of the National Hotel and Restaurant Association (ASONAHORES), Arturo Villanueva, says that the tourism industry is not concerned about the regional decline of tourism reported by the Caribbean Tourism Association. He said that the tourism sector has successfully begun the process of diversifying the options and offers for tourists. Villanueva made these statements in response to a 2006 report featured in the Wall Street Journal that found that tourism in the region had declined by 3.8% and also declined internationally by 5%.

The trend is not DR specific.

Exactly, those number seem to confirm what I expected.

If Dominican tourism were to be clasified by body parts, Punta Cana would be both the heart and the brain. The room number there has been growing in leaps and bound, yet the occupancy rate has actually increased! Not only that, the standards (ie. diversivication) have been of the new resort have been increasing enormously (moving from a European standard to a more American tailored standard).

..And it won't stop in the near future, the boon will continue: i.e. Cap Cana hasn't really opened much. Same with Roco Ki, and it's Westin Resort and Fazio golf course , which are set to open later this year. Oscar de la Renta's PUNTACANA Resort & Club has some major expansion in the execution phase, including a new Fazio golf course under construction.


The NH hotels in Cap Cana and it's two sister super luxury NH hotels in Bavaro, which together will have over 1, 000 rooms! ..all five stars.

The several Alta Bella in Cap Cana. The US2 billion dollar Trump at Cap Cana and its Trump Tower and two golf courses. ..The over $500 million dollar Fallaron Estate at Cap Cana will be part of it

The addional about 4,000 residential units in Cap Cana that will be soon built.

Cap Cana been about than twice the size of the island of Bermuda, (which means its more than twice the size of Manhattan, New York), hence there will be construction goin there for like ever in the future!



the luxurious 1000+ rooms Moon Palace is set to open later this year in Macao , and guess what? ..

Starting this summer, a luxurious resort with a Jack Nicklaus golf course is to be developed right next to it. It's seto eventually have about 4,000 residential units, over 1,000 hotel units, its own commercial area (i.e. mini town center) ..and did I mention what would be at least the fourth Jack Niclaus golf course in Punta Cana.

Nicklaus Design - Courses Under Construction

:: CANA BAY - Beach Club & Golf Resort : Punta Cana, Dominican Republic ::

Cana Bay's still in development sister resort: Cana Hills

...need I say more?

 

[Matilda]

Not surprised about Juan Dolio. 3 of the biggest hotels shut last year to became apartments so only 3 left. Since no more charter flights into La Romana the european tour operators don't want to schlep people 3 hours from Punta Cana. Hence less tourists.

 

[aegap]

re:Samna, I forgot to mention the new SDQ-Samana highway that is coming along, ..

(edited to add: how do I resize them?)

(*Pictures e-mailed to me by a member here who recently described his journey through it, and whose tagline I'm embarassed to say I don't remember. Trank you for the pics, ..Identify yourself, whoever you are!)

Also, its Samana Internatiola Airport-Las Terrenas extension (these pics by Shuffline):​

 

[aegap]

Credit for the firs pics goes to CG-LT

http://www.dr1.com/forums/north-east-coast/62278-sdq-samana-highway.html

 

[sammystorm19]

I think that the drop in tourism from the North American passengers has to do with the Climate. This past winter wasn't as harsh as past years and the summer has a arrived early in some places. Also the cost of flights to the DR aren't as cheap as they use to be. I can say this with facts as I am a travel agent. I still go to the DR as much as possible no matter what the weather is like here in Ontario Canada or how much the flights cost.

The drop in tourist doesn't have much to do with the crime. Hell there is more crime going on in Mexico with Canadian tourist then there is in the DR. The DR isn't as cheap as it use to be as it is building from the "third world country" status it once had. I recommend the DR to all my clients as I love it there and I feel it has a lot of offer people.

I just thought that I would finally say something on here. I have never posted anything, but wanted to give my thoughts on this topic.

Cheers

 

[Gabriela]

Bye Bye Samana

30 years ago, Sosua was unspoiled, and beautiful. Three decades later, Sosua has been chewed up and spit out by the international tourist trade. People will come and gamble, and look for prostitutes, but families will move on to other countries, and serious travellers will head to Peru and other mature tourist areas that offer more cultural and adventure tour opportunities. Soon even the whales will leave Samana. The DR is like a faded whore whose best days are behind her. Soon the expats will pack up and go home, tired of robberies and a joke of a legal system.

 

[Nelly]

Taxes on vacation packages....

From Halifax to Varadero $227
From Halifax to Puerto Plate $326