Can't give particular advice from the industry but as a tourist who lives here now and speaks with family who comes to visit, I can say the Dominican Republic plain and simple is not as cheap as it used to be, and that's the reason many of my friends and family are going to other places that cost about the same and they feel offer more. I stay in PC, and I can say prices for everything here are waaaay higher than 6 years ago when I visited. Inflation is universal, but when many people were visiting due to expected low prices and then they find things more expensive than in the US and in some European countries and other Caribbean islands and Latin Am countries it makes the DR enter a different tourist bracket. Could be wrong.
- Thread starter TropicalPaul
- Start date
Is this a terrible year so far for tourism?
actually, you are right. the advantage that the DR traditionally enjoyed was its cheapness, relative to the other tourist destinations in the region. it was one of the last players to get into the game, and other islands like the Bahamas, Bermuda, Jamaica, and the Virgin Islands had more well developed offerings, albeit at a higher price than the DR, which attracted the budget conscious trade. now that it is becoming as expensive as everywhere else, it is losing that built in advantage.
I also completely agree. And I think a key reason that things are getting expensive is because wages are going up. You only need to look at all the new cars on the road and the number of Dominicans eating out to see that the Dominican middle class is expanding rapidly. Add to that the pressure on businesses to pay tax these days compared to years ago, and it is easy to see why prices are rising and will continue to rise.
So we have falling demand for hotel rooms, a surge in supply and a government that does not want to regulate the AirBnB market.
You are totally right. We were in Tenerife two months ago. Real good food, all kinds of wine, sherry (not 1000 pesos for a Tio Pepe) etc. A lot cheaper than the DR and a better climate and everything.
A couple of years and it is over and out.
Cheap is relative. Consumers will understand and adapt to a marketplace that is more expensive today than it was several years ago. Consumers live with this reality everywhere all the time. The challenge for business is to keep the product of sufficient quality and freshness to ensure that consumers are willing to part with their limited vacation dollars.
The AI model is still very attractive for people coming from countries where that product scheme is not available. The majority of resort customers do not require opulence and when that is an available option at a correspondingly reflective price, most don't choose that route.
As long as the the DR offers clean, safe resorts, with functional plumbing and air conditioning at a price that is less than Mexico and on par with Jamaica and other popular Caribbean destinations the tourists will come. The DR needs to ensure that incidental costs don't rise so quickly as to present an impediment - Airport taxes and fees come to mind. Travel businesses are nimble and quick to capitalize on any discrepancies between locations. The blight in Puerto Plata as compared to Punta Cana is a glaring example. The cost just to land travelers in Puerto Plata put this region at a disadvantage right from the outset.
The DR will continue to do well in the sun & sand market as long as this country offers low, mid and higher price points to meet everyone's budget, value for the money being paid and prices that do not stand out as being glaringly higher than other comparable short stay destinations.
No hassle direct flights, short travel distances from the airport and a comfortable resort experience is all that most winter break travelers want; Where they have to go to get this probably isn't among the top 2 or 3 primary purchase considerations.
For the non-AI traveler, the considerations are completely different and of more significance.
The AI model is still very attractive for people coming from countries where that product scheme is not available. The majority of resort customers do not require opulence and when that is an available option at a correspondingly reflective price, most don't choose that route.
As long as the the DR offers clean, safe resorts, with functional plumbing and air conditioning at a price that is less than Mexico and on par with Jamaica and other popular Caribbean destinations the tourists will come. The DR needs to ensure that incidental costs don't rise so quickly as to present an impediment - Airport taxes and fees come to mind. Travel businesses are nimble and quick to capitalize on any discrepancies between locations. The blight in Puerto Plata as compared to Punta Cana is a glaring example. The cost just to land travelers in Puerto Plata put this region at a disadvantage right from the outset.
The DR will continue to do well in the sun & sand market as long as this country offers low, mid and higher price points to meet everyone's budget, value for the money being paid and prices that do not stand out as being glaringly higher than other comparable short stay destinations.
No hassle direct flights, short travel distances from the airport and a comfortable resort experience is all that most winter break travelers want; Where they have to go to get this probably isn't among the top 2 or 3 primary purchase considerations.
For the non-AI traveler, the considerations are completely different and of more significance.
Can you explain "everything". I can see a bump in pricing in tourist areas for restaurants, shopping, maybe clothing. I just checked my favorite website for AI bookings in PC for mid May. Direct charter flight from USA, 6 nights, $1,200-$1,300 will get you multiple options at AIs. Not PC, but checked menu costs at a few places I eat at SDO, like Adrian Tropical, seems the same as 2-3 years ago.
The big 3 that continue to have the most affordable vacation pricing, and high volume, is PC, Cancun, Montego Bay. Not including PR, PC is the busiest airport in the Caribbean. If you consider Cancun "Caribbean" it would be #1.
As is the Virgin Islands.
Living here now I HAVE see a big drop off in tourism this past week AND HUGE DROP FROM 3 YEARS PRIOR.
I Thing the big Gringo Round up 2 years ago sent a strong signal.
Just the week before it seemed many businesses were packed.
Drove by Bailees at 9:30AM today and only 2 tables were occupied.
Had lunch on PC and I was the only one in Captain's Table at noon, but it was great Angus Burger and fries (Try it)
But I think Valentines Day is the trigger - after that the tourist season starts ramping down.
It is getting warmer too.
I expect this summer will be deader than Jussie Smollette's FAN CLUB
I met with a hotel owner for one of the larger hotels in the Colonial Zone today. He said that they cannot believe how bad this season is. They are maintaining occupancy, but only by slashing prices, result that revenue is down 30% year on year. He said that he had heard the same story from two other hotel owners in the Zona.
All of these personal experiences of drop off of tourists are not anywhere near Punta Cana where ALL the business is going. The North Coast has been dead for over 10 years.
The Dr Government has a huge investment in Punta Cana. And the industry is as strong as ever in Punta Cana. No hotels are closing and major projects are being built.
Palace Resorts is building in Punta Cana at a 600 Million Price tag as we speak.
https://www.travelagentcentral.com/hotels/palace-resorts-breaks-ground-new-moon-palace-punta-cana
So talking about 150 rooms or less hotels that are going under are meaningless in the grand picture.
The Dr Government has a huge investment in Punta Cana. And the industry is as strong as ever in Punta Cana. No hotels are closing and major projects are being built.
Palace Resorts is building in Punta Cana at a 600 Million Price tag as we speak.
https://www.travelagentcentral.com/hotels/palace-resorts-breaks-ground-new-moon-palace-punta-cana
So talking about 150 rooms or less hotels that are going under are meaningless in the grand picture.
It might be that PC et al cater to the AI tourist....
Beach, food, drink.... simple recipe
The ZC calls for a different type... more adventuresome..outside the AI orbit
That type of traveler pays attention to warnings - crime/etc
Might be interesting to define the 'Typical Dominican Tourist'
I expect the AI's drive the industry more than the ZC
and Yes........North coast has had problems before now and may continue to have them
Outdated infrastructure and services... say many
Beach, food, drink.... simple recipe
The ZC calls for a different type... more adventuresome..outside the AI orbit
That type of traveler pays attention to warnings - crime/etc
Might be interesting to define the 'Typical Dominican Tourist'
I expect the AI's drive the industry more than the ZC
and Yes........North coast has had problems before now and may continue to have them
Outdated infrastructure and services... say many
Always a possibility. But hundreds of rooms are being built every year, and this year is no exception. I have a friend who has an extremely successful contracting business (Search for CODELPA on FB) and he can't build them fast enough.
The DR govt. is shooting for 10mm guests this year and they need more rooms to meet the demand. I like to think these folks know what they are doing.
A newer one -- no food.... before you enter Cabrera but after el Breton - at the hilltop before La Catalina turn...
If you don't want to go all the way in to Cabrera
If you don't want to go all the way in to Cabrera
I remember when the DR did not have a functional Tax Department. Virtually nobody paid taxes on anything. Now more and more folks are paying taxes, and that reflects on the cost of EVERYTHING.
The DGII has what is arguably the most efficient tax collection system in the world today which they are still learning how to use to it's fullest.
People here laughed at Pichardo when he described how the DR was moving towards a cashless society. Money would disappear and all transactions would be electronic, like is done in many African countries.
The DGII just announced their new 'system' to facilitate even more the payment of taxes. Part of that is having people register on their website so they can keep track of what is bought off island and imported.
Those are the kinds of things that are eliminating the 'cheapness' of the island.
I am still laughing at that, along with everyone needing to buy a smart gun.
Unless of course that has been implemented or there is even a date set for that change that I missed...
The rest of the world is going cashless quicker than the DR.
Nothing is certain but death and now DR taxes.
great observations. there was this watershed moment when DR went from lax tax enforcement to Trotskyite tax initiatives, with dire consequences for delinquents. just a few months ago, they locked Metro Tours down for failure to pay taxes. that has changed the pricing landscape, and some of the advantages have evaporated..
Well if the taxes continue to rise and more plane loads of fat pink people arrive, then the tourism will fall off a cliff.
This island developed because you could fly in, have two weeks here for $1,500 and go home tanned, and hungover. It was 3rd world and kind of felt 'undiscovered' but at $960 from Miami for coach - really 2 hours) + food and nice rooms at 1st world rates, then it will be as expensive as Hawaii soon, and they have many more islands with different environments and much better golf courses and cuisine.
Not sure when the 'peak' will be reached in tourism but it is approaching fast - future bargains for hotels ?
This island developed because you could fly in, have two weeks here for $1,500 and go home tanned, and hungover. It was 3rd world and kind of felt 'undiscovered' but at $960 from Miami for coach - really 2 hours) + food and nice rooms at 1st world rates, then it will be as expensive as Hawaii soon, and they have many more islands with different environments and much better golf courses and cuisine.
Not sure when the 'peak' will be reached in tourism but it is approaching fast - future bargains for hotels ?