Senator for Puerto Plata, Octavio Silverio Galán, is strongly endorsing a bill that would allocate 2.5% of the 5% tax on hotel room income to be used to improve the tourism areas. The bill was approved at its first reading by the Senate, and should pass the second reading.
Silverio Galán explains that the approval of the bill is crucial to improve the cities adjacent to the tourist areas. He said that while the tourism is booming, the cities are depressed because their municipalities cannot tax the hotels or citizens and depend on the central government for their meager income, while in the case of Puerto Plata and Higuey there are some 20,000 rooms in the area. He said that while tourism grows and generates a growth in the size and population of the towns and cities, the municipalities, confronted by a lack of economic resources, fall behind in the provision of essential services, such as refuse collection. The bill has the support of the Liga Municipal Dominicana, that groups all the municipalities, and it is also supported by the National Hotel & Restaurant Association.