The National Association of Hotels and Restaurants (Asonahores) and the Dominican Promotion Council (CPT) in a letter to the Listin Diario explained the reasons for the drop in the flow of German tourists to the country. The letter is signed by Frank Rainieri, president of Asonahores and Simon B. Suarez, president of the CPT.
German tourists represent the largest single country source of visitors to the Dominican Republic. In 1995 some 450,000 Germans visited the country on 988 charter flights, and initial forecasts at the start of 1996 were for some 500,000 arrivals. The Dominican Republic is second in the preference of German long distance travelers, after the United States.
According to Asonahores, the main reason for the drop in the flow of German tourists is the economic problems affecting their country. Asonahores says that the country is more vulnerable to this situation because it has traditionally not invested in public relations nor institutional promotion in a professional manner in order to reinforce its position in the preference of Germans. Asonahores states that a 20% drop in the flow of German tourists would mean some US$200 million less in hard currency for the country, and would have the same effect as a hurricane on the economy.
Furthermore, Asonahores states that the Birgen Air/Alas Nacionales crash of February unleashed adverse publicity for the country’s tourist industry, and when that wound was still fresh, the situation was worsened by the stopping of Taesa and Air Europe flights in an unprofessional manner by the Civil Aeronautics Board. These cases received much adverse press, as the flights delayed by the CAB forced travelers to stay longer when the hotels in Puerto Plata were fully booked and it was thus very difficult to provide the passengers with adequate accommodation. Following those cases, an Air Ambar flight was similarly affected, and as a result the country had to live through three months of adverse press at a time when the German economy was suffering from its worst major slump of recent decades.
Some economic analysts maintain that Germany during the first quarter of the year entered a recession. In the third quarter of 1995, it showed no economic growth and during the last three months of the same, and the first of this year, there was a decline in real terms in the Gross Domestic Product.
While inflation in Germany is under control, unemployment reached 10% of the economically active population, the highest since the days immediately post to the Second World War. The government also has cut its expenditure to reduce the public deficit. These factors introduce uncertainty in the public, above all in the lower income strata that make up the largest segment of German travelers to the Dominican Republic.
To counter the situation, in April, Asonahores and CPT hired a German public relations firm.
Asonahores is requesting that the new government invest in institutional promotion focused on boosting bookings for the winter season and 1997. It indicates that in 1995, Asonahores member hotels invested over US$20 million in promotion and other marketing expenditures.
“We know it is difficult to capture the attention of the authorities at times when the attention of the country is focused on the election. But the local events do not affect how international markets on which we depend operate and if we do not react now, the end of this year and the start of 1997 will be very difficult, not only for the tourist industry, but for all the country,” states Asonahores in its letter to the Listin.