The National Hotel & Restaurant Association has expressed its opposition to the proposed US$5 tax on airfares sold abroad. The spokesman for the Hotel Association of the East, Ernesto Veloz, and the spokesman for the Hotel Association of Puerto Plata Jesus Almanzar, criticized the announcement made by Tourism Minister Felix Jimenez. The measure is set to go into effect in August. Almanzar, of Puerto Plata, says that airfares are already burdened by around 40% of fares paid in taxes and surcharges. He says this affects the country’s competitiveness.
Almanzar said that there is no guarantee that the funds generated by the tax will not be allocated to the general budget of the nation and used for other purposes. This has occurred in the past with other taxes on the sector that supposedly were to be reinvested in tourism infrastructure. Felix Jimenez has proposed the creation of the new tax to carry out requested infrastructure in Puerto Plata.
The Puerto Plata hotel sector urges that the government invest in Puerto Plata’s infrastructure. Almanzar says that the private sector has done its part by remodeling the hotels, and attracting investors to build complementary attractions. They say that Puerto Plata generates 30% of the tourism sector’s hard currency. “Then, is it not possible that with that kind of money that we generate that Puerto Plata be allocated US$70 million for infrastructure without having to create a new tax?” he asked, as reported in Hoy newspaper today.
“Ernesto Veloz of the eastern tourism region, as reported in the Listin Diario, said that the tourism sector cannot be seen as a golden cup. “We are a cracked cup that at any moment, if they continuing creating more taxes and abusing it, will break,” he said. He highlighted that the government has invested minimally in the eastern region.
The rejection of the new taxes is also backed by the hotel associations of La Romana-Bayahibe, Samana and Juan Dolio.