An additional US$5 charge on airline tickets that will come into effect in November, is expected to collect between US$20 and US$22 million yearly during the three years that the charge will be in effect. Yesterday, Tourism Minister Felix Jimenez said that Decree 336-05 that increases aviation charges had errors. “Where it reads US$15 (for passengers from and to the Dominican Republic), it should have read US$12.50 and where it reads US$10 (for charter passengers), it should have read US$7.50,” he corrected, as reported in El Caribe newspaper. Jimenez said he sent the correction of the legal advisor of the President.
The government says the money will be invested in infrastructure and complementary services in tourist areas. According to the Resumen Turismo report, the money will provide US$60 million, or 30% of the US$220 million the government has plans to invest in tourism infrastructure taking on a loan from the Banco de Fomento Andino.
Officially, 45-50% of the funds would be invested in Punta Cana infrastructure, US$60 million in Puerto Plata, and the remainder in Las Terrenas (Samana), Bayahibe, Juan Dolio and Boca Chica.
The National Hotel & Restaurant Association rejected the new surcharge when it was first proposed by Tourism Minister Felix Jimenez in September 2004, a month after being sworn into office. The implementation of the tax has been postponed twice.
Reportedly, Asonahores met yesterday but has not come forth with a statement on the matter. The existence of the decree with the presidential authorization to the new charge was not known until it apparently was leaked to the press.
Asonahores’ rejected the tax on grounds that taxes and charges on airfares for local travel already make up almost 50% of the cost of any ticket, affecting the country’s competitiveness. Furthermore, the association points to several other taxes that have been created for tourism infrastructure and how the funds have been used otherwise.