The current issue of Dominican tourist trade magazine Resumen Turistico quotes a report in Hoy newspaper about what it describes as the unprecedented decision by several major hotels to close their doors for the low season. The newspaper says that this is being done in order to reduce losses brought about by increasing costs, combined with the lower occupancy and prices at that time of the year. It is suggested that as many as eight large hotels have announced temporary closures, but the official reason being given is that they are undergoing renovation work. However, the report points out that all these hotels were repaired less than a year ago, after suffering damage as a result of Hurricane Jeanne in September 2004. An unnamed source from the hotel industry is suggesting that this official reason is being put forward because to reveal the real reason would send “a very negative signal to the tourist market, especially investors who in recent months have frozen their projects or left the DR for Mexico or Jamaica, or to explore possibilities in Central America”. Hoteliers association ASONAHORES has been saying for some time that the Dominican tourist industry is facing a 40% increase in operational costs due to recent tax increases, and that this, combined with the overvaluation of the peso, has led to a major decrease in income for the sector. Occupancy is down compared to the equivalent period last year, and compared to the country’s main competitors like the Mexican Mayan Riviera.