There is a boom in constructing one and two-bedroom apartments in Santo Domingo, reports Mariela Mejía for Diario Libre. She highlights in the newspaper article that a selling point of the units is that they are attractive for the tourism rental market.
The feature points out that only between January-February 2022, the Central Bank reports that 27.4% of non-resident foreigners visiting the Dominican Republic stayed outside of hotels (249,758 people), a percentage higher than the 20.1% registered in the same months in 2021.
Tourism Minister David Collado told the reporter that given the accelerated growth of real estate tourism, the government is likely to soon regulate this modality and ensure that local taxes are paid. Collado said a ruling could be forthcoming in the next two months. He estimates while there are around 83,000 hotel rooms, there are an additional upwards of 53,000 rooms being marketed in platforms such as Airbnb. A large number of these rooms are located in Greater Santo Domingo and many more are under construction.
Meanwhile, some condominiums have internally banned the operation of Airbnb units for noise and security reasons. This has resulted in developers offering units that are especially prepared for Airbnb rentals so as not to enter into conflict with the neighbors.
Because of the boom in short term rental property, Tourism Minister Collado told the Diario Libre reporter that the government is interested in regulating the online short rentals but also in continuing to promote it. “I think we must continue to promote it, but I am also convinced that it must be regularized and that they have to pay taxes,” Collado told Diario Libre.
The boom in construction comes at a time when new large hotels are also going up in Santo Domingo. This could result in a surplus of prime accommodations in the capital city by 2023-2024. This is good news for visitors.
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10 May 2022