New opportunities for tourism investors in the Dominican Republic

The Dominican Republic, renowned for its stunning white-sand beaches, crystal-clear waters, and unparalleled hospitality, has long been a world-famous tourist destination. However, nowadays, this Caribbean nation finds itself at an exciting turning point in its tourism development. With a growing economy and a government committed to expanding the tourism industry, there are a plethora of new opportunities for investors in this Caribbean paradise.

Growing sustainably

The Dominican government, recognizing the importance of environmental protection, is determined to set an example for sustainable and eco-friendly tourism. For this purpose, they have initiated projects that encourage practices such as reducing plastic usage, optimizing energy and water consumption in hotels, and comprehensive management of sargassum seaweed.

This focus on responsible growth will enable the Dominican Republic to attract travelers who value the positive impact of these measures.

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Tax Incentives

The Dominican government offers a range of tax incentives to investors looking to contribute to the country's tourism growth. The Dominican Republic's Center for Export and Investment (ProDominicana) highlights that investors can benefit from a 100% income tax exemption for a 15-year period, as well as exemptions from import taxes on goods and construction materials related to tourism projects.

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Diverse destinations

The Dominican Republic is known for its iconic tourist destinations such as Punta Cana, La Romana and Puerto Plata, offering all-inclusive packages that are highly attractive to foreigners. However, the country has much more to offer. With diverse geography, including mountains, tropical forests, waterfalls, and a rich colonial history, there are opportunities to invest in a variety of unique destinations. Investors may consider creating boutique resorts in less developed areas or promoting cultural tourism in historic cities like Santo Domingo.

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Growing number of international patients

Medical tourism is a growing trend worldwide, and the Dominican Republic is positioning itself as a leading destination in this sector. According to the Dominican Association of Health Tourism (ADTS), the country has experienced a significant rise in the arrival of international patients for medical treatments and aesthetic procedures, with a 200% increase compared to 2015. Investors can explore opportunities in constructing medical facilities, beauty clinics, or wellness spas that attract visitors seeking high-quality medical treatments and aesthetic procedures.

The 2021 Medical Tourism Association Medical Tourism Index listed the Dominican Republic as the top destination in the Caribbean for medical tourism, as well as the second in Latin America and the 19th globally, attributed to the quality of professionals and modern medical centers.

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A flourishing tourism industry

The Dominican Republic offers an exciting array of opportunities for investors in the tourism sector. With a focus on sustainable growth, attractive tax incentives, and a variety of destinations, the country has become a prime focus for tourism investment. According to statistical data and current trends, the Dominican Republic continues to attract a growing number of tourists and international patients, further bolstering its appeal as an investment destination.

Whether you are interested in luxury resorts, ecotourism, cultural tourism, or medical tourism, the Dominican Republic has something to offer investors looking to contribute to the flourishing tourism industry.?

Key Facts

Connected

- 8 international airports

- 12 commercial ports

- 5 cruise terminals

- Over 200,000 kilometers of roads

- Over 270 daily flights

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Strategic geographical location

Situated in the heart of the Caribbean, the Dominican Republic provides access to over 1 billion consumers through free trade agreements with the United States and Central America (DR-CAFTA), the European Union (EPA), and access to the Latin American market.

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Stable business climate and growth policies

The Dominican Republic has experienced an average annual GDP growth rate of over 5% for more than 25 years, double the regional average, second only to Panama.

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Foreign Direct Investment (FDI) growth

- Average annual FDI of US$2.539 billion at a sustainable pace (2010 – 2020)

- Top Caribbean investment destination at 47% pre-pandemic (2019)

- Second-largest investment destination in Central America at 21% (2019)

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Source: Tourism Doing Business in DR, World Tourism Organization (2022)

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For more information

Stephania Cespedes

Senior Associate

[email protected]

+1 809-284-2874

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