The analysis also projects an estimate that the country would receive US$7 billion less in foreign exchange earnings from tourism.
SANTO DOMINGO – If investment in the tourism sector stalls due to the elimination of tax exemptions granted by Law 158-01 for the Promotion of Tourism Development, the country's tax revenues would decrease by US$780 million by 2028. Furthermore, there would be a loss of 173,000 jobs in the sector.
This is according to a projection analysis carried out by the Dominican Republic Hotel and Tourism Association (Asonahores), presented yesterday, in which they reiterated the negative effects that the Fiscal Modernization Bill currently before the National Congress would have on the sector.
Although hoteliers yesterday expressed their willingness to begin a dialogue with the Government so that, instead of eliminating the tax exemptions granted to the sector by law, the regulations could be reviewed and modified.
“We are willing to talk. We are working on the possibilities for improvement,” said David Llibre, president of Asonahores.
He explained that the scenario of decreased revenue and employment would occur if there is a 50% drop in Foreign Direct Investment (FDI) and a 30% drop in tourist arrivals, due to the sector not having the tax benefits of the law.
The analysis also projects that the country is estimated to receive US$7 billion less in foreign exchange earnings from tourism.
“A reduction of US$4 billion in nominal tourism gross domestic product (GDP) is expected,” the shared data indicates.
Llibre pointed out that eliminating tourism exemptions would not only affect the sector's competitiveness, tourist arrivals, and FDI, but would also have a direct impact on the value chain that makes up the tourism industry.
He noted that in 2022, purchases by the hotel sector from other industries reached US$512 million. He specified that eliminating the law would also create unfair competition in the sector.
Source: Hoy Newspaper
Cover photo: Hoy Newspaper
