Melchor Alcántara argues that the size of the supply of short-stay accommodation does not in itself demonstrate that there is a displacement of guests from hotels
SANTO DOMINGO. – The debate on the regulation of short-stay accommodations must first determine if this modality is effectively displacing demand from the hotel industry and to what extent, stated the director of the National Observatory of the Construction Industry (ONIC), Melchor Antonio Alcántara Damirón.
The proposal arises amid the process initiated by the Ministry of Tourism (MITUR) to establish a mandatory registry of properties intended for short-stay vacation rentals.
The project submitted for public consultation proposed creating the National Register of Tourist Accommodations (RENATUR), which would have to include villas, apartments, houses, rooms, bungalows and other types of short-term accommodation in order to be legally marketed, including through digital platforms.
The project also stipulated that each property had to be registered individually and included requirements such as identification of the owner or administrator, property documentation, tax identification number, and a liability insurance policy. For properties located in condominiums, the draft also required the submission of the condominium bylaws to verify if there were any restrictions on short-term rentals.
However, MITUR withdrew the project on July 20 and announced a dialogue table with the actors linked to this activity, so the scheme contained in that draft does not currently constitute a current regulation.
The question posed by ONIC
It is precisely on the possible effect of such a regulation that Alcántara Damirón asks to expand the analysis.
The director of ONIC argues that the existence of a larger short-term rental supply than hotel supply in certain markets does not automatically lead to the conclusion that this modality is weakening hotels.
In his opinion, to demonstrate a detrimental displacement, it would be necessary to know what percentage of guests using short-term rentals would have used a hotel if that alternative did not exist, how much of that demand actually corresponds to additional visitors, how much spending they generate, how long they stay, and what market segments they serve.
It also suggests that the effect of short-term rentals on hotel occupancy, investment in new rooms and tariff behavior should be measured before making a definitive conclusion about the relationship between the two accommodation models.
“Without this information, any definitive conclusion would be premature,” argues Alcántara Damirón, who insists that regulatory decisions affecting strategic sectors be based on evidence and long-term analysis.
Tourism that continues to grow
The ONIC's proposal comes as tourism activity continues to perform positively. According to the Central Bank, the value added of hotels, bars, and restaurants grew 4.6% year-on-year in June 2026. During that month, 816,512 non-resident visitors arrived by air, 6% more than in June 2025, while the cumulative total for the first half of the year reached 4,963,343, representing a year-on-year increase of 10%.
According to Alcántara Damirón, the performance of tourism does not in itself demonstrate that short-term rentals compete with the hotel industry. What he suggests is that it constitutes an element that must be incorporated into the analysis before concluding that limitations on the former will necessarily benefit the latter.
ONIC recognizes the need to establish rules for the activity, and therefore proposes, as reasonable aspects, the registration of operators, tax compliance, safety standards, consumer protection and market transparency.
The discussion, therefore, is not presented by the organization as an opposition to regulation, but as a questioning of adopting limitations without previously quantifying their effects: "Regulate yes, limit without evidence no," summarizes the ONIC.
The position gains relevance now that MITUR has moved the RENATUR project to a dialogue process that El Inmobiliario has documented. Among the aspects questioned by the representatives of short-term rentals were the administrative burdens of the project, the three-month transition period and provisions that, according to ADORECO, did not sufficiently differentiate between small hosts and professional operators.
According to Alcántara Damirón, before deciding which restrictions should be maintained, modified, or discarded, the country should answer a fundamental economic question: what would be the net benefit for the Dominican Republic of limiting short-term rentals after considering its effects on the hotel industry and the rest of the economy?
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