SANTO DOMINGO.- Alberto Bogaert, president of the AEI, Association of Real Estate Agents and Companies, highlighted the significant contributions that the short-term rental model offers to the Dominican economy, considering that in addition to the expenses related to guests, there are also the movements in real estate and construction generated thanks to the platform.
Regarding the study published yesterday by El Inmobiliario , which reports that Airbnb guest spending in the Dominican Republic in 2021 totaled US$839 million, Bogaert cited the development of several major cities in the country, with buildings intended for short-term rentals.
“The arrival of the short-term rental system in our country has brought many benefits and economic gains to many sectors of our economy. We must consider not only the expenses incurred by national or international guests, but also the real estate aspect in order to fairly measure the income generated by short-term rentals or Airbnb, which is the most popular application in our country,” he stated.
He opined that with the arrival of thousands of guests (local and international), places that previously had a very difficult tourist situation have developed, and this is due to the supply created via Airbnb with the conditioning and construction of properties for the exclusive use of these platforms.
“But we also see in recent years a significant development in the country's main cities, with the construction of multiple condo-hotel type buildings also intended to meet the demand for short-term rentals, in addition to the construction of mixed-use buildings.”.
He explained that with his proposals he wishes to emphasize that the financial and economic income contributed to the economy by the proliferation of short-term rentals in the country is important because when we talk about construction it is synonymous with an immense movement of circulating money.
"Not only the sale of the property but everything from the sale of land to the purchase of materials, payment of labor, generation of direct and indirect jobs, sale of those apartments, payment of taxes, furnishing, decoration, administration, among others.".
The president of the AEI states that the arrival of the successful platform in the country “has been extremely beneficial for many sectors of our economy, but without a doubt the real estate and construction sector, which are among those that contribute the most to GDP, have benefited the most and have responded by offering highly profitable products and services to consumers and investors in these real estate products.”.
About the study
The economic impact generated by guests who used Airbnb in the Dominican Republic during 2021 amounted to US$839 million, according to a study by Oxford Economics.
The study “Economic Impact of Airbnb in the Dominican Republic”, conducted in October of last year, places the economic impact of short stays on the country at 1% of the Gross Domestic Product (GDP) during that period.
Analyzing by line items, the study maintains that of the aforementioned figure, US$226 million was for purchases, US$187 million for entertainment, US$177 million corresponded to restaurants, US$135 million to transportation to the destination, and US$114 million to local transportation.
The findings of the study on Airbnb, conducted by Oxford Economics, determined that 85.7% of guests who used the platform in the Dominican Republic in 2021 were non-resident visitors.
