The country is experiencing a golden age in tourism and remittances, but the challenge lies in converting that boom into a more balanced and resilient economy.
SANTO DOMINGO–The most recent LAC Quarterly Economic Outlook report from Visa Consulting & Analytics warned that the Caribbean region is overly dependent on external flows, leaving it vulnerable to changes in US trade and immigration policies.
Given this scenario, experts and multilateral organizations agree that the country must accelerate a productive diversification agenda, in which construction and agro-industry are presented as the main protagonists of the next stage.
A 2023 study by the Inter-American Development Bank (IDB) highlights that, for Central America and the Caribbean, “agribusiness, construction and tourism could become engines of growth in the coming years, provided they are accompanied by investments in infrastructure and regulatory improvements.”
In the Dominican case, the constructionsector, which not only attracts foreign direct investment but also generates thousands of local jobs and has a multiplier effect on inputs such as cement, steel, electricity and transportation, has shown dynamism in tourism, residential and public infrastructure projects.
Economist Paola González, a researcher at INTEC, is clear that it's not just about buildings and tourists. She understands that the key is aligning real estate and tourism investment with regional development: “The construction of new tourist hubs shouldn't be limited to hotel complexes, but should include housing, basic services, and connectivity, so that balanced and sustainable growth is achieved.”
Tourism Diversification
The Ministry of Tourism is already promoting the creation of emerging hubs in Miches, Samaná, Costa del Ámbar, and Santiago, with housing, hotel, and road infrastructure projects, likely with the intention of reducing the concentration in Punta Cana, which continues to absorb more than 60% of international visitors.
But this strategy, in addition to better distributing economic benefits, opens up a fertile field for real estate development in provinces with high potential, representing a golden opportunity for the construction sector.
Other voices, such as the Dominican Information Center (dominicanaonline.org), warn that tourism must be sustainable and "create links between hotels and local producers, ensuring that peripheral communities also benefit from the arrival of visitors."
And in this tourism development model, construction plays a key role, encompassing everything from small community service centers to local markets, secondary roads , and housing projects that integrate communities with tourism value chains.
Sustaining investment without hindering competitiveness
is another crucial challenge, as is tax reform. The Friedrich Ebert Foundation (FES) points out that the country maintains a historically low tax burden compared to its regional peers, limiting the state's capacity to finance infrastructure and services.
Economist Miguel Collado Di Franco, from the Regional Center for Sustainable Economic Strategies (CREES), warns that “A tax reform cannot be purely about raising revenue; it must encourage private investment and guarantee the sustainability of public finances.”.
For the construction sector, a well-designed tax modernization would mean access to better public financing conditions and greater stability in long-term projects.
Finally, the United Nations Conference on Trade and Development (UNCTAD) recommends that countries like the Dominican Republic strengthen their institutional framework by diversifying trade, investing in innovation, and creating agile entities, similar to development banks, that provide long-term financing.
These types of institutions could facilitate loans for social housing projects, industrial parks, and agro-industrial hubs, thus integrating construction into a national strategy for local development.
Key figures
Tourism and investment
- 6.1 million tourists in the first half of 2025 (+9% year-on-year).
- 12 million visitors projected by the end of 2025 (historic record).
- US$20.5 billion contributed by tourism to GDP in 2024 (16.1% of the total).
- More than 876,000 jobs generated by the tourism sector (17.6% of the workforce).
- US$3.5 billion in tourism and real estate investment accumulated since 2022; it is expected to double by 2026.
- Projects in Miches with more than US$1 billion in development of hotels, villas and residential properties.
Remittances and foreign exchange
- US$5.826 billion in remittances in the first half of 2025 (+11,2 %).
- Remittances represent about 10% of GDP.
- Tourism and remittances total more than US$22 billion in foreign exchange annually.
Construction and real estate
- Estimated housing deficit: more than 1.4 million units.
- Growth of residential and tourist projects in emerging areas: Miches, Samaná, Costa del Ámbar and Santiago.
- Estimated investment in the construction sector (2023-2025): more than US$5 billion between tourism, infrastructure and housing.
Risks and vulnerabilities
- Dependence on the U.S. for tourism (largest source market) and remittances (1.5 million Dominicans in the diaspora).
- Possible impact of changes in US migration and trade policies on external flows.
- Low tax pressure limits the state's capacity to finance infrastructure and social programs.
Real Estate: An Expanding Market
The real estate boom triggered by the rise in tourism, in Miches alone, projects an investment of over US$1 billion in hotels, villas and residential projects during the next five years, according to the Ministry of Tourism.
In Samaná, international chains have already announced new openings, while on the Amber Coast, tourist-residential complexes are being developed that combine second homes and vacation rentals.
The private sector estimates that investment in tourism and residential construction has already exceeded US$3.5 billion accumulated since 2022, a figure that could double by 2026 if current plans are realized.
Meanwhile, domestic housing demand continues to grow. The quantitative deficit was over 600,000 homes in 2006, but recent research, especially that supported by organizations such as the IDBthe World Bank suggests a considerably larger deficit, close to or exceeding 1.4 million, while Habitat for Humanity, with a strong qualitative focus, estimates that 2.19 million units are needed.
This scenario opens up significant opportunities for real estate developers, especially in the social housing segment and in mid-sized cities like Santiago, La Vega, and San Cristóbal.
Comparative Summary
| Fountain | Estimate of the housing deficit | Relevant notes |
| National Housing Bank | ≈ 600,000 homes (2006) | Quoted by Leonardo Matos Berrido; moderate figure Hoy Digital |
| Ministry of Housing (MIVED) / IDB | > 1.4 million homes (2022) | Based on the Ten-Year Plan; includes qualitative deficit. Presidency of the Dominican Republic |
| World Bank | ≈ 1.4 million (51% of the housing stock) | Includes quantitative and qualitative data from the World Bank |
| Habitat for Humanity | > 2.19 million homes | High qualitative focus habitat.orghabitatdominicana.org |
Tax modernization
Tax reform is odious and has a political weight that recent governments have tried to avoid, but some economists and local experts agree that needs to be comprehensive, progressive, and accompanied by a fiscal responsibility law that guarantees sustainability.
Apolinar Veloz, former manager of the Central Bank, has insisted that it must be progressive, so that "whoever has more money, pays more taxes," he said in the newspaper El Dinero, as a condition to correct the inequalities of the current system.
Economist Franklin Vásquez also warned that the country is falling into a “fiscal trap” by delaying the discussion of this issue, stressing that “the situation is unsustainable and a comprehensive tax reform is urgently needed.”
This concern has also been shared by think tanks. Miguel Collado Di Franco, executive vice president of CREES, quoted in 2024 by República Dominicana Live, stated that there is “a need for tax reform… we must pay attention because the situation is worrying.” Even former Minister of Economy, Isidoro Santana, acknowledged the political cost of this debate, but was emphatic in stating that “it is essential that Congress approve it, as the Dominican Republic urgently needs to modernize its tax system.”
In summary, the Dominican Republic has construction, agribusiness, and diversified tourism as the pillars to protect its economy from external shocks.
The commitment to new tourist and residential hubs, along with a modernized fiscal framework and strengthened institutions, not only responds to an economic need, but also opens a historic investment window for the real estate sector.
The challenge is clear: that each project, from a resort in Miches to a housing complex in Santiago, not only raises concrete structures, but also foundations of economic resilience and inclusive development for all, throughout the country.
And to sustain economic resilience and sustainably finance its real estate, tourism and social development, tax reform is urgently needed.
