HomeUncategorizedShort-term rental platforms put the country's brand at risk, says...

Short-term rental platforms put the country's brand at risk, says the president of ADETI

In his opinion, the regulation of digital platforms that offer tourist accommodation real estate is key to compliance with safety, health and quality standards in services for tourists visiting the Dominican Republic.

SANTO DOMINGO.– The lack of security in the short-term rental market, the affordable costs, and the minimal requirements imposed on these platforms are aspects that jeopardize the country's brand and create security concerns for foreigners, declared Jorge Subero Medina, president of the Dominican Association of Tourism and Real Estate Companies (Adeti), yesterday.

In his opinion, the regulation of digital platforms that offer tourist accommodation real estate is key to compliance with safety, health and quality standards in services for tourists visiting the Dominican Republic.

Jorge Subero Medina. (External source).

“On several occasions in the past, isolated incidents have occurred that have jeopardized our reputation and credibility due to the lack of security in this rental model, which has increased the interest of local and foreign tourists from 7.1% in 2019 to 28.5% in 2021, according to statistics from the Ministry of Tourism,” he explained.

He stated that this, in addition to the tax aspect that allows for fair competition and greater competitiveness in the market, "is one of the most correct ways to ensure the preservation of a good reputation.". 

He added that the affordable costs and minimal requirements imposed on these short-term rental platforms, in addition to the aspects already mentioned, jeopardize the country's brand and create security concerns for foreigners.

He said that the authorities and the private sector have worked together to relaunch tourism in the country, "and this is the moment to strengthen this work by protecting our sector and our identity.".

Adeti, as a business association, brings together the country's leading tourism and real estate companies, such as Cana Rock, Ciudad Destino Cap Cana, Costasur/Casa de Campo, Club Hemingway, Green One Playa Dorada, Grupo Puntacana, Grupo Velutini, Kaynoa, Metro Country Club, Playa Grande Golf & Ocean Club, Playa Nueva Romana, Puntarena, Rincón Bay, Terra RD Partners (Inicia's asset manager) and Tropicalia (Cisneros Organization).

Taxes will be applied starting in August

The Dominican government announced that starting in August, taxes will be applied to digital platforms such as Airbnb, Uber, Amazon, Facebook, Google, Netflix, Spotify, DiDi, among others.

The Director General of the General Directorate of Internal Taxes (DGII), Luis Valdez, assured that the Government projects to collect more than three billion pesos with the application of the tax.

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