SANTO DOMINGO - When comparing the data with Jamaica and Mexico, the Dominican Republic leads the growth of short-term rental housing supply for the period 2018-2022, with an average annual growth of 23%, compared to 10% and 9%, respectively, of the two countries located in the Caribbean area.
This is revealed by the study “Impact of Tourism in the Dominican Republic”, sponsored by the Association of Hotels and Tourism of the Dominican Republic (Asonahores) and Banco Popular Dominicano; carried out by the firm Analytica.
According to the data presented in the research, the year-on-year growth of housing supply intended for short-term rentals, registered by the Dominican Republic in 2022, amounted to 49.6%, while properties for these purposes in Jamaica grew by 32.7% and in Mexico by 21.6%.
In 2022, the supply of short-stay accommodation in Jamaica was around 27,494, in Mexico 81,605 and in the Dominican Republic 98,970.
At the local level
In 2018, there were 19,809 active properties in the country, increasing to 39,943 last year, representing a 101.6% increase, according to the study. The average growth rate of non-hotel accommodation in the country over the last five years is 23%.
The study “Impact of Tourism in the Dominican Republic” highlights that the greatest year-on-year growth is established when comparing 2021 with 2022, when the number of short-stay properties increased by 44.9%.
It states that last year in the country there were more than 75,000 hotel rooms, with an average occupancy rate of 70.2%, a measurement for which the Ministry of Tourism (Mitur) was used as a source.
Hotel vs. Real Estate Investment
The study specifies that hotel investment in 2022 was US$14,903 million, while real estate investment amounted to US$7,406 million.
The research reveals that of the US$22,208.18 million invested in the tourism industry, 46% was foreign and 21% local, while 33% corresponds to the real estate sector.
The research found that in 2022, 66% of short-stay rooms in the Dominican Republic were located in five provinces. Puerto Plata had 19% of the units, La Altagracia province 15%, Santo Domingo 13%, and the National District 10%.
