When tourists leave the hotels, their spending is spread across a network of activities that directly connects with the local economy.
SANTO DOMINGO.- When tourism ceases to be just an impersonal room and walks from the beach to the bar through the same corridors and looking at the same landscape, the economy begins that moves in the streets, markets and communities that surround the tourist centers of the country.
Excursions, restaurants, transportation, crafts and entertainment are part of a production chain made up of thousands of small businesses, such as tour guides, tour operators, transporters, fishermen, artisans and merchants.
Every excursion booked, every dish served in a restaurant, or every necklace or bottle of rum purchased by a visitor, is part of that flow of currency that moves from the moment the tourist decides to explore the destination.
Where do tourist dollars end up?
According to spending patterns collected by the Survey of Opinion, Attitude and Motivation of Non-Resident Foreigners (EOM) , when tourists leave hotels, spending is distributed across a network of activities that connect directly with the local economy and concentrate most of that consumption: excursions, restaurants, transportation, handicrafts and entertainment.
Central Bank statistics indicate that a quarter of the average expenditure, which ranges between $164 and $170 per night, occurs outside the hotel, which is equivalent to about $45 to $50 per day, or between $350 and $400 during the entire visit, which averages out to eight days.
Excursions: US$1 billion per year
excursions and tours consistently appear among the most reported activities by visitors to the EOM. These include snorkeling, buggy rides, visits to nature parks, cultural tours, and island tours.
The price of these experiences typically ranges from US$60 to US$120 per person, depending on the destination and the type of activity. An excursion to a nearby island can cost between US$80 and US$110, while adventure tours such as buggy rides or canopy tours usually cost between US$70 and US$90.
Although the Central Bank does not publish an official breakdown of spending outside the hotel by sector, tourism market operators estimate that excursions account for most of that spending, as they tend to be the highest individual expense for visitors outside of their accommodation.
Based on total external tourism spending, the estimate suggests that the excursion industry could be generating more than US$1 billion annually in the country.
Gastronomy: US$700 million per year
Another important destination for external spending is gastronomy, since although tourists stay in all-inclusive hotels, a significant proportion decide to try local restaurants during their trip, spending approximately between US$20 and US$40 per person for a meal, dependingon the destination and the type of establishment.
In urban areas or gastronomic destinations, the cost may be higher.
Based on consumption patterns observed in the EOM, the estimate is that between 20% and 25% of out-of-hotel spending is allocated to food and beverages, which would place the size of this market between US$600 and US$700 million per year.
US$600 million in handicrafts, rum and cigars
Purchases of souvenirs and local products constitute another important component of tourist spending, as visitors often acquire Dominican handicrafts, amber and larimar jewelry, premium cigars, Dominican rum, clothing and souvenirs of the destination, with an average expenditure on these types of products ranging between US$30 and US$80 per visitor during the trip.
Based on these consumption patterns, tourism-related trade could be generating between US$450 and US$600 million annually, a flow of money that supports thousands of small businesses, craft markets and specialty stores in the country's main tourist destinations.
Transport and mobility: US$400 million
Transportation represents another component of external spending, and includes taxis, tourist transport for excursions, and vehicle rental.
A transfer within a destination typically costs between US$10 and US$25, while private services or car rentals can increase the total cost during the stay.
Market estimates place this segment at between US$300 and US$400 million annually, depending on the level of visitor mobility in each destination.
$300 million in entertainment
The rest of the spending is divided between recreational activities such as water sports, theme parks, cultural shows and other leisure-related experiences, the price of which usually ranges between US$20 and US$60 per person, depending on the type of experience.
Although it is a smaller segment than excursions or gastronomy, industry estimates place its size between US$250 and US$300 million per year.
The other economy of tourism
When all these categories are added together, an economy emerges that extends far beyond hotel complexes.
Excursions, gastronomy, shopping, transportation, and entertainment form a network that connects visitors with thousands of small businesses such as family restaurants, independent guides, artisans, taxi drivers, and tour operators that participate in this economic circuit that is activated every time a tourist decides to cross the resort's threshold.
Estimates, based on data from the Central Bank of the Dominican Republic and consumption patterns collected by the Survey of Opinion, Attitude and Motivation of Non-Resident Foreigners, indicate that this external spending moves between US$2.8 billion and US$3.3 billion a year.
It is a silent, but extensive and intense economy that begins when the visitor buys an excursion, tries a dish of sancocho or seafood, acquires a piece of amber or larimar, or simply takes a taxi to get there.
And although these gestures may seem small, multiplied by millions of tourists they end up becoming one of the largest flows of foreign currency that pass through the tourist communities of the Dominican Republic.
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