In 2018 the country had 63,000 tourist properties in its records, a figure that rose to 95,774 during the past year.
SANTO DOMINGO– Real estate tourism is growing in the Dominican Republic. In fact, new tourism investments in the country in the hotel and real estate development sectors are registering equal percentages (50% and 50%), respectively, according to data provided by Jacqueline Mora, Vice Minister of Tourism.
In her presentation “Real Estate and Tourism Sector: Trends and Perspectives”, held during the RE/MAX Dominican Republic National Convention last Friday, May 19, the economist reported that there are 9,000 rooms under construction in the country that are coming in the next few years, 50% hotel rooms and the rest non-hotel rooms.
In Puerto Plata, half the investment is in hotels and half in real estate development, the speaker noted, adding that the number of properties in tourist areas in that region has risen from 900 to 1,747. In Cabarete, Dominicans living abroad have invested significantly in short-term rental properties, Mora stated.
He added that there are even hotels redesigning their structures to become apartments, given the growing population of retirees arriving in the Bride of the Atlantic.
Speaking to more than 400 real estate agents gathered at Casa España, Mora asserted that foreign investment in the real estate sector is growing significantly and added, "When we analyze the hotel sector, tourism is doing well because the real estate sector is doing well.".
He stated that in 2018 the country had 63,000 registered tourist properties, a figure that rose to 95,774 last year. He cited the cases of El Seybo, where the number of properties grew by 100% during that period; and in La Altagracia province, where the number increased from 5,000 to more than 9,000.
The official stated that "today we are more global than ever and the challenge has also been through the real estate sector, ensuring that in the coming years there will be great opportunities in this area due to the projects being built.".
Mora highlighted the role of hotels, stating, “Part of our success lies with the hotels, which play a role, but today's tourist wants to go out, eat local food, and get to know the community. What used to be a complementary offering is now the main attraction, which is why hotels are investing in complementary services.”.
According to the figures shown by the economist, the Dominican Republic has enough rooms to receive 14 million tourists a year.
When referring to the accommodation profile in January-April 2023, the following figures were shown: 68% hotel, 6% Airbnb and 26% private.
In the case of Miches, one of the destinations being promoted as a new tourist attraction in the country, he mentioned nine projects under construction; in addition to the booming tourism industry in Puerto Plata with Punta Bergantin and its numerous resorts, the Colonial City, Pedernales, Jarabacoa, La Romana, Cabrera, among other destinations
He said that the country's economy is based on three main pillars: Tourism, industries and construction.
Good prospects
Although he acknowledges the negative figures currently being recorded in the construction sector, Mora believes that the outlook will change positively in the coming months.
“As an economist, I believe there will be some relief in the next 18 months. Today is the best time; we are at the turning point where you either act now or lose an opportunity, because the work needs to be done now,” he urged real estate agents.
He opined that international input costs are beginning to fall, so price pressure will be much lower. “In the last four months of the year, rates will fall, but the work needs to be done today,” he insisted.
