"Large-scale, all-inclusive hotel complexes dominate the sector, creating enclaves of economic activity that result in a 'monoculture' of tourism products, with possible negative repercussions on the sector's resilience to shocks and its long-term competitiveness.".
SANTO DOMINGO.- The study “Enabling the way for the development of prosperous cities and territories: urbanization and territorial development study of the Dominican Republic” proposes to maximize indirect territorial benefits through measures aimed at better connecting the country's tourist destinations and working on their diversification.
“The lack of diversification and the high seasonality of the tourism sector prevent it from fully utilizing its capital stock (hotel bed occupancy) and reduce its capacity to generate quality jobs,” the document states.
The report, prepared by World Bank specialists Paula Restrepo Cadavid and Diana Tello, suggests that the public and private sectors work together to support tourism diversification through coordinated territorial initiatives along tourist circuits.
“For example, by allowing the establishment of destination management offices and supporting the development of diversified tourism products,” says the report, which was financially supported by the European Union and the Global Facility for Disaster Reduction and Recovery (GFDRR).
It argues that large-scale, all-inclusive hotel complexes dominate the sector, creating enclaves of economic activity that result in a "monoculture" of tourism products, with possible negative repercussions on the sector's resilience to shocks and its long-term competitiveness.
The research shows that Dominican cities and tourist centers lack an adequate quality of life to foster competitiveness, and that access to and quality of basic services (electricity, water and sanitation, and safe waste collection and disposal) remain lagging in large urban areas and tourist centers.
“The poor quality of public services and infrastructure also hinders the efficiency and productivity of the business environment in all economic sectors. Inadequate basic services impact the tourism business, reduce its competitiveness, and lead to environmental degradation that threatens the sector's main assets.”.
Urban development without planning
The study determined that urban areas are growing in an unplanned and disorganized manner, with little inter- and intra-urban connectivity, which limits the country's ability to achieve a higher level of productivity.
“Most Dominican cities grow in a dispersed and disorganized manner and exhibit low to moderate levels of internal road connectivity, hindering their economic performance. In fact, urban centers in the Dominican Republic appear to underperform (in terms of economic productivity) compared to similar cities around the world and in Latin America, and remain far from the productivity frontier.”.
In this regard, better management of urban growth is recommended to reduce congestion and maximize the benefits of agglomeration
The report cites that a significant degree of urbanization is also taking place in the coastal strip and in flood-prone areas, increasing the country's exposure to natural events.
“More than a quarter of the built-up area between 1995 and 2015 was located less than three kilometers from the coast. While there have been no major coastal floods in recent years, climate change and coastal erosion will increase the likelihood and impact of such events.”.
It argues that the Dominican Republic's built assets are also concentrated in a few locations, most of them urban. "The concentration of built assets, as well as their high level of vulnerability—exacerbated by significant exposure to earthquakes, hurricanes, and floods—could lead to significant losses and reverse some of the development gains of recent decades.".
The study was presented this week by the World Bank and the Ministry of Economy, Planning and Development (MEPYD).
