Infrastructure investment is making the Caribbean nation a year-round port of call.
This article appears in the July/August issue of Global Finance Magazine.
The government of the Dominican Republic is working to modernize its infrastructure, as a way to capitalize on the island’s robust growth in tourism and cement its position as a year-round destination.
Those aspirations became clearer at the republic’s fourth signature Trade Show in Miami in April, which focused on niche growth segments, including business events, luxury travel, cruises, and sports and adventure tourism. Additional priorities include advancing air connectivity and expanding hotels.
The Economist Intelligence Unit (EIU) estimates that tourism receipts climbed to $11.3 billion over the past year, representing a 2.7% year-over-year increase.
Related: The Dominican Republic Is on the Rebound
Last year saw a record 11.6 million overseas visitors to the country, according to the EIU, just over 4 million more than the Caribbean nation recorded in 2019, before the Covid-19 pandemic. That was despite a 3.3% deceleration between January and September of last year, the Central Bank of the Dominican Republic found, due to a broad economic decline driven by strained capacity, inflation, and policy shifts by the Trump administration.
Cruise tourism has continued to surge and is part of the government’s tourism expansion strategy. The republic has become a magnet for cruise destinations due to its Caribbean location, with Santo Domingo and La Romana serving as key ports for transit and embarkation.
Financing the Infrastructure Surge
Tourism is set to grow over the next four years, supported by $13.4 billion in pledges from investors, including local financiers Banco Popular, state-owned BanReservas, and Banco BHD, along with contributions from the U.S. and Spain. By 2036, the World Travel & Tourism Council projects that tourism will account for 14.9% of GDP, generating $30.8 billion in revenue, up from $21.6 billion last year.
In its latest outlook report, released earlier this year, the EIU noted that the Dominican authorities have secured new cooperation agreements with airlines and tour providers to enhance air connectivity and access new markets. The investment pipeline is expected to add 10,000 rooms to hotel capacity, enabling an additional 500,000 tourists annually.
A priority area is Miches on the northeast coast, where 900 additional rooms have been announced across four hotel projects, including a Four Seasons resort that has secured about $200 million in financing from Miami-based Cisneros Real Estate.
Related: Dollars Continue Flowing to the Dominican Republic
Punta Bergantín on the north coast is another emerging destination for tourism investment. Three international hotel projects are planned, including a luxury Hyatt Zilara, funded by a consortium comprising Hyatt Hotels, Spanish travel services firm Grupo Martinon, and state-owned BanReservas.
However, the Dominican government is also diversifying beyond all-inclusive resorts to embrace eco-conscious and luxury tourism segments. Pedernales, on the southwest coast, is positioning itself to serve these niche markets by improving air and cruise connectivity.
While the U.S. remains its dominant tourist market, the republic is also accommodating more visitors from Latin America and the Caribbean of late: a development that signals diversification from its traditional source markets.
Canada is another influential contributor; in May, the Ministry of Tourism hosted an event in Toronto showcasing its attractions. Recently, Belgium and the Netherlands held an inaugural Dominican Week, aimed in part at deepening tourism ties.
Peter Taberner is a contributing writer based in the U.K.
