Dominican Republic Is Bucking the U.S. Slowing Trend

To-date indicators show that the Dominican Republic’s diverse hospitality market is well positioned to weather the economic slowdown in the U.S. With recent political advancements, significant investments in infrastructure, and a large number of European-based travelers, U.S. hotel investors are finding the Dominican Republic to be a favorable destination for investments.

“The Dominican Republic’s high number of European-based travelers makes the country more resistant to economic changes than other Caribbean destinations which are more dependent on U.S. demand. This in turn has helped spur resort developments,” said Fernando Garcia-Chacon, senior vice president for Jones Lang LaSalle Hotels. Garcia-Chacon reports an increase from European-based investors seeking valuation and or feasibility studies on various projects based in this area.

“Punta Cana is now shedding its all-inclusive label and is attracting investment in 4- and 5-star properties under brands such as Ritz-Carlton, Westin, and Fairmont,” said Garcia-Chacon.

Other Dominican Republic destinations are also receiving attention and investment. A Four Seasons resort is being developed in Casa de Campo –a major golf and residential community about two hours east of the capital city. In addition, there are numerous hotel and residential resort developments along the North Coast, attracting a number of boutique operators.

Recent statistics from the Central Bank show a 7 percent increase in air arrivals to the Dominican Republic in year-to-date 2008. With more than 250 weekly flights, the country experienced a steady 4 percent compound annual growth rate in passenger arrivals over the past five years.