25 years of Dominican tourism – development or stagnation?

The Dominican Republic is a unique country. It owes much to its strategic location in the region. It is the second largest island in the Caribbean, which allows it to dominate neighboring countries in many respects. Both tourism and the economy are thriving here. The Dominican Republic not only outperforms countries in Central America but can also confidently compete with South American nations, especially concerning tourism.

Many factors contribute to its position in the Latin world. It is undeniable that events such as the Cuban revolution and Puerto Rico’s subordination to the United States have allowed the Dominican Republic to firmly establish itself on the tourism podium. Of course, historical events were not the only influence. It is also thanks to the fact that the Dominican Republic is a complete country in terms of nature and relatively safe from natural disasters. Surely, some may have a slightly different opinion. However, statistics are relentless. The Dominican Republic is the best-prepared country for tourism in Central and South America. Allow me to describe this first, and then I will support it with numbers.

The Dominican Republic is a relatively large country. Occupying about two-thirds of Hispaniola (as the Spanish named the island), it boasts 1,288 kilometers of coastline. This has not yet been fully utilized. Currently, the beating heart of tourism is located on the eastern coast of the island, known as Punta Cana. It is worth noting, however, that tourism initially developed in a completely different region: Puerto Plata. Despite the efforts of the then-dictator, the weight of all tourism was shifted elsewhere. Foreign capital decided to create a unique place on the map of the Caribbean, and indeed the world. Founded primarily by the Rainieri family, Grupo Punta Cana is one of the largest, if not the largest, investor in the region.

The resort’s development began in the 1960s. Year after year, more and more hotel rooms were built. In 1968 and 1969, the hotel construction boom began when tourism was declared a national interest. The eastern coast is currently the most recognizable region in the country. It is also the fastest-developing place in the country. Visiting here every year, one can notice enormous changes. At first glance, a greater number of development investments are visible. Apartments are a product that has gained immense interest not only among investors from the USA but also from Europe. The second point is the development of infrastructure. The number of restaurants, bars, discos, shops, and hypermarkets has significantly increased. Tourists and expats have plenty of choices. I chose the last point because I consider it very important in tourism, especially in Latin countries. This refers to the level of cleanliness. Year after year, significant progress is visible. Many places I visited a few years ago lost their charm due to the trash found there. Currently, there is a huge improvement. More and more emphasis is placed on the awareness of the younger generation, who are learning about recycling. Many beaches are cared for by locals, knowing that this will attract tourists from whom they can earn. Local governments are increasingly placing containers for plastic packaging on beaches and in places frequented by tourists. This problem still exists, and it is hard to disagree with that. Just as it is hard to disagree that everything is moving in the right direction.

Tourism Development

The last 25 years of tourism have undoubtedly seen a huge “tourism boom.” The best example of this is the number of travelers to the Dominican Republic. In 1999, 3,015,079 people visited the Dominican Republic. This number grew year by year, exceeding 10,000,000 tourists in 2024. This was a goal set by the Ministry of Tourism, achieved partly due to the factors described above. An event that significantly impacted the number of visitors to Hispaniola was the COVID-19 pandemic. The Dominican Republic was one of the few countries that remained open, earning it recognition from many travelers. This convinced a multitude of people that it is an excellent country for both leisure and investment. The Dominican Republic was also a country that, after the pandemic, attracted more visitors in 2022 than in 2019. The year 2024 is again expected to be a record-breaker. Authorities anticipate exceeding 11,000,000. How has this looked over the years? See the table below.

Hotel and Apartment Occupancy

In the early 1980s, the number of rooms was 5,394. At that time, hotel occupancy reached approximately 59%. In the 1990s, this number quadrupled to 19,043. Currently, the number stands at 87,732. According to the Dominican National Statistics Office (Oficina Nacional de Estadisticas) and the Central Bank of the Dominican Republic, occupancy in 2023 was 75%. If we translate this to the number of days in a year, it amounts to 273 days. This means that most rooms are occupied. This directly and indirectly benefits Dominican society. Thanks to such a well-developed tourism sector, nearly 400,000 people are employed. It is not surprising that 20% of the country’s GDP comes from tourism. Last year, this sector generated nearly 10 billion in revenue. For comparison, in 1999, 20,388 people worked in tourism, generating only 173 million dollars! Interest in the Dominican Republic remains very high. This is evident when we look at room occupancy rates across the country. Except for 1980, 1982, and the pandemic years, occupancy has not fallen below 60%, with an average of 69%.

For apartment owners, this is excellent news. On one hand, there will be voices suggesting that the Dominican market is already saturated. After all, the number of apartments constantly being built is enormous. However, it should be considered that their occupancy remains stable. The Dominican Republic itself is a country resilient to events such as pandemics. Its reliance on tourism ensures that the country will remain open to tourists. As a result, the potential return on investment will be at an attractive and, most importantly, stable level.

Diversification of Tourism

The Dominican Republic is diversifying in every possible way. The country has embraced another branch of tourism that is not as popular in Europe as it is on the other side of the globe: cruise ships. Cruise tourism in the Dominican Republic is thriving. According to statistics I accessed, this market has been growing year by year since 2005. The main city visited by cruise ships is Puerto Plata. La Romana ranks second, and Samana, tied with Santo Domingo, closes the list. In 2005, 289,805 tourists arrived in ports. In 2023, this number exceeded two million, reaching 2,258,941. The number of tourists will certainly continue to grow. This is because a cruise ship port has already been built in Cabo Rojo, on the Pedernales Peninsula, and has begun operations. Another port will be located in the picturesque Samana Bay, with work already underway.

New Tourist Regions

Further evidence of the country’s tourism development is the investment in new regions. These include Miches and the aforementioned Pedernales Peninsula. In both cases, the current government has decided to prepare infrastructure for hotel development. Changes are already visible in both locations. On the Pedernales Peninsula, the road and highway network has been improved. A tender for the construction of an airport is still ongoing. According to preliminary information, the airport is to be built by a Korean company. The first hotels are already being built in coastal areas. Ultimately, Cabo Rojo is intended to become the new Punta Cana. In Miches, specifically near Esmeralda beach, hotel chains are already under construction. Brands such as Hilton and Catalonia will build their resorts there. An apartment complex will also be built near the beach by a Mexican company. The first phase is scheduled for completion by the end of 2027. Will these be competitive regions for Punta Cana? Time will tell. The country itself is diverse enough to allow regular visitors to discover new parts of the country.

Dominican Republic in Rankings

Everything I have described translates into the Dominican Republic’s position in various rankings. According to TripAdvisor, the Dominican Republic ranked 16th as the best country to visit in 2024. According to Travel+Leisure magazine, the Dominican Republic is among the twelve best countries for retirement. In terms of civil liberties, personal investment security, developed infrastructure, and the rule of law, the Dominican Republic ranks 68th out of 167.

In summary, over the past 25 years, the Dominican Republic has undergone an impressive transformation, becoming one of the most important tourist destinations in the world. Thanks to strategic investments, developing infrastructure, and environmental care, this country not only attracts more and more tourists but also provides stable conditions for investment. The development of new regions, such as the Pedernales Peninsula and Miches, shows that the Dominican Republic is not resting on its laurels and constantly strives to diversify its tourism offerings. The last quarter-century has undoubtedly been a time of great success, which continues, promising even greater achievements in the future. From a tourism perspective, the Dominican Republic is certainly not only developing but also serves as an example of how to effectively manage a country’s potential to achieve global success.