High level of banking confidence key to DR tourism boom

The Superintendent of Banks, Alejandro Fernández, affirmed that tourism contributes 7.1% of the gross domestic product (GDP).

“The Dominican financial system’s credit portfolio for the tourism sector increased by 39%, going from DR$67,233 million in 2020 to DR$93, 630 million in 2023,” he explained.

“From January 2016 to September 2023, the sector’s portfolio represents more than 30% of the net worth of multiple banking,” he added.

He indicated that “last September it reached 33% and that tourism contributes 7.1% of gross domestic product (GDP), a participation that was affected by the impact of the covid-19 pandemic and reached its lowest point since 2016, 2.6 percent in 2020, to recover in 2023.”

“86.9% of credit to tourism is registered in dollars, which in January totaled US$1,011 million and in September of this year increased to US$1,612 million, a sum that represents 30% of credit to the private sector in foreign currency,” he said.

He stated that the sector “enjoys a high level of confidence in banking” and cited as proof of this the “consistently lower interest rates than the rest of the commercial sector.”

He reported that from 2016 to 2023 interest rates for the commercial sector for dollar loans have moved from over 8% to stand at 10.5%. On the other hand, for tourism from 5% to 7.4%.

He emphasized that the delinquency of the tourism sector portfolio is low, moving in the last seven years between 0.5% and 0.14%, while that of the rest of the economy has moved between 2% and 1.3%.

Fernandez offered this information during his presentation at the Tourism Investment Forum of the Dominican Association of Hotels and Tourism (Asonahores), held at the Convention Center of the Ministry of Foreign Affairs.

Source: Arecoa.com

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