Over the last six years, the credit portfolio of multiple banks aimed at tourism registered an expansion of 127%, going from RD$42,808 million in 2016 to RD$97,131 million in 2022, for a cumulative increase of RD$54,324 million, revealed the Asociación de Bancos Múltiples de la República Dominicana (ABA).
The ABA explained that between 2016 and 2022 the relative growth registered in the tourism portfolio was double the expansion observed in the total commercial loan portfolio, which for the same period increased 64 percent.
He reported that in the aforementioned period an average annual growth of 14.8 percent was recorded, while in the commercial portfolio it was 8.6 percent. In other words, the tourism portfolio grew 72% faster than the commercial loan portfolio and, as a consequence of this dynamic, the share of tourism in the total commercial portfolio went from 8.5% in 2016 to 11.7 percent in 2022, the banking guild pointed out.
Analyzing the post-pandemic years, the ABA noted that banks’ support to the tourism sector became stronger, registering a 178% increase. It specified that between 2020 and 2022 credit to tourism grew by an average of RD$13,326 million; this, compared to the average increase of RD$4,782 million that the same sector had registered in the 2016-2019 period.
“The figures indicate that Dominican multiple banks have shown confidence in the tourism sector, even in the most difficult moments such as the pandemic and, as such, have been a key ally in the recovery and development of this industry,” the ABA emphasized in a press document.
In that order, it valued the multiplier effect of tourism in the economy, given the link of productive chains that drives MSMEs and generates jobs in many related sectors, such as construction, transportation, agriculture or telecommunications. Similarly, he noted that tourism also has the potential to drive infrastructure development in tourist destinations, which also benefits the rest of the real economy.
“Increasingly, multiple banks are aware that more tourism equals more growth, more employment, more foreign exchange and more investment, which benefits Dominican households and MSMEs,” the banking association said.