The president of the Dominican Association of Tourism Real Estate Companies (Adeti), Jorge Subero Medina, said yesterday that the regulation of digital platforms that offer real estate tourist accommodation is key in the compliance of safety, health and quality standards in services for tourists visiting the Dominican Republic.
In a press release, he reiterated that this, in addition to the tax issue that allows to regularize fair competition and greater competitiveness in the market, “is one of the most correct ways to ensure the preservation of a good reputation.”
“On several occasions in the past, isolated events occurred that have put our reputation and credibility at stake due to the lack of existing security in this rental modality, which has increased the interest of local and foreign tourists from 7.1% in 2019 to 28.5% facing the year 2021, according to statistics from the Ministry of Tourism”, he said.
He added that “this evidences that due to the accessible costs and the few requirements towards these short-term rental platforms, the aspects already mentioned put the Country Brand at risk, and creates insecurity alerts for foreigners”.
He concluded that the authorities and the private sector have worked together in the relaunching of tourism in the country, “and this is the moment to consolidate this work protecting our sector and our identity”.
As of August of this year, the government will begin to regulate the technological platforms that facilitate the supply of properties for short term rental accommodation to tourists and individuals in the country, such as the Airbnb model, which accounts for 95% of the negotiations of this type.
Adeti, as a business association, brings together the main tourism real estate companies in the country, such as Cana Rock, Ciudad Destino Cap Cana, Costasur/Casa de Campo, Club Hemingway, Green One Playa Dorada, Grupo Puntacana, Grupo Velutini, Kaynoa, Metro Country Club, Playa Grande Golf & Ocean Club, Playa Nueva Romana, Puntarena, Rincón Bay, Terra RD Partners (Inicia’s asset manager) and Tropicalia (Organización Cisneros).
What’s happening in Puerto Rico
Nearly a quarter (23.4%) of tourism activity in Puerto Rico during 2021 was spending by guests using Airbnb on the island, according to a study done by Oxford Economics.
Ángel Terral, Airbnb’s regional manager for Mexico, Central America and the Caribbean, explained that this 23.4% is equivalent to US$1.7 billion, not including lodging expenses.
The economic impact caused by Airbnb in Puerto Rico is due to a tax collection agreement signed with the Puerto Rico Tourism Company (PRTC) in 2017, so those profits go directly to the local treasury.
