Hyatt reports that the arrival of the U.S. market has increased 16% in the Dominican Republic, while in Cancun it has been decreasing, according to a publication of the portal reportur.com.
“Visits from the United States to Cancun and the Riviera Maya are decreasing. In contrast, we recorded a 16% increase in visits to the Dominican Republic and an 11% increase to Jamaica,” explains Hyatt CEO Mark Hoplamazian, when presenting the results of the second quarter of the year.
“According to the Ministry of Tourism, non-resident tourist arrivals to the Dominican Republic totaled 5,354,126, a 10% increase over the first half of last year, when 4,100,305 people arrived. In addition, the number of foreigners traveling from North America (26 %), South America (25 %), Central America (77 %), the Caribbean (45 %), Asia and Australia (22 %) and Africa (45 %) has increased.”
Central Bank data shows that, during the first half of 2023, 1,358,064 tourists have arrived in the Dominican Republic. In January of this year, 175,063 tourists arrived in the country, but in the following months the figure exceeded 200,000 Americans.
The reportur.com article indicates that Hoplamazian has also pointed out that they expect an improvement in Cancun, thanks to the decrease in air fares, which allows hotels to offer better prices.
He points out that Apple Leisure Group’s profit margins are still “stratospheric”.
It also warns that earnings may be impacted by integration costs for businesses such as the Mr. & Mrs. Smith travel platform for $72 million in the second quarter, which will add to its World of Hyatt loyalty platform, with more than 1,500 properties in 20 countries.
Impact to earnings
The reportur.com publication indicates that the hotel company has decided to keep its operating expectations stable because it considers that factors such as the exchange rate and the weakness of the Mexican peso affect the earnings of the resorts in the Aztec country.
“That is an area that impacts us in relation to expectations that puts us in line with what we have said previously,” says CFO Joan Bottarini.