Santo Domingo.- The National Association of Hotels and Tourism (Asonahores) voiced considerable worry over the government’s suggested tax reform. They argued that it may have a negative impact on the tourism sector and economy. Asonahores president, David Llibre, elaborated on the need for competitive tax laws to lure foreign investment and foster new hotel construction.
Even though he backs changes to the Law for the Promotion of Tourism Development (Confotur), he cautioned that the present reform could deter hotel chains from functioning in the Dominican Republic, consequently reducing the rate of tourists.
Llibre underscored Confotur’s pivotal role in attracting major hotel chains. He also expressed concerns over how the stagnation of the tourism sector could decrease government income in the long run.
He acknowledged that the tourism industry plays a significant role in the economy by creating a massive number of jobs and bringing foreign exchange. Asonahores insists on a cost-benefit analysis that includes the sector’s tax income contribution versus its spending. The proposed reform aims to eliminate several incentives for the tourism sector, industries and free zones.