Asonahores-62-aniversario-David-Llibre.jpg” alt=”” width=”400″ height=”266″ srcset=”https://infoturdominicano.com/rd/wp-content/uploads/2024/07/Asonahores-62-aniversario-David-Llibre.jpg 400w, https://infoturdominicano.com/rd/wp-content/uploads/2024/07/Asonahores-62-aniversario-David-Llibre-189×126.jpg 189w” sizes=”(max-width: 400px) 100vw, 400px”/>The suggested tax reform by the government is viewed negatively by the Hotel and Tourism Association (ASONAHORES) as it could harm tourism’s economic contribution. Therefore, they are appealing for a reassessment and review of the proposition.
David Llibre, the president of ASONAHORES, stated in a press release that having a tax regime like the existing one is essential for luring foreign investments and establishing new hotels. “We are supportive of revisions and enhancements to the Law for the Promotion of Tourism Development (CONFOTUR), but only in a manner that ensures investment for new and refurbished projects, as well as assisting the government to gather richer, higher-quality revenue,” he explained.
“Regrettably, the suggested plan, as articulated currently, may lead hotel groupings to retreat from the Dominican Republic due to competitive disadvantages compared to neighbouring countries, consequentially diminishing our tourism,” the entrepreneur further added.
ASONAHORES recounted the importance of enticing big international hotel networks to regions like the Punta Cana and developing new tourist areas like Punta Bergantín, Miches, and others—a feat deemed impossible without a law similar to CONFOTUR. “The logical way forwards is to enhance CONFOTUR, setting higher standards for accessing its benefits, focusing on room-oriented employment, allowing only sustainable projects with community development plans to benefit, and most importantly, not abolishing it,”, stressed Llibre.
The association believes that if a cost-benefit analysis was conducted in relation to each incentive law, it should’ve taken into account that tourism generates 12 times more in tax revenue and overseas investment compared to the sector’s tax expenditure.
“Our argument is that should the sector fails to grow, particularly with a reform like this, the subsequent outcome would be less government revenue. While it’s true, there may be no exemptions, however, there won’t be significant increases in employment, trade, foreign exchange, or growth in the supply chain. For example, growth in the purchase of fundamental commodities like bananas, eggs, fruits, rice and vegetables, among other things. To summarize, we contribute more to the government and the economy within the current framework rather than abolishing it,” stressed Llibre.
The businessman reminded everyone that tourism accounts for 3 out of every 10 dollars of foreign currency generated by the Dominican economy. In 2022 alone, the sector made local purchases totalling 2,522 million dollars, generating more than 150 billion pesos in tax revenue, and 700 thousand direct and indirect jobs, which constitutes around 18% of the nation’s total employment.