Punta Cana.- Foreign investors are showing greater interest in building apartments in tourist regions, says Simón Suárez, the Vice President of Institutional Relations and Projects at Grupo Puntacana. He says this shift is due to lessened regulatory requirements as compared to hotels, and points out the negative impact on the hospitality sector, which is becoming a victim of “unfair competition”.
According to Suárez, apartments offer quicker profits as they’re sold directly while hotels require substantial initial investment along with continuous infrastructural maintenance costs. He also mentions that hotels have a higher employment rate with a 500-room hotel employing around 800 individuals as opposed to a 200-unit apartment’s mere 20 employees.
The Vice President emphasizes that the hospitality industry promotes wider business chains by supporting local farmers, service providers, and other sectors, a benefit that is missing in the apartment construction projects.
Source: Arecoa