SANTO DOMINGO– David Llibre, the Association’s President. National Hotels and Tourism (Asonahores) commented on Tuesday. He said the current proposal could lead to reduced competitiveness. This might drive hotel chains away from the Dominican Republic, negatively impacting tourism.
The Tax Modernization Law proposed recently by the Government was the main topic. Llibre, representing the hoteliers, noted the potential damaging effects on tourism. He urged for further study and reconsideration of the tax reform.
Llibre emphasized the necessity of a current-like tax regime to attract foreign investment. He said, “We agree with amending the Law for the Promotion of Tourism Development (Confotur). But it should secure investments for new projects and renovations. It should also enhance state’s tax collection.”
David Book. (External source).
The hoteliers noted that attracting major hotel chains to areas like Punta Cana is impossible without laws like Confotur. They stressed on amending Confotur to set higher standards and focus on creating more employment opportunities. It should be restricted to sustainable projects that enhance community development and should not be eliminated.
Llibre claimed that tourism generates 12 times the sector’s tax expenditure in tax revenue and foreign investment. Hence, an incentive law’s cost-benefit analysis should be taken into account.
Llibre concluded by saying if the sector stops growing, the government may collect less revenue in the long run. He argued that not offering exemptions could halt job growth and foreign exchange generation. In his view, they contribute more to the government and economy by maintaining the current structure than eliminating it.
Llibre reminded everyone of the significant role tourism plays in the Dominican economy. In 2022, the hotel sector’s local purchases totalled 2,522 million dollars alone. This contributed to over 150 billion pesos in tax revenue and generated more than 700 thousand jobs. It accounted for 18% of the total jobs in the country.
