By Adrian R. Morales
BOHÍO Content Editor
adrian.editor@gmail.com
@adrian_r_morales
Like every year, Banco Popular Dominicano left its mark at the International Tourism Fair, FITUR, a global meeting point for tourism professionals and the leading fair for inbound and outbound markets in Latin America. The 2024 edition, held in Madrid, Spain, from January 24 to 28, was of special importance for Popular due to the more than 40 activities that the financial entity carried out with clients and the Ministry of Tourism.
Once again it was possible to confirm the favorable investment climate and investor security that the Dominican Republic boasts, with Banco Popular disclosing projects for more than 2.5 billion dollars, which will mean an increase of more than 7,000 rooms.
At FITUR 2024, the banking entity announced its incorporation into the World Travel and Tourism Council (WTTC), a private organization where the 200 most relevant companies in the global tourism sector meet. According to Juan Manuel Martín de Oliva, vice president of the Tourism Business Area of Banco Popular Dominicano, Popular became the first Latin American bank to be part of this organization “where we will be able to learn first-hand about the trends and challenges of the sector worldwide.” for the benefit of our clients and the country.
The bank also had the honor of being recognized by the Iberia airline for its contribution to tourism. All of this, Martín de Oliva points out in an exclusive interview, is in response to “not only the honor but the responsibility we have for being recognized as “the tourism bank of the Dominican Republic”.”
How would the figure of US$2.5 billion translate into total investment for the development of tourism projects?
Personally, I would translate it as the answer to economic, political and security stability that, together with an unbeatable investment climate, makes us a particularly attractive place to invest in the long term. And if we add to this that investors find the possibility of financing with Dominican banks, as has happened with Banco Popular Dominicano, then a virtuous circle is created, which is what generates this aforementioned investment.
What types of projects will be financed with the potential US$1.42 billion loans?
They contemplate not only new rooms in tourist centers, both in consolidated ones, such as Bávaro, Punta Cana, Uvero, Bayahíbe, Puerto Plata and Samaná, and in new ones under development, such as Miches, Jarabacoa, Bergantín, Pedernales, among others. Also, the renovation of rooms in traditional hotels to keep up with the new ones, which is creating a high-quality product. Likewise, we have seen port projects and complementary offers necessary for the global development of the sector. Truly, it is the example that the Dominican Republic has it all.
And I must highlight that in all of them there is a clear tendency to continue with the philosophy of sustainability already put into practice by investors for a long time, since there is a clear awareness that permanence over time depends on the development of the communities. both in job creation, environmental protection, purchases from nearby suppliers (0km), opportunities for local artisans, among many other initiatives that are in line with the principles that as Banco Popular we promote.
How does the entity's participation in FITUR 2024 compare with that of previous years?
For 18 years we have participated in international fairs, among which FITUR is becoming increasingly important. At Banco Popular we understand that we must be with our clients wherever they do their business; Therefore, we offer them the opportunity to present their dreams to the highest executives of our entity, as a demonstration of our commitment to tourism.
In recent years we have offered a gala dinner to our clients and members of the delegations that attend the fair and which is already recognized as the “FITUR event”. Last year the fair was marked by the recognition that the World Tourism Organization granted the bank through its general secretary, Mr. Zurab Pololikashvili, for the support that the Popular Bank gives to tourism. Meanwhile, this year has been important not only the volume of business generated but also the fact that it was announced on the first day that Banco Popular has been the first bank in Latin America to be part of the WTTC organization.
How has Banco Popular's loan portfolio in the tourism sector evolved?
The bank's portfolio has been in line with the growth of the sector, both in large investors and in substantial support for small and medium-sized businesses, which are essential to complement the offer to tourists. And all of this is marked by a common and constant characteristic over time, which is the commitment of our clients, since there is no late payment.
What financial products and services does Banco Popular offer to the different tourism actors?
As the sector evolves, at Grupo Popular we go hand in hand by offering innovative alternatives to provide resources to our clients and not only via pure financing. Together with other subsidiaries of Grupo Popular we are participating in important projects in a non-traditional way and in accordance with international trends. We have the ability to offer our clients varied alternatives focused on generating opportunities for them.
«The fact that Banco Popular has been the first Latin American bank to be part of the World Travel and Tourism Council (WTTC) gives our clients and the country an opportunity to learn first-hand about the trends, challenges and opportunities of the sector on a global scale. In addition, we also go to this organization with the hat of being ambassadors of our country before the 200 most important companies in the sector in the world.
How does Popular contribute to the sustainability of the Dominican tourism sector?
The tourism sector has a particular importance for the circular economy in the country, since, beyond being the main economic activity in the Dominican Republic, it has a dynamic value chain that impacts different sectors and companies of all sizes. By working hand in hand with the country's large hotel chains, but also with the small and medium-sized companies that provide their products and services, we promote sustainability at all levels, stimulating both the supply and demand of responsible and efficient production processes in the use of natural resources.
Banco Popular has focused its support for the tourism sector on the mobilization of capital flows towards activities and projects consistent with the country's sustainable development objectives with a long-term vision, including climate mitigation and adaptation, sustainable economic growth, creation of green and decent jobs, and fiscal responsibility.
For this, we have established criteria in the sustainability management of tourism projects in order to define how each one minimizes or plans to minimize its impact on the environment; for example, through waste management, conservation and eco-efficiency in the use of natural resources and the reduction of greenhouse gas emissions. We also evaluate how the project will impact society by promoting decent employment, preserving culture, supporting local enterprises, and engaging communities to inform decision-making.
Finally, we consider how each tourism development integrates governance to establish and enforce policies that promote sustainability, encourage public participation and collaboration between different stakeholders to address sustainability challenges.
Taking this into account, we strive to listen to our clients and related parties in the tourism sector to understand and integrate their risks and opportunities regarding sustainability into our support and financing facilities. Of course, we take public sector priorities into consideration in our action plans, to ensure we focus efforts where the country has identified greatest needs and opportunities. In addition, we participate in relevant consultation processes to integrate our perspective and adopt the frameworks and tools developed by the public sector, such as the green taxonomy, whose sectoral technical documents will serve to guide our work plans.