Asonahores, the National Hotel and Tourism Association, has expressed concern regarding the impact of the proposed tax reform on the economy, particularly in terms of tourism. The association believes that the proposal should be carefully analyzed and possibly re-evaluated.
Asonahores affirmed that the current tax regime is essential for attracting foreign investment and building new hotels.
The association believes that amending the Law for the Promotion of Tourism Development (Comfort) is necessary. However, changes must ensure investment security for new projects, better tax collection, and renovations, according to David Llibre, the entity’s president.
Llibre stated that the current proposal would deter hotel chains from the Dominican Republic. This would negatively impact its competitiveness in the region and decrease tourism.
He stressed that drawing global hotel chains to the Punta Cana area or creating tourism spots such as Brigantine Point and Miches are impossible without the Confortur law.
Llibre argued for improvement, not elimination, of the Confortur as a means to help communities develop and generate more jobs.
He emphasized the potential harm if the sector ceases to grow due to a reform like this one. This would lead to a decline in commerce, foreign exchange, job growth, and the productive chain.
The association points out that tourism contributes significantly to the Dominican economy. In 2022 alone, it generated a total of 2,522,000 dollars in local purchases and 150 billion pesos in tax revenue. Additionally, it provided about 700,000 direct and indirect jobs, which account for 18% of the total national employment.
Asonahores argues that tax reforms should take into account the immense benefit that the tourism sector brings. This includes foreign investment, and tax revenue which is 12 times higher than the sector’s tax expenditure.
The government’s tax reform proposal has removed incentive programs for industries such as tourism, textiles, trusts, and film companies. It also altered the rules for free trade zones and the Border Development Law.