Dominican Republic: Another boost for the tourism industryPosted by David on 10 th in Dominican Republic property news, DSR, Investment Property on 10th of November 2010
Dominican President Leonel Ferandez has announced that businesspersons from the Balearic islands want to invest 3.7 billion Euros into the tourism industry in the next four years.
The same group have already invested heavily in the island but want to build a railway linking Santiago and Santo Domingo; likely to significantly boost the country’s development.
The Dominican Republic has also recently seen a quasi-donation of $30 million for the reconstruction of highways granted by the OPEC Fund for International Development; the announcement of a number of new Aerocaribbean flights likely to attract multi-destination tourists; and has accepted plans for the construction of a ferry terminal costing $10 million at the Sans Souci tourist port.
Such plans are yet another boost for a country where tourism accounts for 24 percent of GDP and is fuelling economic growth. The contribution of tourism to employment is now expected to rise from 555,000 jobs in 2008 to 743,000 jobs by 2018. By 2012, it is forecasted that the Dominican Republic will receive five million annual visitors, a one million increase over expected 2008 visitor totals.
And according to a recent report by the Dominican Republic Ministry of Tourism, tourist arrivals for the first quarter of 2008 have already increased by 8 percent compared to the first quarter of 2007; approximately 1.3 million guests selected the Dominican Republic as their vacation spot of choice.
Over 15 percent of these arrivals arrived at Puerto Plata on the North Coast. The airport is just 10 minutes away from DSR’s Sosua Plaza and the studio apartments are only 5 minutes walk from Sosua Beach. All are equipped with kitchenette, air-conditioning, ceiling fan, phone, and cable TV, as well as security locks, electronic room safety deposit box and a balcony overlooking the pool.
Apartments come fully furnished and fully managed, offering tax free returns and no work for the owner. Occupancy rates are consistently higher than 74 percent, yet the price is one of the lowest in the Caribbean at £24,000. With Dominican Republic’s huge tourist numbers rental yields of 10 percent can be expected, while the property has the potential of 10-20 percent capital appreciation.