Smaller
BiggerTourist apartments seen as ‘unfair competition’ for hotels in the Dominican Republic
Punta Cana.- Simón Suárez, Vice President of Institutional Relations and Projects at Grupo Puntacana, highlighted that foreign investors are increasingly opting to build apartments in tourist areas instead of hotels due to similar incentives but fewer regulatory requirements. He noted that these projects bypass environmental and municipal regulations that hotels must comply with, creating “unfair competition” in the tourism sector.
Suárez explained that apartment developments offer faster returns since they are sold directly, unlike hotels, which require substantial investments and ongoing costs to maintain the infrastructure. Additionally, hotel projects generate significantly more employment, with a 500-room hotel employing around 800 direct workers compared to just 20 staff for a 200-unit apartment complex.
He emphasized that hotel developments support a broader supply chain, benefiting local farmers, service providers, and other sectors, underscoring the economic ripple effect that apartment projects lack.
Source: Arecoa
The hotels & resorts want a monopoly on tourist accommodations. Apartment projects, its developers, its administrators and its residents support the supply chain too.
But there are already so many hotels in Punta Cana, wouldn’t there be an over-supply at this point?
This is their initial intent to try and kill short term rentals. Tourists are transitioning from all inclusive to short term rentals and hotel chains are starting to feel the pain.
Try asking him just how much of the hotel profits stay in the Republic!
They pay taxe dont they ? Let the government build hotels for full profit and see what happens.
They should not cry…competition is great and customers are happy…especialy those who dont want to bi milked in all inclusive resorts. I don’t like all inclusive anyway…anywhere.
Why not?
The resort i went to. Watered down all alcohol. No matter how polit we were. To not be ” those Americans ” we still were treated like a pest. I’d rather opt for a hotel and hope for a change of attitude and better quality of food and beverage
Where did you stay?
Yes Where?
LOL, if the GREEDY owners of the hotels offered realistic prices! And customer service!! This would not happen!!!
Punta Cana is a ghetto. Take away Cap Cana and Punta Resort and Club and there is nothing but cheap low grade resorts. The only reason people go is for a cheap vacation. Same class of people as cruise ships.
Budget travelers generate a ton of money, easy market to attract. Not much different than the type of tourists you see in Cancun.
THE HOTELS PAY THEIR EMPLOYEES 10 TO 15 THOUSAND PESOS A MONTH WHICH IS 200 TO 300 AMERICAN DOLLARS !! NO INSURANCE NO NOTHING …PLUS THEY WILL FIRE YOU IF YOU ARE OLD PLUS NO RETIREMENT……….
The last thing DR needs is another resort that takes away more beach front property from the locals. At least the apartment complexes offer their own pools.
Apartments support the local businesses, restaurants, shops, taxis, and tradesmen, all of whom who get nothing from the hotels.
Apartments attract a different clientele, usually longer-term renters or owners who don’t want to sit on the beach and drink cocktails all day.
Most of the apartments are away from the beach, in areas where resorts would not be built They also provide accommodations for residents as well as renters and temporary residents.
There is a need for both apartments and hotels. The competition is healthy.