Finance Minister dismisses concerns over impact of Tax Reform on Dominican tourism

Santo Domingo.- Finance Minister Jochi Vicente assured that the Fiscal Modernization Law, which includes a tax reform that eliminates incentives for the tourism sector, will not negatively impact the Dominican Republic’s tourism industry. Presenting the bill to the National Congress, Vicente emphasized that the country’s tourism and hotel sectors are strong and competitive, positioning the Dominican Republic ahead of regional rivals like Mexico and Jamaica. He dismissed fears of the industry’s collapse, citing its maturity and robust growth.

However, the Association of Hotels and Tourism (ASONAHORES) voiced concerns that the proposed tax changes could harm the sector’s economic contributions. The organization argued that the removal of tax benefits would deter foreign investment and hinder the development of new hotel projects. David Llibre, president of ASONAHORES, suggested revising the law to encourage investments while ensuring the state benefits from improved tax collection.

Llibre warned that if the reform is not adjusted, the Dominican Republic could lose its competitive edge, prompting hotel chains to relocate to other countries in the region. He called for a balanced approach that safeguards the tourism sector’s growth and maintains its status as a leading destination.