Airlines warn new tax on air tickets will affect the country’s competitiveness
The Dominican Association of Airlines (ADLA) expressed concern about the proposal to impose an additional US$10 charge on airline tickets as part of the measures presented by the Government to address the economic impact of the international increase in oil, supply, and cargo transport prices.
ADLA President Omar Chahín stated that the association understands the need for authorities to adopt measures to preserve the country’s macroeconomic stability in a complex international context, but warned that any measure that increases the cost of air travel must be carefully analyzed for its implications for connectivity, tourism, and national competitiveness.
“We recognize the Government’s efforts to protect the Dominican economy in the face of a challenging international scenario. However, we understand that further taxing airfare could have adverse effects on sectors that are strategic for the country’s growth, particularly tourism, connectivity, and commercial aviation,” Chahín stated.
The leader explained that the Dominican Republic competes directly with other destinations in the Caribbean and Central America for tourists, investment, and new air routes, so any increase in air transport costs could reduce the destination’s competitiveness.
“When access to the country becomes more expensive, the impact doesn’t just fall on the airlines. It also affects passengers, the tourism sector, commerce, and, in general, the entire value chain linked to air connectivity,” he noted.
ADLA noted that airfare already includes multiple fees, taxes, and operating charges, so adding new levies could limit demand growth and hinder the country’s efforts to consolidate itself as a regional air hub.
However, the entity reiterated its willingness to collaborate with the authorities to identify alternatives that enable the State’s fiscal objectives to be met without compromising the competitiveness of air transport.
“We believe there is room for dialogue and the development of joint solutions. As a sector, we are willing to participate in a technical working group with the Government, aeronautical authorities, the tourism sector, and airport operators to evaluate alternatives that contribute to the country’s economic stability without compromising the development of Dominican aviation,” Chahín stated.
Among the proposals put forward by ADLA are a comprehensive review of the cost structure affecting air activity, including aviation fuel, airport fees, and other operating charges, as well as strengthening mechanisms to improve the competitiveness of national airlines.
The association emphasized that aviation constitutes a strategic infrastructure for economic development, attracting investment, tourism, trade, and linking the Dominican diaspora with the country.
“We share the interest in preserving the macroeconomic stability and social peace that distinguish the Dominican Republic. Precisely for this reason, we understand that any measure related to air connectivity must be subject to a broad, technical, and consensual evaluation that protects both public finances and the country’s competitiveness,” concluded the president of ADLA.
