High air transport taxes impact competitiveness in the Dominican Republic
Santo Domingo.- The Dominican Republic’s air transport sector faces high tax costs compared to other countries in Latin America and the Caribbean, affecting its competitiveness. According to the Regional Center for Sustainable Economic Strategies (CREES), the country ranks 16th out of 20 in the “Air Transport Competitiveness Index,” particularly due to high ticket sales taxes (18% ITBIS) and arrival fees.
Despite ranking third in low airport usage rates, the nation falls behind in other key taxation areas. CREES emphasized that these costs not only impact tourism—one of the country’s economic pillars—but also make air travel more expensive for all passengers, limiting accessibility and international connectivity.
Experts argue that reducing taxes and fees could attract more visitors and investments while strengthening the country’s position as a regional air hub. Given the sensitivity of the air market to costs, even small adjustments could significantly boost demand, benefiting tourism and strategic economic sectors.
