Asonahores warns proposed Tax Reform could harm Dominican tourism

Santo Domingo.- The National Association of Hotels and Tourism (Asonahores) has expressed serious concerns about the government’s proposed tax reform, arguing it could adversely affect the tourism sector and the broader economy.

Asonahores president David Llibre emphasized the need for a competitive tax regime to attract foreign investment and develop new hotels. While supporting improvements to the Law for the Promotion of Tourism Development (Confotur), he warned that the current reform could deter hotel chains from operating in the Dominican Republic, leading to a decline in tourism.

Llibre highlighted the crucial role of Confotur in attracting major hotel chains and stressed that stagnation in the tourism sector would ultimately reduce long-term government revenue. He pointed out that the tourism industry contributes significantly to the economy, generating substantial foreign currency and creating hundreds of thousands of jobs.

Asonahores argues that a cost-benefit analysis should take into account the sector’s contribution to tax revenue compared to its tax expenditures. The proposed reform includes the elimination of various incentives for the tourism sector, industries, and free trade zones.