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BiggerCabo Rojo was DR’s missed opportunity for innovation — But it’s not too late
The Dominican Republic just made a billion-dollar bet on tourism… and forgot to invite the future.
When the government handed over the Cabo Rojo development project to Grupo Puntacana, the same mega-conglomerate that already controls much of the national tourism economy, it didn’t just double down on monopolistic infrastructure. It skipped an unprecedented chance to catalyze the startup and SMB ecosystem that’s been fighting to get a seat at the table for years.
And that’s not just a missed opportunity… it’s a systemic failure of imagination.
The Tourism Monopoly Problem
Let’s be clear. Grupo Puntacana isn’t new to the game: they ARE the game. With a near-monopolistic grip on high-end tourism, airport infrastructure, and elite hospitality, they’ve built an empire that delivers big.
But is big better for innovation? No.
The Cabo Rojo project could’ve been a platform to shop out portions of this development to second-generation Dominican tourism startups, emerging hospitality tech firms, and SMBs designing sustainable solutions in the sector. Instead, it feels like business as usual: the same players, the same playbook.
In a country where economic inequality is sharp and youth unemployment remains high, what message does that send to the next generation of Dominican innovators?
Digital Nomads and Startups: It’s Time to Provoke the Conversation
To the digital nomad ecosystem: we’ve loved discovering and investing in this island. But it’s time to do more than consume. We need to demand inclusion. As long-term contributors to the local economy, we must advocate for startup participation in public-private projects. Cabo Rojo could have been an international sandbox for smart mobility, green infrastructure, decentralized hospitality platforms, and AI-enhanced tourism ops. Why weren’t any of us called?
To the Dominican startup ecosystem: don’t wait to be invited. Let’s prepare public proposals, portfolio demos, and public letters showing exactly how we can reduce costs, increase efficiency, and scale services within this megaproject. Visibility is a contact sport. Provoke it.
A Call to Grupo Puntacana: Share the Sandbox
Grupo Puntacana, if you’re listening — this is your moment to make good on the responsibility that comes with dominance. You have the power to subcontract local companies to handle transport logistics, community tours, tech-based concierge services, sustainable waste systems, tourism fintech, and more. Sharing the sandbox doesn’t weaken your brand — it strengthens your legacy.
Startups bring speed, adaptability, and culturally grounded solutions. Working with them can unlock value you can’t build in-house.
A Call to Government: Stop Leaving Innovation Out of the Equation
This is more than a one-off miss. This is part of a pattern — central government initiatives consistently favor mega-contractors while sidelining the very innovation economy that can drive long-term, inclusive growth.
If the Dominican government is serious about “Desarrollo Nacional,” then it must stop viewing tech and startups as accessories. They’re infrastructure. They’re employment engines. They’re the fastest route to diversified, future-ready GDP.
So here’s the pitch:
- Create a Cabo Rojo Startup Bidding Portal and open real RFPs for tech-enabled tourism solutions.
- Establish a Startup Procurement Office within the Ministry of Tourism.
- Launch a Sustainable Tourism Innovation Fund, co-investing alongside companies like Grupo Puntacana in the ideas shaping the next decade.
We don’t need another resort town. We need a testbed for the future.
Final Word
Cabo Rojo should have been a catalyst. Instead, it’s a cautionary tale, but not one that’s written in stone. There’s still time to open the gates and let Dominican startups and digital builders help build what’s next.Because what’s the point of new development, if it’s not going to be different?
Want to pitch a startup solution to Grupo Puntacana or the Ministry of Tourism? Email me: jonathan@successment.co Let’s make visibility an economic force, not a privilege.
Agree, but you come to expect this from the island of corruption. Until the people stand up to the corruption and monopoly that is tied to it, the inequality will not change.
What does this “missed opportunity” article have to do with corruption and monopoly? There is no mention or hint of it. It is a well written article providing information and suggests improvement to the control of the project.
Ask yourself how the monopoly in tourism ended up with the rights to develop Cabo Rojo? Do you think monopolies don’t hold any power within governments? How does France beat out all other competitors on public infrastructure projects with an objectively inferior bid than, let’s say, Japan or Germany?? Do you think France would accept the projects we get approved for themselves?? Don’t be so naive, the Dominican government has had a corruption issue way before this presidency, and some of the big players continue to use it.
The government needed to make an educated decision, go with a well-known company i.e., Grupo Punta Cana, one that has a great track record of knowledge, success, and community involvement… or on the other hand, go with unknowns or those with questionable resources. No doubt are skeptics of the decision. They can pressure officials to answer their concerns.
It’s a global market, the government didn’t need to choose anyone, instead, it could have made a bidding system for different areas so the best plan and company could win but it forced a selection to a MONOPOLY that you seem to think is normal and a preferred decision for a government to make, lol. I also like the assumed failure of anything that’s not a monopoly on the island; it helps the monopoly consolidate its power.
Sage advice! Let’s hope all parties take heed.
You cannot create a globally (or regionally) competitive innovation center 5 1/2 hours from the population and education center of the country ( Santo Domingo). This is a large country. Each region has its role own unique role in its success.