Tourist apartments seen as ‘unfair competition’ for hotels in the Dominican Republic

Punta Cana.- Simón Suárez, Vice President of Institutional Relations and Projects at Grupo Puntacana, highlighted that foreign investors are increasingly opting to build apartments in tourist areas instead of hotels due to similar incentives but fewer regulatory requirements. He noted that these projects bypass environmental and municipal regulations that hotels must comply with, creating “unfair competition” in the tourism sector.

Suárez explained that apartment developments offer faster returns since they are sold directly, unlike hotels, which require substantial investments and ongoing costs to maintain the infrastructure. Additionally, hotel projects generate significantly more employment, with a 500-room hotel employing around 800 direct workers compared to just 20 staff for a 200-unit apartment complex.

He emphasized that hotel developments support a broader supply chain, benefiting local farmers, service providers, and other sectors, underscoring the economic ripple effect that apartment projects lack.

Source: Arecoa