To-date indicators show that the Dominican Republic’s diverse hospitality market is well positioned to weather the economic slowdown in the U.S. With recent political advancements, significant investments in infrastructure, and a large number of European-based travellers, U.S. hotel investors are finding the Dominican Republic to be a favorable destination for investments because of the close proximity, beautiful beaches, hospitable population and low labor costs.
“The Dominican Republic’s high number of European-based travellers makes the country more resistant to economic changes than other Caribbean destinations which are more dependent on U.S. demand. This in turn has helped spur resort developments,” said Fernando Garcia-Chacon, senior vice president for Jones Lang LaSalle Hotels. Garcia-Chacon reports an increase from European-based investors seeking valuation and or feasibility studies on various projects based in this area. The Four Seasons Resort is now being developed inside of Casa de Campo.
Recent statistics from the Central Bank show a 7% increase in air arrivals to the Dominican Republic in year-to-date 2008. With more than 250 weekly flights, the country experienced a steady 4% compound annual growth rate in passenger arrivals over the past five years. “It would not be surprising to see other upscale and luxury brands announce development plans as air arrivals increase and demand fundamentals remain strong,” said Kristina Paider, senior vice president for Jones Lang LaSalle Hotels. |