Economy and Industry in the DR

The growing Dominican economy has developed primarily due to a well-managed tourist flow and flourishing agricultural industries. "The country is growing at a rate near unparalleled in its recent history" Tom Blass reports in an article appearing in The Banker April 3, 2006. The GDP growth rate is presently almost 7.9% per year.

The currency is the Dominican Peso (DOP). The exchange rate is roughly 32 pesos to the US dollar.

US companies with a presence in the Dominican Republic include Johnson & Johnson, 3M, UPS, Abbot Laboratories, Baxter, Verizon, Citibank, Marriott, Hilton, Remax and Century 21.

The July 2006 implementation of DR-CAFTA (Central America Free Trade Agreement) will stimulate trade between the United States and the Dominican Republic because $1 billion in taxes and tariffs will be removed for American companies involved in trade with the Dominican Republic,

Tourism
The significant rise in tourism is a factor in the growing Dominican economy, and it's expected to continue to reach new heights in the coming years.

The Dominican Republic attracts the most tourist visitors of all the Caribbean islands. 2005 saw growth rates in excess of 7% higher than the previous year. Travel companies in the US and Europe are highlighting the Dominican Republic as a premier vacation destination.

Tourism Minister Felix Jimenez stated that the Dominican government will be investing $5 billion in tourism infrastructure through 2008.

Hotel occupancy in the Dominican Republic is currently 74%. There are only 70,000 hotel rooms available to accommodate more than four million tourists per year. In the next 8 – 10 years, ten million tourists are expected to visit the Dominican Republic, requiring 250,000 rooms. . During the high season (12/15 – 4/30 and 7/15 – 8/31) hotel occupancy rates are currently as high as 95% in beach destinations.

The majority of the tourists visiting the Dominican Republic come by air and stay for a minimum of one week. European tourists’ average stay is two weeks.

The major tourist destinations in the DR include Punta Cana, known for it’s large, upscale all-inclusive resorts; Puerto Plata, Sosua and Cabarete, tourist areas popular with wind surfers and college students; La Romana and Casa de Campo; and the focus of recent tourist attention, the Samana Peninsula.

The President-elect of the National Hotel & Restaurant Association, Luis Lopez, forecasts that Samana will become the new prime destination in the Caribbean with the opening of the El Catey International airport. The Dominican Secretary of Tourism is focused on the Samana Peninsula with the support of DR President, Leonel Fernandez, who recently signed a plan to develop and promote the area. The Samana Peninsula is the only region with a government plan in place.

A nature-lover’s haven with lush green mountains and beautiful white sand beaches, Conde Nast Traveler has called the Samana Peninsula one of the 25 best locations in the world.