The Association of Hotels and Tourism of the Dominican Republic (Asonahores), propose an initiative to promote shopping tourism in the country by implementing regulations that allow the return of the tax on transfers of industrialized goods and services (ITBIS) to the tourists.
In this regard, the executive vice president of the organization, Aguie Lendorexplained that one of the main barriers to increasing tourist consumption in Dominican Republic is the lack of tax incentives. “When a tourist arrives in Spaineverything you buy allows you to receive a tax refund at the airport, this incentive not only encourages purchases, but also benefits hotels, restaurants, taxi drivers and tour operators.”
The proposal is to establish a system similar to the Spanish one, where tourists can recover 18% of the ITBIS on purchases made during their stay, as long as they exceed a minimum established expenditure. Lendor explained that this measure would make the Dominican Republic a more attractive destination for high-spending tourists, who not only spend in luxury stores, but also invest in local services and experiences.
According to the executive, the implementation of this regulation would have a significant impact on the local economy without negatively affecting the treasury. “Tourists buy products that they then take back to their countries of origin, which is similar to exporting goods. In this context, the ITBIS should not be applied.”
It is recalled that the Dominican Republic reached “ten million visitors” in 2023, however, only about eight million arrived by air, that is, those who stay overnight or in Dominican accommodations. These are the ones who purchase goods and services. Hence, the profitability of cruise passengers is questioned, according to El Dinero.
During 2023, of the 8,058,671 people who entered the country through the airports, 6,730,802 were foreigners and 1,327,869 were non-resident Dominicans. Even so, as a whole, these tourists allowed the tourism industry to generate more than US$9,751.0 million last year, although the Ministry of Tourism (Mitur) estimated that the “10 million visitors” would generate foreign exchange in excess of US$10 billion.
