Tourism in the Dominican Republic - a legal guide - Pellerano ...

Incentives
An incentive policy adopted by the Government in
order to promote the development of the tourist
industry has encouraged private investment in tourism
in the Dominican Republic.
Law 153 of 1971 on Promotion and Incentive of
Tourist Development was clearly the basis of the
tremendous growth experienced by the sector during
the last twenty years. This legislation had the purpose
to promote a fast and rationalized process of
development of all factors having an influence in the
tourist industry, and granted tax incentives for a tenyear-period
to persons or companies that invested
national or foreign capital in tourism. This legislation
was repealed with the passing of the Tax Code (Law
11-92 of 1992).
Today the Government has adopted again this
policy, but concentrating its promotional efforts in less
developed tourist zones, and making a particular
emphasis in the sustained development of the sector. In
this manner, Law 158-01 on Tourist Promotion grants
tax incentives on behalf of persons or companies that
undertake tourist activities in certain zones of the
country, establishing the necessary safeguards to
ensure the sustained development of such areas (see
Section VI).
Construction of infrastructure
Aware of the crucial role that having an adequate
infrastructure has to play in tourist development, the
Government grants significant importance to the
development of national infrastructure, particularly in
areas of great tourist potential.
In the Dominican Republic, as it is the case in many
developing countries that just in a relatively recently
started to develop their tourist industries, the process
of improvement of infrastructure has gone hand-inhand
with the expansion of tourism.
Today the country has an efficient road network
that interconnects the different regions, as well as the
tourist zones with neighboring urban centers.
Furthermore, it has six modern airports that receive
international flights at the different tourist destinations,
while three more are being built (in the Samana and
Barahona regions) to meet the needs of the different
tourist communities, which are connected to the main
airports through local flights. In addition, in order to
enable the country to benefit from the tourist activity
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generated by cruise ships, the State has built tourist
ports or special zones in existing ports, authorizing
ships to anchor in places previously forbidden, such as
Catalina Island.
In this regard, the Secretariat of State of Tourism
has the function to "guide, according with the applicable
regulations, the design and construction of all
infrastructure works that may be required for the
development of the different tourist projects".
Law 158-01 on Tourist Promotion sets forth as a
State obligation the execution of necessary
infrastructure works in the areas whose development is
being sought, in the understanding that this is an
essential factor to promote their tourist development.
Training of human resources
With the participation of the Institute of Technical
and Professional Training (INFOTEP), the Secretariat of
State of Tourism organizes training courses in all
tourist-related areas. The private sector participates
with the payment of certain contributions to the
financing of these programs.
Furthermore, the country has Hotel and Tourism
Schools at the different universities that offer first-class
education.
It should also be noted that the Dominican Republic
has signed bilateral agreements with countries such as
Colombia, Mexico, Spain and Italy in order to promote
student exchange and professional training in the area
of tourism and hotel management.
In this manner, the Government seeks to ensure
that the country has an adequate and capable labor
force for the provision of tourist services, both at a
managerial and a technical level.
Quality of tourism
The Secretariat of State of Tourism, through a
constant supervision and inspection of tourist activities,
as well as of the environment surrounding tourist
centers and communities, ensures the quality of
tourism and the welfare of the tourist in general.
It also sees to the compliance of the relevant legal
provisions by providers of tourist services and all who
participate in the sector, in order to guarantee
consumer protection and the quality of the tourist offer.
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