Tourism has played a fundamental role in the economic development of the Dominican Republic. However, the COVID-19 pandemic highlighted the need to expand the tourist offer beyond the traditional “sun and sea” proposals. The tastes and preferences of today’s tourists demand more authentic, sustainable, and culturally enriching experiences.
This was explained by representatives of the country’s three main banks: Kemmeth Martí, manager of Investment Banking at Banco de Reservas (Banreservas); Luis Molina Maríñez, Senior Vice President of Corporate Business Banking at Banco BHD; and Francisco García, Vice President of Investment Banking at Banco Popular, during the panel moderated by economist Huáscar Jiménez and entitled “Banking as an engine of cultural and sustainable tourism”, which took place during the Third Orange Caribbean Forum.
They indicated the need to promote sustainable and cultural tourism as a viable alternative to boost the country’s orange economy. According to the panelists, this strategy involves availing of Dominican creativity and talent to offer tourists a unique and unforgettable experience, which will motivate them to return and recommend this destination to other travelers.
The bankers stressed that the banking sector has played a crucial role in tourism development, not only financing the construction of new hotel and restaurant infrastructure but also providing support to small and medium-sized enterprises (SMEs) related to the sector. They also highlighted the importance of including environmental sustainability criteria in new tourism projects, in order to preserve natural resources and minimize the negative impact on the environment.
According to data from the sector’s annual report prepared by the Superintendency of Banks (SB) at the end of 2022 the portfolio destined to tourism amounts to US $ 1,750.6 million (RD $ 98,000.34 million), an increase of US $ 234 million (more than 13.2% in nominal terms) in the last 12 months.
The SB report highlights that “Tourism is a highly relevant sector for the Dominican economy due to the significant part it plays in external flows (26% of the total during January-September 2022), it being an important net generator of foreign exchange, the main destination sector of foreign direct investment, and an important source of new jobs,”.
Regarding the orange economy, the speakers emphasized its transversal nature and its potential to generate employment and wealth. They underlined the need to collect more accurate statistics on the creative industry, especially in areas such as concerts and cultural events, so as to make informed decisions and make the most of the potential of this sector.
They pointed out that banks play a fundamental role in this process, both as project financiers and as advisors and promoters of sustainable development in the tourism sector. In this regard, the SB report highlights that 90.6% of the 93.7% of bank financing to tourism is concentrated in the three main multiple banks: Banco Popular (33%), Banreservas (26.5%), and BHD, with 18%.
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