Dominican Republic Tourism Overview
The Dominican Republic is the most popular tourist destination in the Caribbean and ranks among the top five in the Americas, attracting 8.1 million international visitors (~10 million including cruise visitors) in 2023 and generating US$9.8 billion from tourism. The DR witnessed an exceptional post-pandemic recovery and was recognized as the world’s No. 1 tourism destination for two successive years (2022 and 2023) by leading travel intelligence provider, Forward Keys. Primary factors that make this nation a top tourist destination include its tropical climate, white sand beaches, diverse mountainous landscape, and colonial history, complemented by proactive tourism-friendly policies of the Government.
Surrounded by the Atlantic Ocean on the north and the Caribbean Sea on the south, the DR is a tropical paradise that boasts 1,000 miles of coastline and 250 miles of the world’s top beaches, highlighted by Macao and Bavaro beaches in Punta Cana, amongst several others. The country also boasts of diverse mountains (Pico Duarte, the Caribbean’s tallest mountain peak), colonial history, resorts and hotels, and a variety of sports, recreation and entertainment options. True to the world-class beaches, quality of beaches tops the reasons why international visitors choose the DR. In a recent survey conducted by the central bank of the DR, quality of beaches was the number one factor why international visitors chose the DR as their destination in 2023, with more than half of respondents citing it. Hospitality came in second at 15%.
Located at the country’s easternmost tip, Punta Cana with miles of pristine white sand beaches is the top tourist destination, with a total of 4.6 million international visitors (57% of total) arriving in the town in 2023. For the first eight months of 2024, the town attracted 3.5 million international visitors or nearly 59% of total. Macao and Bavaro are top beaches in the town. Punta Cana also boasts of high-end resorts, exclusive golf courses, and private yacht excursions.
The capital city Santo Domingo is the second most popular tourist attraction in the DR. The city’s top attraction is Colonial Zone, an area declared as a UNESCO World Heritage Site, that hosts the earliest cathedral, castle, monastery, and fortress. Located in the central part of the DR, Jararaca is popular among nature lovers and outdoor enthusiasts that enjoy hiking, horseback riding, and swimming in its mountains, waterfalls, and forests. Jararaca is also an access to the tallest mountain peak, Pico Duarte. Other major destinations include Puerto Plata and La Romana, both popular for beaches, resorts, and golf courses; Saona Island, popular vacation spot with sandy beaches (La Palmella); Samana Province that boasts of beaches and dense forests of Los Haitises National Park; and Boca Chica with beaches, hotels, and restaurants, water sports (waterskiing, kayaking), and 3 Eyes National Park.
According to the 2023 Global Travel Trends Report by travel intelligence provider Forward Keys, the DR was the world’s No. 1 tourism destination for a second year in a row, welcoming 14% more international visitors in 2023 than it did in 2019. Four countries close to the DR and part of Central/Caribbean followed – Costa Rica and Aruba (+11% each), and Jamaica and Puerto Rico (9% each). Pent-up travel demand for “sun and beach” destinations primarily boosted international tourist arrivals in these countries.
Specifically in the DR, the sharp recovery was driven by a well-coordinated, multi-pronged campaign that involved seeking ways to capitalize on non-traditional markets and creativity in promoting new segments in luxury, sports, and wellness, among others. The country also implemented the ‘Plan for the Responsible Recovery of Tourism’ in 2020 that helped the country reopen its borders early in the pandemic by expeditiously vaccinating tourism workers.
After a record 10 million visitor arrivals (combining air and cruise) in 2023, the DR is set for another record year in 2024 as evidenced by record arrivals YTD to August of nearly 7.8 million (air and cruise), up 10% over the same period of 2023. The growth is aided by cruise visitors, which jumped nearly 17.0% YTD to August in 2024 to 1.8 million after rising 70% in 2023 to 2.26 million. This sets the stage for achieving the Government’s stated projection of 11.0 million visitors (air and cruise) for full year 2024. The U.S. is the largest market, accounting for nearly 42% of overall visitors in 2024 (YTD till Aug). Canada and Non-resident Dominicans follow, at 14% and 15.4% respectively.
The record influx of visitors continues to drive hotel occupancy in the DR. From the trough of 40.5% in 2020, the occupancy surpassed the pre-pandemic 2019 level of 71.6% in 2023 with 74.7%. This has further increased to 79.2% YTD to August in 2024. The number of hotels and hotel rooms have been growing at a healthy clip over the past decade, with hotels increasing from 714 in 2020 to about 883 in 2022 and the associated number of hotel rooms increasing from 67,000 to over 87,000. However, post the pandemic the share of hotels in overall accommodation has been declining from about 78% in 2019 to about 53% in 2021. Short-term rentals on platforms like Airbnb, Booking, and Expedia lead the other accommodation choices for visitors.
Initiatives to expand and diversify into gastronomic, sustainable luxury, and MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism have been the key drivers of this continued growth. Additionally, increased capacity from Air Canada, Air Europa, and Sunwing Airlines, which have expressed their willingness to operate from different countries, will bring in more visitors to the DR. On the same lines, the recent signing of the open skies agreement with the U.S. would boost tourism. Yet to be approved, the agreement enables Dominican airlines to fly to the entire U.S. from the current restriction of conducting scheduled services only to New York, Miami, and two additional points in the mainland U.S. selected by the Dominican government. This is expected to increase air traffic between the two countries, lower ticket costs, and further boost tourism arrivals from the U.S., which is by far the largest contributor to the overall visitors, at 41% in 2023.
In line with the global trend towards eco-friendly and sustainable tourism, the DR tourism sector is also embracing this shift and taking initiatives to meet the growing demand of travelers for eco-friendly accommodations, responsible tour operators, and conservation initiatives. In Punta Cana, several eco-lodges have emerged that blend luxury with sustainability. Other initiatives in Punta Cana encompass various conservation programs for marine (including the largest marine protected areas in the Caribbean covering an area of 8000 sq. km for marine biodiversity) and other species (Ridgway’s Hawk and Iguanas) and other programs such as zero waste program to help reduce the amount of waste sent to landfills.
In Samana, sustainable tourism offerings are being introduced in Cayo Levantado Resort that combines luxury and sustainability by promoting local culture and improving the region’s biodiversity. In Pedernales, the DR plans to develop a sustainable luxury tourism destination in Bahia de las Aguilas. To be carried out under a public-private partnership, the project’s first stage will encompass investment of US$700-800 million by the private sector to build 3,000 rooms, an international airport, a 50KW renewable energy Installation, and related infrastructure. Miches, another destination for sustainable luxury tourism, attracted US$735 million in investments for new projects, including 3,700 hotel rooms and 2,000 residential rooms. Major hotel groups have expressed interest in these projects, with Four Seasons Hotels and Resorts considering building a LEED-certified hotel in the town.
The DR is also strategically focusing on improving travelers’ experiences with adventure tourism that has been a growing trend. These include Ziplines, Caving, Canyoning & Rappelling, Paragliding, and Adventure Parks. Located in the Dominican Alps, Jarabacoa is the center of adventure tourism, offering a variety of adventure activities including hiking, riding, biking,rafting, canyoning, , and kayaking in its mountains, forests, and rivers.
Aided by the proactive policies of the Government, the Dominican Republic ranked number one in top performers post the COVID-19 pandemic, jumping +14% in 2023 over 2019. Going forward, the country is expected to maintain this growth momentum. Key factors that would drive this growth include continued tourism-friendly policies highlighted by increased investments in Infrastructure, diversifying into sustainable luxury, adventure tourism, as well as open skies agreement with the U.S. that is expected to come into force soon.
