Dominican Hotels Fear Slumping Greenback Could Force Lockdown

Members of the hotel sector in the Dominican Republic are getting increasingly wary in the face of a sinking U.S. dollar –stacked up against the local currency- and have warned would this situation go on for a longer time, many establishments will be bound to close down.

Marino Ginebra, former president of the National Hotel & Restaurant Association and the National Private Enterprise Council, disclosed the grim picture in the pages of El Listin Diario newspaper and said many lodgings have been cutting costs and slashing payrolls to get by.

”I know getting back consumers´ confidence is an uphill battle, especially now that we´ve retreated three or five years,” Mr. Ginebra was quoted as saying. “Most estimates reveal that costs in U.S. dollars have jumped nearly 26.2 percent for a majority of local hotels.”

National Hotel & Restaurant Association President Ernesto Veloz explained the current money exchange rate between the U.S. dollar and the Dominican peso is not doing the hotel sector any good at all, chiefly on the heels of a recent wage raise.

Tourism Minister Felix Jimenez, for his part, believes hotels have stopped selling travel packages for reasons other than a negative currency exchange rate. Mr. Jimenez voiced confidence in the sector now that the American buck, he said, seems to be back on track.

“The U.S. currency has stuck to a steady pace over the past six months, and that´s welcome news for the sector,” Mr. Jimenez concluded.