PUNTA CANA–Simon Suárez, vice president of institutional relations and projects at Groupe Punta Cana, said similar incentives but relaxed regulatory requirements are encouraging foreign investors to invest in tourist destinations rather than hotels. He emphasized that more and more people are choosing to build apartments. He said these projects circumvent environmental and local government regulations that hotels must comply with, creating “unfair competition” in the tourism sector.
Mr. Suarez explained that unlike hotels, which require large investments and ongoing costs to maintain the infrastructure, apartment developments can be sold directly, resulting in faster returns. In addition, hotel projects create significantly more jobs, with a 500-room hotel employing approximately 800 direct employees, while a 200-unit residential complex employs only 20 staff. .
He stressed that hotel developments support broader supply chains and benefit local farmers, service providers and other sectors, highlighting economic spillovers that apartment projects lack.
Source: Arecoa
