Interested in doing trade in the Dominican Republic? Being informed about a country’s economy and outlook is a good first step in finding the information that you and your business needs to know.
Are resorts the most popular type of business in the Dominican Republic?
The Dominican Republic is a nation on the island of La Hispaniola, part of the Greater Antilles archipelago in the Caribbean region, and located right next to Haiti. Both by area and population, the Dominican Republic is the second largest Caribbean nation after Cuba, with an estimated 10 million people, according to the US Embassy. The Dominican Republic has become the largest tourist destination in the Caribbean; the country’s year-round golf courses are among the top attractions, as reported by the Consulate-General of the Dominican Republic. The Dominican Republic has the largest economy in Central America and the Caribbean, according to the U.S. State Department. It is an upper middle-income developing country,with an estimated 2011 GDP per capita of $9,222, in PPP terms, which is relatively high in comparison to the rest of Latin America.
Popular sectors of the Dominican economy
The Dominican Republic is primarily dependent on natural resources and government services. Although the service sector has recently overtaken agriculture as the leading employer of Dominicans due primarily because of growth in tourism and the Free Trade Zones, agriculture remains the most important sector in terms of domestic consumption and is in second place, behind mining, in terms of export earnings. The service sector in general has experienced growth in recent years, as has construction. Free Trade Zone earnings and tourism are the fastest-growing export sectors for businesses in the Dominican. Real estate tourism alone accounted for $1.5 billion in earnings for 2007, as reported by the Dominican Today newspaper. The Dominican Republic’s most important trading partner is the United States (75% of export revenues). Other markets include Canada, Western Europe, and Japan. The country exports FTZ manufactured products such as garments, medical devices, nickel, sugar, coffee, cacao, and tobacco. It imports petroleum, industrial raw materials, capital goods, and foodstuffs
How far reaching is the tourism industry in the Dominican Republic?
Tourism is the single biggest revenue earner, with receipts increasing more than tenfold from US$173 million in 1980 to more than US$2 billion by 2000. Successive governments have invested heavily in tourism development, creating upgraded airports and other infrastructure. Tourism is fueling the Dominican Republic’s economic growth. For example, the contribution of tourism to employment is expected to grow from, 550,000 jobs in 2008 and 14.4% of total employment to 743,000 jobs and 1 in every 7 jobs by 2018, as published by the World Travel and Tourism Council. With the construction of projects like Cap Cana, San Souci Port in Santo Domingo, and Moon Palace Resort in Punta Cana, the Dominican Republic expects increased tourism activity in the upcoming year. Most tourists visit the Dominican Republic on account of its beaches, but there is an expanding eco-tourism and outdoor activity sector, focused on the country’s mountains and wildlife.
Overall, the Dominican Republic is a great country to do business in. It had a decent growth rate in 2010, with a rat of 4.2%, plus the market seems to be getting more and more wealthier. Plus, the Dominica government also wants to increase the role of trade in its economy. For example,on September 5, 2005, the Dominican Republic ratified a free trade agreement with the US and five Central American countries, called the Central America Free Trade Agreement. CAFTA entered into force for the Dominican Republic in March 2007. The Dominican Republic was ranked at 108th in the World Bank’s Ease of Doing Business Indicator for 2012. In the same indicator, the DR was ranked at 65th for Protecting Investors, 83rd for Enforcing Contracts, and 45th for Trading Across Borders. To find out more about various countries around the world, please join us on Globial.com.