ABSTRACT

With the largest number of international tourist visits and the highest tourism-generated revenue in the entire Caribbean region, the Dominican Republic is looked to by many in Cuba as a tourism model they would like to emulate. However, in this chapter, a close examination of the Dominican Republic’s tourism earnings raises concerns about how much of the revenue generated by both land-based and cruise tourism actually stays in the country. Although the government and press portray cruise tourism as growing rapidly, the reality is that it is projected to contribute only about 10 percent to overall tourism arrivals and totals only 1 percent of total tourism revenue. The all-inclusive “sun, sea, and sand” model so prominent in the Dominican Republic comes with its own set of challenges. This chapter digs into the economics of the tourism industry in Cuba, concluding that the Dominican Republic would be wise to closely evaluate future growth and to choose and negotiate for those options that best serve the interests of its own population while protecting its heritage and beautiful natural resources.