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Economic Downturn Affects D.R

I thought this was a very interesting article. Could mean some real bargains for those who still have the economic means to travel.

Wow, this is all-to-real.

You certainly cannot relate the situation at Cap Cana with resort bookings, these are all together to different animals.

Meanwhile resorts are continuing to be built and added to in the Punta Cana area.

I would think there would be a totally different philosophy toward building a hotel for travelers staying 1 or 2 weeks at a time or building a string of condos for someone plunking millions down for a vacation home in paradise.

EDinNB

I think that some of you are missing the point of the article. Although the article uses specific examples from the Cap Cana project (and by the way, Cap Cana is not just condos - the article even refers to four luxury hotels that are under construction there) as a representative example, the story generalizes this example to point out the downturn in travel to the Caribbean as a whole.

Although construction certainly continues on new AI resorts in PC, all of these projects were authorized by their respective companies and started before the credit crunch took over the economic reality of today’s world. Let’s wait and see how many additional new resorts are started in the next 6 months to 1 year. I’ll be surprised if there are any!

I may be dead wrong about this and I will be the first to admit if I am, but I still believe that it is safe to assume that there has been a downturn in bookings for all the resorts as a result of the economic crunch, not just in the high-end resorts. In fact, there is a strong argument to be made that the high-end resorts would be somewhat insulated from the effects of the crunch because of the fact that most of the guests are wealthy.

This is a very subjective yardstick, but it seems to me that postings on this and other travel related boards seem to be down significantly this year as compared to this same time period last year. People tend to be most active on these boards just prior to leaving on a planned trip and just after their return from a trip. They don’t frequent the boards as often in between trips (other than the die-hard posters who constitute the bulk of those posting right now).

In a post on another board subsequent to my post about this article, PC Mike just referenced hard times in PC and suggested that it was the result of too much competition in the industry. That’s what happens when bookings don’t fill capacity - prices drop in an attempt to fill capacity and unfilled capacity drives layoffs.

I am as concerned as anyone about the impact of this economic crisis on the good people of the Dominican Republic (as well as on the rest of the whole developed world). My wife and I love them too. But sticking our heads in the Bavaro sand doesn’t mean that the crisis isn’t real and it certainly won’t make it go away.

Cap Cana was started over 3 years ago before the credit crunch took over… the crisis is real and I would expect that occupancy rate will be lower, although I was in PUJ Oct 5-12 and Oct 25-Nov. 2 and they resorts I was at we at 75% and 85% capacity respectively according to the management I talked with.
We will have to wait and see what the high season brings.

We are banking on bookings being lower… our group has decided to “Wait and See” hoping that tour companies get nervous and start selloffs earlier this year…We normally Book for March in October, but we are waiting till mid December at the earliest to book, we may wait longer…

EDinNB

[quote=@southernnber]We are banking on bookings being lower… our group has decided to "Wait and See" hoping that tour companies get nervous and start selloffs earlier this year…We normally Book for March in October, but we are waiting till mid December at the earliest to book, we may wait longer…

EDinNB[/quote]

you and a lot of other people who fear they may not have a job or $$ to go on a vacation or that their tour company may go belly up before they leave .

That is the reason why Ontario people for booking through a Tico registered travel agency. The compensation fund provides reimbursement of monies paid to an Ontario registered travel agent for travel services that are not provided due to the bankruptcy or insolvency of an Ontario registrant or an end supplier, airline or cruise line.

That is the reason why Ontario people for booking through a Tico registered travel agency. The compensation fund provides reimbursement of monies paid to an Ontario registered travel agent for travel services that are not provided due to the bankruptcy or insolvency of an Ontario registrant or an end supplier, airline or cruise line.
[/quote]

Does TICO pay my mortgage while I’m laying on the beach unemployed?? and a second note, a co-worker was in Italy when Zoom went bankrupt …lots of paper work and not one penny yet…TICO said get the $ from credit card company for services not rendered …guess what credit card company said…get it from TICO.

Worked a number of years ago with the demise of Canada3000

And it may still work…but it takes months and lots of time on the phone, sending emails and faxes. Not a simple process like taking back a pair of shoes that don’t fit to walmart.

Another interesting article …EdinNB you may get your wish! LOL

http://www.dominicantoday.com/dr/economy/2008/11/24/30175/Fewer-visitors-should-seriously-concern-Dominican-tourism-industry-ONG

After reading that article all I can say is WOW…

and still more

I have friends who tried to book a group of 12 going to Cuba over March Break. They were told that all the flights on the days they wanted to go are sold out. Someone must be booking ahead of time…

That or instead of 5 planes going there is only one because they can’t fill more than that??

interesting article

http://tinyurl.com/6jgap3