I heard that they demanded that the government get involved and push the peso the other way or they will with hold payments of tax to the government. They based their packages at the 40-1 exchange rates. They are now losing big time.
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I heard that they demanded that the government get involved and push the peso the other way or they will with hold payments of tax to the government. They based their packages at the 40-1 exchange rates. They are now losing big time.
http://www.rdnoticias.com/modules.ph...windex&catid=2Quote:
Originally Posted by Q & A Man
Jimmy...They're feelin' it! Imho, the "government" is not only involved, it is the driving force behind the value of the dollar in DR at any given time (like a 3rd world "fed", but without a real Greenspan): I think the 3rd & 4th article as you scroll down this page refer to the lowering of some prices for basic domestic items at the grocery stores, the devaluation of the dollar, and some comments by Leonel on the state of the dollar (he's comfy with it the way it is...he's buying up his dollars and stashing them away too). There is also a system in place to increase worker's wages now by 30%...Robbing Peter to pay Paul...and the only sector that has yet to be addressed is the tourism industry!..hope this helps :?:
I hope the government pays attention...at least for my self absorbed purposes!Quote:
Originally Posted by Q & A Man
:roll:
Well the resorts employ many thousands to work there and there are 50 other islands where they can shift to pretty fast!
When it comes to monetary policy, short term solutions to fix short term problems, although politically popular, invariably hurt the long term picture. Monkeying with M1 and M2 can be disasterous if not done with the Big Picture in mind.
DR has no Alan Greenspan (who is THE most powerful man on the planet).
I would like to see some real stats on resort bookings for the upcoming season.
What may be best for tourists (and mongers) may not be the best for the country, as a whole, long term.
Resorts based their costs on 40-1, now its 28-1 so they are paying a lot more to their workers and to buy food and supplies. If a worker is getting 5,000 pesos a month, they were paying $125 but now they are paying close to $200 a month per worker. I would guess every large hotel has 100's of workers.Quote:
Originally Posted by Reel Deal
Bookings were made months ago so many are locked in, its the resorts that are getting burned now. Payday is the 15TH!Quote:
Originally Posted by Reel Deal
So they raise their prices to break even (minimum) with the risk customers go elsewhere. It's still a bargain.Quote:
Originally Posted by Jimmydr
I think that if the government ~artificially~ sets the rate at a point higher that market acceptance, it's just delaying the ultimate economic pain.
The reality is that dollars just aren't in demand as they once were. That $2 billion infusion may take a while to circulate within the economy and ultimately end up leaving the country. THEN, when dollars are then in demand again, the rate will go back up.
Someone once told me the rate always drops around the holidays because of DR ex-pats sending a lot of dollars back. Any statistical evidence of this?
Money is pouring in from the 1 million Dominicans in the states for X Mas. Santa is cumming soon!Quote:
Originally Posted by Reel Deal
Still, the rate that is there now is just as artificial.
I have seen reports saying that the real worth of the peso is still a lot closer to 50 to the dollar.
Leonel's government is manipulating the rate to be able to pay off the debts more cheaply and probably to make some money on the side as well. And if prices don't come down tourism will start to hurt.
Just looking at myself I know that, even though I make good money, these holidays are becoming expensive. Especially because I usually spend two to three weeks.
Food alone has gone from maybe $15 a day per monger to $30-$40 a day. Dinners were $5-$8 usually for me. Now double that for the chica and its out of control?Quote:
Originally Posted by jd_mine
It's not exactly "statistical", but you can see the trend...Quote:
Originally Posted by Reel Deal
http://finance.yahoo.com/currency/co...DOP&amt=1&t=1y
RD...yes, it's the "trend", due to the Dominicans over here sending Xmas money home and/or visiting their families in DR during the holidays.
It is what it is.
Inflation has affected many Third World countries negatively.
The #1 reason the DR has become a monger heaven is pricing. All things being equal, would you go there if it wasn't a bargain? If it gets more expensive, doesn't that just mean that Brazil, Columbis, CR, or SE Asia become more attractive?
I don't mean to be harsh, but to wish economic pain on an entire country for cheap sex is "exploitation".
There are four groups,#1, the A.I's and they are hurting, #2,the Ex Pats, they are hurting, #3, us mongers, we are hurting and #4, those sending money to their families and they are hurting. Everyone is hurt..Quote:
Originally Posted by Reel Deal
Jimmy-with all due respect, the first 3 groups don't really give a shit about anyone but themselves. The last group are the ones truly hurt.Quote:
Originally Posted by Q & A Man
Still...even at 25:1, the DR is a travel and fun bargain. But don't get me wrong: I want to see 40-50:1, too. I ain't no angel... :twisted:
Yes the first three groups are out for themselves and if the pull out, that hurts the Island greatly. The fourth group are not wealthy and really can't send any more than they do. DR needs all of the groups or DR will loose, Brazil, CR and a few other places will win.
My girls rent is 7.000 pesos a month in a complex where girls of foreigners live. Monthly pay is 5,000 pesos. Who will live in these complexes? School is 4,500 per kid. Locals do not put their kids in these schools. Who really looses here?Quote:
Originally Posted by Reel Deal
It is estimated $800 MILLION US comes in to the DR every year from Dominicans that made it out! Nice chunk of change!Quote:
Originally Posted by Q & A Man
I can pull that fact up if requested.
Funny they say they are losing big time...Quote:
Originally Posted by Q & A Man
Think about the reality of the situation:
The peso was 27-1 14 months ago.
During which time there was no major tax increase or wage increase (yes currently there is a tax increase and there will be a wage increase).
Are you trying to tell me that they resorts gave all the workers huge raises during the past 14 months that they are hurting now???
What they really meant to say is that they aren't making as much money as they did last season. :shock:
Well if you noticed, packages dropped from around $800-$1200 down to about $400-$600 or maybe that was before your time. Airfare was a major chunk but it did drop massively. When the airfare dropped so did the resort prices.