NewsWhore
03-25-2011, 05:40 PM
The price of aviation fuel in the DR has increased by 25% since January. Frank Rainieri, CEO for the Punta Cana airport, the Caribbean airport that services the most airlines, is concerned that the increases will lead to declines in air passenger arrivals.
In an interview with Listin Diario, he highlighted that taxation on fuel in the DR is higher than in Mexico, Cuba, Jamaica and Puerto Rico, where many planes that sourced in the DR are now refueling.
The cost of fuel has increased by RD$30.16, equivalent to 25.1%. It increased from RD$119.92 to RD$150.08 the gallon this year.
Rainieri said that fuel sales are down, as airlines choose, whenever possible, to fuel abroad.
Rainieri said the airlines are sourcing abroad, but if the high fuel prices continue, the airlines could find new markets, with a consequential reduction in travelers.
Rainieri said that the government could collect more taxes if it reduced taxation as more airlines would source here. The prospects are that fuel prices will continue on the rise.
The high cost of fuel is an obstacle to the development of tourism. The DR received four million air arrivals in 2010, the most of any single country in the Caribbean.
Rainieri points out that in addition to the higher fuel prices, the tourism sector has been affected by other tax increases with talk of new taxes on the horizon, increases in intermediary fees, and a reduction of advertising in source markets.
He added that the country could attract the 500,000-800,000 more tourists this year, if efforts are made to attract thousands of the 20 million tourists who would have traveled to North Africa and who will now be looking for new sun destinations.
He said that what would be counterproductive is if the country takes masures that further affect tourism in the DR, such as reducing the budget of the Ministry of Tourism at a time the country should be increasing efforts to attract those tourists.
More... (http://www.dr1.com/index.html#8)
In an interview with Listin Diario, he highlighted that taxation on fuel in the DR is higher than in Mexico, Cuba, Jamaica and Puerto Rico, where many planes that sourced in the DR are now refueling.
The cost of fuel has increased by RD$30.16, equivalent to 25.1%. It increased from RD$119.92 to RD$150.08 the gallon this year.
Rainieri said that fuel sales are down, as airlines choose, whenever possible, to fuel abroad.
Rainieri said the airlines are sourcing abroad, but if the high fuel prices continue, the airlines could find new markets, with a consequential reduction in travelers.
Rainieri said that the government could collect more taxes if it reduced taxation as more airlines would source here. The prospects are that fuel prices will continue on the rise.
The high cost of fuel is an obstacle to the development of tourism. The DR received four million air arrivals in 2010, the most of any single country in the Caribbean.
Rainieri points out that in addition to the higher fuel prices, the tourism sector has been affected by other tax increases with talk of new taxes on the horizon, increases in intermediary fees, and a reduction of advertising in source markets.
He added that the country could attract the 500,000-800,000 more tourists this year, if efforts are made to attract thousands of the 20 million tourists who would have traveled to North Africa and who will now be looking for new sun destinations.
He said that what would be counterproductive is if the country takes masures that further affect tourism in the DR, such as reducing the budget of the Ministry of Tourism at a time the country should be increasing efforts to attract those tourists.
More... (http://www.dr1.com/index.html#8)