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View Full Version : Avtur price threatens Dominican tourism



NewsWhore
05-26-2011, 05:00 PM
The president of the Punta Cana Group Frank Rainieri has warned the government against complacency in the face of rising fuel prices. He said the argument that the DR is second in the Caribbean (behind Cancun) is not valid. He said the country faces serious competition from Mexico, Cuba, Puerto Rico, Costa Rica and Jamaica. He said that TUI, the largest European tour operator already announced a suspension of 12% of its flights to the DR because of the increases in the local price of avtur. He complained that the price of avtur at airports was increased last Tuesday from US$3.15 to US$4.13 per gallon. In Cancun, a gallon of avtur costs US$3.67, that is 50 cents less than in the DR. Moreso, the cost of avtur in Costa Rica is US$3.45, 70 cents less, and in Jamaica, US$3.13, or US$1 less. In Puerto Rico it is US$3.10 or US$1 less.

Rainieri spoke during a discussion "Importance and Perspectives of Tourism in the Dominican Republic" sponsored by the Permanent Commission of Tourism of the Chamber of Deputies at the Hotel Santo Domingo.

He said that since 2009, the government has increased taxation on avtur by 45%, from US$0.47 to US$0.66 per gallon.

Taxation in competitor nations is on average US$20 less, according to Rainieri. "This is competitively affecting us not only because of the high cost of fuel but because of the additional charges, also," he explained.

He called for increased promotional campaigns to attract more visitors.

Rainieri says that while the price of fuel cannot be controlled, locally we can control taxation. He said that in most places avtur is not taxed, or minimally taxed, as reported in Hoy.

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