NewsWhore
06-03-2011, 04:40 PM
Writing in today's El Caribe, tourism sector specialist Manuel Quiterio Cedeno says that airlines have already begun to cancel flights to the Dominican Republic, a consequence of the country having higher costs of avtur than other competing destinations. Taxation alone has increased 35%, on top of the higher petrol costs that has led to price increases.
He mentions that long-haul flights from Russia are among the first to be affected. Russian tourism increased from 16,459 in 2006 to 79,868 in 2010. Last winter there were nine weekly flights from Moscow and St. Petersburg (seven by Transaero and two Aeroflot). By April this year 40,000 Russians had already visited the DR, more than 50% of total arrivals from Russia in 2010.
In 2000, 451,000 tourists visited from Germany, another major long-haul destination. The number of German tourists visiting declined to 178,000 in 2009, but this year there was a sign of recovery of the market.
However, Cedeno warns that the high cost of fuel and taxation is reversing the trend. High taxation has led the Dominican Republic to sell the most expensive fuel in the Caribbean.
A March report points out that fuel here is 21% more expensive than in Puerto Rico, 15% more than in Cancun, 19% more than in Kingston and 22% more than in Montego Bay. This is in addition to the US$62 that the government charges at the airports per tourist, also the highest in the Caribbean, with Cancun in second place with US$48.
Cedeno writes that the consequences are already in evidence. He said that Transaero announced it was reducing its flights in the summer from seven to two. Condor announced the cancellation of 10 flights, and Air Berlin will cancel 30. TUI, the largest European tour operator, will reduce its flights by 12% this coming winter.
The reason is simple: for a 747 with a daily flight from Europe, operation costs are up US$2.2 million a month and for a 767, US$1.2 million.
"It appears that by applying a legal but absurd scheme, we are about to lose tourists and the government will lose revenues," concludes Cedeno.
More... (http://www.dr1.com/index.html#10)
He mentions that long-haul flights from Russia are among the first to be affected. Russian tourism increased from 16,459 in 2006 to 79,868 in 2010. Last winter there were nine weekly flights from Moscow and St. Petersburg (seven by Transaero and two Aeroflot). By April this year 40,000 Russians had already visited the DR, more than 50% of total arrivals from Russia in 2010.
In 2000, 451,000 tourists visited from Germany, another major long-haul destination. The number of German tourists visiting declined to 178,000 in 2009, but this year there was a sign of recovery of the market.
However, Cedeno warns that the high cost of fuel and taxation is reversing the trend. High taxation has led the Dominican Republic to sell the most expensive fuel in the Caribbean.
A March report points out that fuel here is 21% more expensive than in Puerto Rico, 15% more than in Cancun, 19% more than in Kingston and 22% more than in Montego Bay. This is in addition to the US$62 that the government charges at the airports per tourist, also the highest in the Caribbean, with Cancun in second place with US$48.
Cedeno writes that the consequences are already in evidence. He said that Transaero announced it was reducing its flights in the summer from seven to two. Condor announced the cancellation of 10 flights, and Air Berlin will cancel 30. TUI, the largest European tour operator, will reduce its flights by 12% this coming winter.
The reason is simple: for a 747 with a daily flight from Europe, operation costs are up US$2.2 million a month and for a 767, US$1.2 million.
"It appears that by applying a legal but absurd scheme, we are about to lose tourists and the government will lose revenues," concludes Cedeno.
More... (http://www.dr1.com/index.html#10)