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View Full Version : Competitiveness versus taxation



NewsWhore
09-28-2012, 06:50 PM
During the opening ceremony of the Hotel & Tourism Association (Asonahores) 26th annual trade show, held for the first time in Punta Cana, the new president of Asonahores, Luis Rodriguez urged the government to think hard about increasing taxation, giving priority to the country's competitiveness. "Nobody should interpret that I advocate for a tax-free tourism industry package," said Rodriguez, while stressing that tax incentives were neither good nor bad, but simply tools for competition. "They are investments that generate returns in the short term," he said.

Rodriguez, who has represented Casa de Campo at Asonahores for many years, said that the government should also take into account the scale of all the taxes that the tourism industry generates for the government with its major contributions to the country's economy and development.

He said the Ecocaribe study showed that in 2010, tourism accounted for only 1.2% of the so-called fiscal expense, or tax exemptions granted by the government to the sector. He said the same study proved that the government received on average US$234 for each tourist visiting the country, adding that tourism contributed 15% of government taxation revenues.

He made the point that in order to reach President Medina's stated goal of 10 million tourists by air by 2022, or even to maintain the current level of five million tourists, the country needed to be competitive. He said that meant many things, including making sure the fiscal burden of the tourism product is not out of context. He stressed that competition in the industry comes from abroad. "We have to continue to be an attractive destination for investment," he said.

This year, the trade show is dedicated to East Coast tourism development pioneer Frank Rainieri. Some 97 companies are participating.

Minister of Tourism Francisco Javier Garcia represented the Dominican government at the event.

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