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Dominican Republic Economy

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The Dominican Republic is a two third of an island in the middle of the Caribbean with paradisiac features, one of the favorites destination in the Caribbean and Central America, making this one of the principal economic activity of the Dominican Republic. In 2014 tourism revenues was, directly and indirectly, 16% of the country’s GDP. Furthermore, according to the Minister of Tourism, this sectors represents 49% of overall foreign investment in the Dominican Republic.
However, the strong dependence in Tourism is an economic issue for the Dominican Republic because of its variable nature, given there is too many factors that the country can’t control making it vulnerable and in need to diversify its economy while making this important sector resilient. …show more content…
Not only with the astounding 16% contribution to the GDP, but almost 15% of the country’s total employment with a direct and indirect impact in the economy. Most importantly, the contribution to the international reserve, which is the measure of a country’s economic stability derived of the amount of strong currency that it has available in reserve , is also very significant with the arrival of 6.1 million of tourist with either dollars or euros to spend.
Therefore, should something happen that forces a sharp decline in the tourism sector, the Dominican Republic economy would enter immediately in a deep recession.
Tourism has a variable nature and it depends on numerous factors, and like any other sector, world’s economy has a direct impact. Whenever there’s a financial crisis there’s a decrease in the amount of tourist traveling to the DR. The most recent example the financial worldwide crisis that occurred during the years of 2007 until 2011 which reduced the amount of tourist .
More recently, the United Kingdom exit from de European Union and China’s economic slowdown has the international markets uneasy with unpredictable

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