Caribbean tourism sector faces tax dispute in Dominican Republic as Aruba records record visitor growth

A coalition of Dominican Republic tourism agencies, tour operators and event organizers has demanded a technical review of the solid‑waste tax imposed under Law 225‑20. They argue the tax, calculated on gross revenues rather than profit, could force small and medium‑sized tourism firms to pay up to 600,000 pesos a year, endangering roughly 1,500 agencies and between 12,000 and 15,000 direct jobs, the majority of which are held by women. The groups say the levy threatens the operational backbone of the island’s tourism industry and have called for a meeting with the Ministry of Tourism, the Ministry of Environment, Industry and Commerce and the tax authority.

Meanwhile, Aruba reported an 8.9% increase in overnight visitor arrivals in the first quarter of 2026, with 427,343 guests compared with the same period last year. The growth is attributed to massive luxury‑hotel investment, including the opening of the St. Regis Aruba Resort, JOIA Aruba by Iberostar and Secrets Baby Beach Aruba, as well as the island’s extensive nonstop flight connections to the United States, Canada, Europe and Latin America. The visitor surge is boosting local businesses, tour operators and employment across the island’s tourism‑dependent economy.