Two more Dominican Republic hotels close down in Puerto Plata
Sun Village and Maxim's Bungalows are the latest Dominican Republic hotels to join the list of the other 12 hotels that have had to close down due to the negative impact that the global recession has had on Dominican tourism
Dominican Republic holidays continue to suffer from the negative aftermath effects of the global recession as more Dominican Republic hotels are forced to close down operations and shut down their resorts for an indefinite time, as they wait for tourism to recover when the number of travellers visiting this holiday destination starts increasing again.
Over 400 employees were suspended from their workplace this week as the management of Sun Village and Maxim’s Bungalows in Puerto Plata temporarily closed down their hotels and put a stop to their operations due to a judicial conflict between their shareholders.
With the closing of these two Puerto Plata hotels now the total number of Dominican Republic hotels that have had to shut down has escalated to a total of 14 resorts closed in the tourist areas of Luperon, Costambar, Cabarete, Sosua and Playa Dorada, all due to the low profit margins as a consequence of the decrease in the number of tourists arriving for Dominican Republic holidays.
The manager of both Puerto Plata hotels, Joaquin Dueñas has suspended the working functions of 409 employees and proceeded to transfer hundreds of guests staying at the either of these hotels and reallocating them at the Hacienda Resort in Cofresí.
Shareholders of both of these Dominican Republic hotels have divided into three groups trying to stop the Grupo Elliot from continuing in charge of operations, a group which only holds 13% of the shares of the closed properties. Until the conflict is resolved, both hotels accounts have been frozen following orders from a Miami federal judge.
The low occupancy experienced by many Dominican Republic hotels is seriously affecting the country’s economy as it is highly dependable on the tourism industry. Dominican Republic holidays’ global appeal is officially in a much needed rescue from holidaymakers worldwide selecting this as their holiday destination.
Last Monday, Haydée Kuret, the president of the Hotels and Restaurants Association predicted that the Dominican Republic’s tourism industry will have to wait until 2011 to begin experiencing any improvement.
The businesswoman didn’t rule out any possible alleviation to the situation by next December 2009, when the boreal winter sends massive waves of tourists towards warmer climates in the tropics, but she denied estimating the magnitude of the possible success of Dominican Republic holidays attracting more visitors.
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