Intelligent solutions to promote tourist destinations
Intelligent solutions to promote tourist destinations
Business Model Description
To develop and manage innovation, ICT and sustainability solutions that improve the tourism experience, offering personalized services and connectivity in smart destinations, while preserving and promoting their cultural, social and natural heritage.
Expected Impact
The implementation of ICT solutions in smart destinations promotes inclusive and sustainable development, improving the experience of people.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Ozama
Sector Classification
Services
Development need
The Dominican Republic seeks to promote sustainable and inclusive tourism as an economic driver. Problems of unemployment, diversification of the tourism sector, environmental degradation and economic dependence in the current tourism sector are evident. Its direct and indirect contribution promotes productive dynamism for 37.0% of economic activities (1).
Policy priority
The incidence of the service sector represents approximately 60.0 % of the total size of the economy. For the period 2021 - 2024 the government intends to generate a socially inclusive, sustainable and profitable tourism activity, which can accelerate the economic development of communities and their inhabitants (2, 3).
Gender inequalities and marginalization issues
In the tourism sector, women represent 54% of the tourism workforce, but the wage gap persists, with women earning 14.7% less than men (4). Sexual harassment is frequent.
Investment opportunities introduction
Investments in ecotourism, sustainable infrastructure, accessible and cultural projects promise to diversify and strengthen tourism. The silver economy and tourism trend are an opportunity to position and diversify the sector. Demand for authentic and eco-friendly experiences is on the rise, opening opportunities to develop less traditional destinations.
Key bottlenecks introduction
Despite progress, there are significant challenges in inclusive tourism in the Dominican Republic. Lack of awareness, insufficient staff training, and lack of clear regulations can limit progress. There may also be financial barriers to adapting facilities.
Hospitality and Recreation
Development need
Hotel and recreational activities are highly concentrated in a few tourist centers. There is a need to decentralize and diversify tourism supply with a focus on sustainability, inclusion, and gender equality (5).
Policy priority
The activity with the highest contribution to the GDP result in 2022 was hotels, bars and restaurants, with a year-on-year expansion of 24.0% in real value added. The performance of this sector was mainly driven by the total arrival of 7.2 million tourists by air, reaching a record (6).
Gender inequalities and marginalization issues
The tourism sector in the Dominican Republic has a high level of informality, especially among rural women linked to microenterprises. The lack of accessibility and promotion for people with disabilities generates exclusion (7).
Investment opportunities introduction
The growth of luxury tourism, accessible tourism, ecotourism and adventure tourism offers investment opportunities in hotels, resorts and related activities. Boosting air connectivity and infrastructure development expands the potential.
Key bottlenecks introduction
Regional competition, seasonality, and vulnerability to health crises affect the stability of the sector. In addition, environmental sustainability and waste management are key challenges for sustainable growth.
Leisure Facilities
Pipeline Opportunity
Intelligent solutions to promote tourist destinations
To develop and manage innovation, ICT and sustainability solutions that improve the tourism experience, offering personalized services and connectivity in smart destinations, while preserving and promoting their cultural, social and natural heritage.
Business Case
Market Size and Environment
< USD 50 million
For 2019, the colonial city of Santo Domingo received 645,948 international tourists (8).
The Ministry of Tourism forecasted that by the end of 2023, if no extraordinary event is registered, the country will receive 7.8 million tourists. In the first quarter of 2023, 2,076,171 people visited the country.
Indicative Return
< 5%
The global travel technology market size reached $8.6 billion in 2021. Looking ahead, the market is expected to reach $13.4 billion in 2027, with a year-on-year growth rate of 7.67% between 2021 and 2027 (9).
Investment Timeframe
Medium Term (5–10 years)
Only the pre-investment and monitoring of this type of projects is 3 years. For a country like the Dominican Republic, returns can occur over an investment horizon of 5 to 8 years. The implementation of technologies and their acceptance in the market may require time to reach a critical mass (10).
Ticket Size
USD 1 million - USD 10 million
Market Risks & Scale Obstacles
Capital - CapEx Intensive
Capital - Limited Investor Interest
Capital - Requires Subsidy
Impact Case
Sustainable Development Need
According to the IDB, it is estimated that by 2050, 85% of the population of Latin America and the Caribbean will be concentrated in urban areas. Therefore, one of the great challenges facing the region is the planning, administration and governance of cities in a sustainable manner (12).
With the possibilities offered by digital technology, the road to smart, people-centered cities is becoming increasingly viable for the region.
Gender & Marginalisation
According to the latest ITU data, the proportion of women using the Internet worldwide stands at 48%, compared to 55% of men. In relative terms, this means that the gender gap in Internet use worldwide stands at 12.5% (13).
Older adults face barriers in the use of technology. The development of accessible and intuitive ICT solutions could promote more inclusive tourism for this group (14).
Expected Development Outcome
Improvement of key public services, such as connectivity infrastructure, communication interfaces, citizen security and resource management (energy, water and transportation), thanks to the efficiency provided by technology.
Democratization of access to tourism information through open and inclusive digital platforms.
Strengthening education and empowerment of local communities through technology training and the promotion of tourism opportunities to generate jobs and improve the quality of life of citizens.
Gender & Marginalisation
Through accessible ICT solutions and training, we seek to reduce the gender gap in Internet use, allowing more women to access tourism information and economic opportunities.
By developing ICT solutions that are intuitive and adapted to the needs of the elderly, we hope to promote more inclusive tourism for this demographic group, improving their experience and participation.
Primary SDGs addressed
8.1.1 Annual growth rate of real GDP per capita
The annual growth rate of real GDP per capita is USD 11,180 (15).
Increased the score of the Environmental Sustainability Pillar of the Travel & Tourism Competitiveness Index from 4.1% to 5.2% (15).
8.2.1 Annual growth rate of real GDP per employed person
The annual growth rate of real GDP per person employed is USD 7500 (16).
9.c.1 Proportion of population covered by a mobile network, by technology
As of 2018, 99.15% of the population is being covered by a mobile network (17).
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Outcome Risks
Imbalance between technology use and social interaction: Over-reliance on ICT solutions could reduce face-to-face social interactions, diminishing the authenticity of tourism experiences.
Cultural misappropriation: Implementing ICT solutions without a deep understanding of local culture can lead to cultural misappropriation, alienating communities and tourists.
If the implementation of ICT solutions is overdone and the human and authentic experience is neglected, it could diminish the attractiveness of the tourism destination.
The adoption of technologies in tourism destinations could increase the demand for energy and resources if their environmental impact is not considered, counteracting sustainability efforts.
Gender inequality and/or marginalization risk: Implementing ICT solutions without considering accessibility and digital literacy could widen the digital divide
Impact Risks
ICT solutions are not tailored to the needs of marginalized groups, they may feel excluded and alienated from improvements in tourism experience and community participation.
If ICT solutions are not implemented considering sustainable practices, they could increase the demand for resources and generate a greater environmental impact on tourism destinations.
Lack of Economic Diversification: If ICT solutions are not translated into new economic opportunities, they could lead to over-dependence on tourism and limit economic diversification.
Gender inequality and/or marginalization risk: If ICT solutions do not address gender barriers to access, women may be excluded from the economic and social opportunities generated.
Impact Classification
What
Improving the Tourism Experience and Promoting Sustainability in Tourism.
Risk
Digital exclusion and inequalities.
Contribution
Empowerment of marginalized groups and citizen participation in urban planning.
Impact Thesis
The implementation of ICT solutions in smart destinations promotes inclusive and sustainable development, improving the experience of people.
Enabling Environment
Policy Environment
National Multi-Year Public Sector Plan 2021-2024: redesigns the planning process since the main objective of public policies should be to improve the quality of life of the people (18).
Institutional Strategic Plan 2021-2024 of the Ministry of Tourism: the PEI 2021-2024 is built around three strategic axes that establish the objectives, strategic results and the set of indicators and goals that the Ministry of Tourism intends to achieve.
Roadmap for a low carbon and resource efficient hotel sector in the Dominican Republic: Promotes low emission and resource efficient development through the transformation of tourism value chains in developing countries and SIDS (19).
Digital Agenda 2030: This strategy provides for the promotion of smart and sustainable cities in its line of action 1.13 (20, 21).
Financial Environment
Other incentives: Access to finance: Multiple banks offer loans to formal enterprises for ICT projects at market rate, facilitating investment.
Regulatory Environment
(Regulation): (enter national Development Strategy Law 1-12: Establishes the facilitation of digital literacy of the population and its equal access to ICTs as a means of social inclusion and closing the digital divide, through coordinated action among multiple actors (22).
In 1971, Law No. 153 was enacted, which talked about incentives and promotion of tourism in the country (23).
Regulation for the application of Law No. 5-13, on Disability in the Dominican Republic: This regulation consists of establishing the procedures and putting into practice the appropriate norms for the faithful compliance of the application of Law No. 5-13, on Disability.
Law No. 63-17, on Mobility, Land Transportation, Transit and Road Safety of the Dominican Republic. G. O. No. 10875 of February 24, 2017. This law has as its basic principle urban mobility and accessibility, responding to an integral model of sustainable transportation. (21).
Marketplace Participants
Private Sector
Asociación Nacional de Hoteles y Turismo de la República Dominicana (ASONAHORES), Banco de Reservas and Banco Popular.
Government
Ministry of Tourism (MITUR), Digital Transformation Cabinet of the Dominican Republic, Government Office of Information and Communication Technologies (OGTIC), Ministry of Environment and Natural Resources, National Council on Disability (CONADIS) and Ministry of Women (22).
Multilaterals
Inter-American Development Bank (IDB) and the United Nations Development Program (UNDP).
Target Locations
Ozama
References
- (1) UNDP, 201. Future-proofing tourism: How to transform tourism activity to enhance its contribution to sustainable development beyond its contribution to economic growth? https://www.undp.org/es/dominican-republic/blog/turismo-prueba-de-futuro-como-transformar-la-actividad-turistica-para-potenciar-su-contribucion-al-desarrollo-sostenible-mas
- (2) Central Bank, 2022. BCRD reports that the Dominican economy will grow 4.9% in 2022: https://www.bancentral.gov.do/a/d/5568-bcrd-informa-que-la-economia-dominicana-crecio-49--en-el-ano-2022.
- (3) (MEPyD, 2021. Tourism, an opportunity. Plan Plurianual del sector publico 2021-2024, page 113: https://mepyd.gob.do/wp-content/uploads/drive/DIGEDES/PLAN%20PLURIANUAL%20SECTOR%20PU%CC%81BLICO%202017-2020/PNPSP-Plan%20Nacional%20Plurianual%20del%20Sector%20Pu%CC%81blico.pdf.
- (4) Bloomberg. 2022. Mujeres dominicanas son mayoría en fuerza laboral del turismo, pero persiste brecha salarial. https://www.bloomberglinea.com/2022/03/17/las-mujeres-son-mayoria-en-la-fuerza-laboral-del-turismo-pero-persiste-la-brecha-salarial/
- (5) María Eugenia Morales et al. 2021. Turismo a prueba de futuro: ¿Cómo transformar la actividad turística para potenciar su contribución al desarrollo sostenible más allá del aporte al crecimiento económico? https://www.undp.org/es/dominican-republic/blog/turismo-prueba-de-futuro-como-transformar-la-actividad-turistica-para-potenciar-su-contribucion-al-desarrollo-sostenible-mas
- (6) Acento. 2023. Economía dominicana creció 4.9 % y se ubica como la séptima de América Latina. https://acento.com.do/economia/economia-dominicana-crecio-4-9-y-se-ubica-como-la-septima-de-america-latina-9158282.html
- (7) FAO. 2022. FAO y Ministerio de Turismo lanzan proyecto sobre inclusión de mujeres, jóvenes y asociaciones de pequeños agricultores a la cadena de valor del sector turístico. https://www.fao.org/republica-dominicana/noticias/detail-events/en/c/1607366/
- (8) Ministry of Tourism of the Dominican Republic, 2020. Evolution of Tourism Activity Colonial City of Santo Domingo: https://www.mitur.gob.do/wp-content/uploads/2020/12/Observatorio-Turistico-de-Ciudad-Colonial-Primer-Trimestre-2020.pdf
- (9) Travel Technology Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027: https://www.researchandmarkets.com/reports/5647632/travel-technology-market-global-industry.
- (10) IDB, 2016. The Road to Smart Cities Migrating from traditional management to the smart city: https://publications.iadb.org/publications/spanish/document/La-ruta-hacia-las-smart-cities-Migrando-de-una-gesti%C3%B3n-tradicional-a-la-ciudad-inteligente.pdf
- (11) IDB, 2016. The route to Smart Cities Migrating from traditional management to the smart city: https://publications.iadb.org/publications/spanish/document/La-ruta-hacia-las-smart-cities-Migrando-de-una-gesti%C3%B3n-tradicional-a-la-ciudad-inteligente.pdf
- (12) IDB. 2023. Reunión de Alcaldes del BID 2023: ¿Cómo financiar el desarrollo sostenible de las ciudades? https://blogs.iadb.org/ciudades-sostenibles/es/reunion-de-alcaldes-del-bid-2023-como-financiar-el-desarrollo-sostenible-de-las-ciudades/
- (13) ITU, 2022. International Girls in ICT Day 2022: https://www.itu.int/women-and-girls/girls-in-ict/international-girls-in-ict-day-2022/.
- (14) ITU, 2022. Digital technologies for healthy aging: https://www.itu.int/es/mediacentre/backgrounders/Pages/digital-technologies-for-healthy-ageing.aspx#:~:text=The%20ITU%2C%2C%20in%20consonance%20with,equal%20and%20equitable%20way%20.
- (15) MEPyD, 2021. Pluriannual National Public Sector Plan 2021-2024: https://mepyd.gob.do/publicaciones/plan-nacional-plurianual-del-sector-publico-2021-2024/
- (16) SDG Commission, Dominican Republic: http://ods.gob.do/Indicador/Index/96?fromMenu=True
- (17) SDG Commission, Dominican Republic: http://ods.gob.do/Indicador/Index/121?fromMenu=True
- (18) UN Environment, United Nations Environment Programme, 2019. Roadmap for a low carbon and resource efficient hotel sector in Dominican Republic: https://www.oneplanetnetwork.org/sites/default/files/hoja_de_ruta_republica_dominicana_1.pdf
- (19) Digital Transformation Cabinet of the Dominican Republic, 2022. Digital Agenda 2030: https://agendadigital.gob.do/wp-content/uploads/2022/02/Agenda-Digital-2030-v2.pdf
- (20) Law 1-12 on the National Development Strategy 2030: https://mepyd.gob.do/wp-content/uploads/drive/UAAES/END/Informes%20Anuales%20END/end_2030.pdf
- (21) Ministry of Tourism, Legal Framework: https://www.mitur.gob.do/quienes-somos/marco-legal/
- (22) Law No. 63-17, on Mobility, Land Transportation, Transit and Road Safety of the Dominican Republic. G. O. No. 10875 of February 24, 2017: https://intrant.gob.do/phocadownload/SobreNosotros/MarcoLegal/Leyes/MARCO%20LEGAL-LEY%2063-17%20SOBRE%20TRANSITO,%20TRANSPORTE,%20Y%20SEGURIDAD%20VIAL.pdf
- (23) ENHOGAR 2013, ONE and CONADIS. Accessible Tourism: https://conadis.gob.do/wp-content/uploads/2020/01/Infograf%C3%ADa-Turismo-Accesible.pdf
- (24) Government of Spain, Ministry of Industry, Commerce and Tourism, Destino turístico inteligente: https://www.destinosinteligentes.es/destinos/donostia-san-sebastian/
- (25) Government of Spain. Ministry of Industry, Commerce and Tourism. Smart Tourist Destination, the island of Tenerife in 2023 renews its accreditation as a Smart Tourist Destination: https://www.destinosinteligentes.es/tenerife-consigue-renovar-su-certificacion-nacional-como-destino-turistico-inteligente/