Tourism for people with disabilities

Sustainable and Inclusive tourism for people with disabilities

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Sustainable and Inclusive tourism for people with disabilities

Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Services
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Hospitality and Recreation
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
< USD 50 million
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Reduced Inequalities (SDG 10) Responsible Consumption and Production (SDG 12)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Gender Equality (SDG 5) Sustainable Cities and Communities (SDG 11) Partnerships For the Goals (SDG 17)

Business Model Description

To build and improve the infrastructure and complementary services of hotels, restaurants, means of transportation and tourist attractions accessible to people with physical, visual, hearing and intellectual disabilities, so that they can be enjoyed on equal terms by any person.

Expected Impact

By promoting inclusion, equality and sustainability, tourism is enriched by unique tourism experiences, diversifies the sector and empowers citizens.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

Disclaimer

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Country & Regions

Explore the country and target locations of the investment opportunity.
Region
  • Yuma
  • Cibao Norte
  • Ozama
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Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

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 only 40.47% for total formal employment and 62.87% for total informal employment compared to men. Women earn 17% less on average (UNDP 2020). 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.

Sub Sector

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.

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.

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.

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.

Industry

Hotels and Lodging

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Sustainable and Inclusive tourism for people with disabilities

Business Model

To build and improve the infrastructure and complementary services of hotels, restaurants, means of transportation and tourist attractions accessible to people with physical, visual, hearing and intellectual disabilities, so that they can be enjoyed on equal terms by any person.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

< USD 50 million

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

23,013 tourists with disabilities were registered in Punta Cana between 2015 and 2016. (8)

There are about 1 billion people with disabilities in the world. 17% of adults aged 21 to 64 in the United States have a disability. Canada has 6 million people with disabilities. The country is visited by 7.2 million tourists annually and 12.3% of people live with some type of disability in the Dominican Republic (9, 10).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

10% - 15%

American adults with disabilities and reduced mobility spend $13.6 billion a year on travel, on average. They have the economic facility to travel, and travel accompanied. They spend an average of US$815, compared to US$600 for conventional tourists (11).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Short Term (0–5 years)

3 years to see minimum returns, because initial investments in infrastructure and production of specialized customer service services are needed, considering that human resources in the tourism sector are constantly rotating because it is such a dynamic sector in the country.

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

USD 1 million - USD 10 million

Market Risks & Scale Obstacles

Capital - CapEx Intensive

High initial costs to design and develop accessible infrastructure, as well as lack of knowledge and awareness of market trends and opportunities.

Capital - Limited Investor Interest

Insufficient government incentives and lack of awareness and sensitization of companies and business owners on the profitability of this type of business.

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

There are physical barriers, derived from a design that does not meet the concept of universal accessibility, communicational barriers, which are reflected when the information provided is not accessible to all people, and attitudinal barriers reduce or prevent their participation or access.

The geographic concentration of tourism in traditional poles generates economic prosperity. However, it does not generate human development in emerging or rural areas.

Natural capital is compromised in overcrowded tourist destinations, affecting endemic biodiversity as well as non-renewable natural resources.

Gender & Marginalisation

Women's chances of entering the world of work in the tourism sector are reduced due to factors that do not depend on them, such as overprotection by their families, the lack of adapted transportation and its excessive cost, physical access barriers or unsuitable schedules, among others.

Unequal opportunities: People with disabilities face inequalities in employment and education.

Expected Development Outcome

Increased economic opportunities for people with disabilities through employment in sustainable and accessible tourism.

Improved infrastructure and transportation by making them accessible, benefiting and diversifying the tourism market and niches as well as residents.

Promote sustainable practices that limit the degradation of natural capital in tourism destinations. This can lead to the conservation of endemic biodiversity and responsible management of non-renewable resources, preventing environmental damage.

Gender & Marginalisation

Economic empowerment of women with and without disabilities through entrepreneurship in inclusive tourism services.

Formalization of employment for migrant workers in the tourism sector, improving their working conditions.

Risk of continuing to segregate women and migrants in low-skilled and low-wage occupations if stereotypes and prejudices are not addressed.

Primary SDGs addressed

Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth

8.5.2 Unemployment rate, by sex, age and persons with disabilities

Current Value

According to data from the National Bureau of Statistics, female unemployment as of 2021 is 12.10% and male unemployment is 3.9%.

Target Value

According to the results of the National Multi-Year Public Sector Plan 2021-2024, in the expected results 2021-2024 the government expects to increase the formal employment rate in Tourism from 35.3% to 41.9%.

Reduced Inequalities (SDG 10)
10 - Reduced Inequalities

10.2.1 Proportion of people living below 50 per cent of median income, by sex, age and persons with disabilities

Current Value

According to data from the National Bureau of Statistics, as of 2022, women have been more affected than men, 14.30% and 12.50% respectively in relation to indicator 10.2.1.

Responsible Consumption and Production (SDG 12)
12 - Responsible Consumption and Production

12.6.1 Number of companies publishing sustainability reports

Secondary SDGs addressed

Gender Equality (SDG 5)
5 - Gender Equality
Sustainable Cities and Communities (SDG 11)
11 - Sustainable Cities and Communities
Partnerships For the Goals (SDG 17)
17 - Partnerships For the Goals

Directly impacted stakeholders

People

Approximately 15% of the world's population lives with some type of disability. This group will benefit directly from inclusive tourism that allows them to access tourist destinations and enjoy barrier-free experiences. Also, older adults in retirement.

Gender inequality and/or marginalization

Local communities in tourism destinations can be positively affected through employment opportunities, economic growth and development of accessible infrastructure.

Planet

Ecosystems affected by pollution.

Corporates

Businesses that implement inclusive practices can appeal to a broader market segment and generate long-term sustainable revenues.

Public sector

They have a key role in establishing regulations, policies, and incentives that promote accessibility and inclusion in tourism.

Indirectly impacted stakeholders

People

Family and friends of people with disabilities: These people also benefit from having opportunities to travel and enjoy tourism experiences together.

Planet

By promoting inclusive and sustainable tourism, negative impacts on the environment in tourism destinations can be minimized.

Corporates

They can play a role in investing and financing projects that promote accessibility in tourism.

Outcome Risks

Negative environmental impact: If sustainable practices are not implemented, the increase in tourists could cause damage to the natural and cultural environment of destinations.

Social exclusion: If cultural and social aspects of destinations are not adequately addressed, exclusion of local communities and minorities could occur.

Unequal economic impact: If the economic gains generated by tourism are not distributed equitably, certain communities could be marginalized.

Economic dependence: Excessive dependence on tourism can make economies vulnerable to fluctuations in the industry and lack of diversification.

Gender inequality and/or marginalization risk: There is a risk that not all people with disabilities will be able to access inclusive tourism opportunities.

Impact Risks

Deterioration of quality of life: Failure to strike the right balance between tourism and the quality of life of local communities could result in worsening living conditions for people.

Loss of biodiversity: If sustainable practices are not implemented, increased tourism could contribute to the degradation of the natural environment and loss of biodiversity.

Negative cultural impact: Lack of cultural sensitivity in inclusive tourism could lead to loss of cultural authenticity and homogenization of experiences.

Exclusion of people with disabilities: If accessibility measures are not adequately implemented, people with disabilities could face greater barriers and exclusion in tourism destinations.

Gender inequality and/or marginalization risk: Gender inequality and marginalization: If not adequately addressed, gender inequalities and marginalization could persist or even increase.

Impact Classification

B—Benefit Stakeholders

What

Improving accessibility and participation of people with disabilities in tourism, promoting environmental and cultural sustainability in tourism destinations.

Who

People with disabilities, local communities, tourists, tourism companies, public sector.

Risk

Exclusion of people with disabilities, negative environmental impact, unequal distribution of economic benefits.

Contribution

Promotion of social and economic inclusion, empowerment of local communities and people with disabilities.

How Much

Significant increase in the participation of people with disabilities in tourism, improved quality of life in local communities, reduced environmental footprint of tourism destinations.

Impact Thesis

By promoting inclusion, equality and sustainability, tourism is enriched by unique tourism experiences, diversifies the sector and empowers citizens.

Enabling Environment

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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 (14).

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 (15).

Financial Environment

Financial incentives: Access to Financing: Multiple banks and savings associations offer financing at market rates for social inclusion projects, facilitating investment, as long as you are a formal enterprise.

Other incentives: Public Auctions: The government makes offers through the public procurement system for the acquisition of goods and services that may impact people with disabilities as the final target public, promoting competition and ensuring short and medium-term contracts.

Regulatory Environment

(Regulation): Law 1-12 of the National Development Strategy: Establishes the promotion of the creation of infrastructure and logistics of mobility and displacement for its effective use by people with disabilities, according to the norms of universal accessibility (16).

(Regulation): In 1971, Law No. 153 was enacted, which talked about incentives and promotion of tourism in the country (17).

(Regulation): Regulation for the application of Law No. 5-13, on disability: it consists of establishing the procedures and putting into practice the adequate norms for the faithful compliance of the application of Law No. 5-13, on disability.

Marketplace Participants

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Private Sector

National Association of Hotels and Tourism of the Dominican Republic (ASONAHORES), Banco de Reservas, Banco Popular and APAP.

Government

Ministry of Tourism (MITUR) and National Council on Disability (CONADIS) (18)

Multilaterals

Inter-American Development Bank (IDB) and the United Nations Development Program (UNDP).

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
urban

Yuma

The prevailing technical criterion for selecting these territories is that they are the provinces most visited by national and international tourists, according to sources from the country's Central Bank.
semi-urban

Cibao Norte

semi-urban

Ozama

References

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