Cabo Rojo: a commercial company to “shield” tourism from politics

Pedernales .- During the current government’s tenure, there has been a focus on developing tourism in the southern part of the Dominican Republic, particularly in Pedernales. To facilitate this development, a bill is being debated in the National Congress to create the Cabo Rojo Tourism Corporation. This proposal aims to establish a partnership between the government and the private sector to develop and operate tourism infrastructure in the province.

Sigmund Freund, head of the General Directorate of Public-Private Partnerships (DGAPP), stressed the importance of this initiative. It aims to build trust within the private sector, ensuring that the Pedernales tourism project can progress without being subject to political changes or modifications by future governments. The project’s complete phase could span up to 20 years, so it is crucial to have a stable framework for its development.

Freund explained that state bureaucracy could hinder the government’s plans for Pedernales, so a legal mechanism is needed to manage the project with private sector contributions. While there is an existing trust for the project, it only involves public entities, and the private sector cannot participate. Therefore, a commercial company is being proposed to facilitate private contributions to the project’s operation.

Around $320 million has already been invested in construction and infrastructure in the Pedernales area, including roads, electrical substations, treatment plants, sewage systems, and three hotels. The development also considers essential aspects such as water supply and electricity. Studies have shown that Pedernales has sufficient water resources to support more than 18,000 hotel rooms for over two decades. Measures are also being taken to improve the reliability of the electrical supply for the tourism project.

The hotels being constructed in Pedernales will have four to five levels and a total of 4,700 rooms in the first phase of the project. Environmental regulations are being followed, with buildings located at least 160 meters away from the sea to preserve the natural environment of the area. The Pedernales tourism project represents a significant effort to harness the region’s tourist potential in a sustainable and collaborative manner.