Tourism spending analysis: Panama versus the Dominican Republic

23-03-24

In the vibrant international tourism scene, two Latin American destinations have captured attention for contrasting reasons. On the one hand, the Dominican Republic has positioned itself as a global tourism powerhouse, thanks to its impressive growth and attractive future. Last year, the Caribbean country broke records by welcoming more than 10 million visitors. However, a closer look at tourism spending reveals a paradox: despite its popularity, in terms of spending per visitor, the Dominican Republic is surpassed by Panama. Why the difference?

In 2023, Panama welcomed 2,518,476 tourists, who left a remarkable economic impact of US$5,451.9 million. Adjusting the figures to make a fair comparison and excluding cruise ship visitors, the Dominican Republic welcomed 8,058,671 tourists, generating US$9,828.9 million in revenue. Although the Dominican Republic leads in absolute terms, the average daily expenditure per tourist in Panama reached US$270.6, significantly exceeding the US$153.3 observed in the Caribbean country.

According to analyses published, the key to this discrepancy lies in the strategic orientation of each destination. While the Dominican Republic is synonymous with rest and relaxation, Panama has emerged as a hub for shopping tourism. This different approach not only defines the visitor experience but also the spending pattern during their stay.

In this context, Antonio Santos del Valle, head of the World Shopping Tourism Network, underscores the complexity of tourism spending, noting that "many aspects must be taken into consideration when considering tourism spending, such as shopping tourism and purchases of services and products." This observation reminds us that the analysis of tourism spending must transcend gross figures to encompass the diversity of factors that motivate the modern traveler.

The predilection for Panama in terms of tourism spending reflects a broader trend toward exclusive shopping experiences and the acquisition of unique services and products. This phenomenon suggests a shift in the priorities of tourists, who seek destinations that offer not only natural beauty and relaxation but also shopping opportunities and enriching cultural experiences.

The Panama-Dominican Republic tourism comparison highlights the importance of adapting tourism development strategies to the expectations and consumption patterns of visitors. While the Dominican Republic remains a favorite destination for those seeking a tropical retreat, Panama emerges as an example of how diversifying tourism offerings can increase spending per visitor, a valuable lesson for other destinations aspiring to maximize their economic impact in the competitive global tourism market.