Friday, September 11, 2026.
This Week: Dominican Republic
This week we return to the Caribbean and turn our attention to the Dominican Republica, a country I have had the pleasure of visiting many times over the years and one that I have always particularly enjoyed. Punta Cana and the eastern coastline understandably receive much of the international attention, with their extraordinary beaches and enormous tourism infrastructure, but I have also developed a real affection for Santo Domingo. There is something about the capital, the history, the people, the architecture, the restaurants and the energy of the city, that gives you an entirely different appreciation for the country beyond the walls of an all-inclusive resort.
It is also fitting that we visit the Dominican Republic in our newsletter after previously featuring Haiti. The two nations share the island of Hispaniola, yet their modern economic, political and security realities could hardly be more different. Today, the Dominican Republic has emerged as one of the Caribbean’s most important economic and tourism success stories. During just the first six months of 2026, the country received more than 6.6 million visitors, an increase of 7.7% over the same period in 2025, and the government is projecting approximately 12 million visitors for the year. Tourism, foreign investment, construction, exports and remittances have helped transform the Dominican economy and have made the country increasingly important to international business.
For those of us in the investigative and security professions, however, there is another side to this extraordinary growth that deserves attention.
One of the most interesting examples can be found in Punta Cana with the opening of Moon Palace The Grand – Punta Cana. This is not simply another Caribbean hotel. It is a development representing an investment of more than US$1.5 billion, with 2,171 rooms and an anticipated workforce of approximately 5,700 direct employees. The scale is so great that the developers are also creating Ciudad Palace, a residential community initially intended to house approximately 4,000 employees near the resort, eventually accommodating more than 12,000 employees and family members.
Stop for a moment and think about what 5,700 employees actually means from a security and operational perspective.
It is easy to read that number and simply think, that’s a lot of employees. But imagine a shift change involving 1,000, 1,500 or perhaps 2,000 people. Employees have to arrive. Others have to leave. Buses and private vehicles have to enter and exit. Employees must be identified and access-controlled. Attendance must be registered quickly. Uniforms, contractors, vendors and deliveries must be distinguished from hotel guests. Restricted areas have to remain restricted while enormous numbers of people are moving through the property simultaneously.
You cannot have 2,000 people standing in line waiting to punch a conventional time clock. Nor can security manually inspect thousands of credentials without creating bottlenecks. Everything, from transportation and employee access to biometric systems, CCTV, visitor management, loss prevention and emergency response, has to function almost simultaneously.
And that is before we begin talking about the investigative side.
A property employing thousands of people and serving thousands of guests inevitably faces employee screening, internal theft, fraud, procurement irregularities, vendor due diligence, workplace investigations, cyber incidents, organized theft, guest complaints, missing property, insurance claims, background investigations and occasionally much more serious incidents. Add hundreds of suppliers, contractors, transportation providers and other third parties, and a single mega-resort effectively becomes a small city from a risk-management perspective.
Multiply that by the continuing development taking place throughout Punta Cana and the eastern Dominican Republic, and an important point becomes clear: the growth of tourism does not simply create opportunities for hotels, it creates opportunities and responsibilities for our profession.
The Dominican Republic is also becoming increasingly important internationally. President Luis Abinader, in office since 2020, has pursued an ambitious agenda centered on economic growth, investment and institutional reform. Foreign direct investment reached approximately US$3.28 billion in the first half of 2026, while the country’s position as a bridge between the Caribbean, Latin America, the United States and Europe continues to strengthen. The European Union describes the Dominican Republic as a privileged partner and the largest economy in the Caribbean, while the United States remains deeply connected to the country through trade, tourism, investment and the enormous Dominican diaspora.
Of course, rapid growth also brings challenges. Security, migration, the relationship with neighboring Haiti, institutional capacity, corruption, infrastructure and inequality remain part of the Dominican conversation. The extraordinary instability on the other side of Hispaniola makes border security and migration particularly sensitive political and security issues. These are complicated subjects without simple answers, but they demonstrate how geography, politics, economics and security are inevitably interconnected.
Perhaps that is what makes the Dominican Republic particularly interesting to investigators.
Most people arriving in Punta Cana see turquoise water, palm trees and magnificent resorts, and rightly so. It is one of the world’s great tourism destinations. But an investigator or security professional tends to look a little deeper. Behind every resort are thousands of employees. Behind those employees are transportation networks, communities and families. Behind every hotel are contractors, suppliers, financial transactions, information systems and logistics chains. Behind millions of tourists are billions of dollars moving through an increasingly sophisticated economy.
Wherever people, money and opportunity come together on that scale, risk follows.
And wherever there is risk, eventually someone is going to need a good investigator.
Welcome to the Dominican Republic.
Brett Mikkelson
Founder, B.M. Investigations, Inc. – Private Investigations in Panama
The Dominican Republic Begins Talks with the U.S. on Bilateral Tariffs
The Dominican Republic announced this Wednesday that it has begun talks with the United States regarding the issue of the “bilateral tariff agenda,” following a meeting between Dominican Foreign Minister Víctor “Ito” Bisonó and U.S. Deputy Trade Representative Jeffrey Goettman.
The meeting addressed trade issues of interest to both countries, as well as the next steps in the bilateral dialogue on tariffs, the Dominican Foreign Ministry reported Wednesday.
The Caribbean nation is among a list of 66 countries on which the United States imposed new tariffs in July, ranging from 10% to 41%, in an effort to address trade imbalances and prevent goods produced using forced labor from entering its markets.
At the end of August, Dominican President Luis Abinader stated that his government is working to negotiate a reciprocal tariff agreement with the United States “as quickly as possible,” allowing the country to maintain favorable conditions for its exports and continue attracting investment.
In recent weeks, the Dominican Foreign Minister has met with U.S. representatives, including Patrick Nelson, Director for Western Hemisphere Affairs at the National Security Council; Juan Pablo Segura, Assistant Secretary of State for Western Hemisphere Affairs; and senior adviser to the Secretary of State, Viviana Bovo.
He also held talks with Republican Senator Bernie Moreno and Republican Representatives Brian Mast, Mario Díaz-Balart, and Carlos Giménez.
The Foreign Ministry indicated that these contacts are taking place within the framework of a “strong” bilateral relationship, supported by historical ties, trust, cooperation, and significant shared economic interests.
In 2025, the value of Dominican exports exceeded US$14.645 billion, with 48.6% destined for the United States, the Caribbean nation’s largest export market.
Likewise, U.S. foreign direct investment in the Dominican Republic exceeded US$1.042 billion last year, according to the Foreign Ministry.
“The Dominican Republic will continue participating in this dialogue with a comprehensive view of the bilateral relationship, seeking to strengthen the competitiveness of its productive sectors, expand trade opportunities, and continue consolidating a strategic economic relationship for both nations,” the institution stated.
Nicaragua Closes Embassy in the Dominican Republic After Diplomatic Withdrawal; Relations Continue
Nicaragua closed its embassy in the Dominican Republic on Wednesday, amid a diplomatic dispute between the two countries following Nicaraguan President Daniel Ortega’s announcement of a reform that prevents opposition groups from participating in elections.
The closure of the diplomatic mission does not constitute a diplomatic break. However, it does strain relations between the two countries, which have maintained diplomatic ties for more than seven decades. The Dominican Republic continues to keep its delegation open in Managua, but without an ambassador in place.
“The Ministry of Foreign Affairs of the Dominican Republic takes note of the decision by the government of the Republic of Nicaragua to close its embassy in Santo Domingo,” the Dominican Foreign Ministry said in a statement.
On July 23, the Dominican government recalled its ambassador in Managua for consultations, and since then, the diplomatic mission has been under the responsibility of a chargé d’affaires. The same situation occurred at the Nicaraguan diplomatic mission in Santo Domingo.
The embassy closure comes days after Nicaragua’s National Assembly approved a constitutional reform prohibiting opposition groups from participating in elections.
Differences between the two countries began following the Ortega government’s announcement in July of the reform, which extends the presidential term from six to seven years and excludes opposition groups from elections.
The measure is aimed at ensuring presidential succession within the family of the octogenarian former guerrilla leader and his wife and co-president, Rosario Murillo.
The government of Dominican President Luis Abinader also distanced itself from the Cuban regime, expelling nine members of the Cuban embassy and their families in August without disclosing the reasons for their removal.
Deterioration of Relations
Relations began to deteriorate as international criticism of the Ortega-Murillo regime intensified. Since 2018, the Dominican Republic has supported international resolutions concerning human rights violations, attacks on democratic institutions, and non-transparent electoral processes.
Last July, the Dominican government condemned Ortega’s statements indicating that competitive elections in Nicaragua were being eliminated and argued that no government can deprive its population of the right to choose its leaders.
Managua responded by criticizing the Abinader government, after which Santo Domingo recalled its ambassador for consultations on July 23, leaving the mission under the leadership of the chargé d’affaires.
Seven weeks later, Nicaragua closed its embassy in Santo Domingo.
This move places relations between the two countries at their lowest level.
Dominican Republic Strengthens Formal Employment as Women Surpass 50% of Employment for the First Time
More than 200,000 people in the Dominican Republic gained access to health insurance and pension contributions, according to official data showing that formal employment reached 45.9% at the end of 2025, the highest level in decades in a labor market historically characterized by informality.
The figure represents a four-percentage-point increase from the 41.9% recorded in 2021, amid the effects of the health crisis on the economy. The indicator is based on 5.2 million employed people and reflects the growing share of employment with social protection in the Caribbean nation.
“That represents, out of a base of 5.2 million employed people, more than 200,000 individuals who previously did not have health insurance or pension contributions and who now have access to these fundamental rights,” said Vice Minister of the Presidency Luis Madera during a presentation in Santo Domingo.
Formal Employment Advances, Although Informality Persists
The growth in formal employment was also observed in the private sector, where a significant portion of workers without health coverage or pension contributions is concentrated. In this segment, the rate increased from 34.7% in 2021 to 39.1% in 2025.
Official data attribute part of this trend to the expansion of economic activity and the increase in smaller businesses. Government projections point to further improvement during 2026, although the publication does not specify an estimated percentage for the coming year.
The progress still leaves more than half of employed people outside formal employment. Madera acknowledged that the result remains below the desired level and said the government’s goal is to reach a 50% formal employment rate.
“If the entry point into the labor market is formal, workers are much more likely to remain in that sector,” the official said, linking this trend to progress among young people.
MSMEs Account for Part of the Expansion
Micro, small, and medium-sized enterprises (MSMEs) are among the factors explaining the growth in formal employment. The number of workers formally employed by these businesses increased from 675,300 in 2020 to 921,400 today.
The difference represents 246,100 additional jobs within formalized businesses. At the same time, the number of companies with between one and 50 employees increased from 86,570 in 2019 to 107,571, representing a net increase of approximately 21,000 companies.
The information released does not detail which economic activities accounted for the largest number of new jobs, nor does it provide a sectoral breakdown covering tourism, commerce, construction, industry, or services. The report identifies MSMEs as an important foundation of the growth in formal employment.
Women Lead Formalization Indicators
The most notable figure concerns female participation. The employment rate among women reached 51.1% at the end of 2025, marking the first time it surpassed 50%. In 2019, the rate stood at 47%, while in 2020 it had fallen to 43.4%.
In addition, 52.3% of employed women held formal jobs, a proportion above the national average of 45.9%. Of the 2.2 million women who are part of the employed population, more than half have social security coverage and make pension contributions.
Madera attributed this result to increased academic training and human capital among female workers. However, the official publication also does not specify which productive sectors saw the greatest female participation or how many of the newly created positions went to women.
Youth Unemployment Falls as Formal First-Time Employment Grows
Among young people, unemployment declined from 15.7% in 2019 to 12.4% in 2025. Formal employment also increased among those entering the labor market for the first time.
Among those aged 15 to 19, formal employment increased from 18% in 2021 to 27% in 2025. For people aged 20 to 24, the indicator rose from 46% to 53% over the same period.
The Vice Minister said the government will continue implementing policies aimed at expanding quality employment, with a focus on vulnerable sectors.
Dominican Republic’s Tourism Industry Contributes 15.9% of GDP
The tourism industry in the Dominican Republic contributed US$21.619 billion to the national economy in 2025, equivalent to 15.9% of the country’s Gross Domestic Product (GDP) when its direct, indirect, and induced effects are taken into account, according to the Association of Hotels and Tourism of the Dominican Republic (Asonahores), in statements reported by Listín Diario.
The figure was presented as part of the Asonahores 2026 Commercial Exhibition, where the sector reinforced its position as one of the main drivers of national economic activity.
Directly, tourism accounted for 8.3% of GDP last year. However, when its impact on the supply chain and consumption generated by tourism-related employment is included, its contribution nearly doubles. For Juan Bancalari, president of Asonahores, this broader impact confirms that the sector extends beyond hotel activity and has become a cross-cutting driver of economic development in the country.
“Dominican tourism must be measured by its ability to transform the economy. Behind every visitor is a chain that generates jobs, creates demand for goods and services, attracts investment, generates foreign exchange, and creates opportunities for thousands of Dominican businesses,” Bancalari said, according to statements published by the newspaper.
One of the main indicators highlighted by the association was the sector’s ability to generate foreign exchange. According to the Dominican media outlet, tourism revenues reached US$11.866 billion in 2025, an increase of 9.3% from the previous year. The trend continued during the first months of 2026: by June, tourism revenues totaled US$6.716 billion, a 15% increase compared with the same period in 2025.
The sector also remained attractive to international capital. During 2025, it attracted US$1.288 billion in foreign direct investment, reinforcing its importance in sustaining foreign-exchange earnings for the Dominican economy.
One in Six Jobs in the Country Is Linked to Tourism
In terms of employment, the association reported that 882,419 direct, indirect, and induced jobs were linked to tourism activity in 2025, equivalent to approximately one in every six jobs in the country. Of this total, 301,800 were direct jobs, 400,610 were generated through the supply chain for goods and services, and another 180,010 resulted from household consumption linked to tourism activity.
Wage indicators also showed improvement. The average contributory salary in hotels, bars, and restaurants increased from 22,705 Dominican pesos (US$383.58) to 27,580 pesos (US$465.94). In addition, the sector contributed 10.774 billion Dominican pesos (US$182,044.72) to the Social Security Treasury during the past year.
The Sector’s Tax Contribution Nearly Tripled in Ten Years
The growth of tourism activity was also reflected in the country’s fiscal accounts. Tax revenue from hotels, bars, and restaurants reached 45.227 billion Dominican pesos (US$764,185.69) in 2025, compared with 15.611 billion pesos (US$263,773.92) recorded in 2015. This represents nearly a threefold increase in the sector’s tax contribution over a decade.
According to data released by Asonahores and reported by Listín Diario, these indicators confirm that tourism expansion has economy-wide effects across the Dominican economy. Sectors such as agriculture and fishing, manufacturing, construction, commerce, transportation and logistics, basic services, and professional and financial services form part of a supply chain that grows alongside tourism demand.
In this context, the Asonahores 2026 Commercial Exhibition seeks to strengthen integration between tourism activity and the national productive sector, with the goal of expanding business opportunities and increasing the participation of Dominican companies within the sector’s value chain.
Monetary Poverty in the Dominican Republic Falls to 13.75% in the Second Quarter of 2026
Monetary poverty in the Dominican Republic fell to 13.75% in the second quarter of 2026, a decline of 2.9 percentage points from the 16.65% recorded during the same period in 2025.
The government attributed the decline to minimum wages rising above inflation, increased employment, and the expansion of social programs. The figure was presented by Deputy Finance Minister Alexis Cruz, alongside President Luis Abinader, during La Agenda Semanal at the National Palace.
The decline is part of a broader trend: according to the Presidency of the Dominican Republic, monetary poverty during the first half of 2026 stood at 14.58%, representing a reduction of 2.77 percentage points compared with the first half of 2025, when it stood at 17.35%.
Cruz said the downward trend has continued since 2019, when the indicator was around 26%, despite rising to 30% in 2020 as a result of the pandemic.
Meanwhile, cumulative inflation for the year reached 5.13%, a level the Deputy Minister described as slightly above the target range. Nevertheless, he projected that inflation would end 2026 at around 4.75%.
The official explanation combines three factors: minimum wage increases above inflation, the expansion of formal and informal employment, and the expansion of social programs. Cruz noted that food assistance, both school-based and household programs, played a particularly important role in this result.
The official stated that total labor income increased across all regions of the country. He added that the effect was more visible in areas with higher levels of absolute and relative poverty.
Regarding inflation, Cruz said that containing price increases strengthened the purchasing power of lower-income households. “Reducing inflation increases the purchasing power of the less-favored classes. Keeping it under control has been part of the policy designed to mitigate the impact of the international crisis on prices,” he said.
In the Poorest Quintile, Income Increased More Strongly Among Informal Workers
One of the figures highlighted by the Deputy Minister focused on Quintile 1, where the most vulnerable population is concentrated. There, he explained, income in the informal sector grew more than in the formal sector, a development that, in his view, signals improved conditions for informal workers.
By region, income for this quintile increased by 14.4% in Ozama, 9.9% in the South, 12.4% in the North, and 12.8% in the East. The official publication presented these changes as part of the broader recovery in household income.
Cruz also explained that the poverty measurement used by the Ministry considers three variants: labor income, income plus remittances, and income including other contributions, such as school breakfast and lunch programs. “The downward trend continues across the four series published in our report. The data, codes, and methodologies are available on the Ministry’s website for anyone wishing to replicate the results,” the official said.
The Deputy Minister described these results as part of a “virtuous cycle” driven by public policies aimed at social protection and increasing household income. In that context, he concluded with a political statement about the administration’s objective: “One of the legacies of this administration will be having brought hunger to zero and having transformed the vicious cycle of poverty into a virtuous cycle of development,” he concluded.
