AGP Executive Report

Hotel Fire & Tourism Risk: A blaze at the Viva Wyndham Dominicus Beach Hotel in Bayahibe killed an Italian woman and forced nearly 1,700 guests to evacuate; authorities say the fire spread fast due to palm-thatched roof materials and wind, and the cause is still under investigation. Aviation & Connectivity: Arajet launched direct service between Rosario and Punta Cana with three weekly flights, boosting Argentina–DR travel links. Cruise Industry: FCCA PAMAC’s Destination Summit opens this week in Puerto Plata (June 23–26), aiming to deepen cruise partnerships across the Caribbean and Latin America. EU Trade & Nearshoring: EU Trade Commissioner Maroš Šefčovič visited Santo Domingo to co-chair the 5th Cariforum–EU Joint Council Meeting and discuss logistics and nearshoring opportunities under the EPA framework. Airline Sales Expansion: AVIAREPS was appointed general sales agent for Jazeera Airways across key European markets, supporting new routes including Kuwait City–London Luton. Cost of Living Watch: The basic family food basket rose 1.1% by May 2026, reaching 49,268.36 pesos, according to BCRD data. Tax Reform Debate: PLD leader Danilo Medina criticized the government’s tax reform as harmful to the middle class and the poorest.

Hotel Fire Fallout: A deadly blaze at Viva Wyndham Dominicus Beach in Bayahibe killed an Italian tourist (46-year-old Francesca Valentino) and forced the evacuation of nearly 1,700 guests; authorities say palm-thatched roof materials and wind helped the fire spread fast, while the cause remains under investigation. Tourism Push: Tourism Minister David Collado says the government is stepping in to protect cruise momentum after warning signs in May–July, including meetings with major cruise lines and a focus on keeping Puerto Plata’s expected passenger surge on track. Air Connectivity & Marketing: Arajet and MITUR promoted the Dominican Republic at a Miami ballpark activation, while AVIAREPS was appointed Jazeera Airways’ GSA across key European markets—both moves aimed at boosting inbound demand. Tax Reform Debate: Former president Danilo Medina criticized the government’s proposed tax reform, warning it would raise costs for the middle class and the poorest. Inflation Watch: The basic family food basket rose to 49,268.36 pesos by end of May 2026, up 1.1% year-to-date, according to BCRD data. Cruise Industry Meeting: Puerto Plata was selected to host the Pamac Cruise Summit 2026, expected to draw major cruise executives and investors.

Resort Fire Fallout: A deadly blaze at Viva Wyndham Dominicus Beach in Bayahibe killed an Italian tourist (46-year-old Francesca Valentino) and forced the evacuation of nearly 1,700 guests; officials said palm-thatched roof materials and strong winds helped the fire spread, and the cause remains under investigation. Tourism Promotion Push: The Dominican Republic’s Ministry of Tourism and Arajet staged a destination marketing activation at Miami’s LoanDepot Park during a Giants-Marlins game, using baseball legend Juan Marichal to drive U.S. demand and highlight growing air connectivity. Cruise Momentum: Tourism Minister David Collado said the government is stepping in to protect cruise growth after warning signs in May-July, including concerns over reduced operations by some lines. Trade & Cost of Living: The basic family food basket rose to 49,268.36 pesos by end-May (up 1.1% year-to-date), while U.S. pork exports to Mexico stayed on record pace through April—an indicator of continued regional trade strength. Tax Tech Cooperation: The Dominican Republic’s Federal Tax Authority participated in CIAT’s 60th General Assembly in Punta Cana focused on digital transformation in tax administration.

Hotel Fire & Tourism Impact: A deadly fire at the Viva Wyndham Dominicus Beach Hotel in Bayahibe killed an Italian woman (46-year-old Francesca Valentino) and forced the evacuation of nearly 1,700 guests; authorities say the blaze spread rapidly due to flammable palm-thatched roof materials and wind, and the resort’s sister property was not damaged. Tourism Policy & Cruise Business: Tourism Minister David Collado said his team is moving fast to protect cruise growth after warning signs in May–July, including talks with major cruise lines and concerns about route shifts tied to new port infrastructure in the Bahamas. Security & Justice: The DNCD and Public Ministry reported raids on micro-trafficking networks in Santo Domingo Este, arresting 42 people and seizing drugs and cash, with detainees headed to the justice system. International Trade/Investment: The U.S. and Dominican Republic signed a nuclear cooperation memorandum of understanding to expand civil nuclear ties, energy security, and cooperation, including medical isotope production. Regional Integration: President Abinader pushed for stronger, more practical implementation of the CARIFORUM–EU Economic Partnership Agreement during the CARIFORUM–EU Joint Council meeting held in the DR.

Hotel Fire & Tourism Shock: A fire at the Viva Wyndham Dominicus Beach Hotel in Bayahibe killed at least one tourist and forced the evacuation of nearly 1,700 guests, with officials citing rapid spread linked to flammable thatched roof materials and wind conditions; the cause is still under investigation. Public Safety & Enforcement: DNCD and the Public Ministry carried out raids in Santo Domingo Este targeting micro-trafficking networks, arresting 42 people and seizing drugs and cash. U.S.-DR Nuclear Cooperation: The U.S. and the Dominican Republic signed a Nuclear Cooperation Memorandum of Understanding to expand peaceful civil nuclear collaboration, including energy security and medical isotope production. Trade & Regional Integration: President Abinader pushed for stronger, more practical implementation of the CARIFORUM–EU agreement during a CARIFORUM–EU Joint Council meeting held in the DR. Cruise Industry Boost: Puerto Plata was selected to host the Pamac Cruise Summit 2026, with authorities pointing to strong cruise passenger flows and expected economic impact. DR–Haiti Trade: Dominican exports to Haiti rose to about US$563.14 million in the first five months of 2026, up nearly 25%, while imports from Haiti collapsed. Business & Finance: Banco BHD launched a digital account for minors, while Banco Popular said it will channel US$50 million from ICO into tourism, energy, and strategic sectors.

US-DR Nuclear Deal: The U.S. signed a Nuclear Cooperation Memorandum of Understanding with the Dominican Republic to expand peaceful civil nuclear ties, energy security, and medical isotope work. Regional Trade & Integration: President Abinader pushed for stronger regional integration and more practical implementation of the CARIFORUM–EU agreement during the CARIFORUM–EU Joint Council meeting in DR. Anti-Crisis Law: Abinader enacted Law 30-26 to strengthen public finances, improve tax compliance, and protect economic stability amid global uncertainty. Municipal Transparency: The Chamber of Accounts trained Eastern-region local officials on using the SICEEP platform to boost accountability and transparency in municipal management. Tourism & Aviation: DR hotel occupancy hit 82% in 2026, while Air Europa plans 19 weekly flights this summer and Arajet continues expanding its DR passenger share. Climate Preparedness: DR activated its 2026 cyclone contingency plan as El Niño raises drought risk and reshapes hurricane-season expectations. Customs & Security: WCO’s regional canine forum in Buenos Aires targeted better customs detection of synthetic drugs. Business & Finance: Banco BHD launched a digital account for minors, and Banco Popular plans to channel US$50m from ICO into tourism, energy, and strategic sectors. Tourism Incident: A major fire at a Viva Wyndham Dominicus Beach resort forced evacuation of nearly 1,700 tourists.

Trade & Exports: The Dominican Republic exported US$563.14M to Haiti in Jan–May 2026, up 24.64% year-on-year, while imports from Haiti fell 91.50% to US$0.35M, according to customs data. Tourism & Aviation: Hotel occupancy hit 82% (Jan–Apr) and 72% in May 2026, with La Romana (91%) and Bayahíbe (89%) leading; meanwhile Air Europa is set to expand to 19 weekly flights across DR gateways, and Arajet is advertising a $433 round-trip weeklong Montreal–Punta Cana deal. Energy & Infrastructure: The grid logged a new historical peak of 4,077.97 MW as demand climbs with growth and heat, pushing the government to keep investing in generation and distribution. Policy & Finance: President Abinader enacted Law 30-26 to advance the anti-crisis plan, aiming to strengthen public finances and tax compliance. Business & Services: Banco BHD launched a fully digital children’s account for minors under 18, and Sky High Dominicana partnered with Plaza de la Salud to boost medical tourism access. Regional Diplomacy: The DR will host the CARIFORUM–EU Joint Council meeting, and the country is also positioning itself for shopping tourism in Santo Domingo.

US-DR Nuclear Ties: The U.S. and the Dominican Republic signed a civil nuclear cooperation MOU to set a framework for future peaceful nuclear collaboration, including potential medical, agricultural and energy applications (no transfer of nuclear materials or tech under the deal). Medical Tourism Boost: Sky High Dominicana and Plaza de la Salud (Hospital General de la Plaza de la Salud) launched a partnership to give international patients easier access to specialist care, diagnostics and emergency services via preferential airline-linked benefits. Tourism Demand Stays Hot: MITUR reported DR hotel occupancy averaged 82% in Jan–Apr 2026 and hit 72% in May, with La Romana (91%) and Bayahíbe (89%) leading; 94% of surveyed visitors in May said they’d return. Power Use Hits New Peak: SENI logged a new maximum instantaneous demand record of 4,077.97 MW on June 17, underscoring pressure to expand generation, transmission and distribution. Trade & Diplomacy: The DR hosts the CARIFORUM–EU Joint Council meeting for the first time this Friday, aiming to deepen biregional trade cooperation. Banking for Youth: Banco BHD rolled out “Mi Primera Cuenta BHD,” a fully digital children’s and youth account for minors under 18 opened through the BHD app.

Tourism & Air Connectivity: Arajet is pushing deeper into the Dominican Republic’s travel demand with a new nonstop Punta Cana–Rosario route (3 weekly flights), while also running a standout Montreal–Punta Cana summer deal showing weeklong round trips from $433. Aviation & Jobs: FL Technics says it has received FAA Part 145 certification to start aircraft maintenance operations at its new Punta Cana MRO facility, with JetBlue named as its first client. Anti-Corruption: The Public Prosecutor’s Office reports 95 convictions from four major anti-corruption operations since 2020, including cases tied to the National Lottery and former Attorney General Jean Alain Rodríguez. Energy & Diplomacy: The Dominican Republic and the U.S. signed a civil nuclear cooperation MOU to expand peaceful nuclear collaboration, with a framework that does not authorize transfer of nuclear materials or tech. Trade & Regional Links: The EU and CARIFORUM will hold their joint council ministerial meeting in Santo Domingo, focusing on implementing the Economic Partnership Agreement and boosting trade and investment. Public Finance: The Senate approved changes to the Anti-Crisis Plan, cutting taxes on lottery and betting winnings (with lower rates and exemptions for smaller prizes). Payments & Fintech: Visa appointed Jorge Salum to lead an expanded Greater Caribbean digital-payments portfolio across 22 markets, signaling continued push for electronic payments and cross-border connectivity.

Anti-Crisis Tax Tweaks: The Senate approved the Anti-Crisis Plan as urgent, cutting taxes on lottery and betting winnings (25% only above RD$600,000; 15% for RD$200,000–RD$600,000; under RD$200,000 exempt) and lowering the annual single tax for lottery booths to RD$85,000 from RD$120,000. Fiscal Pressure on the Top End: Finance Minister Magín Díaz told lawmakers the bill would raise RD$40–RD$50 billion mainly from the wealthiest 1%, without increasing ITBIS, while promising an accountability mechanism for how funds are used. Tourism Momentum: DR welcomed 5.64 million visitors in the first five months of 2026 (+8%); air arrivals rose 10.8% and hotel occupancy topped 79% (Jan–Apr), with 93% of tourists saying they’d return. Business Tourism Upgrade: Demolition of the former Hotel Santo Domingo is set to start in three months to clear the way for a new Santo Domingo Convention Center, aimed at boosting conventions and hotel occupancy. Aviation & Jobs: FL Technics secured FAA Part 145 approval to start MRO operations in Punta Cana, while IDAC certification also clears its Punta Cana maintenance hub. Airline Growth: Arajet posted a record May, carrying 163,000+ passengers and taking 10%+ of DR’s total passenger traffic that month. Trade & Diplomacy: The EU-CARIFORUM joint council meeting returns to Santo Domingo (June 18–20) to push Economic Partnership Agreement implementation and expand trade and investment. Regional Connectivity: Arajet launched a new Punta Cana–Rosario route (3x weekly), adding Rosario as its fourth Argentine city. Corruption Case Fallout: Courts ordered forfeiture of assets tied to the Coral and Coral 5G cases, including 114 vehicles, 159 properties, luxury watches, firearms, and millions in cash. US-DR Nuclear Deal: The U.S. and DR signed a Nuclear Cooperation Memorandum of Understanding to expand peaceful civil nuclear collaboration. Visa Path Update: Foreign Minister Roberto Álvarez said DR is progressing toward Schengen visa-free access, but document fraud remains the main hurdle. Youth Prevention Drive: President Abinader launched “Inquebrantables,” funded by seized assets, targeting resilience and prevention for Dominican youth. Fisheries Transparency Push: DR joined 14 other countries in signing the Mombasa Declaration to fight illegal fishing through better vessel and licensing transparency.

Tax Reform Debate: Finance Minister Magín Díaz told lawmakers that over 90% of expected revenue from the proposed Economic Growth, Tax Simplification and International Crisis Mitigation bill would come from the wealthiest 1%, aiming to protect the middle class and MSMEs without raising ITBIS. Tourism Momentum: The DR welcomed 5.64 million visitors in the first five months of 2026 (+8%), with 4.15 million by air and strong hotel occupancy (79%+ Jan–Apr). Aviation Growth: Arajet carried 163,000+ passengers in May and captured 10%+ of DR-bound traffic, setting a new monthly record; separately, FL Technics secured IDAC certification for a Punta Cana MRO hub and FAA approval to serve U.S. carriers. Business & Trade Links: U.S. Ambassador Leah Francis Campos toured Grupo SID facilities, highlighting U.S. trade opportunities; Banco Popular, AZUL and Mastercard also convened B2B payment clients to discuss digitization and cash-flow tools. Governance & Modernization: Abinader launched the “Inquebrantables” youth resilience campaign funded by seized assets, and submitted a civil code reform to align law effective dates and recognize official electronic publication. Regional Spotlight: The DR will host the World Governments Summit Regional Dialogue again in 2026 (Cap Cana, Nov. 20–21).

Anti-Corruption Crackdown: A Dominican court ordered the forfeiture of 422 assets tied to the Coral and Coral 5G cases, including 114 vehicles, 159 properties, firearms, luxury watches, and millions in cash, transferring them to the state. Money Laundering Sentences: Three former high-ranking military officials received 20-year prison terms for their role in a money laundering network, with additional officers and a bank employee also sentenced. B2B Payments Push: Banco Popular, AZUL and Mastercard gathered 350+ corporate and SME clients to spotlight digitization and AI-driven tools for managing B2B payments and cash flow. Tech Modernization: SoftwareOne expanded its Google Cloud alliance in the DR to help firms adopt AI, data analytics, automation, and modern infrastructure. Aviation Upgrade: IDAC certified a new Punta Cana MRO center (Airbus A320 and Boeing 737, with capacity for widebodies), positioning the country as a regional maintenance hub. Trade & Jobs Impact: DP World’s Caucedo operations are linked to nearly 5,000 jobs nationwide in 2024, with spillovers across transport, warehousing, manufacturing, customs and services. Legal Reform Agenda: The government sent a bill to align the effective dates of laws between the National District and Santo Domingo province and recognize official electronic publication. Public Sector AI Training: MAP announced 2,000 GenAI scholarships for public servants, supported by the IDB, focused on ethical and safe use in government. Regional Cooperation: The DR hosted CECC/SICA culture ministers and launched the Santiago Health Tourism Alliance, aiming to strengthen creative industries and grow medical tourism. Business-Climate Context: A UNDP report launched in the DR warns that crime, climate shocks, misinformation and debt are pressuring democracy across Latin America and the Caribbean.

Aviation & Infrastructure: IDAC certified a new Aircraft Maintenance, Repair and Overhaul (MRO) center in Punta Cana, built by Puntacana Group with FL Technics, positioning the DR as a regional hub for heavy aircraft maintenance. Tourism & Business Growth: Arajet logged its best May ever, moving 163,000 passengers to/from the DR (plus 183,000 including connections), reinforcing its push to become a top carrier in the national market. Health Tourism: Santiago launched a Health Tourism Alliance to unite hospitals, specialists, universities and tourism players, aiming to strengthen the city’s role as a Caribbean medical hub. Trade & Security: Canada’s Commercial Corporation signed a government-to-government MoU with the Dominican Ministry of Defense to support procurement of Canadian defense goods and services. Tax & Industry Rules: Adopron backed parts of the government’s anti-crisis plan, including clearer rules for alcohol tax calculation and stronger traceability to curb illicit trade. Justice & Risk for Businesses: A court ordered Jet Set nightclub owners Antonio and Maribel Espaillat to stand trial for involuntary manslaughter after the 236-death roof collapse. Public Space Enforcement: A local report says some car dealers keep occupying Santo Domingo sidewalks for vehicle displays, blocking pedestrians and violating transit rules. Regional Governance: A UNDP report launched in the DR flags organized crime, climate shocks and misinformation as growing pressures on democracy across Latin America and the Caribbean.

Air Travel & Tourism: Arajet logged its best May ever, moving 183,000+ passengers (including connections) and taking 10%+ of Dominican inbound/outbound traffic, reinforcing its push to make the DR a regional air hub. Public Finance & Remittances: The Central Bank reported remittances of US$5.17B in the first five months of 2026 (+5.4% y/y), with May alone up 10.6% to US$1.09B, driven mainly by the U.S. diaspora. Health & Accountability: Operation Onco14 led to arrests of former Cibao oncology executives accused of diverting cancer-care funds from SeNaSa, with charges including fraud, bribery, cyber-related crimes, and money laundering. Business & Trade Finance: Banco Popular secured up to US$50M from Spain’s ICO to fund projects tied to tourism, energy, construction, real estate, hospitality, and digital/energy-efficiency goals. Regional Health Cooperation: The DR hosted a malaria-elimination meeting with Latin American and Caribbean partners, targeting elimination by 2027. Infrastructure & Security: DNV won a cybersecurity contract for Santiago’s monorail, supporting safety-critical rail systems and cyber risk management. Legal/Justice: Jet Set nightclub owners Antonio and Maribel Espaillat were sent to trial for involuntary manslaughter over the 2025 roof collapse that killed 236.

Court Case: A judge ordered Antonio and Maribel Espaillat, owners of Santo Domingo’s Jet Set nightclub, to stand trial for involuntary manslaughter over the April 8, 2025 roof collapse that killed 236 people and injured more than 100; prosecutors allege intimidation of employees and negligence tied to maintenance and structural changes. Judicial Backlash: The Jet Set Justice Movement says the siblings are still getting “privileges” (bail, travel ban, reporting) and argues the legal handling is too lenient given the scale of the tragedy. Business & Policy: The AIRD says the government’s Anti-Crisis Plan bill is a chance to balance measures across productive sectors, but flags concerns about eliminating ITBIS on asphalt/AC-30 as it may favor imports over local production. Remittances: The Central Bank reports remittances hit US$5.17B in the first five months of 2026 (+5.4% y/y), with May alone at US$1.09B (+10.6% y/y). Finance & Trade: Banco Popular signed a deal for up to US$50M with Spain’s ICO to fund tourism, energy, construction, real estate and sustainability-linked projects. Aviation & Tourism: Arajet carried over 163,000 passengers in May 2026 (10%+ of total arrivals/departures), setting a monthly record; Puerto Plata will host the PAMAC Cruise Summit 2026, aiming to boost cruise-driven spending. Infrastructure & Security: DNV was selected to provide cybersecurity services for Santiago’s monorail system, supporting safety-critical rail and digital defenses. Public Procurement: PROLIDERCOOP will host an MSME forum on the new Public Procurement Law (47-25) to help state suppliers navigate contracting rules.

Public Finance & Courts: Prosecutors say former executives tied to Operation Onco14 will face charges including fraud, money laundering, and high-tech crimes after an alleged scheme to divert funds meant for cancer patients and SeNaSa resources at the Cibao Oncology Center. MSME & Procurement: PROLIDERCOOP will host a forum on June 27-28 to help micro, small and medium suppliers navigate the new Public Procurement Law 47-25 and its regulation 52-26. Remittances: The Central Bank reports remittances reached $5.1701B in the first five months of 2026, up 5.4% year-on-year, with the U.S. sending 82.3% of formal flows in May. Energy Transition: Solar keeps leading renewable growth, with installed solar capacity up 100 MW between 2025 and June 2026 and renewables now exceeding 2,000 MW. Social Spending Watch: The government is reviewing social protection beneficiaries to target subsidies better and generate about RD$10B in savings. Fuel Prices: MICM set weekly fuel increases of RD$3 to RD$6 per gallon for gasoline and diesel. Local Infrastructure & Services: DIDA urged AFP affiliates in Santiago to claim pending pension funds, while OMSA temporarily suspended part of Santo Domingo’s Cable Car Line 1 for maintenance.