Is the Dominican Republic the new Mexico?

Hotel rates in Mexico have increased significantly over the past decade, driven by a combination of inflation and increased demand. On average, hotel prices in Mexico have risen by about 30% to 50% compared to ten years ago. 

Mexico used to be a haven for travelers looking to enjoy luxury without the hefty price tag seen in the United States; where a five-star resort could be experienced for far less than $500 per night, often with all-inclusive amenities. However, this has changed significantly, particularly with well-known hotel brands. Today, prices at many of Mexico's top hotels have climbed to levels comparable to the most luxurious U.S. accommodations, eroding the cost advantage that once made Mexico an attractive destination for budget-conscious travelers.

Enter the Dominican Republic. Between 2013 and 2023, the country approved the construction of over 130 new hotel projects, primarily driven by increasing tourism. Most of these projects are concentrated in popular destinations like Punta Cana, La Altagracia, and other tourist hotspots. 

Punta Cana alone boasts over 60 five-star resorts, reflecting its status as a new premier luxury destination. This is complemented by a steady and growing influx of investment in Punta Cana and its surrounding areas, further enhancing its appeal to travelers.

Additionally, these are some of the most beautiful resorts in the world, as seen below: 

As an emerging market, Punta Cana offers luxury and service that far exceed its current price point. During my visit to Finest Punta Cana last year, I was thoroughly impressed — not only by the warm ocean waters, pristine hotel rooms and stunning beaches, but also by the exceptional level of service.

Remarkably, all of this comes at about half the price of a luxury five-star resort in Mexico. While these favorable rates might not last as the Dominican Republic continues to build its global reputation, for now, Punta Cana remains an incredible destination offering excellent value for luxury travel.

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