How the Dominican Republic Became the Caribbean’s Fastest-Growing Luxury Market
The Dominican Republic is adding thousands of upscale hotel rooms as it seeks to broaden its appeal beyond traditional all-inclusive travel.
An aerial view of the beach at W Punta Cana. Photo: Felix Garcia Duval
For decades, the Dominican Republic has built its reputation as a leader in affordable all-inclusive travel. The foundations of the country’s tourism industry were laid roughly 60 years ago, before Grupo Punta Cana helped transform Punta Cana into the destination’s main tourism hub, and the opening of Club Med Punta Cana in 1980 paved the way for the resort model that would come to define the country.
It was not until 2006 that Tortuga Bay, one of Grupo Punta Cana’s properties, became the Dominican Republic’s first AAA Five Diamond hotel. It remained the destination’s sole holder of the distinction for years, as the country continued to be largely associated with accessible, value-driven, all-inclusive vacations.
That perception is beginning to shift. Over the past five years, a new generation of luxury resorts and elevated hospitality experiences has started to redefine the Dominican Republic’s position in the Caribbean travel landscape. In 2022, Sanctuary Cap Cana became the country’s first all-inclusive property under Marriott’s Luxury Collection brand. A year later, a luxury wellness retreat opened on the private island of Cayo Levantado. Then, in 2025, St. Regis made its Dominican Republic debut, while Miches welcomed a series of upscale openings, including Secrets Playa Esmeralda, Zemi Miches Punta Cana, and the first all-inclusive W hotel. Looking ahead, the destination is also expected to welcome the country’s second St. Regis in 2027.
“The Dominican Republic is undergoing one of the most significant luxury tourism expansions in the Caribbean,” Jennifer Elias Franjul, director of marketing for the destination, told Luxury Travel Report. “Most of the new properties that opened over the past five years have been in the luxury segment, a trend that coincided with the emergence of Michès as our newest tourism destination, developed with an upscale positioning from the outset. We invested heavily to ensure the area remained easily accessible from the airport while prioritizing safety and convenience, all while preserving its natural character, with untouched beaches and abundant vegetation.”
In 2025, more than 1,000 upscale rooms entered the market in Michès alone, underscoring the rapid growth of this emerging coastal destination, which has become one of the Dominican Republic’s most closely watched tourism developments. But over the next three years, nearly 15,000 new hotel rooms are expected to be added across the country, representing an estimated 18% increase in the Dominican Republic’s total room inventory, with a significant portion concentrated in the upscale and luxury segments.
International luxury brands are also strengthening their presence. Four Seasons Resort and Residences Dominican Republic at Tropicalia will mark the brand’s debut in the country in 2027, while Nobu Hotel Punta Cana is also preparing to enter the market, reinforcing the destination’s growing appeal among high-end travelers.
“We will always cater to everyone,” added Franjul. “But now, the plan is to bring complementary demand to the island by developing more high-end products and destinations for travellers seeking a more elevated experience.”
Two new cruise ports, in Samaná and Barahona on the country’s southwest coast, are also expected to open in the coming years, a development projected to triple the Dominican Republic’s cruise passenger capacity. At the same time, Punta Cana International Airport is currently expanding to accommodate growing visitor demand.
“The Dominican Republic’s luxury growth is closely linked to increased air connectivity. Let’s not forget that Punta Cana Airport is the busiest airport in the Caribbean, serving more than 50 airlines and connecting travellers to 90 airports across 26 countries,” Franjul told LTR. “That scale matters—it demonstrates that the destination has the capacity and infrastructure in place, and hotel developers know they can trust the Dominican Republic to welcome their guests efficiently. Connectivity is, of course, a major factor.”
While the Dominican Republic may still be synonymous with all-inclusive vacations, its future tourism ambitions are becoming much broader.
