Page 17 - Special Issue Asutil Conference 2025

INSIDER

Nomad City: The Samana Group is planning a retirement city in the Dominican Republic based on
the success of Punta Cana.

“Capitalizing on the momentum they Mérida International Airport, and other Despite this investment in new
had, regional air travel grew by 12.4%; developments that are growing destinations capacity in Latin America, Price says that it
cruise visits increased 17%, and hotel for foreign retirees.” is not enough.
capacity was up 5%,” said Price. The Dominican Republic is also
But some of the more popular places seeing robust investment activity. The Economic outlook for Latin America
are facing infrastructure shortfalls now that Samana Group is planning a retirement But he is very bullish on the
numbers are back up. city based on the success of Punta Cana. opportunities ahead for Argentina, although
“In many of the Caribbean island Being built on what Price says is “some of he sees problems ahead for Mexico, in
nations there’s a shortage of labor, and the most beautiful underdeveloped parts of large part due to the political instability
capacity issues all over the region, the island,” the eco-friendly communities left behind by former Mexican president
but particularly in those high traffic are benefitting from their proximity to Andrés Manuel López Obrador, (AMLO).
destinations, and there’s a desperate need the United States, their safety, good Argentina’s robust GDP growth is due to
for investment,” he said. “Airbnb listings connectivity and a population that is very the removal of currency controls, which
alone grew by 20% to 1.7 million across experienced at serving tourist needs. Price says Argentina’s president, Javier
the region in 2024.” In Argentina, the current government Gerardo Milei, has approached properly,
Capacity will become more critical is very pro investment and has put together with sufficient backstops by the IMF and
as the U.S.-based Hispanic and Latino an extremely attractive tax policy around others. This has allowed the country to
populations continue to age, he said: “[This large investments over $200 million and build a fiscal surplus, and demonstrates to
demographic] will be an important source tourism is within the list of sectors that the Argentine people that their currency
of visitors to the region, and many will comply, said Price. can be stable, which will stop the exodus of
consider retirement there, and that’s an “As a result, there are 70 new hotels dollars out of the country.
important source of future developments.” being built over the next few years, in an “But most importantly, it opens
Price notes that places such as the effort to draw tourists away from Buenos Argentina as an investment destination
Mexican Yucatan and the Dominican Aires, which has always been popular for to institutional investors, hedge funds
Republic are benefitting from high investor Brazilians and Europeans, towards the and pension funds around the world,
confidence. In the Yucatan, the Tren Maya Andes, where there’s tremendous tourism which were prohibited from investing in
project, the train that began operating last potential. There is the wine industry, and Argentina precisely because of its currency
year, was highly controversial because of further south in Patagonia, places like controls,” said Price. “There are billions
its cost and the need to clear parts of the Bariloche have incredible scenery akin to of dollars waiting to buy Argentine debt
rain forest in order to build it. But with what you might see in the Alps.” and Argentine equities that they were
the previous road systems totally over- Chile, which is very popular among not allowed to buy before. According
burdened, a train like this was necessary. South Americans (about a quarter of the to The Economist, that transition to an
“In the end I think it will really serve business in the luxury shops in Santiago unregulated, uncontrolled currency will
the region,” he said. comes from Brazilian tourists, said Price), usher in more money into Argentina than
“This [Mexico] is the most important has incredible natural assets in the southern allow money to leave,” said Price.
destination in Latin America in terms of parts of the country. But since international “Everybody has been reticent to invest
tourism, and there is no lack of capital. So visitors often consider this too far to travel, in Argentina, but if projections prove
you’re seeing massive build out of new the government is trying to link together correct, this is an enormous opportunity to
hotels, including foreign direct investment 70 different parks to make this an attractive re-enter a market that has essentially been
in the region, like the expansion of destination. abandoned for a decade,” he said.

17 June 2025 ASUTIL Special Issue