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Home » Cabo Rojo was DR’s missed opportunity for innovation — But it’s not too late
Cabo Rojo was DR’s missed opportunity for innovation — But it’s not too late
DOMINICAN REPUBLIC June 11, 2025

Cabo Rojo was DR’s missed opportunity for innovation — But it’s not too late

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The Dominican Republic just made a billion-dollar bet on tourism… and forgot to invite the future.

When the government handed over the Cabo Rojo development project to Grupo Puntacana, the same mega-conglomerate that already controls much of the national tourism economy, it didn’t just double down on monopolistic infrastructure. It skipped an unprecedented chance to catalyze the startup and SMB ecosystem that’s been fighting to get a seat at the table for years.

And that’s not just a missed opportunity… it’s a systemic failure of imagination.

The Tourism Monopoly Problem

Let’s be clear. Grupo Puntacana isn’t new to the game: they ARE the game. With a near-monopolistic grip on high-end tourism, airport infrastructure, and elite hospitality, they’ve built an empire that delivers big.
But is big better for innovation? No.

The Cabo Rojo project could’ve been a platform to shop out portions of this development to second-generation Dominican tourism startups, emerging hospitality tech firms, and SMBs designing sustainable solutions in the sector. Instead, it feels like business as usual: the same players, the same playbook.

In a country where economic inequality is sharp and youth unemployment remains high, what message does that send to the next generation of Dominican innovators?

Digital Nomads and Startups: It’s Time to Provoke the Conversation

To the digital nomad ecosystem: we’ve loved discovering and investing in this island. But it’s time to do more than consume. We need to demand inclusion. As long-term contributors to the local economy, we must advocate for startup participation in public-private projects. Cabo Rojo could have been an international sandbox for smart mobility, green infrastructure, decentralized hospitality platforms, and AI-enhanced tourism ops. Why weren’t any of us called?

To the Dominican startup ecosystem: don’t wait to be invited. Let’s prepare public proposals, portfolio demos, and public letters showing exactly how we can reduce costs, increase efficiency, and scale services within this megaproject. Visibility is a contact sport. Provoke it.

A Call to Grupo Puntacana: Share the Sandbox

Grupo Puntacana, if you’re listening — this is your moment to make good on the responsibility that comes with dominance. You have the power to subcontract local companies to handle transport logistics, community tours, tech-based concierge services, sustainable waste systems, tourism fintech, and more. Sharing the sandbox doesn’t weaken your brand — it strengthens your legacy.
Startups bring speed, adaptability, and culturally grounded solutions. Working with them can unlock value you can’t build in-house.

A Call to Government: Stop Leaving Innovation Out of the Equation

This is more than a one-off miss. This is part of a pattern — central government initiatives consistently favor mega-contractors while sidelining the very innovation economy that can drive long-term, inclusive growth.
If the Dominican government is serious about “Desarrollo Nacional,” then it must stop viewing tech and startups as accessories. They’re infrastructure. They’re employment engines. They’re the fastest route to diversified, future-ready GDP.

So here’s the pitch:

  • Create a Cabo Rojo Startup Bidding Portal and open real RFPs for tech-enabled tourism solutions.
  • Establish a Startup Procurement Office within the Ministry of Tourism.
  • Launch a Sustainable Tourism Innovation Fund, co-investing alongside companies like Grupo Puntacana in the ideas shaping the next decade.

We don’t need another resort town. We need a testbed for the future.

Final Word

Cabo Rojo should have been a catalyst. Instead, it’s a cautionary tale, but not one that’s written in stone. There’s still time to open the gates and let Dominican startups and digital builders help build what’s next.Because what’s the point of new development, if it’s not going to be different?
Want to pitch a startup solution to Grupo Puntacana or the Ministry of Tourism? Email me: [email protected] Let’s make visibility an economic force, not a privilege.

 

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