The Real Estate, Hotels, and Rentals is bad in Sosua, Dominican Republic, worst than the USA in many ways, but they raise prices and doom themselves.
There is an interesting way of thinking in the Dominican Republic, the way they price things is a typical third world phenomenon. (When I am done writing this, I will check where they rank on the HDI: Human Development Index.)
Strange as this may seem to a person from the USA who is surrounded by competition and companies fighting for sales. In the underdeveloped countries like the Dominican Republic, they price their products differently.
1. The owner wants to make 100 dollars per day, so he rents his four rental units for 25 USD per day.
2. The properties will go vacant from a weak market for a couple of months, and in desperation he ----(No, he does not lower the prices.)
3. He still wants to make 100 USD per day, so he could raise his prices to 35 per day.
The thinking goes like this,
"I need to make more money, therefore I raise the prices."
He is happy if somebody rents the a unit for 35, and never Tally's up the totals and realizes over the course of a year he made much less.
It is counter intuitive to believe for a person from the USA who is used to competitions. But in many ways, this is how a King worked in days of old, they would increase the taxes by their need, not by what was possible.
Solution: The governments of nations need to promote becoming competitive with other nations.
Hmmm, maybe the USA auto companies should think on this one as they slowly go out business by failing to make cars that sell worldwide.
--- Ranked 98th out 198 on the Human Development Index