Supporting tourism development
We ask Manuel Losmozos Vice President of Corporate Banking. In the last years, the Dominican Banco del Progreso has achieved remarkable progress in banking business. Today, we are still in the growing and specialization phase considering that the tourism sector is a good opportunity to offer our products and services.
In order to encourage the tourism industry dynamism is necessary the unconditional support of a strong bank like Banco del Progreso.
How does the tourism sector contribute to the Banco del Progreso?
Tourism is a fundamental activity of Dominican economy that has a constantly growing solid path.
In 2016, tourism industry contributed a total of 575.1 billion of pesos to local economy, equivalent to 17.3% of total GDP. Regarding export values, international visitors generated an income of DOP 322.8 billion of pesos, including a record of 6 million of tourists.
In the same way, the Hospitality industry is a leader of permanent job opportunities. In 2016, its total contribution, including those job offers indirectly created thanks to this sector, was 654,500 employments.
These numbers place the tourism sector at the top of the most dynamic and productive industry with the greatest impact on the Dominican Republic economy. This sector has a wide range of business oppor tunities for the Banco del Progreso.
How do you consider the financial support aimed at the development of this sector?
Tourism is an industry that demands a huge capital investment. The hotels and transportation –the main business lines- require a significant investment for either the initial burst or maintenance, and its business development as well. The support of financial entities is a key factor. The Companies capital injection must be accompanied by bank funding in order to achieve a return on short-term investments.
On the other hand, banks provide touristic companies with efficient and prompt financial services suitable to its business nature: multicurrency account, means of payment, salaries, cash management, electronic channels...
At the Banco del Progreso, we have the commitment to of fer our clients dif ferentiated value propositions, which are beyond the market regular of fers.
What new projects have been set in motion or have been planned to encourage tourism?
In the last years, the Dominican Banco del Progreso has achieved significant progress in the banking business. Today, we are still in the growing and specialization phase considering that the tourism sector is a good opportunity to offer our products and services.
Through its Banca Institucional Division, the entity are focusing considerable resources on meeting the needs of those companies belonging to key sectors for the economic development in the country: Infrastructure, Energy, Construction, Commerce and Tourism.
In the case of tourism, we designed a strategic initiative to boost this industry business last year while developing a short-term plan aimed at the increase of our market share up to 10%.
The bank will focus its strategy on a comprehensive offer for financial support to all players in the tourist ecosystem: hotel chains, tourist-real state developments, airports, ports, tour operators, travel agents, transportation, restoration and entertainment companies...
What percentage of the total bank loan does tourism support portfolio represent?
For Tourism sector, the amount of loan granted by the bank is 12.79% of the total business loan portfolio, and a 5.48% of the total bank loan portfolio which is correctly aligned with the instalment credit of 5.46% for Dominican multipurpose bank sector.
The hotel chains and companies related have a very specific demands, What services does the Banco del Progreso exactly provide for this industry?
The Brand Progreso is characterized by providing a highly competitive offer and a premium service. In addition to wide range of banking products, our bank puts at touristic companies’ disposal membership services and privileges of sponsoring and promotion, not only for Mastercard and Visa but also for American Express, as an exclusive brand representation. The “Membership Rewards”, the best loyalty program in the country is also included, which is the only program in the market whose collected points never expire.
How would you describe the professional team in charge of this important and key sector for our country?
To have a stronger presence in the tourism sector, one of the first decisions the Banco del Progreso made, was to form an experienced team of bank executives who already had have success and good connections in this sector.
Elis Faña, Senior Vice-president of Banca Institucional, who has worked at the bank for 22 consecutive years, is the head of the team. She has vast experience on dealing with corporate clients, hotel and infrastructure project management internal audit and private bank. Being aware of the significance of tourism sector and its specific demands, this professional team shares all its experience, ability and effort to strive for service excellence and to provide firm support to meet clients daily needs.
What would you consider the most important peculiarity of this service provided by the Banco del Progreso?
The Banco del Progreso makes a name for itself because of its state-of-the-art online banking platform and the benefits and privileges of American Express that has an exclusive representation in the country.
The new strategy, besides the participation in financing operations, includes the strengthening of services in all the branches located at touristic places.
These branches have been reorganized so as to give their clients a more personal attention and provide them with a quality service displaying a new and modern image.
Today, the bank branches are open in the following touristic areas: Punta Cana, Bávaro, La Romana, Marina Casa de Campo, Sosua, Las Terrenas, Jarabacoa and a wide network of ATM and service channels.