Dominican Republic Invests in its Future
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Dominican Republic Invests in its Future
By Michael Willis
October 2006
Beach Band
There are two types of travel stories.

Type One, you’re very familiar with.  You learn all about the sparkling sand, the dazzling shops, the seething nightlife and the world-class hotels.  Pretty breathless stuff.

This is not one of those stories. 

This is a Type Two travel story.  The kind that talks about sewer lines, regeneration of beaches, public-private cooperation, and the like.

 

Yeah, I know: Type Two is not nearly as exciting as Type One.  And most travel writers are only concerned with Type One stories.  But let’s face it: if there’s no airport, if there’s no phone service, if there is no water and sewer service . . . well, odds are, you’re in for a pretty basic trip.

The Dominican Republic is investing US$500 million to provide you with anything but a basic trip.  That’s the amount the public and private sectors of this Caribbean nation are investing on the North Shore to clean up beaches, build a new international airport, add four-star hotels, upgrade cruise ship infrastructure, build new highways, and generally beautify what is already a pretty beautiful country.

The focus is on the North Shore, a 100-mile stretch between Puerto Plata and Samana, with the azure Atlantic as its front yard and lush green mountain ranges out the back door.

“This is the new beginning of Puerto Plata,” said Felix Jimenez, the personable Minister of Tourism. “Our goal is to be the most complete destination in not just the Dominican Republic but all the Caribbean.”

A noble - and daunting - goal; given that Punta Cana (on the East Shore) is currently the No. 1 tourist destination in the Dominican Republic; given that La Romana (on the South Shore) is currently the nation’s No. 1 cruise ship destination; and given that many other Caribbean destinations are putting on new powder and lipstick.  But it is a goal that the new government of President Leonel Fernandez is determined to achieve.

It started over 10 months ago with the clean-up of Long Beach, formerly the best beach in Puerto Plata. If fact, Minister Jimenez fondly remembered playing on this beach as a child. “But for more than 30 years, we neglected it, and it fell into disuse” he said during an early August ceremony to inaugurate the new beach. “But now, we can proudly proclaim Puerto Plata as the jumping off point for North Shore tourism.  We are returning this beach to the people of Puerto Plata and the Dominican Republic.”

The government moved a dump, put in new roads and sidewalks, added sewer and water lines, built a treatment plant and dredged up and trucked in fresh white sand (some from more than 70 kilometers away).  The work encompassed 14 kilometers of beach in Puerto Plata, Cabarete, Boca Chico and Juan Dolio.

More is to come, including a city boardwalk with restaurants and bars, along with an amphitheater. “We want to give it the feel of the pier in Chicago,” said Minister Jiminez, “so that people will see thatPuerto Plata is more than just beaches.  We have history, mountains, a cable car, and just a half hour from downtown we have a river with 27 waterfalls.  I myself have only made it as far as the fourth waterfall in a boat,” he laughed.

It has been a joint effort of the government’s airport tax and private business interests along the coastline of Puerto Plata, Boca Chica and Juan Dolio.  Total investment is more than $30 million.

But Puerto Plata is only the tip of the spear.  Further east along the North Shore, the new El Catey International Airport 30 kilometers from the peninsula town of Samana is Step Two. It is expected to accept its first flight by Nov. 1; and anticipates 14 flights a week from Europe, the US and South America.  There are already commitments for weekly direct flights from Paris, London and Frankfurt. The airport has the capacity to handle four widebody jets simultaneously.

The airport represents a US$80million private investment, along with an undisclosed sum from the government.

About the same time as the airport opening, four new four-star hotels are expected to be open, including the breathtaking, 198-room Bahia Principe with to-die-for views of the Atlantic thanks to its location on a bluff overlooking town.  A crew of more than 300 is working feverishly to put the finishing touches on the mahogany-and-marble palace.  The hotel has its own private island, accessible by boat. 

In downtown Samana, construction is moving ahead briskly on a new commercial plaza as well as added infrastructure to handle the more than 100,000 cruise ship passengers expected next year.  If each passenger spends the industry-standard $100 per day when off the boat, the little town can expect a $10 million boost to its economy.  Royal Caribbean is expected to add Samana to its destination list in 2007. The New York and Baltimore markets are expected to be prime embarkation points for many of those passengers.

For the first-time visitor to the Dominican Republic, the country is determined to put its best foot forward to make it a memorable trip.  And for those who have been here before, the Dominican Republic has about 500 million new reasons to love it.
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Dominican Notebook

Q: How many Dominicans can fit onto one motorbike?

A: More than you can possibly imagine.

Motorbikes. They’re everywhere in the Dominican Republic. Used as taxis, work trucks, grocery carts, substitute oxen, and quite possibly as furniture. I think they are part of the DR national flag. If not, they should be.

The national sport may be baseball, but the national game is seeing how many Dominicans you can fit onto one small, smoke-belching bike. Guys take their girlfriends for Sunday drives. Whole families jam onto one bike for a ride to the supermarket. The weekly trip to church is made astride a bike.

In city and town, on paved road and muddy side path, bikes rule both the road and the economy.

I swear, I saw a full construction crew with enough lumber, cement, plywood, hammers and nails to build a small house – all loaded onto one Yamaha on the road from the airport to downtown Puerto Plata.

With gasoline twice the price of fuel in the USA, Dominicans are looking for an economical way to get around their beautiful Caribbean country.  Or maybe it’s not thrift that makes them defy the laws of nature and common sense. Perhaps it’s the rum.

Brugal is a world-class rum crafted in Puerto Plata from the lush sugar cane that lines both sides of the road from the airport.  The company says it caps 480,000 bottles a day; with 80 percent of it going to domestic consumption.  The company would not confirm reports that most of the domestic consumption is earmarked for motorbike drivers and passengers.

*****

The government has also changed the building code for the North Shore. Previously, a building could be a maximum of three stories high – about the height of a palm tree, the general measuring stick for much Caribbean development. Now, the government has approved buildings of seven stories in height. Of course, upper-floor units sell for much more money; so presumably a 7th-floor penthouse would fetch a lot more than a 3rd-floor penthouse.

*****

Fifty-four percent of tourists to the DR come from the USA, with 42% of those coming from the Northeast. Canada ranks second and (surprisingly) France third. 

Punta Cana (on the East Shore) is currently the No. 1 tourist destination in the Dominican Republic; La Romana (on the South Shore) is currently the nation’s No. 1 cruise ship destination.

*****

Columbus set foot on the North Shore of the DR on his first trip to the New World in 1492. The little town of Monte Cristi is near the western border with Haiti. Modern-day tourists have moved Eastward, along the North Shore to Cabarete (site of the world kitesurfing championships), Puerto Plata (home of the quaint Amber Museum) and Samana (where government and private interests are building what they hope will be a new cruise ship and airline destination along the sparkling blue waters of the Atlantic).

It was Columbus who named the little town Puerto Plata (“Silver Port”), but not because of New World riches. He sailed into the harbor late in the evening, when the water was calm and the setting sun cast a silver glow over the water. Today, the entire North Shore has the glow of a US$500 million investment in everything from a new international airport to the arrival of a quartet of four-star hotels.

*****

Most visitors to the North Shore currently wind up in one of the 15 hotels comprising the Playa Dorado area. All but one of the hotels shares common facilities including pools and, restaurants.

The Grand Flamengo, part of the outstanding Occidental chain, has a section called the “Club Royal” which features a small private pool and a pool-side restaurant. Guests still have access to the amenities shared by the other hotels. It comes highly recommended

*****

For those looking to invest in North Shore real estate, here’s one statistic provided byan insider with the Ministry of Tourism. A German firm is building waterfront condos on Long Beach, the sparkling new waterfront of Puerto Plata.

Fully furnished, they are expected to sell for about $1800 per square meter. That’s about $180 per square foot, or about $180,000 for first-class, ocean-front, new construction.

Of course, you can spend more or you can spend less; construction is booming. My source speculates that about 80% of these new condos will be put into a rental pool while the remaining 20 percent will be second homes or primary residences.

Another developer is selling 500 sq. ft., one-bedroom apartments (in a gated community, but not ocean-front) for $62,000; a 2-bedroom, 1000 sq. ft. condo in the same development is $132,000.

*****

Here’s a quick insight into cruise ship economics, supplied by one cruise exec who preferred not to be named. The industry average for cruise ship passengers is $100 a day spent when they are off the boat. The DR is well below this average, for a variety of reasons. “We just have to educate ourselves,” said my source.. “For example, let’s say our average is $40 per day per passenger, and we are able to increase that to $60 a day – by having better taxi service, by having more upscale shops, by offering more and better eco-tours. For the 100,000 passengers we expect in Samara this year, that is a difference of $US2 million.

*******

Dominicans love to party, with the action in the capital, Santo Domingo, starting after midnight in most clubs. The national dance is the meringue, played by a three-piece band consisting of a melodeon (accordion-like instrument), a guira (a cheese grater-looking instrument that is scraped) and a tambora (double-headed drum).

Local lore says it happened this way: A cargo ship, full of accordions, was in port for repairs. The captain could not pay for repairs, so over time the captain bartered the musical instruments for food for the crew. Locals added the accordion to existing instruments, and a passion was born.

Imagine how history would have changed had that ship been carrying kazoos.
 

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Central Park
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Motorbikes:the national sport
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RESOURCE LINKS FOR THE DOMINICAN REPUBLIC
Living In The Dominican Republic
The articles that appeared in the feature edition on the Dominican Republic are now posted in our magazine.
Art & Culture in the Dominican Republic
Information about Music, Museums, and Galleries.
Articles About Living In The Caribbean
An Index of Articles  posted on This Website on Living in the Caribbean.
Real Estate in The Dominican Republic
Real Estate In The Dominican Republic - Current real estate listings of properties in The Dominican Republic.
Articles on Living and Investing in the Dominican Republic
Articles On Living & Investing In The Dominican Republic -
Vacation Rentals In The Dominican Republic
Vacation Rentals worldwide - including The Dominican Republic
Vacation & Travel In The Dominican Republic
EscapeArtist Travel - Our new section providing unique travel to unique locations
Economy and Business for the Dominican Republic
Business, Economy & Real Estate in The Dominican Republic.
Schools, Education & The Internet in the Dominican Republic
Schools, Education, Internet, Seminars in The Dominican Republic.
Embassies & Consulates of the Dominican Republic
Embassy Resources for The Dominican Republic - On our sister site EmbassyWorld.
Books about the Dominican Republic
Books On The Dominican Republic - Part of Our Profile on Moving to The Dominican Republic.
Jobs in the Dominican Republic
A List of jobs in The Dominican Republic
Maps of The Dominican Republic
Maps of The Dominican Republic - Our own Embassy maps plus a large number of differing Dominican Republic maps, also including city maps.
Links, links & more links
Including Jobs, Search Engines and Education Resources.
Caribbean Tax Havens and other Tax Havens from around the world
Definitely an index of resources for those who have opted to seek freedom and individual preference.
Newspapers & Media in the Dominican Republic
Media & News Resources for The Dominican Republic. Newspapers, magazines, online resources and news channels with current Dominican Republic information.
Banks of Dominican Republic
Banks of The Dominican Republic - See Banks of The Dominican Republic at our Banks of The Caribbean Section.
Tourism & Travel in the Dominican Republic
Travel, Tourism, Travel Guides, Vacations, Car Rentals, Resorts, Accomodations, etc.
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Live & Invest In The Dominican Republic
New Updated Edition 2006 !
By John Schroder
There are many places you can go to in the Caribbean, but there is only one spot that has been called "The Best Kept Secret".
That place is the Dominican Republic, and the time to find out about this investors paradise is sooner, not later ! You can find out about basic statistics from any book-store travel guide, but not the honest kind of perspective you are looking for. What is it really like to live there? What is the cost of living? How do I find the real estate or apartment bargains? Can I find good Internet access? What is the shopping like? How about banking rates? 
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