For those
readers that have asked for some specific travel and other information
regarding the Dominican Republic north coast(Cabarete, Puerto Plata,
Sosua), we recently returned from a business trip in that area and
took the time to do some “part time” scouting around:
Cabarete
– This small town is located about 15 minutes down the road from Sosua,
and is the place to stay if you do not want to stay in larger resort town.
While German tourists mostly frequent Sosua, Cabarete is more of a haven
for Canadian and Swedish tourists (with a few other nationalities mixed
in). Noticeably absent were the young Canadians and other non-Dominicans
usually found working in the beach bars and restaurants (working illegally
without visas or permanent residency for the most part).
Our sources
previously informed us that immigration did a surprise sweep of the business
establishments, checking for work visas or Cedula cards (indicating
permanent residency and the right to legally work in the country).
While I did
not disbelieve the information I had obtained some time ago about this,
it is quite evident now when you see it for yourself firsthand.
The story I
heard was that some young North-American “tourists” were jumping over fences
to get away from immigration, but we all know how some stories get blown
out of proportion (sounds like a story from the US involving Mexicans).
While this
was the first time immigration checked Cabarete in about 5 years, it proves
that they will check when you least expect it.
For some general
information about Cabarete, please contact Mr. Kelvin Dueck, who is in
charge of guest services at Windsurf Resort. Kelvin is a Canadian that
has spent 2 years in Cabarete and is an all around “good guy” to
speak with regarding local information.
He of course
would like you to stay at his hotel, so if you contact him, please keep
in mind that he of course may be answering you under the premise you might
be interested in booking a room with him.
Jaime at the
front desk tells us that standard room rates are about US$ 70 per night,
which is not a bad deal if this is the rate for a two bedroom unit.
The Windsurf
is not an ultra luxurious place, but clean and decent for the money (plus
the service is excellent). Kelvin tells me he will take “extra
special care” of our clients and readers, so see what he has to offer
on rates.
One place we
can suggest when in the North Coast or Santiago area is Hotel Camp David,
located just outside of Santiago. The view from the hotel’s restaurant
is phenomenal. Perched high above the city, you can see Santiago,
Moca and Cibao. Room rates for the hotel are RD$ 600 Pesos per night,
or about US$ 38 and well worth it, even if for just one night.
In truth, there
is not much of anything to do up there, the hotel does not even have a
swimming pool (although they tell us they will be putting one in),
but a place worth an overnight stop. Telephone 809-626-0587, 809-736-7230
or 809-223-0666.
With regards
to investments, we have heard of a local attorney that apparently is offering
up to 4% per month on deposits in Pesos.
The story is
that these are for loans being made to wealthy local Dominicans, who for
one reason or another would rather take a discreet loan than a bank loan.
At first glance
this seems somewhat odd in comparison to 90-day commercial paper in Pesos
with a local reputable broker in Santo Domingo at 20% to 23% interest.
However, considering
that bank interest rates on personal loans are about 36% or more, 3% to
4% per month does not seem so out of place.
My concern
is that such deposits are not being made with a local banking or other
formal financial institution and there is nothing stopping the attorney
from “heading for the hills” with the “loot”.
However, we
did speak with a local European gentleman that claims he has had his money
on deposit for a number of years and has never missed a beat regarding
monthly interest or return of principal when requested.
In fact, he
tells us he has taken a loan in his local “home” country at 8% annual
interest and is investing it in the Dominican Republic at these 40% annual
rates (to make the difference).
This is the
ultimate example of taking the bank’s money from one country, and investing
it in another country, making the spread for a tax-free monthly income.
Regardless,
this needs a little more looking into, as the safety factor of personal
loans and integrity of the attorney (whom I do not know) still concerns
me somewhat.
John Schroder
of Ascot Advisory Services, as a courtesy to clients and readers, has presented
this information and is wholly responsible for its content.
Ascot Advisory
Services provides residency and investment assistance services in the Dominican
Republic, assistance with Offshore Incorporations and Asset Protection
matters, merchant accounts and other related services.