Entrepreneurs Abroad:
Big Business in Little Utila
International
Living Online Edition (September, 1998)
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US$1 equals
13 lempiras
American Chris
Phillips turned a postgraduate stint on the Bay Island of Utila into a
personal and professional success story. Here he tells International Living
how he combined his vocation and avocation to create a profitable business
and a slow-paced Caribbean lifestyle.
Q: How did
you decide on Utila?
I came to
the island for a two-month working holiday. I was 22 and just wanted to
get away from the States for a while. I was the first PADI dive instructor
to teach on Utila, and within five months I found myself the owner of a
dive shop. I paid $25,000 for the 1,500-sq.-ft. dive shop in installments
of $80/month.
Knowing that
my business was secure, I concentrated on diving and underwater photography.
Business was booming, and by the end of he year had grown by 40 %. Before
the dive boom, I was making 54,600 lempiras a week; after two years, MY
profit grew to 104,000 lempiras a week.
Q: What
other businesses were you interested in?
With more
and more divers coming to Utila, it seemed to make sense to build a place
to house them. I partnered with a friend, and over the next year, we invested
a quarter of a million dollars and built the Mango Inn, a 23-room cabafia,
restaurant, and bar development, complete with hot water and 24-hour power.
The land cost us 487,500 lempiras. Labor was cheap for building the hotel,
about 260-325 per day. Like my previous business venture in the dive shop,
results have exceeded expectations and we have 90 % occupancy nine months
out of the year after only one year. That equates to about 107,000 lempiras
per month. Costs are manageable.
Repairs and
other expenses run about 6,500 lempiras a month. Labor is the biggest expense.
We pay the staff of seven a total of 26,000 lempiras a month.
Q: What
advice would you give for building on Utila?
The best time
to build is in the summer or in the dry months of the year: January through
September. October through December is rainy season. A 1,000-sq.-ft. house
with three carpenters would take about three to four months to complete.
It took a year to build our hotel. A small bungalow would take only a month
or two. It depends on the materials you use. Native wood is quicker and
easier to use. Cement block would involve bringing a crew from the mainland.
Q: What
is the infrastructure like for the would-be investor or retiree?
Utila has
many appealing characteristics, much like a small town in the Midwest.
There are five churches, a kindergarten, public and private schools, and
two medical clinics. However, this island is unlike the Midwest in that
it is surrounded by pristine underwater coral gardens and drop-offs.
There are also
many frustrations that come with living on a small island in the tropics.
For example, you can't just go down to the gas station with your boat and
fill up. All supplies, including fuel ($2/gal. of diesel, $3.50/gal. of
gasoline), come to the island once a week on the supply boat.
If there is
a high demand for diesel, or anything else, the island simply runs out
until the following Tuesday. Luckily, the two grocery stores are getting
better at stocking to meet demand.
Many supplies
now come daily on the passenger ferry MV Tropical that started two years
ago. Utila's airport has seven flights from La Ceiba (520 lempira round-trip)
and San
Pedro Sula
(780 lempira round-trip). The international airports in Honduras are in
Roatan and Tegucigalpa.
Q: What's
the cost of living?
Honduras in
general is an inexpensive place to live. Vegetables and fruits are plentiful,
and a healthy diet is pretty easy to maintain. Now many U.S. products are
available, unlike
two or three
years ago. Certain luxury items are more expensive than in the States,
however, such as electrical equipment, T.V. sets, and cars.
Groceries and
clothing from the States are about the same price.
Most food choices
are available if you're not too picky. A pound of bananas costs only $.50,
a 10-1b. watermelon costs $1.50, a pound of broccoli is $.75 and a dozen
eggs is $1.25. A small box of Frosted Flakes costs $3.
Q: What
does it cost to build a typical home?
If you are
looking to build, there are three choices of building materials commonly
used on the island: wood, cement, and stone block, all costing about $40/sq.
ft.. All the materials are brought from the mainland by boat and delivered
to the job site, that's included in the price of $.60/board foot. Professional
building design and construction services and contractors are readily available.
The average carpenter earns $20 for an eight-hour day. His helper earns
$13/day.
Q: What
do you like best about the quality of life here?
The local
people are very inviting and open. I know all the local kids, and they
know me; we are friends. It's a real community here, people help me out
and I help them out. It's not a place where everyone is caught up in his
own world and is taken aback when you say hello. Utila is a place where
if you walk down the main street, it may take you an hour to get 500 yards,
because people stop you along the way just to say hello and to find out
what's new in your life.
Q: What
is the best advice you can give to someone about to move to Utlla?
Be flexible.
Flexibility is one of the most important qualities that a person could
have. Persistence is second. Never give up. If you have a dream, you need
to have the courage to see it through. Don't let the differences of living
in Honduras discourage you. Nothing really good comes easy, and here is
no exception. Elements like the weather play an important role in everyday
life. You have to be willing to let go of the way you did things in the
States and embrace the unique Utila way of getting things done.
When you arrive,
your first instinct might be to compare everything to the way it is back
home. Don't make this mistake. It is nothing like home, yet it's just like
at homeyou take the good with the bad.
by Chris Phillips
as told to Kerstin Czarra
Contacts
w Chris Phillips;
tel. (504)425-3335, fax -3327
w Kennedy
Bodden, attorney at law, La Ceiba, tel. (504) 443-0763, fax -2170
w Dave Adams,
builder; tel. (504)4253269
Underwater
in Utila
Utila's certification
courses are among the cheapest in the world and are attracting an ever-increasing
number of travelers and holidaymakers from every country.
The area has
developed into the largest PADI SCUba-training center in all of Central
America and Mexico and now supports 15 dive shops. Four-day openwater dive
courses are offered for $145(all inclusive).
Dive trips
for certified divers consist of two dives with full equipment and cost
$25 for a half day.
Contact Richard
Gonzales at Utila Dive Center, tel. (504)425-3326, fax 3327, or Cross Creek
Dive Center, tel. (504)425-3124, fax -3234, E-mail: scooper@honduras.hn |