Dominican Republic: treasure of the Caribbean Sea

Latin Trade, August, 2005

The Island Nation Focuses on New Investment Strategy

The Dominican Republic, located in the heart of the Caribbean Sea, is a treasure of color and radiance that illuminates the Antilles Archipelago. Here, 48,000 square km of mountains, coasts and cities blend to create a lush and generous land that has much to offer both vacationers and business executives.

The country's many seaports and growing number of airports are the best example of the Dominican Republic's thriving tourism and commercial economy. For instance, Las Americas International Airport easily accommodates the bustling traffic of tourists, foreigners and local travelers who arrive daily.

The globalization of world economies means that the Dominican Republic will move away from being a country whose principal exports are traditional agricultural goods, such as sugar, coffee, tobacco and cacao, and will focus on developing the services sector. In addition to tourism and telecommunications, the Dominican Republic is positioning itself to become a major player in the outsourcing industry in Latin America.

With more than 59,300 hotel rooms located throughout the country and a wide variety of competitive lodging options, including luxurious "all-inclusive" hotel chains, the Dominican Republic is well equipped when it comes to accommodations for visitors. Travelers can choose hotels that best fit their needs, from a simple small hotel to the beautiful beaches of the five-star resorts in the popular tourist destination located on the north and east coasts of the country with facilities for water sports.

In the field of telecommunications, the Dominican Republic has made great technological advances, placing it at the forefront of the industry in Latin America. This huge market is dominated by four large international corporations: Verizon, Orange, Centennial and Tricom. This industry has experienced significant growth in the past year.

Verizon International, originally known as Compania Dominicana de Telefonos (CODETEL), is one of the top companies in the telecommunications sector and has been doing business in the Dominican Republic for 75 years. The president of the company, Jorge Ivan Ramirez, says that the firm, which last May inaugurated a new $55 million building in Santo Domingo, has confidence in the country. "For this reason, we work so that each day we help to take another step forward in its progress, because the growth of the Dominican Republic in every aspect is also our goal," said Ramirez.

Major highways and easily accessible national transportation have facilitated the development of internal tourism. However, the government, led by President Leonel Fernandez, is determined to attract investors to develop eco-tourism and adventure tourism. For those people interested in mountain climbing, Pico Duarte, the tallest mountain in the Antilles, offers quite a challenge.

INVESTMENTS AND GROWTH

Despite difficult times under the previous government, the Dominican Republic has been able to attract US$1.6 billion in foreign investment over the past two years, especially in the areas of communication, energy and mining, finance, commerce and industry, tourism and free zones.

These investments were led by businesses in the United States, Chile, Mexico, Brazil, France, Italy, Colombia, Canada, and Spain, and on a smaller scale, by Switzerland, Panama, the Virgin Islands, and England.

FROM THE CARIBBEAN BASIN INITIATIVE TO A NEW FREE TRADE AGREEMENT

In the 1980s, the Dominican Republic took advantage of the Caribbean Basin Initiative launched by U.S. President Ronald Regan by substantially decreasing unemployment and adding more than 200,000 jobs with the growth of textile businesses in the free zones.

The Dominican Republic is again betting on progress, aligning itself with the DR-CAFTA free trade effort. Signing of the DR-CAFTA guarantees the country favored nation status with U.S. and Central American trade markets while at the same time strengthening its ties with the United States, which receives 80% of Dominican exports and is the main trading partner of the country.

The Fernandez administration always has been dedicated to bettering the country's future and was determined to attract state-of-the-art technology investments. This dedication resulted in the development of the Cybernetic Park (Parque Cibernetico) at the end of the Fernandez administration's first term in 2000, and an aggressive campaign to attract investors.

Companies who specialize in technology services have opened up businesses in the park, which lies east of the city of Santo Domingo. Caribbean Custom Mold, whose parent company is Florida Custom Mold, specializes in prototype-to-production molds and injection molding. The company manufactures plastic parts for everything from routers to scuba diving equipment and much more. Another company doing business in the park is Interdom Inc., a Dominican company headquartered in Florida, which specializes in call/contact centers, serving the hotel industry, insurance and much more.