Christopher Columbus knew about it over 500 years ago ... Julio Iglesias recognized a gem when he saw it (and founded tremendously successful Punta Cana)... Germans and Italians vacation here in great numbers ... Europeans build second homes or retirement havens here, and have been doing so for many years.
I first visited the Dominican Republic over 15 years ago, and found it naturally beautiful with a perfect balance of stunning beaches and towering forested mountains. Steeped in history, boasting the first European city founded in the Americas, the island was breathtaking ... but I didn't have the foresight to see the potential, nor the cash to implement a dream if I had. It took others to do this first ... and now large numbers of Europeans are profiting from a destination that has largely been a secret for Americans ... and it's still as breathtaking as it was then.
For instance, I found a two bedroom, 3 bath home a short walk from the beach in Punta Cana for $115,000. If an apartment is more your style, I found studios, one bedrooms, up to two bedrooms, with one to two baths, in the same area (many completely furnished and outfitted with cable TV), ranging from $28,000 up to $180,000 (right on the beach).
On the pristine Samana peninsula (dotted with four charming small towns), I found a three bedroom retreat on nearly 3/4 acre for $77,000 ... and a rustic home a short walk from the pier for $22,000. Or you can build your own castle on a good size piece of property -- offerings are all over the place, and fit any pocketbook.
Today this undiscovered jewel (called the "DR" by locals), is an island of upscale hotels and resorts, over 15 parks and reserves, more than 7 golf courses, 21st century communication capabilities, every amenity you're used to having at home ... and those drop dead beaches and forests mentioned above. But the biggest surprise of all is it's still affordable.
When you schedule your DR appointment, you might should check out the area around Juan Dolio (not far from bustling Santo Domingo), and the magnificent Samana peninsula. Be sure to include Punta Cana too -- developed with tourism in mind, there's great potential here for investment, a second home, or the perfect retirement villa. Whatever you do, don't miss taking a tour of the Zona Colonia area of Santo Domingo -- whether you're a history buff or not, you can't help but be impressed by the charm and grace of a city steeped in antiquity.
No, I'm not a real estate agent, nor major investor -- I travel the world writing for people about hidden places where the living is good and the tariff is reasonable, places I'd like to live myself. I think the DR makes an excellent place to live and relax with prices you'd be hard pressed to find any where else in the Eastern Caribbean.
There is a misunderstanding regularly heard from the mouths of investors, would-be retirees and vacationers with a yen for a Caribbean address. It goes like this: all of the deals in the Caribbean are gone, property prices have run amuck and the locals wish all the foreigners would go home. Granted, good deals can be difficult to find. Sometimes, however, the most obvious choices are right under our noses, too close to recognize. In fact, last month I visited a country that has been under our collective North American noses and passed over with a disinterested sniff for much of recent history. Europeans, on the other hand, have not been as dismissive of this worthy destination. Any guesses?
How worthy a destination, you may be wondering.
What do you need to pay for a 450 square foot studio condominium unit located a four minute walk from the beach in Grand Cayman? Before you answer, be certain your comparable property has impeccably maintained grounds and an inviting swimming pool. Also, include energetic management and maintenance. And don't forget condo fees. What do you think? Let's say US$125,000 and a US$275 month condo fee, if you're lucky. What about the same property in Puerto Rico? If you looked real hard, perhaps you could halve these numbers. Jamaica? Take 25% off of Grand Cayman's estimates.
But in the eight year old condominium project I'm talking about, this unit is being offered for US$22,000. A deal could probably be made at US$20,000 plus an US$87 per month condo fee. You can buy this unit along with an identical one next door for US$39,000 for the pair. Put a door between the two and double your rental possibilities. I forgot to mention the strong rental market. You would be virtually guaranteed full occupancy for 30 weeks of the year at US$200 per week. Being conservative, we'll say US$200 per week for 25 weeks. That's US$5,000 less the annual condo fees of approximately US$1,000 and another US$500 for the manager to look after your property. That leaves the owner with US$3,500 per year on an investment of, say US$
In the exuberant U.S. economy, a stock investment yielding 16.67% is not all that much to get excited about. But remember, we're talking about making a return and enjoying ourselves. Your condo will be ready for you to visit 27 weeks of the year.
And how about access, you may wonder. The Caribbean can be difficult to reasonably get into and out of. From New York's JFK Airport, you can get to this paradise on a direct flight in two hours and forty-five minutes. Flights run daily. After landing and clearing customs, a US$2 ride gets you to your property in ten minutes. Not bad access, you might agree. And the beaches? Second to none.
There is significant European based tourism traffic throughout the entire island. There are so many Germans, Frenchmen and Spaniards, it is somewhat rare to see a U.S. vacationer. Where are we, you may be wondering. How many think we're in Cuba? Well, we might as well be, but we're not. Maybe Margarita Island? Not a chance. We are in the Dominican Republic, known locally to all as the "D.R.". And you should visit soon.
If you thought I was describing Cuba, I understand why. We all like to think that Cuba is a perfect jewel just out of our reach due to U.S. policy. However, the jewel that is Cuba has some sharp edges that many day-dreaming U.S. investors take for granted. First of all, there are no real private property rights upon which to base an investment in Cuba. Secondly, the economic system is centralized, subsidized and hopelessly socialized. One example sums it up: A foreign hotel owner-operator in Havana pays the Cuban government owned employment agency US$800 per month for a busboy to work in his hotel. The employment agency then pays the busboy $35 per month for his efforts.
Thirdly, Cuba (and more accurately Havana) is an artificial economy and social structure held together by sheer police force and strong threats of gulag-style jails. Sure, Havana is safe virtually any time of day. The worst misfortune that might befall a late-night foreign wanderer would be the lifting of a pen from her pocket (due to the fact that they don't have simple Bic pens available in most stores). But Cuba is safe for all of the wrong reasons. And when free trade enters the tent with political self-determination close behind, the social growing pains of any new booming market will quickly change the country's character in the short term.
The Dominican Republic, on the other hand, has many similarities with Cuba, but also many marked differences. Like Cuba, the beaches of the D.R. are beautiful offering world-class surfing and windsurfing, as well as excellent swimming. Unlike Cuba, property rights are strong and have a long history in the D.R. Up until very recently, approval for the purchase of any property over 22,000 square feet by a foreigner required direct Presidential approval. However, this requirement has been recently lifted and there is no approval needed for the acquisition by a foreigner for property of any size. The D.R. also collects no property tax, making land holding costs inconsequential.
Though the D.R. has had a centralized system in the past, the election of Leonel Fernandez as President in August of 1996 signaled a transition of government from the administration of Joaquin Balaguer, President for 22 of the previous 30 years. The Fernandez government is instituting significant reforms in the D.R.'s economy, lifting many of the price subsidies and market controls used in the past and making efforts to remove the systemic corruption and favoritism which have permeated the country for many years. Though still early in the Fernandez Administration, the positive signs of change are in the air.
One of these signs has been the creation of OPI-RD, Office for the Promotion of Foreign Investment. Created as an agency reporting directly to the office of President, OPI-RD and its internationally-minded staff represents the D.R. government, while also positioning itself as an ally and colleague of the foreign investor. Though this may sound like so much rhetoric, in fact, OPI-RD has instituted a system whereby small, medium and large sized investors can work directly with them to arrange meetings, offer translation services, be shuttled around Santo Domingo and suggest itineraries, all at the expense and assistance of OPI-RD. If you have ever had an idea for a Caribbean-based business, contact Mr. Eddie Martinez of OPI-RD at Roberto Pastoriza 16, Edif. Diandy XIII, 7mo Piso, Santo Domingo, Republica Domincana, 011 (809)683-6633, fax (809)683-6641, e-mail: opi.rd@codetel.net.do. You will not be disappointed by his office's responsiveness.
During my trip, I was continually surprised by the low-priced properties I regularly came across. Why haven't U.S. buyers pushed up the prices in the D.R. as in most other Caribbean markets? I came up with three reasons:
1. No Marketing: Through 1997, the Dominican government spent no public funds on marketing in the U.S., relying solely on the foreign (primarily European) hotel owners to use their European based network of travel agents to keep their cheap (though very nice), all-inclusive hotel rooms filled with bargain-hunting tourists. The Tourism Office now realizes that they have been missing out on the huge tourism potential from the U.S. and are now executing plans to spend the dollars to finally attract them. These nearby-neighbors will begin to "discover" the D.R. in 1998.
2. The Haiti "Problem": Haiti has gotten such a bad rap in the U.S. newspapers that when a potential traveler checks a map, they believe that going to the D.R. is the same as going to Haiti. Never having been to Haiti myself and being suspect of mainstream media, I have few preconceptions, but I do recognize the problem. From my first-hand experience however, the D.R. and Haiti share a well-policed border. This is evidenced by a substantially higher standard of living enjoyed by the D.R.'s residents. This problem will only go away as more U.S. visitors come to the D.R. and see the separation for themselves.
3.The Registration Issue: For U.S. buyers, requirements which vary substantially from the property transfer process they are used to back home raise a red flag. The law which required all property purchases over 22,000 square feet be registered with the D.R. government was unpopular and caused many foreign buyers to shy away. This road block has now been cleared with no special permission necessary to purchase property in the D.R. This is good news for property sales throughout the country.
Of course, "paradise" is never truly paradise in every sense of the word. My driver in the capital of Santo Domingo was quick to point out the four major problems effecting the D.R. from his point of view: Unemployment, trash, water & electricity. Though I did not notice water problems during my visit, I am told this problem is limited to the poorer neighborhoods of Santo Domingo. Trash on the other hand is better or worse depending on the part of the country you visit.
As with any developing economy, there are never enough jobs. The government is attempting to re-position the work coming into its significant industrial free-zones located throughout the D.R. As the standard of living and wage rates of the Dominicans have improved, it has resulted in a loss of much of the labor-intensive, free zone jobs which paid many of the country's workers for so many years. The government is now making efforts to replace these lost jobs by luring higher skilled assembly operations to the D.R. While much money for promotion is being spent, the results of these efforts is less than clear.
Electricity is a significant problem in the D.R. The government estimates that 47% of the power is "leaked" to folks illegally connected to the system. Though they are taking steps to continue the privatization of their power utilities, the process is slow. The result is significant periodic blackouts in every area within the country. Every new home is constructed with a back-up generator, and when the public power in Santo Domingo goes down (and it does go down), many of the neighborhoods sound like they are gearing up for a rally car race. The government assures its citizens and investors alike that this problem is being worked out, but the time frames for real improvement is five years into the future and not to be relied upon.
The D.R. shares the island of Hispaniola with Haiti. Given Haiti's difficult times over the years, this may be a turn-off for many would be investors, but in reality, the two nations function quite separately. The Dominican's standard of living out-paces the Haitians significantly resulting in some illegal Haitian immigration. There is also plenty of legal immigration of migrant workers working in the Dominican sugar cane fields and as domestic staff in Dominican households.
The D.R. is about the size of New York and Vermont combined and therefore, residents are less prone to the island fever which grips other island dwellers. The road system is in excellent repair and public bus systems are some of the best I've ever used. A 3.5 hours bus ride from Santo Domingo to Sosua in an air-conditioned bus with a washroom on board cost only US$5.
With such a large island, it is difficult to determine where to go. At the suggestion of several contacts, I spent much of my time along the north coast of the D.R. between Puerto Plata and the tip of the Samana Peninsula. I focused on the greater-Sosua market during this trip given its easy proximity to the Puerto Plata international airport. I found several interesting opportunities in and around the Sosua and Puerto Plata area, including the two condominium units mentioned above. My able real estate contact in Sosua was Jim Belair, President of American Realty in Sosua, EPS-D188, P.O. Box 02-5548, Miami, FL 33102, (809) 571-3646, fax (809) 571-2925, e-mail: american.realty@codetel.net.do. Jim has several single family homes, distressed building lots and inexpensive building lots which are all worth a look. For example, this was one good deal that was almost too good to be true.
An owner had started construction on a gorgeous hillside lot of a three level home. After about $50,000 of improvements, he moved on to other things. The lot and the existing improvements can be purchased today for US$40,000. A US$60,000 investment would make the property habitable. US$75,000 would do a great job with full furnishings costing another US$25,000. The view over Sosua and looking out to the Caribbean is fantastic. The completed house sells for US$500,000 in Barbados and US$800,000 in the Bahamas. It would be worth US$175,000 in this market when done. If you want to earn a little sweat-equity in paradise, call Jim and ask him about this property referred to as Villa Lorenze
If you are interested in something a bit more finished, head to the next neighborhood over, Los Cerros, and visit Villa Fred. Also offering ocean views, this well-treed corner lot is improved with a duplex building featuring two 2 bedroom, 2 bath units. The asking price is US$95,000, but I think a deal at US$80,000 could be made. In this case, the owner may also be willing to offer terms. Rent one and keep the other open for your personal use.
Another property I liked for the buyer interested in exclusivity and ease of access was a hillside villa offering fantastic ocean views. This 2,970 square foot residence is located only 8 minutes from the Puerto Plata International Airport. The three level hillside home is well kept and in excellent condition. The lower level with patio and pool has 2 large bedrooms each with its own washroom and common entrance to the pool and patio. The main level has a kitchen, dining room, living room, bedroom, washroom and balcony with views to the ocean. The upper level has a large master suite, washroom and two ocean view balconies. The asking price for the property is US$199,000, but I believe an interested buyer could make a deal at US$175,000.
Though there has always been a stalwart set of real estate buyers and vacationers who have been happy with the D.R., the make-up of its tourist traffic is not the typical North American set traditionally dominating most Caribbean islands. Of the 1.6 million tourists visiting the country each year, only 100,000 come from the U.S. Another 600,000 represent Dominican expatriates coming home to visit relatives. The remaining 1.2 million tourists are from Europe, frequenting the many all-inclusive resorts located throughout the country. Many Americans don't realize that there are more hotel rooms for rent in the D.R. than in any other Caribbean country. The U.S. tourist numbers, however, are poisted to change.
Why the D.R.?
1.Ease of access: My flight from JFK Airport in New York arrived in Puerto Plata Airport in 2 hours and 45 minutes after take-off. After quickly clearing customs, a ten minute cab ride had me in the heart of Sosua and to my hotel. The return home was equally easy.
2. Lack of Marketing = Lack of Interest = Lack of Demand = Lower Prices: This is the factor which the local Tourism Office complains about and the savvy tourist and investor celebrates. If you are looking for a cheap week of all-inclusive vacationing, call your travel agent and ask about the D.R. A friend of mine recently booked for seven days in May at a mid-level resort and paid a total of $650 for the week. This sounds pretty good at first, but then he told me it included the airfare. This is a steal.
3.Inexpensive developed real estate: This lack of interest also equates to lower property prices. The D.R.'s Tourism Office is getting ready to spend several million dollars in a U.S. national advertising campaign. Though I don't know their specific slogan, think along the lines of "Make it Jamaica - Again". The U.S. tourist market is ripe for the D.R. Look for many more of your friends visiting over the next few years. This will be the precursor to property purchases. And if you get there first, you can benefit from the impending rise.
As the Fall approaches, plan a trip to the D.R. to look around for yourself. There are many particularly good deals out there for you to choose from. And if you get in soon and at a good price, I believe you will benefit from the wave of buyers who show-up over the Winter of 1999 and beyond.
Dominican residency is a very useful status to acquire for a variety of reasons: 1) It facilitates a number of business transactions in the D.R., including obtaining bank loans, buying real estate and applying for credit; 2) It makes one eligible for lower tuition at Dominican universities; 3) It permits one to work legally in the Dominican Republic; 4) One can take advantage of Law 14-93, Art. 13, and import most household goods duty free.
In order to obtain Dominican residency, it is first necessary to obtain a residence visa. Even if one is already in the Dominican Republic under another kind of visa, such as a tourist card or tourist visa or business visa, a residence visa must be applied for and obtained before obtaining a provisional residence card, which is the final document certifying that one has valid Dominican residency. While in practice it is not necessary to be a legal resident to live in the Dominican Republic, the principal advantage is that you will be able to import your household goods, most tax exempt, under Law 14-93.
Residence Visa In order to obtain a residency visa, a number of documents must be submitted to the Dominican consulate nearest the actual place of residency of the applicant, or if the applicant is already in the Dominican Republic, they may be submitted to the Secretariat of State for Foreign Relations of the Dominican Republic. The documents are the following:
1. Three 2" x 2" frontal photos of the applicant's face. 2. A completed Visa application Form 509. 3. A certification of good behavior issued by the Police Department of the applicant's original place of residence. 4. An employment agreement or, if a real estate investment has been made, a copy of the purchase agreement, or any other documentation proving the applicant's financial solvency in the Dominican Republic. The employment agreement must be registered with the Dominican Secretariat of Labor which will send a labor inspector to the place of work to determine work conditions and ensure that the foreign applicant is filling a position that a Dominican national cannot at the moment fill. The process of certifying the employment agreement is separate from that of applying for residency, and may take some time, in most cases, up to one month after filing the agreement with the Labor Department before one can proceed to file any documentation with the Ministry of Foreign Relations. 5. A letter of guarantee from a Dominican citizen, or legal resident of the Dominican Republic. 6. If a real estate investment has been made, a copy of the Presidential authorization if one had been obtained. 7. The results of a medical examination certified by a Notary Public and authenticated by the Dominican consul. 8. An original birth certificate of the applicant, translated into Spanish.
Once the above documents are assembled, the file is complete and may be submitted to the Consular Section of the Ministry of Foreign Affairs on Avenida Independencia, some 300 meters east of the Santo Domingo Hotel. The Ministry of Foreign Affairs is housed in a former residence of Rafael Leonidas Trujillo, the former dictator. The file eventually will be sent to the Intelligence Service of the Dominican Republic known by its acronym in Spanish, DNI. This department will schedule an interview with the applicant and his guarantor to determine the validity of the application. This is normally a routine matter which is to confirm the information already provided by the client to the government. Once this is done the file is then returned to the Secretariat of Foreign Affairs for further processing. The entire process for obtaining the residence visa may take between two to three months, although some cases have been known to take as much as one year.
Provisional Residence Card After the residence visa has been issued, the applicant has 60 days within which to enter the Dominican Republic, or if already here, 60 days within which to submit an application for a provisional residence card. This application is submitted to the Dominican Immigration Department which normally takes some two to three months to process. It is valid for one year at the end of which time the applicant may submit a petition for a permanent residence card. Permanent residence cards must be renewed every year. If five years elapse after a permanent residence card has expired, the applicant loses his residency.
The requirements for applying for a provisional residence card are the following:
1. Application Form C-1 Ref. 2. Two copies of the Residence Visa. 3. A copy of the applicant's birth certificate, translated into Spanish. 4. Four 2" x 2" frontal photos of the applicant's face. 5. Three 2" x 2" profile photos of the applicant's face. 6. A copy of the land purchase agreement, Certificate of Title issued by the Title Registry office or a copy of the employment agreement or other documentation proving the financial solvency of the applicant in the Dominican Republic. 7. A notarized letter from a Dominican citizen or a legal resident in the country, guaranteeing the Dominican government the financial support of the applicant during his or her stay in the country, including, if need be, the cost of repatriating the applicant. 8. The results of a physical examination, including a blood test (V.D.R.L.), an HIV test and a chest x-ray, conducted by a medical doctor who is a citizen of the Dominican Republic. 9. Immigration Department excise taxes.
Permanent Residence Card Once the provisional residence card has expired, the applicant may then apply for a permanent residence card. The following documents are required in order to apply for the permanent residency card:
1. Sworn statement by two persons who bear witness to knowing the applicant in the country and that his conduct is in compliance with the laws of the country (plus three copies). 2. Letter of guarantee notarized by a local attorney to the effect that a Dominican citizen or resident will assume responsibility for the applicant while in the country (plus three copies). 3. Four copies of the residence visa issued by the Secretariat of Foreign Affairs for the provisional residency. 4. The original provisional residency card plus three copies. 5. A certificate of good conduct issued by the Dominican police plus three copies. 6. Six 2" x 2" photos, four of them frontal photos and two profile photos of the applicant. 7. The results of a physical examination, including a blood test (V.D.R.L.), an HIV test and a chest x-ray, conducted by a medical doctor who is a citizen of the Dominican Republic. 8. Bank letter certifying to an applicant's accounts in a Dominican bank. 9. Copy of an employment agreement, if an applicant is working in the Dominican Republic. 10. Application Form C-1 duly completed.
Polotics Aside
More on living in a Dominican Beach Town by Elizabeth Roebling
July 2005
"The dollar goes higher and higher and the peso goes lower and lower. That is why we don't speak English and we don't buy Chevrolet." So sings Juan Luis Guerra, the premier musician of the Dominican Republic. He attended music school in Boston and so, presumably, could sing in English if he wished. I, for one, wish he would for it would do us good to hear what others are saying about us.
I am now living in his country, and am grateful for the opportunity to do so. As more Americans move abroad, more and more people are growing to dislike us. Not only do the residents of the countries dislike us, but other immigrants from other countries as well. French (well, we knew that already), British, Germans (who are the most likely to have English as a second language), even Canadians now are confessing a dislike for Americans, individual Americans that they have met, not just the government. Costa Rica, which had in place a program to entice foreign retirees with tax incentives and benefits, has evidently stopped this. The crime rate there has soared.
So in answer to "why do they hate us?" the question that seemed to baffle even our current president, I would like to offer a few examples of American behavior that so endears us to locals in the developing world.
First one needs an elementary understanding of geopolitics. Most of the developing world is in debt to the world banking system, primarily American financial institutions. They have all run up large "credit card" bills with the World Bank and the International Monetary Fund. These come not as grants in "foreign aid" but as interest bearing loans. Many countries have no hope of ever being able to pay off the principal but only borrow more money to pay the interest on their debt. Most Americans are well acquainted with both this system and the feelings involved. Few that I know are truly grateful to the issuers of their credit cards.
The Dominican Republic must now pay half of all its tax revenues to service the loans that were given for "development." Most of the money is long gone, perhaps into some development projects such as dams and roads, accompanied by large and steady run-off into fleets of expensive cars and private bank accounts. The last president of the Dominican Republic increased the foreign debt by 400% in four years. This nation is not ostensibly better off then it was. Prices for everything are much higher. Additionally, the country needs dollars (or Euros) both to service the debt and pay for imports such as oil. Dominican pesos are not a convertible currency.
The Duvaliers (pere et fils), former dictators of neighboring Haiti, had masses of foreign "aid" for decades. The son is currently living in exile on his nation's wealth. The people of his country are the poorest in the hemisphere. Perhaps even in our lifetime some Haitian may cut down the last living tree to make charcoal to heat his family's supper. Border "incidents" using live ammunition between that nation and this one will escalate. And more and more people will risk their lives in open boats in dangerous waters for a chance to work in America, where they can live, hidden and illegal, but still sending a portion of their wages (or drug trafficking money) home to their families.
The stated purpose of the World Bank is to eliminate poverty. Thus the people of this and other developing nations are offered a chance to participate in the bounty of the wealthy countries. Jean Bertrand Aristide, former President of Haiti, wrote the best analogy that I ever read for discussing the issue of global wealth and poverty. Imagine that the nations of the world, represented by fingers of a hand, have $100 a day between them. The industrialized nations, representing 20% of the nations, or the thumb, have $85 of this amount between them. The rest of the fingers must divide the remaining $15. The poorest nations, the pinky, one fifth of the nations of the world, have less than $1 a day.
The Dominican Republic is not among the very poorest nations of the world. Most have enough to eat: most eat meat (primarily chicken) at least once a day. Many Dominicans now have cell phones. Many have motor scooters, needing gas at over $3 a gallon. Now they have cable TV transmissions, complete with daily murders and provocative videos, in their houses with dirt floors. Some send their children out to sell shoeshines or their bodies to pay for the electric bill.
The International Monetary Fund, once it is the major creditor, has the power to dictate how the debtor nation will spend its money. Privatize all national companies, including power and water, streamline government payrolls, and cutback on social services such as education and health care, eliminate trade tariffs, and open markets to multinational corporations.
Capitalism is the major export of the United States. I have met many Americans who think this word is synonymous with democracy. One, however, is an economic system and the other political system. Certainly the United States is in the business of making the world safe for capitalism so it is easy to understand how Americans can make this error. The fall of the Soviet Union has produced the thought that capitalism is triumphant and holds the answer to all the world's troubles. It is only necessary to allow the "invisible hand" of the market to work by itself and all boats will rise with the tide of global wealth. Such is the mindset of the New World Order. Perhaps it just needs more time to work before the results are seen. Or perhaps the theory is flawed at its inception.
There are 46 "free-trade" zones here, fourth largest installation in the world. I haven't actually been into one, as they are enclosed in high wire fences, guarded by men with guns. Inside, more than 200,000 people of the Dominican Republic, mostly women, work for one of the 520 foreign companies, 6 days a week, ten hours a day. There are no unions here. When the workers at American Airlines started to discuss the possibility of forming a union, all those workers lost their jobs. Wages are steadily decreasing through Latin America as there is an ever-present threat of a less developed nation whose citizens will work for even less money. Seventy percent of the trade-zone jobs are in the textile industry. The Dominican Republic then exports the products, primarily to the United States, with no tax put on them. The workers are, however, taxed on their earnings. There are always applicants for jobs. The products from these zones accounts for 85% of the exports from this country, supplemented by the traditional products of coffee, sugar, tobacco, fruit, leather, silver and gold. The United States is the largest trading partner receiving 51% of the exports and sending 43% of the imports. ...... Another big industry here is sex tourism. The Europeans are by far the largest tourist population here, accounting for more than 85% of the visitors. Many of the all-inclusive resorts have a reputation for easy encounters with locals, male and female. Prostitution is not illegal here, but neither does the government regulate it. Costa Rica, by contrast, which has legalized prostitution, requires frequent health checks and the payment of taxes. Those who have a particular lust for sexual encounters with minors of both sexes are particularly noticeable here. There were local headlines that a child pornography ring was recently busted and four Europeans actually sent to prison but enforcement of the laws against the exploitation of minors, which do exist, are scarcely enforced. Casinos abound in the resort areas and the Dominicans themselves have a passion for gambling, buying lottery tickets every week in the hopes of hitting the big one. And the local rum is as cheap as the Coca-Cola mixers.
The first Europeans here, in this village on the north coast of the Samana Peninsula, bought and built up the available land. Some even paid for it in coconuts (well, that is the story anyway.) Now the Dominicans have learned from them and large land parcels near the beach are selling for $90 a square meter ($9 a square foot or $36,000 an acre). Even the undeveloped steep mountaintops, where access is extremely difficult, is priced at $12,000 an acre. Construction costs here may run to $100 a square foot.
It is difficult to find a meal in a sit-down restaurant for under $12. Even at the Dominican restaurants, dishes, which feature a very large serving of rice with a very small portion of chicken, meat, or fish, sell for over $4. A good housecleaner, one who is independent and has several clients, can earn that in one hour. A schoolteacher, with a college degree, starts with a salary of about $250 a month. Ten thousand pesos a month, or an annual salary of about $4,000 is considered a good wage in this country.
So know that if you come here, or go to another developing country, to live on a simple retirement income of $3,000 a month, you will be among the wealthy. You will be the target of scams and scoundrels, both foreign and domestic. You will need a large and impressively frightening dog, or an armed guard, as well as bars on your windows and a wall around your property. Sometimes the police themselves are the thieves.
However, you can leave your belongs with impunity along the tourist beaches when you swim. I alone walk at night in this town with no sense of fear whatever. But I am a native New Yorker, well trained by travel. Despite the publicity from some of the all-inclusive resorts who aim to keep the tourists within their own compounds, this is reasonably gentle and safe nation, whose residents welcome strangers.
Should you be robbed, I suggest you consider the old question: "What are the crimes of the bank robber compared to the man who owns the bank?"
If you come here with the attitude that these are somehow "inferior" people, who are fortunate to have the opportunity to meet and serve you, you will be targeted even further.
Even those people who are illiterate are not stupid. Locals will not have to speak English in order to sense an air of "superiority." One Dominican friend of mine said to me recently; "Everyone is a racist." I countered with my opinion. I would be a fool, I said, if I did not acknowledge that there are differences in skin color. However, to be a racist, in my mind, means that one assumes that one's own race is superior. This I do not do. My greatest heroes have been men of color: Gandhi, Martin Luther King, Nelson Mandela.
If you come here for sexual gratification, you will be given that but not the respect of the community. You will be regarded as the predator that you are. Know, however, that many happy marriages have ensued between Dominicans and foreigners. But the love and respect that are needed for a relationship are rarely founded with a cash transaction. . If you come with the attitude that your way is better, that you are here to "save" them, they will gladly take your money, listen to your advice, and go on about their own way of doing things. This is an independent nation. It is a democratic nation in which you do not have a vote.
If you are looking for an easy way to make a fortune in real estate speculation, you are already too late for this country. You may be able to clear a bit of jungle in El Salvador.
If you are hoping to establish an "American" colony, with all the conveniences and amenities of "home", you will be sold a very expensive property in a guarded and gated community and consigned to the company of your own people.
If you do not learn Spanish, you will exist in a pale shadow world, never understanding what is being said around or about you. You will not even be able to talk with ex-pats from other countries. You will lead a lonely and isolated life.
If you understand that as a person of wealth among them, a foreigner whose wallet and passport allow them to travel wherever they wish, you are expected to share a bit with the local population, even perhaps pay a bit of a higher price than the locals. Your foreign income is not taxed here. It will be up to you to decide how to contribute your fair share.
If, however, you come in peace, with a willingness to participate in the lives of the people, to be of assistance as your talents allow, you will be welcomed and respected.
You will be greeted with smiles, waves, hugs and kisses. Local doors will open to you. Residents will travel 5 hours by bus to visit you in the hospital in the Capital if you are taken ill. You will enjoy completely unspoiled and often deserted beaches lined with coconut palms.
You will be able to bask in the beautiful sunshine of this country and the loving hearts of its people.
If you are interested in a Spanish school in Las Terrenas Click Here
Elizabeth Roebling lives in Las Terrenas on the Samana Peninsula of the Dominican Republic. Please visit Elizabeth's blog at http://elizabetheames.blogspot.com
Life In A Dominican Beach Town An American In The Dominican Republic ~ by Elizabeth Roebling
At 6 in the morning, I take my steaming cup of strong Dominican café con leche out to the porch and survey the sea. I have another hour and half before the local commuter traffic, on scooters, quads, pick-ups and buses, starts the parade on the paved beach road in front of the house. It is a wonderful quiet time, as I watch the sea. My awesome appreciation for it is only matched by my daily amazement at the number of times that the mosquitos have bitten me during the night. They are a different sort than in the States, quietier, more laid back, dancing the bachante rather than dive bombing and singing rather sweetly. It is hard to begrudge them a few drops of blood.
For the past three months, the sea has been boiling, rolling and crashing over the reef, changing color from deep blue to putty-colored green with the churned up sand. We have only had about a week of fair skies. It is, I am assured by everyone, highly abnormal. An aftermath, perhaps of the giant wave that devoured so many on the other side of the world. We are quite close to a deep sea cavern near Puerto Rico which scientists pinpoint as a perfect location for another Tsunami. Friends who live on the hill behind town have promised to alert me if they see packs of beach dogs running for safety. The rains have made the streets muddy as only half of them are paved. Everyone is a bit cranky, especially the tourists who are only here for a week or two. Even the locals who keep the guests at the neighboring resort happily playing volleyball and bocce, oiled and massaged, seem a bit depressed.
There is not much to do here without the beach. One can shop at the few stores selling high end jewelry and expensive pareos from Indonesia or dine at one of the thirty restaurants offering the finest in Continental cuisine, albeit at Contenental prices. Or, if the hotel is high end, flip through the 24 cable channels, Spanish primarily, with four in English, one French, one Italian, one German, testing out how well those audio-lingual courses that you took actually work. It is particularly amusing to watch movies with famous US stars, speaking the dialogue in other voices. How odd and interesting it was to hear Eddie Murphy and Tom Hanks in Spanish, with completely different voices. But it is the more than 7 miles of coconut palm lined, amber sand beaches that have drawn most of us here.
The town of Las Terrenas on the Samana Peninsula, the northeastern thumb of the Dominican Republic, was only a small fishing village twenty years ago. An influx of foreign ex-pats, mostly French, have produced a boom in the real estate market, with the construction of lovely concrete houses and subdivisions. The local population has grown from 3,000 to 20,000 and the "foreign" population is now estimated around 5,000, predominantly French. But there is a large Italian complement and many Germans as well, assuring a good supply of garlic and cabbage. English is hardly ever heard. Many of the Europeans are here for the entire winter.
There are fourteen real estate agents in town. Astonishing considering that all purchases must be made completely in cash. Prices have tripled in the last three years and it is hard to find anything for less than $100,000. Prices in both dining and real estate have not adjusted to the fallen dollar, which was at 50 pesos last year but this year is hovering around 28. I was very lucky to find a beautifully furnished apartment at a long-term rental rate of $400. I can walk to town along the beach. Electricity here is about twice what it costs in the States, five times what it costs in Europe. My luxurious full sized refridgerator with freezer is quicky identified as a luxury, along with my electric hot-water heater. I have taken to unplugging the heater during the days but the convenience of the freezer, guardian of half of every cooked meal, is a great boon.
I wanted a respectably large nation, not just an island I could circumnavigate in three hours. I wanted a proximity to the States so that my friends, primarily from the East Coast, could afford to visit. And access to the Internet available at a cybercafe. I wanted a place where Americans would be welcomed, something that is getting progressively harder to find.
The Dominican Republic may be one of the few places on earth where they still actually like us. Baseball has, after all been very, very good to them. Remittances sent home by Dominicans in the US are the second largest source of revenues, after the tourist boom. Phone rates from here to the US are the same as a local call, allowing me ample time to visit with my friends. Most of them, shivering through a bleak winter, were hardly sympathetic to my complaints about the rain and storms. Or that I had to scour the town for a sweatshirt to wear for riding on the back of the local transports, the motor scooters known as "conchos" that prowl the streets.
Primarily, I wanted warmth, with year round tempertures that stayed in the 70's and 80's. If I never see snow or ice again, I will be content. It will be perhaps a bit brutal here in July and August but certainly no worse than Washington, DC or NYC, as there is always a breeze from the sea. I wanted a friendly sea, in a place that had not been completely paved over and filled with high rises. Yet I did want a bit of tourist destination, with an influx of new energy and a rotating supply of books left behind in the hotels. I wanted a town rather than a resort strip of all inclusive resort hotels. I had, by Third World standards, a healthy secure retirement income of around $3000 a month which allowed me a large range of choices in Latin America but increasingly fewer options in the West Indies. The blockade of Cuba put it out of the running for a while. I had already lived with the residual racism in the British territories and found it distasteful. Plus, I really wanted to live in "foreign" - i.e., non- English speaking environment. It would take me perhaps years to understand what they were saying. I was unlikely to be bored.
My decision was made when I discovered a French community as my French, after years of study, rivals my English and far exceeds my Spanish. The French, I knew, would have made the place picturesque and would have seen to a good supply of food.
The food in the DR is astonishing by any standards. In the high mountain valley to the west, near Pico Duarte, the tallest mountain in the Caribbean, farmers produce a sumptuous array of produce, citrus and tropical fruits, caulifower, lettuce, green beans and fresh tarragon along with the local assortment of strange and to me, still mysterious root vegetables. The prices for the imports are high. Peanut butter runs around $8 a jar. But the local fishermen ply the beachfront with buckets full of large fresh caught shrimp, mussels, and Dorado. Rice and beans, in a variety of different sauces, along with a small portion of chicken and a salad, the plate known as "The Dominican Flag", is available for lunch at around $4.00 at the local restuarants. One cannot, however, drink the local tap water and the "touristas' are not an uncommon ailment, although it does seem that Taino Indians are a little less vengeful than Montezuma.
Here in Las Terrenas, the French have added their bakery, producing baguettes, croissants, and napoleans. The butcher has his own farm, raising the beef, lamb, and chickens sold in his pristine white-tiled shop or the deluxe import-filled supermarket. Camembert and peanut butter, a full variety of imported wines and local beer, line the shelves along with the yougurt, butter and liverwurst that comes to us from Sosua, down the coast to the West.
Many of the "foreigner" are quite young, in their thirties and forties. There is a healthy population both of European and mixed European-Dominican children. It is quite common here to see an older "white" man with his beautiful Dominican girlfriend or wife, usually 20 years or more his junior, often with a full new family of multi-lingual children. Ads in the paper regularly ask for hotel staff who can speak four languages. Unless they own the place, foreigners are unlikely to make more than Dominican salaries, around $100 a week which is hard to live on. Many, however, have savings in dollar based certificates of deposits which yield an astonishing 25%.
Currently there are only 6 "United Staters" living here. The bulk of the English speaking ex-pats have settled to the west, near Puerto Plata. Yet the Samana Penisula is the most spectacularly beautiful area of the DR. Las Terrenas offers a touch of a continental lifestyle along with a frontier edge. So I am certain that more of you will arrive. Won't you?
Elizabeth Roebling lives in Las Terrenas on the Samana Peninsula of the Dominican Republic. Please vist Elizabeths blog at http://elizabetheames.blogspot.com
Source - PR-Inside.com
The Hollywood couple fell in love with the Dominican Republic during a recent holiday and have allegedly decided it is the perfect place for their nuptials.
A source told Britain's OK! magazine: 'While they were in the Dominican Republic, Brad bought a huge plot of land and helped design a fabulous house.
'It's there they intend to become Mr and Mrs Pitt." Brad, 43, and Angelina, 31 - who have three adopted children, Pax Thien, Maddox and Zahara, and a daughter Shiloh together - are expected to fly out to the exotic country in the next two weeks and want the ceremony to be a 'family affair'.
The source added: 'Pax and Maddox are old enough to be page boys and it's always been Angie's dream that this wedding will be a true family affair.' Brad recently ruled out getting married until 'everyone else in the US who wants to be married is legally able'.
Angelina has also avoided the issue in the past saying: 'We've both been married before so it's not marriage that necessarily kept some people together. We are legally bound to our children, not to each other, and I think that's the most important thing.' Brad was previously married to Jennifer Aniston, their divorce was finalised in October 2005.
Angelina has two failed marriages to Jonny Lee Miller and Billy Bob Thornton.
USNews.com - By Peter Cary - Posted 3/18/07
Sammy Sosa. Albert Pujols. Pedro Martinez. Juan Marichal. Felipe Alou. The names of the great players that the Dominican Republic has supplied to Major League Baseball just roll, with a trill, off the tongue. Since 1958, this tiny Caribbean nation, with a population of about 9 million, has sent 440 players to the majors, and it produces about a fourth of all players in the U.S. minor leagues.
How do they do it? The answer is partly historical, partly cultural, partly economic. American sailors taught Cubans the game, and in the 1870s the Cubans brought beisbol to the Dominican Republic. The sport quickly became the national pastime, and soon the national passion. By the 1950s, the U.S. major leagues had established formal relationships with Dominican teams to flow the most talented players to America. And by the 1970s, U.S. teams were setting up academies in the D.R., enrolling the best players and providing them with food, healthcare, and schooling. Chosen trainees get a salary and a signing bonus-the bonus alone can be many times the average annual Dominican wage. The best of them, maybe 2 percent, make it to the American minor leagues.
First glove. It doesn't hurt that many Dominicans are dirt poor. Says David Sanchez, who runs a league for penniless young players in Puerto Plata, "I tell them if you practice every day ... maybe you can go to the U.S. and make some money." But what helps even more is the Dominicans' unparalleled love for the sport. "When a child is in the womb, that's when the father buys him a baseball glove," says Francisco "Frank" Cruz, a Dominican youth coach.
American coaches who visit the D.R. are intrigued by how these young players are made. For starters, they note, most Dominican kids don't have video games-they have beisbol. They may practice three hours a day, two or three days a week. Then, after dinner, they run outside and play more baseball. Children hone their skills with street games like vitilla, in which the batter tries to hit a water bottle cap with a broomstick. Good pitchers can make the cap dive like a curveball. By age 9, kids are trying to hit tossed kernels of corn.
The lesson for Americans here is play, play, play. Baseball is a game that is only learned through repetition. And there is nothing like a simple game of street ball-where home plate is a paving stone and first base is a car fender-for getting swings of the bat. In a pickup game, a child will see scores of pitches and will get to field dozens of flies and grounders. Brendan Sullivan III, who runs Headfirst baseball in Washington, D.C., came back from his visits to the Dominican Republic with a firm resolution: "In every practice, set aside some time for kids to just be kids."
Dominican players are marked by their relaxed and fluid style of play. One reason, perhaps, is that in the republic, there are no moms hanging over the fence during practice, no dads tracking batting averages, no red-faced coaches. Tension, the fear of making a mistake, is missing. "They play that game with so much joy," says Sullivan. "They are just playing to play."
This story appears in the March 26, 2007 print edition of U.S. News & World Report.
Article Resource - Dominican Today
Santo Domingo.- Miches, an unspoilt area of remarkable natural beauty in the eastern province of El Seibo, will be the scene of a major sustainable development project, benefiting the area's 20,000 residents and the fragile natural environment. This project is part of the Dominican government's commitment to meet the United Nations Millenium Development Goals.
The initiative was launched in Punta Cana on Friday, and is managed by a group of government entities including the Presidential Commission for Millennium Goals and Sustainable Development, the Economy, Planning and Development Ministry, the Environment Ministry, the Ministry of Education, the Municipality of Miches and the First Lady's Office.
The Miches sustainable development project encompasses a wide range of environmental and community projects, including reforestation, cleaning polluted water sources, and a micro-hydro project for electricity generation using existing natural resources and without altering the environment. The municipality, one of the country's poorest, will also benefit from social development, including improvements to its schools and health facilities.
The project is also focused on ensuring that any future tourist exploitation in the area is sustainable, environmentally sensitive and of benefit to the local population.
Technical advisers from New York's Columbia University are working with the Dominican authorities on the planning and execution of this groundbreaking initiative.
Santo Domingo.- "You're going to drive in the Dominican?" the man on the other end of my cell phone call asked. "Are you sure? You've got to be crazy."
Maybe so. But a day later, Free Lance-Star photographer Mike Morones and I were on our way to the Dominican Republic.
The assignment was a four-day pilgrimage to this Caribbean island, where we were to chronicle the country's treasure trove of baseball - its past and future as it relates to the Washington Nationals.
And yes, we were going to drive, at least the first leg of our journey, from Santiago, a large city in the Cibao Valley on the northern coast of the island, to the capital city of Santo Domingo on the southern coast.
It was about 100 kilometers, and when we arrived in Santo Domingo, we would hook up with a driver who would accompany us the rest of our trip.
"Be careful," said Manny Acta. He's the new manager of the Washington Nationals, a native of the Dominican Republic and the main reason I was getting my passport stamped for the first time in my life.
We came for baseball, and in that sense, the island is paradise. The sport we call America's National Pastime is a true obsession for Dominicans. It's played in the streets and alleys of Santo Domingo and San Pedro de Macoris, next to sugar cane fields in the countryside, in stadiums across the tiny island - and almost everywhere in between.
"Baseball is all we have," said Jose Rijo, a former major league pitcher, native of San Cristobal and a member of the Washington Nationals' front office.
The Dominican Republic shares the island of Hispaniola with Haiti, and baseball certainly helps give the country of 9 million people an identity, but it's certainly not all it has.
We flew out on a cold December day and arrived in warm and slightly humid Santiago. After breezing through customs and buying a $10 tourist card, we corralled a rental car and started the 100-kilometer trek to Santo Domingo.
Contrary to what I was led to believe, roads we traveled were paved. Only in Santo Domingo did I need to act like a NASCAR driver.
The path from north to south was Highway 1, a four-lane divided highway a lot like State Route 3, with a few more potholes and a lot more foot traffic.
The highway cuts through the heart of the country, through rugged mountains and lush forests very different from the coast. Children walked to school, dressed in uniforms, on the sides of the road.
In the cities we passed through, like La Vega and Bonao, locals set up roadside shops in small wooden huts. Some sold coconuts, fruit, or roasted pigs.
There is extreme poverty in the Dominican Republic. Many homes are ramshackle huts, or humble stone structures, but it's hard not to be struck by the beauty of the countryside.
Santo Domingo was another story. Located on the south side of the island, the capital is as cosmopolitan as it gets in that country. It's crowded, and driving can be difficult. Red lights are a suggestion, stop signs are a figment of the imagination. I thought of slow-speed NASCAR, and got the hang of it.
Santo Domingo is also modern, and our destination, the Hotel Jaragua (a Marriott property), bore little difference from a Marriott in Washington or San Francisco with the exception of a small first-floor casino.
The hotel faces the Caribbean sea, offering spectacular views, and the atmosphere in the city is unrivaled. If there's a second national pastime of the Dominican Republic, it's dancing, and on the Sunday we were there, the main boulevard along the sea shut down for a festival.
Native food is abundant in the city, especially in shops and cafes in the historic Colonial Zone, though restaurants near our hotel also offered American fare (including a sports bar).
Food and beverages aren't expensive, except in most tourist areas. A brunch of eggs, sausage, toast and a Pepsi cost 660 Dominican pesos, or $20, at the Quesquaya Restaurant in the lobby of our hotel.
When you're exploring, expect to pay for necessities; be wary of tap water and ice.
Of course, venturing away from tourist areas has its advantages, and we were lucky enough to see parts of the real Dominican Republic. With Manny Acta's friend Juan Tiribio driving, we visited several towns off the beaten path.
In Acta's tiny hometown of Consuelo, we walked on the overgrown baseball fields he played on as a boy, and witnessed what the demise of the sugar cane industry can do to a town. Located northwest of San Pedro de Macoris, Consuelo once thrived thanks to a sugar processing plant located a short throw from Acta's childhood home.
His parents still live there, but the failure of the plant brought poverty and crime. Still, at every turn we were greeted by friendly faces, by locals eager to help us and speak with us.
A pickup baseball game wrapped up near Acta's home on the gravel street leading to the sugar plant.
Elsewhere, young men and women danced in an open-air cantina on a corner near the town's central plaza, and we ate empanadas - fried pockets of dough with chicken or cheese inside - from a street vendor.
Away from Consuelo, we chomped on raw sugar cane in the tiny town of Pizarrette, the home of a 16-year-old shortstop signed by the Nationals during the summer, and cruised by white sand beaches at Boca Chica, a truly unique destination.
A large reef protects the cove, creating a "swimming pool in the sea" - clear water not more than a few feet deep for yards and yards.
Our busy schedule prevented me from dipping a toe into the tantalizing water or grabbing a bite from makeshift fish stands that dot the beach entrance.
Fresh fish, roasted and fried and baked and broiled, was offered, and Juan offered to stop and help us choose some, but I demurred.
I immediately regretted the decision. What better way to experience a country than to mingle with its locals, eat their food? But we were off to a baseball game, where I enjoyed a fabulous Cubano sandwich while watching las Estrellas Orientales lose to los Tigres del Licey in a Dominican Winter League game. The games run from November to January, and feature major league stars.
We finally found the real Dominican Republic on our final day.
After a tour of the Nationals' academy in San Cristobal, Rijo invited Morones and me to his seaside home for "fish, lobster and champagne" - Dominican fare.
The lobster never showed up, but in a beachside gazebo extending over crashing waves, we had snapper in a rich garlic broth, fried plantains, conch salad and Presidente, the beer of choice for locals and tourists.
We feasted, stripping the fish to the bone and gobbling the plantains.
In a few hours, we were to head back to the United States. But we had savored the Dominican experience.
Santo Domingo.- Housing Expo 2006, the most important real estate event in the Dominican Republic, sponsored by loans and savings Asociacion Popular (APAP), will take place as of today through the 19th of November on the premises of the Dominican Fiesta hotel.
APAP is the country’s pioneer home financier, and to date has granted millions of pesos in loans for the acquisition, construction and improvement of homes. In addition, it also offers financing for Dominican families to satisfy other needs.
During the event, 15,000 residential, tourism, and commercial real estate will be offered, in addition to land lots and home appliances, for purchasers at all economic levels.
APAP informed that already its branches are able to provide information on the different projects that have registered for the fair, allowing clients to begin processing their purchase deals, which, according to the financial entity, will offer the best deals in the local market.