Top Dominican hotelier has a plan to develop Higuey

For the hotelier Frank Rainieri there’s a need to turn this city into an attractive community for tourism so it serves as an important complementary offer, and called on all the local organizations and the government to work to approve a Strategic Development Plan 2010-2020.

In a conference with business and community leaders, and authorities Rainieri suggested that bishop Nicanor Peña, with the support of the La Altagracia Tourism Cluster, immediately convene the presidents of all provincial organizations to an assembly to choose the Strategic Development Council and a Technical Committee to immediately begin the work for the Strategic Plan.

Rainieri said the experience of the Puerto Plata and Santiago Tourism clusters with the Strategic Development Plan 2000-2010 has been positive, and asked that they be taken into account and to apply them to Higuey’s reality.

He said since tourism is the region’s main economic activity, the La Altagracia Tourism Cluster must work to organize and bring all the industry’s sectors together, to break with the idea that the Government must provide everything.

The president of the Group Cana Punta added that the project “Higuey 21st Century” must count on a budget contributed by all the participant organizations in accordance with their possibilities, because “it’s good that it costs something to us all, to feel that we are owners and committed to it.”

DR World Music Festival takes place this weekend

The DR World Music Festival will take place at Sea Horse Ranch, between Sosua and Cabarete, for 3 nights, next weekend January 23-25.

Music lovers will enjoy the performances of SonAbril, Xiomara Fortuna, El Prodigio, El Batey, Son+Cristo, Soulibre, Cultura Profetica and Groundation, among other bands and artists.

The festival kicks off at 8:00 pm with Soulibre, a reggae-funk-alternative band, formed of a group of young, talented musicians.

Sans Souci a new US$55M cruise ship port in
Santo Domingo

With the presence of distinguished personalities of the local and international tourism industry, President Leonel Fernandez cut the ribbon of the new Sans Souci terminal at a cost of US$55 million , with the arrival of the Royal Caribbean cruise ship “Vision of the Seas,” that will use Santo Domingo as its hope port home during the current cruise season.

In his keynote speech Sans Souci Ports president Lisandro Macarrulla cited the project’s benefits for the country. “Faced with the world’s economic situation and its possible impact on the country, it becomes essential that a project of that nature continues its development process within the established program. The operation of the new terminal and Don Diego port will create about 4,500 direct and indirect jobs.”

He said the project’s first stage includes the construction of two terminals capable of docking three ships at once and after five years, a third and larger terminal will be built, to receive ships of up to 5,000 passengers.

So far the investment in the terminal, built on around 11,000 square meters, is 55 million dollars, Macarrulla said, but placed the final figure at around US$900 million.

In its different stages the project includes constructions of high rise apartments, hotels and convention centers that will be built on lands of the Navy base, which will be transferred shortly to the community Boca Chica.

Dominican Environment Ministry flexes its muscle, demolishes club in Bayahibe

The Environment Ministry (Semarena) Wednesday morning began the demolition of a nautical club built in a protected area in Bayahíbe near the Dominicus hotels, La Altagracia province.

Semarena’s demolition order was executed by La Romana provincial offices, headed by Yuma region coordinator Andy Omar Johnson.

The official confirmed the measure to newspaper Diario Libre and said in the documents of the structure appears the engineer Martìn Concepciòn Muñoz, representing the company Inversiones Blue Eges.

However, it was learned that Concepciòn represents Italian investors who neglected the rules and violated several SEMARENA dispositions to build two, three story structures and illegally occupied an area of the beach.

It was reported that despite being warned to halt the construction, they in fact accelerated the works.

Police agents accompanied the official to carry out the measure, including personnel of SEMARENA, which has taken several measures aimed at preventing damages to the zone’s ecology and the environment in the last few months, especially bans on constructions in and around protected areas.

Santo Domingo can be the Caribbean’s most important destination, says mayor

National District mayor Roberto Salcedo said Thursday that the Dominican capital has all the attributes to become the most important tourist destination in the Caribbean.

He said the City Council works hard to recover the entire coastline along the Capital’s Malecon, aimed at making it more attractive and increase the number of foreigners who visit. Crews work continuously in the first stage to recover the section from the harbor entrance to the Maximo Gomez Avenue, along the Malecon, works he said are expected to conclude this year.

“The National District has all the conditions to become the most important tourist destination in the Caribbean. We have the first cathedral and the first university, apart that we have a top level hotel infrastructure."

Salcedo spoke during a reception for a delegation from Pontevedra, Spain, headed by its president, Rafael Louzán.

Tourism wants to jump start Bayahíbe this year

Dominican Republic-. The Tourism Ministry will

implement a project this year to develop a tourism

enclave in the Bayahíbe municipal district.

The initiative is part of the Territorial Ordering Plan, which includes the reconstruction of the beach and improvement of the docks.

Manuel Nolasco, Tourism vice minister in Yuma-Bayahíbe, said the plan will spur the growth of quality tourism and benefit the population. “It addition, the country’s biggest movement of tourist in excursions is in Bayahíbe.”

The official said the project includes the construction of a pier, and to regulate the activities of the many boats and companies that deal with tourists, “and also decontaminate the most beautiful beach which we have.”

Although as many as 3,000 tourists visit Saona Island daily, a new wharf would make the ecotourism and cultural destination more attractive, Nolasco said.

Bayahibe, Dominicus, Boca de Yuma and San Rafael del Yuma form part of a tourism enclave where in addition to Saona and Catalina islands, has important natural resources such as the National Park of the East, the country’s most visited.

Dominican government expects US$2.4B in foreign investment 2009

The government expects around US$2.4 billion in foreign investments this year, announced several officials in the National Palace last night. They include housing, with participation of entrepreneurs form Spain, United States and the country, according to the officials.

Construction on some of those housing projects is set to begin in the next few days, they said.
Tourism, free zones, mining, agribusiness, biofuels, renewable energy are among the proposed projects, standing out the construction 5,000 houses for people of low income.

The officials said the houses are the first of 100,000 that Spanish, American and Dominican companies plan to build in a period of five years, to meet the existing deficit.

The details on the foreign investments, including the construction of greenhouses, were provided in a press conference in the National Palace, by the director of Presidency’s Press Rafael Núñez; Dominican Republic Export and Investment Center (CEI-RD), Eddy Martinez; National Competitiveness Council, Andres Vanderhorst, and of Free Zones, Luisa Fernandez.

Martinez said construction of the first stage of the 5,000 houses will begin in the next few days, by the Spanish and United States developer H2, with real estate experience in the Dominican capital.

He said other projects that will generate jobs include hotels, energy, as well as US$50 million in greenhouses, to be built in different agricultural of areas the country.

The CEI-RD chief said direct foreign investment will surpass US$2.4 billion this year, with the economic perspective of sustained growth in the tourism industry and in revamped free zones.

The government officials said investment reached US$2.0 billion last year, or US$1.0 billion more that in 2007.

Dominican Republic’s “active forces” called to talk about global crisis

President Leonel Fernandez instructed Economy minister Temístocles Montas to organize the call to a gathering between the nation’s “active forces” as the head of the State proposed in a December 8 speech to the country, aimed at facing Dominican Republic’s challenges in the global crisis.

Quoting a National Palace source, newspaper Listin Diario said the summit seeks to address economic topics, at the center of the crisis.

The source said since it’s about economic problems the President instructed Montas to organize the encounter, although a date has yet to be set. “Logically in that summit with the active forces of the nation all sectors will be able to participate and take their own agenda and proposals, so they are discussed within the encounter.”

However, the Listin soured said the idea is to discuss the country’s situation within the world-wide crisis and leave aside political aspects that could be debated in another arena.

In that regard, the opposition PRD party said Saturday it is willing to participate in the talks, only if Fernandez “keeps his promises.”

Dominican business sector hails interest rate reductions

Representatives of the industrial, commercial and agricultural sector have said that the reduction in interest rates announced by the Central Bank will lead to an increase in commercial activities, which in turn will contribute to reactivating the country’s economy.

Yesterday the Central Bank announced lower overnight interest rates from 9.5% to 8.5% annually, or 1 percentage point, and the Lombarda interest rate from 16% to 14% annually, or 2 percentage points.

The president of the Herrera Industrialists Association (AEIH), Manuel Cabrera welcomed the measure as “timely” and said that it was an indication that the monetary authorities were fulfilling their promises.

He said that this reduction was smaller than expected, and that it should have been between 10 and 12 per cent. Nonetheless, he said that he was confident that these would return to the ideal level for promoting economic development.

The president of the National Commercial Companies Organization (ONEC), Pedro Pérez, said that this would contribute to reactivating the economy, and that many businesses would now be able to get loans at a more reasonable rate. He said that the measure would provide a much-needed boost to sales.

He did however point out that the monetary authorities needed to exercise caution in order to maintain exchange rate stability.

A big year for the Dominican environmental sector

Could 2009 be the year in which Dominican Republic adopts measures to reduce the adverse effects on the environment and repair damages caused by the ecological deterioration, even as historically, the lack of response to some problems has been justified by legal weaknesses that limit the environmental authority?

A sector document with solutions to the problem seeks to modify eleven articles of the Constitution and create a new one on collective rights and on the environment, and if amendment is accomplished this year and it their proposal materializes, the nation would be taking a giant step, the organizations that work in the issue say.

“It’s not possible that Dominican Republic doesn’t have express dispositions it in its Constitution to prevent the contamination and promote the sustainable use of our natural resources,” said Jose Rafael Almonte, Environment vice minister for Planning and Development.

“In this reform it will be necessary to consider in a clear, expeditious and specific manner a mandate to the public powers on the need to protect the environment and for a sustained use of the natural resources”, and “if society doesn’t obtain that, then it’s saying that it’s not interested.”

Among the positive actions emanating from the Environment Ministry and the sector are the Plan Quisqueya Verde, which although the Government touts it as forestry policy success, ecologists say only time will reveal if there has been true progress. There are 3,500 people working in the Plan and 2,236 pounds of seeds have been collected.

In enforcement, Environment showed its zeal in October when it demolished the infrastructures of two small hotels being built illegally in Saona island, part of the national park of the East, and with the evictions of squatters in the national park Los Haitises. It also shut down major plants that dragged aggregates from the banks of several rivers.

Dominican Central Bank lowers overnight rate to 8.5%

The Central Bank announced lower overnight interest rates from 9.5% to 8.5% annually, or 1 percentage point, and the Lombarda interest rate from 16% to 14% annually, or 2 percentage points, which signals an eased monetary policy to continue in February, as the monetary authorities recently announced.

“The decisions with respect to changes in interest rates are conditional to the behavior of the main causes of inflation, which closed in December 2008 at 4.52%, below the goal established in the 2008 Monetary Program,” the Central Bank said on its Web site.

Inflation of only 4.52%, possibly Latin America’s lowest, means Dominicans will have received positive a real return from their savings in 2008.

“Interest rates reduction is consistent with the current behavior of oil prices and the internal demand, jointly with a position of greater fiscal prudence, reflected in the recently approved 2009 Income and Budget Law," the Central Bank said.

It adds that the Overnight rate is the one that represents the yield for the financial institutions that deposit their surplus in the Central Bank, reflecting the cost of money for the monetary institution, whereas the Lombarda rate is the maximum interest rate on short term loans to the financial institutions.

Prince Albert of Monaco to launch Dominican tourist complex

President Leonel Fernández, will lead the ground-breaking ceremony for the construction of the Punta Perla tourist complex in the company of Prince Albert II of Monaco. The project has a projected investment of US$2.5 billion, and is the third tourism initiative of this type to be launched in the country since November.

The 10.2 million square meter property with 3.5 kms of beachfront will include four boutique hotels, 8,800 residential units, three golf courses, an inland marina, a beach club, an amphitheater, sports installations, commercial units, a shopping mall open to the public, a museum and staff accommodation.

Punta Perla is expected to be completed within a 10-12 year period.

It was announced that the Prince of Monaco, although not an investor in the company, has shown an interest in supporting Punta Perla, as he considers it to be an environment-friendly tourism development that could set the standard for other similar initiatives.

Punta Perla is promoted by European tourism specialist business groups.

Central Bank of the Dominican Republic Increases Overnight Rate

The Central Bank of the Dominican Republic, following its commitment to maintain
macroeconomic stability and control over inflation, in a monetary policy meeting held on
July 30, 2008, increased its overnight rate from 9.0% to 18% effective.

This decision is consistent with the targets set in the Central Bank’s Monetary Program
and aims to reduce inflationary pressure on internal prices, given the magnitude of the
external shock. Interest rate movements are conditioned to the performance of internal
and external inflation determinants, considering the lags in the monetary transmission
process.

In this regard, even when external volatility has shown signs of moderation recently, their
effect on the Balance of Payments has been significant and the monetary authorities
foresee a lagged effect on the Dominican economy. Moreover, there is a persistent
imported inflation component originated by high international food, commodities, and
other finished goods prices.

Domestically, inflation risks are still present due to an increase in aggregate demand,
driven by rising consumption and investment public and private, which could affect
inflation in the last two quarters of the year.

The Central Bank will continue to closely monitor the international situation and the
developments in internal markets, as well as their implications for mid and long-term
inflation expectations.

IFC approves initiatives to support emerging markets

IFC’s Board today approved a package of crisis response initiatives to support the private sector in emerging markets hit by the global financial crisis. On December 9, it also approved a Sovereign Funds Initiative which will enable IFC, a member of the World Bank Group, to raise and manage commercial capital from sovereign funds for equity investments in some of the poorest developing countries. The initiatives will support the private sector, which is critical to employment, recovery, and growth.

The crisis response facilities consist of a doubling of the IFC Global Trade Finance Program to $3 billion, a new $3 billion Bank Recapitalization Fund, and an Infrastructure Crisis Facility which is expected to mobilize at least $1.5 billion. These will be supported by advisory services addressing the needs of clients affected by the crisis.

The goal of the Sovereign Funds Initiative is to connect long-term commercial capital from state-owned investors with the substantial investment needs of private companies in developing countries.

“We are pleased that the Board approved and endorsed these important initiatives,” said Lars Thunell, IFC’s Executive Vice President and CEO. “With the support of donors and partners, these IFC facilities will provide critical assistance to many businesses and entrepreneurs and reduce the impact of the crisis on the poor. In addition, our new Sovereign Funds Initiative should mobilize new sources of commercial capital for long-term investment in frontier regions and countries.”

The four crisis response facilities are expected to deploy about $30 billion over the next three years. IFC will fund the facilities and has invited other donors, including governments and international financial institutions to contribute financing and expertise. The Japanese government has announced that it will become a founding partner and invest $2 billion in the Bank Recapitalization Fund.

IFC’s Board of Directors is a permanent board that represents IFC’s 181 member countries and guides its programs and activities.

About IFC’s Crisis Response Facilities

Expanded trade finance program: IFC will double its existing Global Trade Finance Program from $1.5 billion to $3.0 billion over a three year period to meet a large increase in demand for short-term trade finance. The expanded facility will benefit participating banks, including those in some of the world’s poorest countries.

Bank Recapitalization Fund: IFC will launch a global equity fund to recapitalize banks, as bank failures would further damage economic activity and worsen poverty in developing countries. IFC expects to invest $1 billion over three years and Japan has announced it will invest $2 billion in the fund.

Infrastructure Crisis Facility: This new IFC facility will bridge the gap in available financing for viable, privately-funded infrastructure projects facing financial distress. IFC expects over three years to invest a maximum of $300 million and that other sources will invest between $1.2 billion and $10 billion.

IFC Advisory Services: IFC is scaling up and refocusing its advisory services geared to financial institutions and governments, and reform of the financial infrastructure—banking for small and medium enterprises, leasing, microfinance, housing, investment policy and promotion, and business operation and regulation.

A 5.3 quake shakes the Dominican Capital

A tremor magnitude 5.3 on the Richter Scale was felt in the Dominican capital at 1:20 p.m. Thursday, prompting the evacuation of the country’s tallest building in operation, Torre Acropolis.

The tremor’s epicenter was located in the eastern part of the country at a depth of 106 kilometers, said the U.S. Geodetic Survey, in zone 16 kilometers north-northeast of Consuelo township, San Pedro province, and 16 kilometers south of the city Hato Mayor.

As of 1:40 p.m. the authorities hadn’t reported any damages from the shaking that lasted around 15 seconds, with a fist wave followed by stronger shimmying.

The U.S. Geodetic Service’s complete data on the tremor:

Thursday, December 18, 2008 at 01:13:48 PM at epicenter

Location 18.626°N, 69.370°W

Depth 106.3 km (66.1 miles) set by location program

Region DOMINICAN REPUBLIC

Distances 10 km (6 miles) NW (315°) from Consuelo, San Pedro de Macorís, Dominican Republic
20 km (12 miles) NNW (341°) from San Pedro de Macorís, San Pedro de Macorís, Dominican Republic

20 km (12 miles) SW (216°) from Hato Mayor, Hato Mayor, Dominican Republic

63 km (39 miles) ENE (77°) from SANTO DOMINGO, Dominican Republic

Location Uncertainty horizontal +/- 4.2 km (2.6 miles); depth fixed by location program
Parameters NST=181, Nph=181, Dmin=206 km, Rmss=0.78 sec, Gp= 40°,
M-type=regional moment magnitude (Mw), Version=6
Source USGS NEIC (WDCS-D)

Dominican economy to grow 4.5% in ’08

The Dominican economy grow 4.5 percent this year, according to a preliminary report presented yesterday by Economic Commission for Latin America and the Caribbean (Cepal) executive secretariat , Alicia Bárcena, which also projects a 1.5 percent growth for 2009.

It also predicts an annual inflation of 7 percent and the deficits of the non financial public sector and the current account would be 3.2 percent and 12.6 percent of the Gross Domestic Product (PIB), respectively.

The Cepal estimates an accelerated increase of the public cost in 2008, with an annual expansion of 18.6% in real terms. It adds that its level in proportion of the GDP will reach 20.3 percent, an increase of three percentage points compared with last year, which means a strong turn in the Dominican fiscal situation.

The report considered that Latin America’s and the Caribbean’s growth for 2009 will be 1.9 percent and the unemployment rate will rise from 7.5 percent this year to a range of 7.8 and 8.1%, as a result of the international crisis.

According to the preliminary overview of the Latin American and Caribbean economies, the cycle of economic bonanza comes to an end in 2008, when the region posts six years of consecutive growth.

Dominican Republic, Las Arenas eco-friendly residence

Las Arenas, a 25-story residential tower scheduled to break ground in the first quarter of 2009, introduces an new eco-friendly architectural design to Juan Dolio Beach in the Dominican Republic. The impressive building will be designed by Dominican architect, Jorge Mesa, and world-famous Spanish landscaper, Artur Bossy, both highly-respected professionals and leaders in their fields.

“The building’s ‘green’ design was inspired by the city’s natural beauty and unique landscape and views,” says Mesa. “Since its conception, Artur and I have worked hand in hand to deliver a truly luxurious standard of living for both residents and visitors, while maintaining the integrity of Juan Dolio Beach,” says Mesa.

The eco-friendly components featured in this development include roof-top solar panels, which will provide energy for all of the common areas and landscaping designed from the sites natural vegetation.

The tower, which consists of 80% glass, is designed to allow sunlight in but acts like a filter that only allows 20% of the sun’s heat to enter inside. This will minimize the use of energy from the air conditioners that cool the building. Las Arenas will also feature a treatment plant for water destined for the maintenance of the building and watering the gardens.

In addition to the “green” components that makeup Las Arenas is its extensive lush garden, designed by landscape artist, Artur Bossy, who can also be accredited for marvels, such as the Botanical Gardens in Barcelona.

Residences at Las Arenas include one bedroom lofts, two, three and four bedroom condominiums, and penthouses. Each unit features eco-friendly technology, sound proof walls, and controlled entry with an access card. Two large parking levels enable residents to have the option of three parking spaces per unit. Prices range from $210,000 - $2 million USD.

The project will also feature an infinity edge pool, Jacuzzi with hydromassage that seats up to 15 people, beach club and recreational section for children with daily supervision, and a fully-equipped gym with a stunning beach view. Additional amenities include a business center and meeting rooms, Wi-Fi throughout the building, and a state-of-the-art commercial and retail area that will carry designer fashion brands, numerous restaurants from casual cafes to fine dining, and a boutique spa.

Foreign investment in Dominican Republic sets another record

The director of the Dominican Republic Export and Investment Center (CEI-RD) said Thursday that foreign investment in the country jumped to US$2.35 billion up to September, or US$836.5 million more than the US$1.5 billion in the same period a year earlier.

Eddy Martinez said the figure sets a record in new foreign capital inflow.
The official said the investments are the result of the efforts and international relations president Leonel Fernandez has accomplished, which has motivated new investments to come to the country.

Last year’s total US$1.7 billion was also a record, attributed to the DR-Cafta trade deal that took effect in 2007.

Passengers on Dominican-Puerto Rico Ferry also get duty-free break

Every day more and more Dominicans living abroad, when returing to the country, apply for the Christmas facilities provided by the Dominican Custom Agency (DGA) during the year-end.

Some of the users of the ferry between Puerto Rico and the Dominican Republic qualify to bring free of duty, appliances and gifts amounting up to US$2,500.

Dominicans living abroad are happy because they could bring more items to their relativesduring the holidays.

Dominican industrialists want Fernandez to adopt tough measures

The country’s industrialists expect president Leonel Fernandez to announce, in his speech to the nation, emergency measures that have a vision to face the future challenges in 2009.

The Herrera Industrial Association and the Industrial Federation (FAI) say this emergency program must have three fundamental platforms based on offering immediate solutions to the high cost of living, citizen insecurity and the electrical crisis.

For the presidents of the Herrera industrialists, Manuel Cabrera, and of the FAI Ignacio Méndez, the chief executive must adopt measures to recover the citizens’ confidence. “We need to recover the confidence that the President had awakened some time ago."

Méndez suggests stimulating an increase in production, especially agriculture and industries, for which the Government shouldn’t compete with industrialists for the credit available.
They also agree with the Central Bank’s plan to begin lowering the interest rate starting February, but cautioned that this will happen only if waste in government is curtailed.

They said this implies an elimination of unnecessary posts created in the government and a redesign of the policy on subsidies, to eliminate those that are irrational.