Meeting with the communities of the Dominican Republic

President Leonel Fernandez proposed a strategic alliance between the State and the different sectors from the country to be able successfully to meet the communities social demands.

Speaking at the start of a meeting of his Cabinet gathered in the northern city, the chief executive said the solution to the current problems isn’t just the Government’s responsibility, in reference to the strikes staged in several provinces across country in the last few weeks.

The meeting with senior officials began at 11 a.m. in the Offices of Provincial Governor, where the ministers of the Economy, Temistocles Montas, and of Hacienda, Vicente Bengoa and Taxes director Juan Hernandez of the measures taken to face the affects of the world financial crisis of the country.

The Cabinet has sparked expectations among business leaders who expect the chief executive to announce the restart of construction on several currently stalled works.

Cut taxes to allow return of Dominican capital

The tax agencies will submit a bill that allows the entrance of capitals that Dominicans hold abroad, by paying only a 1% tax instead of the current 25%.

Hacienda minister Vicente Bengoa and Internal Taxes director Juan Hernandez, made the announcement in a press conference yesterday, where they said the measure aims to make it easy for Dominicans to bring their capitals to invest them here and withdraw them from the international financial sector, where massive bankruptcies have occurred.

Bengoa clarified that the measure implies some conditions, such as that the funds must be deposited in foreign banks and not of doubtful origin, to keep the tax break from being used as a source of money laundering.

He said the suggestion responds to the interest by Dominican businesspersons who’ve expressed their desire to bring their capital abroad, but haven’t done so because of the high taxes they would have to pay.

The legislation would be submitted to Congress as soon as president Leonel Fernandez approves the suggestion.

Dominican Government submits to reduce taxes

The government submitted to the Senate to reduce taxes:

The first is to deduct all education expenses from income taxes if the students are nonworking minors; the second to lower from 5 percent to 0.5 percent the advance payment companies pay, and the third is to renegotiate mortgage loans with other banks without additional fees.

Hacienda minister Vicente Bengoa, Internal Taxes director Juan Hernandez, and the Presidency’s Legal advisor Abel Rodriguez del Orbe handed the bills to Senate president Reinaldo Pared, who said Congress will give them priority because they benefit the population.

Bengoa said the bills were the result of the dialogues held in the recent national summit and that measures are being adopted that merit Congressional approval.

He said the proposed legislation means a sacrifice of revenues for the government, which it will assume given the international recession and the country’s economic slowdown.
The official added that the measures give companies more liquidity and less need to dismiss more workers.

"For the country to fail the world would have to fail first,” says, Fernandez

President Leonel Fernandez said in the context of the global financial crisis, even in the worse case scenario, "for the country to fail the world would have to fail first.”

The chief executive said Dominican Republic’s challenge is to maintain economic growth with low inflation, and stability in the exchange rate and external accounts, and affirmed that the Government doesn’t plan to raise taxes.

He said it’s somewhat surprising that in last year’s fourth quarter, inflation was 4.5% from a projected 12%.

On the 2009 projections Fernandez said the Central bank projects a growth of three percent, compared with that of The Economist, which places it at a more moderate 1.0%.

Fernandez spoke on the topic Vision and priorities for the next five years, in the “Table of Businesses in the Dominican Republic, responding to the economic crisis global," organized by the The Economist Group, with the attendance of business leaders, specialists in international business and Government officials.

Dominican Republic remains in demand for tourism investors

As other hotel markets suffer, planned resorts indicate Dominican Republic remains desirable as Philadelphia-based AMResorts has announced that plans to develop two new luxury resorts at Cap Cana at a cost of US$200 million.

Located on the eastern tip of the Dominican Republic, Cap Cana is a new 30,000-acre Caribbean resort development endeavor. The master planned destination, dotted with premier golf courses, upscale retail options and other amenities, is on target to become home to the Caribbean's largest in-land marina for mega yachts.

AMResorts will build Zoëtry Pearl Sands Cap Cana and Pure Secrets at Cap Cana along beaches within close proximity to the Punta Cana International Airport. The lifestyle property Zoëtry Pearl Sands will, in addition to its upscale accommodations, feature restaurant and entertainment venues, as well as elements focused on feeding visitors' emotional and physical health.

Pure Secrets at Cap Cana will be designed specifically to accommodate adults and couples, and will offer entertainment options and a spa. Both resorts, which will target the affluent set in the U.S., are on schedule to open their doors in 2010.

Statistics reveal that the country's pipeline of ground-up new hotel construction, condo-hotels and real estate conversion projects consists of 16 projects with an aggregate 5,981 rooms.

In terms of Latin American countries with the most hotel construction activity, the Dominican Republic ranks fourth, trailing leader Brazil, followed by Mexico and Argentina.

Austria Development Bank announces soft, long-term financing for Dominican Republic

To provide a response to the need for funding of projects in developing countries such as Dominican Republic, Austria’s Development Bank, Oesterreichische (OeEB) Entwicklungsbank AG, partners with the private sector to develop businesses and an effective, properly working economy.

“Economies in many developing countries are growing vigorously. Yet large numbers of people there still live in great poverty. What they frequently lack is access to education, to employment and to modern infrastructure,” the enhtity says, citing research published by the OECD’s Development Assistance Committee (DAC). “An economy that is working properly is a crucial factor in fighting poverty.”

It notes that to allow the building and spreading of business expertise, only functioning cycles of economic processes and a prospering private sector create lasting employment and incomes.
“Austria wants to provide special support for the close partnering of business and development cooperation,” it says, for which its support is extended both to activities in Austria and in developing countries.

The OeEB’s says that as part of its government-appointed mission and expertise, its mandate is to facilitate and support private sector projects with development benefits and to effectively advance Austria’s goals for international development and foreign trade, and benefits from the international know-how of the OeKB Group.

The OeEB is a member of European Development Finance Institutions (EDFI), the network of bilateral European development banks, and supports the private sector in developing countries, on commercial terms. “As key criteria, projects must be commercially viable and create lasting benefits for regional economic development.”

The Austrian entity stresses that the market regions it serves are regarded as relatively risky by investors and suppliers. “As a result, tailored financing solutions for a wide range of long-term investments are typically not available in these countries through regular commercial channels, and its special mandate allows OeEB to accept higher of amount, tenor and country risk.”

As to its services the OeEB clarifies that it’s a complement to the respective offerings of the Austrian Development Cooperation of the Foreign Ministry, the Austrian Development Agency (ADA) and the Austrian Ministry of Finance, and can also support projects in countries for which no financing from Austrian partners has been possible in the past.

“The services of OeEB are both subsidiary and complementary to those of the commercial banking sector – in other words, OeEB products fill gaps between the products of the commercial banking sector,” it said, whereas to provide additional support to projects, funds from Austria’s federal budget are earmarked for so-called “Advisory Programs,” with funds aimed at concrete and targeted support for projects that boost development.

Canadian doctors attend to improve medical services in the Dominican Republic

Canada Doctors of the World, an international charity organization, supports the Municipal Hospital of San Luis, in the outskirts of the capital, improving the medical services for women and infants of its adjacent communities.

The launch of the project “Improving the Health of the Population of San Luis and Adjacent Zones” marks the start of the work in that hospital, including the construction of areas for surgery and a delivery room.

In response to the high demand for health services in this community and at their request, the project “Voluntary Sector Program” was approved and developed by the Canadian International Development Agency (CIDA) and the Government of Quebec (MRI), with a financing of C$650,000 for three years, to benefit more than 50,000 people in different areas, bases in the Hospital San Luis.

Present in the event were International Cooperation secretary America Bastidas; Canada ambassador Patricia Fortier; Doctors of the World president Dr. Nicolas Bergeron, and main director André Bertrand, Country Coordinator Dr. Marie Gessy Richard, and Government, Santo Domingo Province, and San Luis City Council officials.

Also present in the event, which coincides with the Doctors of the World’s 10th Anniversary, were the famous Canadian comedians Natalie Brawn and Suzanne Clément, both appointed the organization’s good will ambassadors, who took part in the tour of the facilities.

Doctors of the World Canada (MdM) is a non-governmental organization whose primary goal is to provide medical assistance and help vulnerable populations in situations of poverty, natural disasters, military crisis and exclusion around the world, and currently develops projects in Canada, Nicaragua, Haiti and Zimbabwe.

Project to establish how much Dominican property's are worth

The National Cadastre Agency (DGCN) negotiates with two companies, a Spanish and another Israeli, to conduct the first mapping of the entire country’s real estate divisions.

DGCN director Bolivar Marte said the companies would be paid 25 million dollars for the project, that would have to be approved by Congress.

He said the mapping is of great importance, since the country’s real estate includes areas for farming, tourism, commercial and water sources, and in the course of two years all citizens will be able to know “how much the Dominican Republic is worth in each of its areas.”

The Cadastre director said the mapping would help solve the serious problem of land titling, in the sense that each property, regardless its size, will be in a cartographic system in which anyone will be able to see, thanks to satellite communications where a house, a building or a piece of land are located.

Marte said the companies that would conduct the mapping assure that it would be concluded in two years, with minimum errors, and includes an ad campaign in all the media to inform the population about the project.

Dominican Telecomm builds antenna towers to improve phone service

Dominican Telecomm Institute (Indotel) president Jose Rafael Vargas said the installation of antennas and towers expands the coverage and improves the quality of landline and wireless telephone service across the country.

The official, speaking with community organizations and leaders prior to inaugurating 15 Informatics Training Centers (CCI) in San Juan de la Maguana and Elías Piña, said the facilities contribute to technologically develop this zone.

Vargas, who was recognized by San Juan’s authorities during the activity held in provincial government offices, thanked those present for their support of the official program to provide Internet access of the youngsters and adults.

"If you see many antennas, many towers and many excavations being done everywhere, blame Indotel, we are to blame; it’s the only way we have to solve the communication problem in communities," Vargas said.

Palmera de Cabarete Resort & Spa to open Dominican Republic 2011 in

Palmera de Cabarete Resort & Spa, opening in 2011 as the first luxury resort on Dominican Republic's north coast, has named KWE group, a Miami-based travel, hospitality and lifestyle marketing firm, to handle global marketing and sales.

The $200 million, 138-suite resort is located on 19.5 beachfront acres on 1,000 feet of private shoreline, part of the largest expanse of uninterrupted beach in the Caribbean.

The announcement was made by Darren Law, President and Chief Executive Officer of NID Holdings LLC, developers of Palmera de Cabarete.

KWE group specializes in luxury lifestyle with a focus on destinations, resorts and real estate, and is recognized as a thought leader in luxury lifestyle trends. The firm is headed by President and Chief Strategist Karen Weiner Escalera, who will be responsible for the international marketing and public relations for Palmera.

Ms. Escalera was recently named one of the "Top 25 Most Extraordinary Minds in Sales & Marketing" by the Hotel Sales and Marketing Association International (HSMAI).

KWE group's real estate division is directed by Vice President Sandy Carrier, a top real estate sales and marketing professional in the luxury market. The firm's program for Palmera de Cabarete includes international real estate marketing and sales including analysis and planning, sales strategies, development of an elite broker network program, and hands-on involvement in the entire sales process.

Ms. Carrier is a Certified International Specialist (CIPS), a charter member of the Broward Master Broker Forum, and an active member of the Urban Land Institute (ULI), South Florida/Caribbean Council. Her accomplishments include marketing and sales for Ocean Reef Club in Key Largo, Fla., Arvida's Weston luxury home community in Weston, Fla., EarthMark Companies' Mariner's Club in Key Largo, Fla., and the DUO luxury property on the Diplomat Golf Course in Hallandale Beach, Fla.

Palmera de Cabarete's management and design team enjoy a pedigree of the world's finest resorts, from Ventanas al Paraiso in Los Cabos to The Regent Palms in the Turks and Caicos.

Plans include 138 one- to three-bedroom suites ranging from 2,000 to more than 4,500 square feet. Three expansive, oceanfront freshwater infinity pools provide a focal point for Palmera de Cabarete Resort & Spa, and will be ensconced in eco-friendly garden landscaping.

Amenities will also include a full-service branded spa and wellness facility, tennis, gourmet dining, conference facilities, room service, 24 hour concierge, and children's activity program.

Palmera de Cabarete Resort & Spa will offer the first five-star luxury living experience in Cabarete, the adventure sports capital of the Caribbean, offering world-class windsurfing, kite boarding, surfing, mountain biking, hiking, canyoning, and white water rafting.

Dominican Republic strengthens commitment to renewable energy

The Dominican government has further demonstrated its commitment to sustainable development by signing an agreement with U.S. firm Sunovia Energy Technologies for the installation of the country's first solar energy plant.

The contract, signed within the scope of a Dominican law providing incentives for foreign investment, will involve an investment of roughly $200 million and provide jobs to some 2,500 workers.

"President Leonel Fernandez and his team have shown a tremendous passion for solving the country's energy difficulties; they've realized that having a bilateral focus, including the responsible production of renewable energy, and adopting practices that conserve energy are critical steps that must be taken if the country is to achieve energy independence in the long term," Sunovia Energy Technologies CEO Carl Smith said.

For his part, Eddy Martinez, secretary of state and executive director of the Dominican Republic's Export and Investment Center, said the agreement "is the result of the intense work we've carried out for years, in keeping with the worldwide trend of reducing dependence on crude and, at the same time, creating new jobs and attracting new investment to the (country)."

The contract signed with Sunovia Energy Technologies is part of a wave of new investment in renewable energy in the Dominican Republic that also involves other U.S. companies such as Masada Resource Group, STC Engineering and Burbano Recycling, which have set up electricity and bio-fuels plants.

Martinez said, meanwhile, that his country not only wants to attract investors in renewable energy, but also to expand investment in the stem-cell research and genetically modified foods sectors and in the development of hybrid vehicles.

Tourism Ministry says ‘Dominican Republic…Has it All’

“Dominican Republic… Has it All” is the Tourism Ministry’s (Sectur) slogan to promote the country locally and abroad, as “a mature” destiny, with potential attractions far beyond sun and beach.

Speaking of the slogan in Dominican Republic’s stand in the International Tourism Fair Fitur 2009, Tourism minister Francisco Javier Garcia said it’s a new concept to project the country’s diversity of attractions including nature, adventure, historical and cultural tourism.

“This slogan will mark the start of an aggressive international ad campaign for the world to know that the only thing Dominican Republic lacks is snow.”

He said adventure and cultural tourism will be re-launched, and the design of the plan “Tourism is for all” is in the works, to spur Dominicans to be tourists within their own country.

Garcia Also noted that Sectur develops several projects, such as the National Road Signs Plan and an inventory of the entire country’s tourist attractions, to publish literature of easy access for foreign as well as local visitors.

“We want Dominicans to do internal tourism, just like the tourists who visit us.”

Canada ambassador expects more tourists, investments to Dominican Republic

Canada's ambassador Patricia Fortier said the growth perspective in the flow of tourists and investments from her country to Dominican Republic are promissory for 2009.

The diplomat, who met with Tourism minister Francisco Javier Garcia to discuss the bilateral tourism agenda, stated her country’s interest in bolstering agreements on Canadian cooperation and investments.

Fortier said there’s currently “an umbrella of concrete possibilities” to expand the cooperation with the Tourism Ministry (Sectur), given the country’s increasing importance as a tourist destination, as shown by the sharp increase in Canadian tourists in the last five years.

The ambassador said she shares Garcia’s optimism with the increase of tourists from Canada, despite the economic crisis in the international market.

Only the United States surpasses Canada in the number of tourists, and posted a 17.9% jump last year, with 561,534 at the close of November, according to recent figures of the Central Bank.

Dominican financial system posts gains of more than RD$12B

Dominican Republic’s financial system posted after-tax gains of more than RD$12 billion, or RD$2.6 billion more than the previous year, said a Banks Superintendence report released today.

“Of the total of these gains after taxes, multiple banks made RD$10.2 billion, almost RD$2.0 billion more than 2007, and equal to a yield of 39.1% on paid capital. The savings and loans associations poster gains of RD$1.2 billion, equal to a yield of 8.3% with respect to their asset reserves," it said.

The report, Dominican Financial System During 2008, notes that the world’s economy underwent “an atmosphere of great turbulences in international the financial markets, which brought about the deceleration of the majority of the developed countries, the fall of the demand for goods and services, the contraction of international credit, as well as the increase the financing costs.”

“This international financial conjuncture presented some challenges at the local level. Those challenges were faced by measures of economic policy,” adds the report, released in a press conference headed by Banks Superintendent Rafael Camino.

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.