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Dominican Republic: Priming the Product

Eleanor Wilson, Contributing Editor

Eleanor Wilson is a contributing editor for Agent @ Home magazine.
By Eleanor Wilson
Published on August 1, 2007

The Dominican Republic tourism minister provides an update on goals and progress.

Some four to five years ago, the government of the Dominican Republic stepped up its attempts to lure more American tourists by placing full attention on the luxury market. While this was the beginning of a serious upgrade to its infrastructure, increased marketing efforts attracted top investors who have opened or are constructing numerous upscale projects, from intimate boutique hotels to vast complexes. While development took off all around the island, but the luxury trend has catapulted to dizzying heights in Punta Cana, and it has proven very successful. At the end of 2006, the United States accounted for more than 1.3 million of the total 4.4 million visitors to this Caribbean country.

When Felix Jiminez, minister of tourism for the Dominican Republic, addressed delegates at the annual Dominican Annual Tourism Exchange (DATE) held in Punta Cana in April, he got right to the point.

“So much is happening for tourism in our country, particularly in the Punta Cana area, I am proud to tell you of our progress,” he says. “We just held the dedication today (April 12) for the construction of the four-lane boulevard that will run parallel to the shoreline. This phase will connect the Punta Cana International Airport to all the hotels along that corridor up to Uvero Alto.

“Communication through roads is a very important part of tourism development. In a very short time, a road will journey through the sugar cane fields between Punta Cana and La Romana, so that visitors and locals alike can travel easily between those diverse areas. We are not stopping there. A new highway is already joining communities as work progresses between Punta Cana and Santo Domingo, and an extension from Punta Cana to Samana will follow.”

After further brief remarks about other parts of the island, Jiminez responded to questions.

What is the top destination within the Dominican Republic, and what will be the next hot spot?
Punta Cana remains our top destination for tourism at the moment. We are working very hard to bring Samana up to the level it deserves with all it has to offer, and into that next hot spot position. It has a nature park, whale watching, caves, Taino petroglyphs, islets with excellent snorkeling, inviting beaches and more coconut plantations than Punta Cana. Currently, there are about 3,000 hotel rooms available, mainly in the three Gran Bahia Principe properties—Cayacoa, Samana and Cayo Levantado—that just reopened last November and December. The new Viva Wyndham should be completed by the end of 2007, and other hotels are under construction. When extension of the highway from Punta Cana to Samana takes place, it will reduce the driving time between these two tourist destinations to between one and one-and-a-half hours, and make an east coast to north coast trip easily available.

El Catey Airport, located 30 minutes from the town, will also lift Samana to new prominence as a tourism destination. This new airport is an architectural surprise. The design is based on Samana’s landmark La Churcha, a 19th-century Methodist church and one of few buildings to survive a drastic 1946 fire in the town. During the first six months of operation, the airport’s capacity will be mostly limited to charters. In the summer, American Eagle will begin flights from San Juan. As the facility gradually moves up to handling larger planes and passenger loads, we will expect FAA approval for U.S. flights. Delta and Continental already have schedules set up. Couple the increased service provided by El Catey with the new highway from Punta Cana, where planes arrive daily from six U.S. and three Canadian cities, and this eastern area of the country becomes one of the easiest routes into the Caribbean. Along with beach rejuvenation and the transportation improvements, it is hoped that more investors will seek out the Samana area.

How important is the U.S. market to you?
Tourist arrivals grew by 8.3 percent last year, and the United States represents almost 32 percent of that increase. In 1996, the U.S. arrival figure was only around 40,000, and now it is more than 1 million. We expect an overall growth in visitors of 6 percent this year, bringing us to more than 4.5 million arrivals for 2007. This means we will surely reach our goal of 5 million over the next four years. For the first time, we are confident that our tourism income will reach $4 billion.

To what do you attribute your popularity? 
We are so very diversified, not only geographically, but with all types of accommodations available. This was not the case just a few years ago. During my first term as minister of tourism from 1996 to 2000, the construction cost of a hotel room was approximately $50,000 to $60,000. Today, it averages $200,000. That’s an extraordinary rise, but look at how the room size has changed and how much more sophisticated the design and amenities have become. We have Tortuga Bay, Sivery and Cap Cana. Westin Roco Ki is the first American chain in Punta Cana, and Four Seasons will soon follow. Three American hotels similar to Four Seasons are concluding negotiations right now. Boutique hotels are also growing in popularity.

This new luxury diversification has brought many more celebrities and important international figures to our shores. Our all-inclusive system continues to be appreciated because the fact that everything is paid for upfront appeals to middle-class families with modest incomes. In addition to a diverse ecology — excellent beaches, mountains, rivers and caves — you must have good infrastructure, and your tourism areas must be easily accessible. This is why we are concentrating so heavily on the beach regeneration and highway projects.

At the same time, we are also experiencing a growth in construction of marinas. This has mainly been taken on by the private sector, as witnessed in Puerto Plata. Expanded facilities at Casa de Campo now service up to 350 yachts. Cap Cana’s full-service marina, due to open its first phase next month, will eventually have 500 slips; and Westin Roco Ki’s marina, incorporating its Aquatic Sports Center, will come online in 2009.

Golf is another attraction that draws a special brand of tourist to the Dominican Republic, while adding considerably to our meetings and convention appeal. We have dozens of challenging courses across the country, and five more will be added within the next two years. Players with such notable names in golf as Jack Nicklaus and Nick Faldo are designing courses to rival Casa de Campo’s famous “Teeth of the Dog” and other fine courses already in play around the island.

How do you attract this diversified development?
Of course, to reach this level, we pay the price. We estimate the total investment in tourism by the Dominican Republic will exceed $7 million by the time this administration leaves office at the end of 2008. This is a considerable amount of money in relation to the size of our country. Our marketing investment right now is $20 million to promote the destination. We cover 300 international trade shows and spend approximately $15 million to $16 million on publicity.

What region has received the most resources out of the millions spent?
One area has not received significantly more than any of the others. We are trying to link the tourism sections with the highways between Santo Domingo and Punta Cana, then northward. Through this advanced highway system, more visitors can get around easier to see more than one part of our island, and word of its attractions and diversity will spread.

The session with Jiminez concentrated mainly on the Punta Cana area where DATE was held, but improvements and expansions are taking place all across the country. The government is sprucing up the Malecon in Santo Domingo and doing a makeover on Puerto Plata’s Gregorio Luperon International Airport. They have regenerated the kite-surfing beach at Cabarete, plus the beach in Juan Dolio, and many other projects are underway or in the planning stage. Officials say they are confident that as they continue with improvements, tourism will continue its strong growth.



Eleanor Wilson
Contributing Editor

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