A boat is ..........
jross said:
I?m considering opening a business in the pleasure boat industry. Some of the ideas I have are:
- day charter catamarans
- party boats
- glass bottom boats
I?d like to know how the licensing and operating of such businesses is regulated and what the competition is like. What kind of investment, aside from the boat itself, will I need to start-up, and if there?s any areas of DR that aren?t already over flooded with these kinds of companies?
Thanks!
A boat is a hole in the water you throw money into.
The idea of establishing a pleasure boat business in the D.R. does seem to have a certain charm. However, operation of the business would be anything but charming.
First you would have to do some market research, what, when, where, and how. How much money are you willing to invest? Deep pockets welcome. How much money can you lose and walk away? Business here is dog eat dog. There are no ethics and no remorse. How much time are you willing to invest? Business on the island, especially a service and tourist oriented business is a 24/7 enterprise. There are no days off for the owner. You take a day off ? you lose. To be independent in this pleasure boat service you have to own everything outright; boats, provisions, supplies, storage/repair/maintenance/office facilities, including the beachfront land and marina. Another headache - the help is poorly educated or has no education, salaries are low, and they may steal from you to make up the difference. The educated help will steal from you because they know employment here is not long term, someday they will be fired. The help will say yes to everything you request even if they cannot produce. If you lease or depend on services by anyone other than you by contract or verbal agreement; your business exists at their whim, they will abandon you at a moments notice or no notice at all. Because, a contract is a piece of paper worth nothing and a verbal contract is denied as easily as taking a swallow of beer.
Regulation - There are overlapping layers of government bureaucracy and oversight of tourist oriented business. You will need permission from local municipal government, national police, tourist police, tourist board, navy, and who knows what to establish a business. It includes paying fees and kickbacks to each. Also, license to operate within a certain coastline zone of the country is granted to an operator who can make the biggest payoff, legal or other, to the bureaucracy(s) in charge issuing the license. You, if you desire to operate in that zone will have to pay a commission to the license holder.
If all of the above is charming then you may have a heck of a chance to operate a pleasure boat business here. Remember, a boat is a hole in the water you throw money into.
Regards,
PJT