Cuban Threat?

nanmer

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I have always wondered how Cubans would feel about re-implementing a Tourism industry backed by foreign investment (likely to be American as before the revolution).QUOTE]

There is already heavy foreign investment in Cuba. One of the Major tour companies is Cubacan ... short for Cuba and Canada. They own many of the hotels and run most of the local tours. Canada has been heavily investing in Cuba since the downfall of Russia. Cuba had no one to sell sugar to and had no other resources, tourism was a savior for the country.

When deciding on a vacation, personal safety is an issue. Cuba has a far better reputation for safety when compared to the DR.

Nan
 

NALs

Economist by Profession
Jan 20, 2003
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When Cuba opens up to US tourism, the big winners will likely be the cruise ship industry, which will have new ports of call. The DR has not done much with maritime tourism, although there are projects for Puerto Plata and Santo Domingo pushing their way through. The country could even gain, with Spanish Caribbean becoming a popular route for cruise ships.

What people forget is that the DR and Cuba have been competing for Canadian and European tourism for years now. And if an American wanted to travel to Cuba, actually he can and hundreds of thousands have gone.

Also take into account that Cuba has weather more like that of Florida in the winter, the DR is warmer all around.

Industry experts here do not expect a major effect on Dominican tourism the day Cuba opens its doors to US tourists.

On a positive note, the Royal Caribbean cruiseline (I think that's the company) will be intiating one of its caribbean cruises in 2007 from the cruiseship port in Santo Domingo. I hope it all goes well.

Regarding Cuba, I don't consider Cuba a threat to the tourism of any Caribbean destination. The only market that Cuba is not allowed to offer its tourism is the U.S., all other markets Cuba persues as much as the DR does at the moment.

Americans will simply have one more place in the Caribbean to vacation to, but the DR will continue to catch the interest of Americans based on the simple fact that the DR is still virgin territory to many Americans. They know about St Martin, Martinique, St Lucia, etc. but when it comes to the DR they know little. Whatever they know is being promoted now through programs such as On The Money via CNBC and through CNN Presents. In addition to this, lot's of word of mouth has been attracting Americans by the thousands.

The opening of Cuba to the American market will simply improve the Dominican tourist destinations since in order to compete the Dominican destinations will have to be polished, re-invested, and constantly re-invented through new marketing schemes, etc.

The many improvements being made to Puerto Plata at the moment is a perfect example of re-investing and re-inventing old tourist destinations in order for them to better compete with the newer destinations. The resurgance of luxury real estate in Juan Dolio is another great example. Also, the higher than usual attention hollywood stars are giving the DR at the moment will certainly help the DR cement itself on the tourist trail of budget minded and high class tourists. According to today's Listin Diario, Chris Tucker has invited Mel Gibson to visit the DR. They will meet Sammy Sosa in Casa de Campo some time this week. The DR is on a roll and neither Cuba nor any other place will knock it off.

The DR is on the tourist trail to stay. The only thing that will kill Dominican tourism would be a war, a coup d'etat, or something that distabilizes the country politically or something that distabilizes the global economy which would affect all tourist destinations, not just DR.

-NALs
 

aegap

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Mar 19, 2005
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Other Caribbean destinations (e.g. Jamaica) are the one set to become the biggest looser when Cuba opens up.

Take the following article in travel Weekly as an example:

in the Dominican Republic, which of all the Caribbean destinations is perhaps the key barometer of the building boom, real estate projects are sprouting like palm trees.

Among the factors responsible for the fevered buildup are several new direct flights from the U.S., numerous investment incentives, a strong pool of cheap labor, miles of prime beachfront real estate and a plethora of all-inclusive resorts that creative tour operators package with highly attractive rates.

There's the 11,000-acre, multibillion-dollar Costa Bayana project west of Puerto Plata on the island's north coast, which will consist of three luxury resort communities called Atlantica, Bayana and Oceana.

The complex will have a total of 28 boutique hotels, 900 marina slips, six signature golf courses, three cruise ship piers and 11,000 residential units priced from $306,000 for a one-bedroom loft up to $5.2 million for a 7,750-square-foot oceanfront estate.

Two airports are also being built, one for private jets and an international airport near Montecristi, a 10-minute drive from Oceana.

According to Pierre Schnebelen, president of Costa Bayana Partners, the project "is designed to become the Costa Smeralda [in Sardinia, site of the Aga Khan luxury development] of North America, delivering the highest level of luxury to the most sophisticated clientele."

However, the 30,000-acre Cap Cana project now under construction south of Punta Cana is destined to lead the Dominican Republic pack in sheer size.

The $1.5 billion project runs along 3.5 miles of beach and includes golf courses, condos, several hotels, thousands of private homes, marinas and a marina village with guests ferried to and from yachts by Venice-style vaporetto water taxis.

Roco Ki, a Taino Indian phrase meaning "honoring the land," promises to be another seaside jaw-dropper. Situated on four miles of beach in the Punta Cana area, it will feature signature golf courses, a residential community, a marina and a Westin resort with a spa, five pools and a marina.

The financing arrangements include a long-term loan from the European Investment Bank (owned by the European Union), representing the first loan to a private Caribbean hospitality project by the EIB under the Cotonou Agreement, a partnership of African, Caribbean and Pacific countries and the European community.

"To have the EIB as our partner in the Roco Ki development reflects the bank's confidence in the project," said Nick Tawil, president and CEO of Macau Beach Resort, the project's lead developer.

"This validates our belief that Roco Ki's new luxury tourism resort, anchored by an international hotel chain, will not only be a huge success but also will pave the way for other tourism projects in the Dominican Republic," Tawil said.

Although Roco Ki is a large destination resort on 2,700 acres, Tawil said that it will operate and function as a close-knit community of employees, owners and guests.

"Roco Ki's philosophy is to obtain balance with nature, the environment and the local community," Tawil said.

Phase One at Roco Ki

The first phase of the 10-year project will debut in late 2007. The 327-room Westin Roco Ki Beach & Golf Resort will include 20 bungalows and 56 two- and three-bedroom condo units, a Nick Faldo-designed golf course, a spa and a conference center. A marina, private homes, additional hotels, a botanical garden and an interpretive museum will follow.

What's unusual is that the Westin will be the first internationally branded European Plan hotel, meaning no meals included, in the Punta Cana region, an area known for its all-inclusive resorts.

When asked about the reasoning behind this, Tawil said, "The Westin is an upper-upscale resort, and our target clients are not known to be heavy users of budget, all-inclusive resorts.

"Our guests will choose our resort based on the Westin reputation for personalized services and brand ambience. There will be six restaurants, room service and a gourmet market as well as packages with and without some meal components."

Other developments in the D.R. include four all-inclusive properties opening this winter from Spain-based Bahia Principe Clubs & Resorts
 
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juancarlos

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Sep 28, 2003
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So, my advise to Dominicans is to concentrate on making things better in your country and not wish that Cuba remain the same out of fear, because Cuba has the right to move forward and progress. Your progress should not be dependent on somebody else's continued misery. Cuba also has to make a lot of improvements in its infrastructure.
 
Your progress should not be dependent on somebody else's continued misery. Cuba also has to make a lot of improvements in its infrastructure.

I can agree with you on that one. That seem to be the message from the posts.

On another note, English speaking caribbean countries still will do good like Jamaica for the simple fact that many Americans still have hangups of non english countries and also the Backlash toward Latinos on immigration.

I believe that DR will still do ok, I just don't like the idea that they have to put all their eggs in one barrel. I personally don't believe in a bombarding of tourism hitting the Dominican shores is always the best for Dominicans or Cuba in the future. Most of that tourist money is going into non-Dominican pockets for the most part.
 

A.Hidalgo

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Apr 28, 2006
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So, my advise to Dominicans is to concentrate on making things better in your country and not wish that Cuba remain the same out of fear, because Cuba has the right to move forward and progress. Your progress should not be dependent on somebody else's continued misery. Cuba also has to make a lot of improvements in its infrastructure.

I agree. Your post has two important elements that sometimes is lacking when talking about politics or economics, humanity and compassion. Well said.
 

bilijou

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Jun 13, 2006
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As the OP-er, I must clarify the point of this thread.
So, my advise to Dominicans is to concentrate on making things better in your country and not wish that Cuba remain the same out of fear, because Cuba has the right to move forward and progress. Your progress should not be dependent on somebody else's continued misery. Cuba also has to make a lot of improvements in its infrastructure.
Cuba might turn Capitalist in five years or it might not, Fidel might stay in power for twenty more years or it might not, they might become a Chinese style economy or they might not. Regardless of what might happen, there?s a good chance that upcoming changes in the Cuban economy (as have been taking place in the last decade) are going to affect the Dominican economy. What I wanted to focus on is the estimated effect it would have on our country.

Unfortunately, Dominicans are in a position where they have to compete with their Cuban brothers. It?s not a matter of ?fearing? Cubans or desiring any misery upon them, but being AWARE of other players in the field and taking it into account into future plans.

Let me give you an example. Look at Leonel?s plan for modernization or the ?big Jump?:
He asserted that the only way to make the ?big Jump? is through ?quality education? that allows the bettering of human resources and take advantage of the geographic proximity with the United States East coast.
(Source)
Notice: Education and Proximity to the US.
Here is renowned economist Michael Fairbanks assessed DR saying the same thing, Added Value (requiring Education) and Proximity to the US.

Education and Proximity are our ticket to modernization. Cubans are CLOSER and have a better education than DR. As far as capital, it will flow in from EVERYWHERE. If Cuba turns, it would undermine DR?s long-term plan, affecting the economy. I have no doubt about this, the question is how much damage would it make?
 

Dominican0102

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Aug 30, 2006
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I think its riduculous to compare cuba to DR at this moment

;) Please i hope my cuban brothers dont take this in the ofensive side but i think its ridiculuos to compare DR to cuba rite now.

I admit that Cuba has a higher literacy rate but then again cuban is in extreme poverty rite now. It will take decades before Cuba can be wat it once was and surpass DR. In the meantime DR is at its BEST moment..if u havent noticed DR is growing from all sides, economy, agriculture, and a booming tourist industry...By the way DR has the MOST destinations of ANY carribean country and by far the most tourist...excluding Puerto rico.

DR is growing so much that its own cities r competing with eachother...i can inform u dat just punta cana receives more tourist a year that cuba..and dats just one of the many mega resort cities..and punta cana receives tourist from all over the world NOT just miami..perhaps a small percentage...BUT excludint Puerto rico DR is the #1 country in the carribean right now with 7 international airports which 5 of them are totally international and is one of the few countries to have 2 or more cities recieving daily flights from europe.....IM not saying cuba wont surpass DR but Its gonna take cuba a LONG time to do it..since DR is way more advanced and is growing from all sides:bunny: ;) ...

Now i agree that cuba will be a shock when it gets rid of castro but its ridiculous to say that it will surpass the DR...instead of DR having to compete with cuba..cuba is the one that has to compete with one the most advance countries in the carribean and #1 in flow of tourist. Now i have to admit that cuba will inpact the economy of DR but it wont be such a big deal now that were the fastest growing country in the carribean. Cuba has a long way to go to match the other countries.

Fidel might still last a couple or years and if he dies raul will take over..and even if it becomes capitalist it will take decades to match DR.U see DR isnt the same country as 5 years back but a country with the highest expected growth rate in latin american and way more rooms dan cuba(notice how cuba is more than twice and big as DR)....

Dont get me wrong now i hope cuba becomes free because its people have suffered alot and they deserve to be a democratic country...but its RIDICULOUS to say that it will surpass DR when its growing at such aggresive rates..while cuba reforms itself DR will be already be far ahead
 
;) In the meantime DR is at its BEST moment..if u havent noticed DR is growing from all sides, economy, agriculture, and a booming tourist industry...By the way DR has the MOST destinations of ANY carribean country and by far the most tourist...excluding Puerto rico...
...DR is growing so much that its own cities r competing with eachother...i can inform u dat just punta cana receives more tourist a year that cuba..and dats just one of the many mega resort cities..and punta cana receives tourist from all over the world NOT just miami..perhaps a small percentage...BUT excludint Puerto rico DR is the #1 country in the carribean right now with 7 international airports which 5 of them are totally international and is one of the few countries to have 2 or more cities recieving daily flights from europe.....IM not saying cuba wont surpass DR but Its gonna take cuba a LONG time to do it..since DR is way more advanced and is growing from all sides

who is paying you to say that bit. :) ;) Sounds like a gringo commercial. You forgot to end it by saying "Mi casa es su casa" gee wiz.
What carribean country doesn't have a similar bit like the one you said.

Again you are only talking about the tourist market which is primarily in the North Country which leaves out the rest of the country. Tourism can't be the only source of a countries growth. Thats why there is so much poverty in caribean countries now that have to depend upon the tourist market. It only goes into a small number of hands. You can have have only so many hotels and cacinos. What percentage of the Dominican population actually benefit from the tourist business that is primary in the north country dominated by foreign Gringos who care less if the locals get paid, because most of their customers are other gringos with a few high level Dominicans getting kick backs and I'm not talking shoe shine boys or prostitutes or bachateros singing at the airport when you get off the plane.

No, I don't see tourist as a method to grow a country. It takes one major problem, like ARUBA, to destroy an islands tourist market. Instability in Haiti also causes problems in DR. When people in the states hear its next to Haiti, they panic.

The Mexican immigration problem in the states is enough to prevent Americans from wanting to go to a Latin country. That can impact the "tourism" business in DR or Cuba just as much.

too many eggs in one basket.
 

Don Polo.

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May 9, 2006
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No,no,no..

Tourism is the only way out of poverty for DR IMO.

Let's be real here we're never gonna be a software exporter because our people don't like school much less complex mathematics and sceinces.

We're too big to become a tax-haven for the rich like the rest of the carribean we desperatley need the revenue.Wages are already dismally low for us to continue to be a FTZ magnet & light manufactures.

So tourism IS the only way out ..like it or not..

They must really put the pedal to the medal now and move up to become the top 3 warm weather tourists desinations in the world.

Eco-tourism here is just beggining to crawl.Why isn't the whales coming back home every year an international event?(more than it is now I mean)..There should press cameras from every news channel in the world coming to cover that.Most people don't know about our Dunes and pine forests,El Pico Duarte,etc..the world does not know about that and they should.

Adventure tourism is also lame and just beggining to crawl here.We can offer hiking,rafting,parasailing,cave diving as well I'm assuming better than anyone else in the carribean.

Then there's the religious tourism(Catholics coming to see the oldest church in the America's every christmas and easter).

..as well as Historical Toursims(People wanting to see the oldest cities in the new world,etc).

As well as gambling market which is being ignored.There are people who want to just come and gamble for a weekend and be at work by monday without being pestered by lame gringo families and there kids.Belive it or not.There should be more stand alone casinos all over the place and be promoted as that.

IMO,FTZ should switch from industry to retail also and get some international elite shoppers..


Like I don't know why the DR doesn't shelve out money to hold the Serie Del Caribe always in the DR??We ARE baseball.Just shelve out a few mill for an exclusive contract and baseball fans will come from all over.



^And that's just off the top of my head.


I mean there's so much more to do and more different types of tourists to bring in..not just all-inclusives and now golfers..
 
Tourism is the only way out of poverty for DR IMO.

Let's be real here we're never gonna be a software exporter because our people don't like school much less complex mathematics and sceinces.

We're too big to become a tax-haven for the rich like the rest of the carribean we desperatley need the revenue.Wages are already dismally low for us to continue to be a FTZ magnet & light manufactures.

So tourism IS the only way out ..like it or not..
I would agree with you if there was proof that tourism is eliminating poverty in DR but guess what, DR is a POOR COUNTRY. So much for touism getting Dominicans out of poverty. How many years will it take. DR has been in the tourism business for decades, yet as you put it, its how Dominicans are getting out of poverty. Yeah whatever.

I'm not going to make a blanket statement that Dominicans don't like school.
With that opinion, no wonder you say tourism is the only way, you already have low expectations for them. If there is something at the end of the tunnel if you go to school you could see a change. Majoring in Tourism Science is not enough to convince Dominicans that education is valuable in their country.

Whats the tourism major curriculum.

shine shoes 101
Prositution 101 and 102
Taxi driving 101
Hotel Room cleaning 101 and 102
How to make gringos smile 101
blah blah blah

DR and other carribean countries could provide Services like they do in India.
Did you know that India even has some IRS contracts processing American tax returns. You don't need to be a math wizard to do that.
If they can teach people in India how to speak english and give them a full ride in the States in America's colleges they can make that same investment on the islands south of the US. When I was in grad school my Indian class mates told me they got full scholarships in the states paid happily by the US of A and there intentions were to go back to India make 20K or 30k providing technical support and other services for Western nations. It can be done in places Like the DR. Its a long term investment but it can be done.

I would rather speak to a Jamaican or Dominican who speaks english for customer support than someone in India. At least they use their real name.
Not some Indian person telling me their name is Josh when I call Dell Computer support.

Visions are limited when it comes to investors investing in countries like DR and soon CUBA and english speaking islands. They can do more than just tourism and bump that average annual salary from a measily $2400 a year to something as you put it, "realistic".
 

Marianopolita

Former Spanish forum Mod 2010-2021
Dec 26, 2003
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Una pregunta-

If tourism is the way out of poverty for the DR how come the DR has yet to become a competitive wealthy nation as we speak? The DR has been in the industry long enough now and as mentioned by 'Don Polo' one of the leaders in the Caribbean for tourists or as a tourist destination etc.

Why is the DR still a poor country then in which the wealth is concentrated at the top of the pyramid? Don Polo you contradict yourself every time you post. Education is a must for any nation to prosper. An educated mass drives a country's bottom line. I agree with Sancochojoe that it's a bold statement to say that the masses are not interested in education where in fact the problem lies in the quality of education provided.


-LDG.
 

bilijou

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Jun 13, 2006
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Once again, the point of this thread is not to evaluate whether Tourism is the best industry to bring us out of poverty or how elitist DR is. It is about how much damage would Cuba turning Capitalist do to DR given our long-term plan to prosperity (mentioned in my last post: Education, Proximity to the US).
 
Once again, the point of this thread is not to evaluate whether Tourism is the best industry to bring us out of poverty or how elitist DR is. It is about how much damage would Cuba turning Capitalist do to DR given our long-term plan to prosperity (mentioned in my last post: Education, Proximity to the US).

Tourism is not a longterm plan for DR prosperty. DR hasn't got out of poverty with tourism for 50 years. Whats going to change it now. Tourism in the Caribbean is a status quo. Cuba would be the same if Tourism is all that they have and DR would not change much or lose much.

Progress = CHANGE not status quo.