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