The vice president of the National Hotel & Restaurant Association told Hoy newspaper that government and private sectors need to take urgent measures so that necessary investments be made to bolster the North Coast travel. He said that the area is affected by a major financial crisis, as owners of small hotels struggle to meet the present high interest rates costs. He said that the increasing operational costs are also affecting the small businessmen in the area. He said that reports are that the flow of travel to the area has dropped 8% when compared to previous years. The financial crisis has impeded some small hotels that depend on walk ins and individual travelers to upgrade and upkeep their facilities. He commented that Sosua hotels, where reportedly 20 have closed, are facing competition from all-inclusive operations that have opened in the same area. Puerto Plata was the first tourism destination in the DR. The area is also affected by internal competition from booming areas such as Punta Cana-Bavaro in the East Coast. Villanueva commented that the government sector could contribute much to improve the situation. He said that an attempt of the Ministry of Tourism to clean up the beaches of the North Coast, was met by opposition from politicians that alleged that the vendors that occupy beach space should be allowed to remain on the premises because they are "padres de familia" (family bread-winners). He said that Minister of Armed Forces Jose Miguel Soto Jimenez has instructed Tourism Police agents to proceed as necessary seeking the improvement of the beaches. Also affecting the area is internal politics and particular interests of municipal sectors that have impeded the start of a World Bank project that would build new infrastructure in the area. To assist small hotel owners, Villanueva said that Minister of Tourism Ramon Alfredo Bordas has given instructions so that small hotels can participate as a group, at no cost or a very small cost, in international promotional fairs. (6 March 2001)
