ARA Hoteles, a small hotel chain with operations in Sosua, Las Terrenas and Cabarete confirmed it has closed down its operations for the rest of the season. Club Tropicana, Club Costa Tropical, Club Casa Linda, Club Villa Chelsea, Residencial Casa Linda, Club Las Orquideas were closed, affecting 234 employees. Tony Alvarez told the press he closed after German tour operator FTI Touristik and Caoba Tours announced the unilateral termination of their contract. He said the companies left ARA with an outstanding US$800,000 debt. Caoba Tours representative Ruben Gutierrez said the problems confronted by ARA Hotels reflect the drop in the demand for North Coast vacations on behalf of German vacationers. Furthermore, the Listin Diario reports that Britannia Airways would no longer transport the German passengers. Michael Leissler, president of Caoba Tours, said the airline had reduced its flights from 60 a month last year to 33 a month this winter season. Argentina Leon de Brugal, director of tourism in Puerto Plata, said that when the abrupt closing of the hotels occurred, the tourists were protected. They were given upgrades to better hotels in the area than what they had originally booked. She said the Tourism Ministry would be carrying out an investigation into what happened with the contract. (19 April 2001)
