Puerto Plata welcomes first cruise ship since 30 years

Today is a big day. After a 30-year break, cruise ships have started heading for the Dominican North Coast once again. More specifically, this morning at 4am Carnival cruise ship Victory with a capacity of 2.754 passengers docked at Amber Cove, which after an USD 85 million investment can justly be called the newest and most modern cruise ship terminal of the Dominican Republic. 

Passengers, who disembarked at 8am this morning at Amber Cove, have a wide array of shore excursions to choose from, including swimming with dolphins, visiting cacao plantations or snorkeling around Cayo Arena. Other day trips are more traditional, visiting the beauty and culture that cities like Puerto Plata and Santiago have to offer. Visits can include tours to the old town, to Mount Isabel de Torres, to the Brugal rum distillery and cigar workshops. Some excursions to Puerto Plata, or other close by destinations such as the zipline, include a lunch on the beach of Cabarete, with time to enjoy the view. Cruise passengers need to be back on their ship by 4pm.

According to the Diario Libre, Puerto Plata has prepared several shows for today’s visitors under the motto “Puerto Plata, city of cruise passengers”, including a spectacle of “perico ripiao”, a folkloric ballet performance, and a merengue concert amongst others.   

Upgrading Puerto Plata
The 8.4km road from Amber Cove to Puerto Plata is in the process of being widened and tarmacked. So far, the first three kilometers are ready for today’s visitors. The historical center of Puerto Plata has received an initial paint job here and there as well as a last minute street facelift but more extensive renovation works are expected in the months to come. 

The newly built amphitheater will soon also be ready, although no shows have yet been booked. Tourism minister Francisco Javier García, who described Puerto Plata’s amphitheater as one of the most beautiful ones he had visited, has been reported as saying that he would ask the owner of Lifestyle Holidays to organize his weekly Sunday parties at the amphitheater instead, to ensure visitors at least 52 times per year. 

Sosua and Cabarete
Works to create a modern car park and walkway along the road circling Sosua Bay have started a while ago. Plans also exist to construct two shopping plazas at the two entrance of Sosua Beach and relocate all the existing stores and restaurants into those plazas but it has been reported that disagreements among those involved delayed these works extensively. According to the Sosua Association of Sustainable Development (ADSS) most of the differences have now been resolved and a solution will soon be found.  

Cabarete businesses will be financing lifeguard towers to be built on Cabarete beach to ensure the safety of swimmers. According to project manager Charles Osterlund, the towers will be built in combination with a high beach chair as well as light posts, all built from wood using concrete foundations. 

Source of hope
The arrival of the first cruise ship, which will be followed by the arrival of one cruise ship every week until the end of November when the rhythm will be sped up and up to three ships will dock every week, is bringing a lot of hope and with it also investment commitments to in the region.

Incentives for Foreign Investments in the Dominican Republic - INVESTMENT GUARANTEES (part 3)

Overseas Private Investment Corporation (OPIC) 

This U.S. government financial institution fosters U.S. business entry, growth, and competition in emerging markets. Private U.S. investors can obtain financing, guarantees, political risk insurance, and support for private equity investment funds upon meeting certain project eligibility requirements. Emphasis is placed on meeting environmental and worker and human rights standards. Detailed information of all projects is publicly disclosed and open to public comment. 

Projects are initially and continuously reviewed for social and environmental impact, and investors must conduct consultations with locally affected communities where the impact is significant. Housing and renewable energy are two sectors to benefit from OPIC support. In 2007, OPIC allocated US$100 million for housing construction loans for low- and middle-income housing, emphasizing the eligibility of DR-CAFTA countries. In 2008, the agency made a historic commitment to renewable energy by approving funds to mobilize capital investment, and within a year, had considered over 100 proposals totaling US$ 2 billion. Financial incentives in this sector are expected to increase.

Incentives for Foreign Investments in the Dominican Republic - Free Trade Zones (Law 8-90)

Free Trade Zones represent a pillar of the Dominican economy and are an attractive investment opportunity for any investor interested in producing goods or services for overseas markets in government designated areas within the country. The Dominican Republic boasts more than 50 zones, comprising more than 500 companies. It has one of the most advanced free-trade systems in the world and ranks fourth in terms of quantity. 
The National Council for Export Free Zones regulates the industry dominated by Apparel and Textiles (69.1%), Tobacco (6.4%), Electronics (5.3%) and Pharmaceuticals (5.3%). Almost half the free zone businesses are owned by U.S. investors, more than a third by Dominicans, and the remainder predominantly by Asians.
Law #8-90 provides the following generous array of customs and tax incentives to free trade zone investments for a period of fifteen years.
• Exemption from income tax.
• Exemption from all corporate taxes on tangible and intangible assets and net worth.
• Exemption from all taxes on construction, conveyance, and registration of real property.
• Exemption from incorporation and capitalization taxes.
• Exemption from the ITBIS tax (value-added tax).
• Exemption from municipal taxes.
• Exemption from existing export or re-export taxes, except those expressly stated in Law #8-90.
• Exemption from import taxes, customs duties and related charges on raw materials, equipment, construction materials, vehicles, office equipment and any other goods necessary for the construction, preparation and operation of a free trade zone business.
• Exemption from consular duties for goods or services destined to other free trade zones.
• Exemption from import taxes and customs duties on raw materials imported by a
• Dominican company for use in finished or semi-finished products destined for export to a free trade zone. This exemption requires prior authorization from the national regulatory agency.
Also, goods and services from one free trade zone can be sold or transferred to another free trade zone with prior authorization from the national regulatory agency. However, goods and services sold in the Dominican market are subject to all import taxes, customs duties, and quota requirements, except those that qualify as a priority sector under Law #56-07 (textile and accessory manufacturing, leather and shoe manufacturing, and furs), which enjoy more liberal import tax and duty treatment. 

Incentives for Foreign Investments in the Dominican Republic - DR-CAFTA Free Trade Agreement

This free trade agreement among the United States, the Dominican Republic and the Central American countries of Honduras, Guatemala, El Salvador, Nicaragua and Costa Rica grants investors in any of the member states the following benefits:

• Non-discriminatory treatment among member states.

• Limited performance requirements.

• Freely transferable investment funds.

• Expropriation protection not governed by international law.

• A “minimum level of treatment” pursuant to international law.

• Freedom to contract with key managerial staff of any nationality.

• Dispute resolution procedures between the country and the investor.

• Binding international arbitration for investor damage claims against a member state.

Incentives for Foreign Investments in the Dominican Republic - Regulation 214-04 on Investment Registration

This regulation governs investment registration, and grants important benefits to investments that are formally registered with the CEI-RD within 180 calendar days from the date the investments are made. The CEI-RD must respond to an application for registration within 15 working days of receipt. The benefits to registration are as follows:

• Free Fund and Currency Conversion. Investors are granted free access to international currency and fund conversion through local banks and the Central Bank of the Dominican Republic.

• Free Repatriation of Dividends and Capital. The foreign investor has the right to remit abroad in foreign currency all capital invested, as well as capital gains and dividends, after complying with the existing tax legislation. (The corporate tax rate is presently 25% for all corporations. The investor also has the right to repatriate fee and royalty obligations resulting from a technology service agreement.

• Expedited residency acquisition. Investors who register their investment benefit from a fast-track procedure if they decide to become residents of the Dominican Republic. 

Incentives for Foreign Investments in the Dominican Republic - Law 16-95 about Foreign Investments

This law reifies the important equality provision of Article 25 in the new Constitution, providing equal treatment and non-discrimination to both national and foreign investments. The statute and its enabling regulation (Decree #380-96 as amended by Decree #163-97), grant foreign investors, who are contributing capital to companies operating in the Dominican Republic, unlimited access to the Dominican economy except for activities that negatively impact the local environment or public, or compromise national defense or security.

Capital contributions can be made through several channels and in a variety of forms. Accepted channels of contributions are: 1. directly to the Dominican operating company from sources outside the country, 2. directly by reinvesting profits derived from the registered Dominican foreign investment back into that same operating company, and 3. indirectly from profits derived from one registered Dominican foreign investment and invested in a different Dominican operating company. Acceptable forms of contributions as foreign investment can be liquid currency, general contributions, financial instruments, or intangible technological property and knowledge.

Incentives for Foreign Investments in the Dominican Republic - Constitution References

The 39th amendment to the Dominican Republic’s Constitution in 167 years was enacted on January 26, 2010, and establishes the general and fundamental principles governing the nation and inhabitants. The most relevant to foreign investment are Articles 25 and 221.

Article 25 expressly entitles foreigners in the Dominican Republic to the same rights, except for participating in local political activities, and subjects them to the same duties as Dominicans. Foreigners must properly register with the Registry of Foreigners, and if necessary, can seek diplomatic protection after exhausting all available remedies and procedures afforded under Dominican law, limited only by international conventions.

Article 221 grants equal treatment to both public and prívate business activities, and guarantees equal conditions to both local and foreign investments with no restrictions but those established by the Constitution and the law. 

WHY TO INVEST IN DOMINICAN REPUBLIC

Thanks to the largest economy in Central America and the Caribbean, the Dominican Republic is known for its positive attitude towards foreign investments. According to the World Bank, the Dominican Republic was ranked as the largest Foreign Direct Investment (FDI) recipient in the Caribbean in 2012. In 2012, FDI flows into the Dominican Republic grew 59% on the back of the acquisition by Anheuser-Busch InBev of Cervecería Nacional Dominicana, the country’s largest brewer, for more than US$1.23 billion. Even without this acquisition, however, FDI in the Dominican Republic would have been up on 2011, driven by increased investments in electricity, manufacturing and mining. Investment was also up in manufacturing in export processing zones, tourism and real estate.

The Dominican Republic is easily reachable from most countries in the Caribbean and is served by eight international airports. Expressways and roads make it easy to travel to all three coasts of the country, the south, east and north.

Other plus for doing business in the country is its abundant work force, including both non-skilled and highly skilled staff. There is a young and talented population, including a large number of bilingual workers.

Outside economic reasons, the climate, natural and cultural attractions of the Dominican Republic make it a perfect place to live and raise a family. A leading world tourism destination, the country has more than 65,000 hotel rooms and 26 golf courses at beach, city and mountain destinations. There is also a plenty of attractions like excellent shopping with goods from all around the world, sophisticated restaurants and nightlife.

INVESTING IN TOURISM IN DOMINICAN REPUBLIC

With over 500 kilometers of sunny beaches and turquoise waters, the Dominican Republic is also a cultural heritage consisting of unmatched colonial and modernist buildings, streets and structures with great and rich history, spectacular rural landscapes and the warmth of the Dominican people provides support to build one of the biggest tourist areas in the region, becoming the first tourist and golf destination in the Caribbean.

The tourism industry has positioned itself as the largest generator of foreign exchange flows into the country, thanks to a capacity of more than 68,500 rooms and 32 world-class golf courses with renowned hotel chains. The Dominican Republic received over 4.6 million visitors in 2013, generating revenues of more than US $5.090 billion, which makes us the number one destination in the Caribbean.

This sector benefits from Law No. 158-01 of Tourism Development for Low Income Areas and New Spots in Provinces and Localities of Great Potential.