Reasons to Invest in the Dominican Republic

• Strategic geographical location
• Economic and Political Stability
• The Government has committed and invested significant capital to grow key sectors of the economy, including tourism
• Profitable Legal framework for foreign Investment
• Preferential Access to the United States, Europe, Central America  and the Caribbean
• Competitive and qualified labor force
• Modern transportation infrastructure (Airports, Ports, Highways) 
• Advance telecommunications infrastructure 
• Support services (Bank, Airlines, Maritime services, Universities,  Real Estate) 
• Competitive cost for doing business
• More maritime and flight connections  than any other Caribbean location
• Competitive transportation costs
• United States as main trade partner (5th largest trade partner of in Latin America and Caribbean); 11 Billion annually prior to new DR-CAFTA.

The Dominican Republic:  Poised for Major Growth in International Tourism  

The government has recently committed $300 million to increase international tourism to the Dominican Republic, focusing on the Punta Cana area, which is strategically located to attract international tourists. 

• 300% increase in tourists to Punta Cana in past 9 years; 14.3% growth in 2005
• Punta Cana has 41.1% of all hotel rooms in Dominican Republic
• 5,000 new hotel rooms required in 2007
• Minimum of 9 new resort hotels required

The new highway from Santo Domingo to Punta Cana will attract more visitors by reducing driving time to 1.5 hours from 4 hours; opens in 2007. 

• Convenient airline travel attracts international tourists to the Dominican Republic. 
• Punta Cana International Airport is expanding, with airlines (American, Lufthansa, Continental, Delta, Spirit Air, others) adding flights to meet anticipated demand.

Punta Cana

Punta Cana is the major Caribbean tourist destination for international travelers. 

• Punta Cana has over 50 boutique and all-inclusive hotels. 
• Bavaro, Punta Cana  has six 5-star hotels with 3,650 rooms, 2 golf courses, and 2 malls
• Cap Cana Opened its first of five planned golf courses designed by Jack Nicklaus - Punta Espada 2006
• Punta Espada will host a PGA Tournament March / April 2008

The Dominican Republic:  A Profile

The United States remains a vital economic and cultural partner of the Dominican Republic, with nearly two million Dominicans residing in the US.

The U.S. and the Dominican Republic enjoy a very strong commercial relationship. Bilateral trade amounted to US$8.8 billion in 2004. This represents United States exports totaling US$4.3 billion and imports from the Dominican Republic totaling US$4.5 billion, representing a 55% market share for U.S. goods. Nearly 11 Billion in trade 2006.

During the past two administrations, the government has increasingly adopted policies directed toward economic liberalization, including privatizing most state-owned enterprises, improving intellectual property rights protection, and working constructively in multilateral forums, such as the World Trade Organization (WTO), the Free Trade Area of the Americas (FTAA) and DR's recent inclusion in the Central American Free Trade Agreement (CAFTA).

Basic Facts

• Population: 9.5 million; 80% under 40 years
• Geographic size:  48,000  sq.  kms.
• Climate:  Tropical 
• GDP per capita:  US$2,800 (2006) 
• GDP growth rate:  7.3 % (Jan-Sept. 2005) 10.6% Sept 2005 – Dec 2006 
• Unemployment rate:  18.4% (2004) 13% (2005) 
• Inflation rate:  1.11% (Jan-Sept. 2005) 
• 5th largest commercial partner of USA in  Latin America & the Caribbean

U.S.-Dominican Republic Relations

The U.S. has a strong interest in a democratic, stable, and economically healthy Dominican Republic. The country’s standing as the largest Caribbean economy, second-largest country in terms of population and land mass, large bilateral trade with the United States and its proximity to the United States and other smaller Caribbean nations make the Dominican Republic an important partner in hemispheric affairs. The embassy estimates that 80,000 U.S. citizens live in the Dominican Republic; many are dual nationals. An important element of the relationship between the two countries is the fact that nearly 2 million Dominicans reside in the United States, most of them in the metropolitan Northeast and some in Florida.

U.S. relations with the Dominican Republic are excellent, and the U.S. has been an outspoken supporter of that country's democratic and economic development. The Dominican Government has been supportive of many U.S. initiatives in the United Nations and related agencies. The two governments cooperate in the fight against the traffic in illegal substances. The Dominican Republic has worked closely with U.S. law enforcement officials on issues such as extraditions of fugitives, reducing illegal migration, and the return of stolen cars to the United States.

The United States supports the current administration's efforts to improve Dominican competitiveness, increase foreign private investment, fight corruption, and modernize the tax system. Bilateral trade is important to both countries, and U.S. firms--mostly manufacturers of apparel, footwear, and light electronics--account for much of the foreign private investment in the Dominican Republic.

Economic Overview 

• National Objective:  Restore backbone of macroeconomic stability 
• New Fiscal Reform: increase the Government's income  with politics of reducing the government spending
• January - Sept. 2005: fiscal income increased by 37.2%
• Establishing credible policies to protect against future shocks
• Role of the International Monetary Fund (IMF):  US$1.1 billion additional  (January 31, 2005)
• Three pillars of austerity: 1) Banking sector reform 2) Public finance reform 3) Creation of functional, flexible exchange regime

Recent Economic Performance

Source: Central Bank of the Dom. Rep., IMF 

• Dominican Peso appreciation and exchange rate stability 
• Inflation Rate reduction:
• Inflation rate 2004: 51.5 % 
• Inflation rate Jan.- Sept. 2005:  1.11 % 
• Inflation rate for 2005: 5.0 %
• Inflation rate 2006: 3.6% 
• GDP growth rate for Jan-Sept. 2005: 7.3 % / Sept 2005 – Dec 2006: 10.6% / January 07 – present 12.3%