opening a business in the DR

Hello all, it has been some time since I was last here, and it is nice to see this is still one of the finest boards out on the web. Anyway, this question is directed to anyone who may have an answer for me. Perhaps Robert at DR1 will be able to answer it or direct me to where on the web I may find an answer. It is my plan to eventually take up residence in the DR with my Dominicana wife. It is my dream to open a bar/cafe somewhere with a beach location. I would like to know from people their experience and knowledge of this type of enterprise or even other ventures they have started. Such things as start up costs, liquor license, any pit falls to avoid etc. Thanks all.

Richard

Hi Richard. Since this is a plan of mine as well, I have been watching things develop over the last few years. I have been to DR 8 times, visited most of the country and have this observation to pass on. Not to discourage you from your plan - just be very careful about where you open shop. With most resorts/hotels being all the all-inclusive, this has dealt a large blow to the industry in resort areas like PUerto PLata and Sosua. My first visit to P Plata - 1984 (approx) there were many nice places, large, small, formal informal. Over the years that has dramitically declined, and I still feel sad when I return to some of the streets where there were once thriving business.

I understand there was once a movement by the governemnt to reduce the all-inclusive thing, but the hoteliers really have the strength there. All-in is good for the people who work in the resorts, but for eveyone else it hurts a lot. Research your area of operation really really well.

I wish you well in your endeavour - I still hope to do something there, but it may not be in hospitality. Hope this is helpful.

Hi Doreen, thank you for replying. I agree with what you say about the change and I too have been traveling down there since the late 80's. I work in assocciation with some resorts and I was hoping to possibly use those connections to target tourists. In areas like Sosua for example tourists still travel about town and at night frequent clubs, so I was thinking of taping a market of tourists that DO NOT want to stay "captive" in their hotel grounds. As a New Yorker myself even if I was to go to an all inclusive the price you pay out side is still so cheap compared to what you pay here, I would go for the excitment of off resort. Maybe Cabarete is better location because there are fewer resorts in that area. My clientel would have to be mostly tourists, I do not want to open a bar that most clientel is locals. In this situation I am sure you would make far less money.

What parts of the DR do you frequent? I am always at Jarabacoa / Santiago and Sosua. These are my three usual places to hang out.

Richard

A friend of mine owns a strip of prime beach property on the center of Boca Chica Beach with a small bar and restaurant on it. To give you and idea, he is looking for a partner to buy him out 50% at US$65,000, work with him together for a few years, and then buy him out for another US$65,000 so he can retire. Profit is at about US$2000-2500/mo. after expenses. Some have suggested a better investment would be in CD's in Dominican Pesos that can pay as much or better without the risk. E-mail me for details, photos, etc.

Jim Hinsch JimHinsch@CSI.COM

Hi Richard! Hope I wasn't too negative...I agree with you that you need to tap that market of those that refuse to be captive! I think some really good advertising to make your location attractive to those that will venture forth could do it, and yeah, Cabarete could work. With all those windsurfers coming through you should be able to get business from them. I have a related plan to do with those that a) don;t want to remain stuck at resort, b) hate tacky local tours to bad attractions c) perhaps some are single, younger want to check out the nightlife, but don;t really know where to go/what to do. The restuaruant/bar was my first plan, but who knows...I bartend, have worked in the business, speak enough Spanish. Just gotta be prepared to grease a lot of palms too i guess. Hope you are successfu. If you need a blonde bartender, keep me in mind! Ciao.

Hello Richard!!!!!

I still believe that your idea is very good and clear. Plan it well and make your dreams come true...

Julio

Richard: I wish you good luck with your dream. It can be done and it can be successful but keep your guard up for currency devaluation and overnight interest hikes so the concern doesn't run into the troubles that entrepreneurs are facing in Brazil as we speak.

If I would be you, once I have my marketing research, locale and business strategy map out the next big thing is to get a lawyer that can reduce any and all liabilities for all affairs related to the Corporation. The crowning touch would be appropriate insurance with a reputable company to minimize exposure.

These may look like elemental stuff but I had seen many enterprising people (Dominicans and foreigners) run into major problems due to the oversight of these simple matters in the unforgiving commercial climate of the DR.