• The country has experienced a strong economic growth rate since 2005 (9.3% in 2005, 10.7% in 2006 and 8.5% in 2007),
• Although the country has long been viewed primarily as an exporter of sugar, coffee, and tobacco, in recent years the service sector has overtaken agriculture as the economy's largest employer due to growth in tourism and free trade zones,
• Housing projects, highways, malls and commercial buildings are the priority for the Dominican Government and Private Sector,
• The hotel industry is making strides to remedy the deficiencies in the basic services (i.e electricity, water, and protecting the environment).

TOURISM

Tourism is by far the most lucrative sector in conjunction to the economy, the revenue from which has increased from $173 million (US) in 1980 to more than $2 billion (US) by 2000. Successive governments have invested heavily in tourism development, creating upgraded airports and other infrastructure.

Some 2.1 million tourists arrived in the country in 1999, this figure not inclusive of visiting Dominicans. Most come from Europe, and about 25% originated from the United States or Canada. To accommodate the tourists, the country now has almost 50,000 hotel rooms, more than any other Caribbean country. About 50,000 Dominicans are directly employed in this sector, mostly working in hotels, and another 110,000 are indirectly employed as taxi drivers, tour guides, or tourist-shop staff.

THE COUNTRY'S GORGEOUS WHITE SAND BEACHES ARE WIDELY CELEBRATED AS BEING AMONG THE WORLD'S BEST

Most tourists visit the Dominican Republic to experience its beautiful beaches and vacationer friendly resorts.  The country's gorgeous white sand beaches are widely celebrated as being among the world's best.  There is an expanding eco-tourism and outdoor activity sector centered around the country's mountains and wildlife which has grown to be another luring attraction and major income producer.

Since 1962, the Dominican Republic has led the Caribbean in the preservation of sensitive inland and coastal ecosystems through partnerships with leaders like the Nature Conservancy, the United Nations, the Smithsonian and numerous others to establish powerful environmental protections. The nation's preserves and sanctuaries are a vital tourism draw to DR's fabled lush green surroundings.

The government's constant dedication to preserving the island's environment makes eco and adventure tourism in the country remarkable and exciting, as the natural beauty of the island can be viewed most everywhere. Minister of Tourism, Francisco Javier Garcia commented, "By setting aside 20 percent of our land for preservation the DR has taken a very systematic approach to ensure our natural beauty remains unspoiled. This dedication has led to the development of 83 protected areas including 19 national parks, 32 natural monuments, 6 reserves and 2 marine sanctuaries." 

In the DR, ecotourism opportunities connect visitors with the environment in sustainable ways granting access to the unimaginable beauty of the land. The Whale Sanctuary in Samana provides safety for 3,000 to 5,000 breeding humpback whales each winter.

In addition to coastal protections, the DR's plentiful national parks located inland boast such sites as the highest and lowest geographical points in the entire Caribbean.  In the Southwest Region, Lake Enriquillo in Cabritos Island National Park, is the largest salt water lake in the Caribbean, and the lowest point at 144 feet below sea level.

• Easy access to transport and shipping
• Low labor and production costs
• Less red-tape and bureaucracy
• Reduced/Zero Tariffs or Duties on Imports and Exports
• Reduced/Zero taxes on profits

• Municipal Taxes and Export Duties
• Incorporation and Capital Gains Taxes
• Property, construction and mortgage title transfer taxes
• Business and Value Added Taxes
• Corporate Income Taxes

• Any vehicles, including trucks, vans, buses (for transporting workers)
• Production Equipment and materials required for production
• Equipment or materials required for providing facilities for workers (such as catering, medical care, crèche/child care)

Import duties on all these items are also waived for operations established in the Dominican Republic Free Zone. The Dominican Constitution guarantees the freedom to own private property and to establish businesses. Foreign Investment Law ensures foreign investors the same rights to own property as are guaranteed by the Constitution to Dominican investors.

Public enterprises are not given preference over private enterprises. An area of concern, however, is the legitimacy of property titles. The Dominican Republic has a history of problems resulting from conflicting property titles. In an effort to combat this problem, the authorities are working with the Inter-American Development Bank to create an electronic database of all property titles within the country. This project will authenticate and reissue electronically generated property titles to owners. It is not yet clear how conflicts between titles will be resolved.

About 500 companies in the Dominican Republic manufacture goods primarily for the North American market. Situated in 50 industrial free zones around the country, these mostly foreign-owned corporations take advantage of generous tax and other financial inducements offered by the government to businesses that operate within the zones. Approximately 200,000 people, or about 8 percent of the workforce, are employed in this sector.

They mostly produce clothing, electronic components, footwear, and leather goods, which are then assembled. The raw materials or semi-manufactured goods are usually imported duty-free from other developing countries (electronic parts are imported from industrialized Puerto Rico) and put together in the free zones. Products created are cosmetics, pharmaceuticals, textiles, perfumes and foodstuffs. The value of exports amounted to $1.9 billion(US) in 1996, but the contribution to the trade balance was only $520 million (US) because many of the basic materials for the free zones had to be imported and paid for. 

In addition to Free Zone production there is also a healthy traditional manufacturing sector based on sugar refining, cement, iron and steel production, and food processing. Rum is a significant export commodity, and beer and cigarettes are manufactured for local consumption. Most industries of this sort are located around the working-class perimeter of Santo Domingo and other large towns.

Fair Labor Laws and Practices

Another reason for the success of the economy is the structure of the labor code, which is fair to employer and employee, unlike labor laws in many Caribbean countries. For instance, the Free Labor Zone laws also ensure the fair treatment of Dominican Republic native workers.  The Labor Code establishes a standard work period of 8 hours per day and 44 hours per week and stipulates that all workers are entitled to 36 hours of uninterrupted rest each week. An ample labor supply is available.  Most employers have found the local work force competent, trainable, and cooperative. Foreign employers are not singled out when labor complaints are made. Organized labor represented an estimated 8 percent of the work force.

The Labor Code specifies that 20 or more workers in a company may form a union. Before a union may officially call a strike, however, it must have the support of an absolute majority of all company workers, unionized or not; it must have previously attempted to resolve the conflict through mediation; it must have provided written notification to the Ministry of Labor of the intent to strike; and it must have waited 10 days from that notification before striking. In part due to these stringent requirements, brief work stoppages are more common than lengthy strikes. 

Collective bargaining is legal and may take place in firms in which a union has gained the support of an absolute majority of the workers. Few companies have collective bargaining pacts. The Labor Code stipulates that workers cannot be dismissed because of trade union membership or union activities; however, in practice, it appears that some firms have fired workers associated with union activities.

The Dominican labor code establishes a system of labor courts for dealing with disputes. While cases did make their way through the labor courts, the process was often long and cases remained pending for several years. Both workers and companies reported that mediation facilitated by the Secretariat of Labor was the most effective method for resolving worker-company disputes.

CURRENCY

The Dominican peso (DOP) is the national currency of the country, although US dollars (USD) and euros (EUR) are accepted at most tourist sites. The peso was worth the same as the USD until the 1980s, but has depreciated. The exchange rate in 1993 was 14.00 pesos per USD and 16.00 pesos in 2000, but it jumped to 53.00 pesos per USD in 2003. In 2004, the exchange rate was back down to around 31.00 pesos per USD.

The U.S. dollar is implicated in almost all commercial transactions of the Dominican Republic; such this is common in high inflation economies. On February 2005, 1.32 USD = one € = 29 DR pesos; in October 2005, 1.19 USD = one € = 32 DR pesos. As of September 2007 the value of the peso is 1 USD=0.7006 EUR=33.430 DOP

OTHER SOURCES OF REVENUE

Another source of revenue for the country is remittances.  Remittances are the transfers of money by foreign workers to their home countries.  Money sent home by migrants constitutes the second largest financial inflow for many developing countries, exceeding international aid. Latest estimates vary between IFAD estimates of $401 billion(US) and the World Bank information from central banks at a more conservative $250 billion(US) for 2006 and these figures are increasing by almost 30% year on year. Remittances contribute to economic growth and to the livelihoods of needy people worldwide. Moreover, remittance transfers can also promote access to financial services for the sender and recipient, thereby increasing financial and social inclusion.
 
There are numerous reasons why many view the business market in the Dominican Republic as promising.  As explained above, everything from cheap goods and services to laws specifically created to accommodate foreign investors and business owners reiterate this fact.   So if one is looking to do business and needs a port country for trade in the Caribbean, the Dominican Republic should be at the top of your list as it is the place where the sand is always white, the waters' always warm, and business is booming.