ROSEAU, Dominica – Relations between Puerto Rico and Dominica started to increase during the administration of Gov. Rafael Hernández Colón (1985-93) and Prime Minister Eugenia Charles was one of the first regional leaders to support the government of Puerto Rico in Washington.

“Dominica was the third country in the Caribbean to support Puerto Rico in its efforts to maintain Section 936 of the Internal Revenue Code,” recalled former Resident Commissioner Antonio J. Colorado who was earlier Economic Development Administrator.

“After Dominica signed a Tax Information Exchange Agreement with the U.S., it became the recipient of the first Section 936 loan in the region through Citibank. It was for $1 million and went to ABC Container of Puerto Rico to build a banana carton plant in Dominica.” The plant is no longer operating reflecting the weakness of the banana industry. The relationship between Dominica and Puerto Rico has not grown as fast as either partner would like.

Visiting the home of Prime Minister Charles on her last day in office in 1996 she pointed to the autographed photographs of the leaders with whom she associated. They included Presidents Ronald Reagan and George H.W. Bush, Queen Elizabeth II and then Prime Minister John Major. Her connections with Puerto Rico were reflected in the photographs of Govs. Carlos Romero Barceló and Hernández Colón, and his late wife, doña Lila Mayoral.

Recalling her friendships with both Romero Barceló and Hernández Colón, Charles told CARIBBEAN BUSINESS at the time that “ it is a shame that the administration of Gov. Pedro Rossello had no contact with me because Puerto Rico enjoys a tremendous amount of good will in Dominica which has taken years to build up. I am confident both our peoples have a lot to gain from expanding the relations which have been developed. Puerto Rico is part of the U.S. but we also think Puerto Rico as very much a part of the Caribbean and a part of us. The affinity which has been built up should continue to be encouraged.”

Main tie now American Eagle

The main tie now is American Eagle which Prime Minister Charles attracted to Dominica in 1995. It operates daily flights to Dominica from Luis Munoz Marin International Airport.

“It is one of our steadiest year-around routes even though Dominica only has a population of about 70,000 and a tourism industry still in its infancy,” said Pedro Fabregas, American Eagle’s director of operations. “There is the Ross University medical school there as well and its students regularly use American Eagle.”

Dominica is one of the most exotic destinations in the Caribbean but expansion of its tourism industry is severely hampered by the lack of an airport that can accommodate jet aircraft, and a small inventory of hotels and guesthouses.

“Last year we received 56,242 overnight visitors and 383,614 cruise passengers,” said Parry Bellot of the Dominica Eco-tourism Association. “The total number of rooms is 800 but only 300 are suitable to host foreign visitors. The injection of tourism last year was only $43.4 million.”

Almost every one spoken to in Dominica sees a jet airport as the passport to future tourism development but where the estimated $100 million needed to build it will come from is anyone’s guess. “Its like a chicken-and-an-egg situation,” said a hotelier. “We need a jet airport but the airlines want to see more tourism development and rooms.”

Prime Minister Roosevelt Skerrit is keenly aware of the potential that tourism represents for Dominica. The day after the funeral of Prime Minister Charles businessman Ivor Nassief took office as minister of tourism. He was also named a senator in Parliament.  He is an executive of the 57-room Fort Young Hotel, the nation’s largest. Well thought of, his appointment has won high praise.

Dominica only exported $39 million last year, mainly bananas and soap products. But it imported $98.2 million, mainly consumer goods from the U.S. The trade imbalance represents a challenge to business people in Puerto Rico. According to the Puerto Rico Planning Board exports to Dominica in 2004 were almost $2 million but imports from Dominica to Puerto Rico totaled only $341,472.

Most merchants spoken to said their main source of imports is Florida with the principal carriers Tropical Shipping and Amerijet. They explained the main advantage in dealing with Florida suppliers is consolidators who provide less than container loads, while Dominica is 1,400 miles from Florida and only 432 miles from Puerto Rico.

Dominica has a land area of 290 square miles and a population figure of only 70,000 which is not growing due to emigration. Its gross domestic product last year was $384 million translating into a per capita income figure of $5,500, according to the World Fact Book. The bleak economic forecast is reflected in an unemployment rate of 23% and the fact that 30% of the population lives below the poverty line.

Foreigners attending the Charles funeral passed State House and were reminded that the ornate gate was hand made in Bayamon, Puerto Rico and had been dedicated by Gov. Rafael Hernández Colón during one of his state visits. “Every one in Dominica calls it the Puerto Rican gate,” said Foreign Minister Charles Savarin.

*Reporter John Collins was the recipient of a 1996 Overseas Press Club of Puerto Rico award for his profile and interview of the Dominican leader in 1995 when he was invited by her to spend part of her last day in office with her (CARIBBEAN BUSINESS June 22, 1995).

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