Wealthy travelers seeking sun, sand, and luxury are flocking to the Caribbean paradise next to Haiti, where armed gangs dominate

Its success stands in stark contrast to the country across the Caribbean island of Hispaniola in Haiti, where rising crime and violence are ravaging the country.

President Luis Abinader has been credited with the Dominican Republic's prosperity, citing his pro-business, low-drama style of governance that has made the country popular with investors and tourists. In the process, it also made him the front-runner in Sunday's presidential election.

Abi Nader wrote in a social media post earlier this week that the vote is “a referendum on the actions we have taken over the past four years.” “The best is yet to come.”

The Dominican Republic's economy is expected to grow by 4.4% this year. Recently, the country of 11 million leapfrogged Ecuador (population 18 million) to become the country with the seventh-largest economy in the hemisphere.

But critics say the growth has come as government debt rises, social programs swell and fears the chaos could spill over into Haiti.

“The government has been very good at selling the idea of ​​economic well-being that people don’t feel on the street,” said Leonel Fernandez, who served as president from 1996 to 2000 and then from 2004 to 2012, and is second in the presidency. Contestant in the vote this weekend.

Polls show that inflation, the economy, crime and Haiti are among voters' top concerns. But those same polls also show Abinader heading toward re-election.

Abinader and his Modern Revolutionary Party are expected to obtain 60% of the votes, followed by Fernandez and his Popular Power Party with 25%, according to a poll conducted by Gallup-RCC Media and published by the British newspaper “Daily Mail”. Free diary On May 9, Abel Martinez, with the Dominican Liberation Party, received an approval rating of 11%. Other polls indicate that the race is close, but Abinader is still in the lead.

If any candidate receives more than half the votes, he or she will be the winner. Otherwise, the two leaders will compete in a runoff on June 30, where Abinader could face a tougher race.

Abi Nader, 56, acknowledges the dangers Haiti poses to the Dominican Republic, but rejects the idea that his country bears a special responsibility to reform the neighboring country. Powerful gangs in Haiti have seized control of large parts of the capital as violence and hunger spread through the country. The country recently formed a transitional governing council and is expected to receive a Kenyan-led multinational security force, but chaos remains.

While Haiti and the Dominican Republic share a 240-mile border, they are far apart from each other. Abi Nader is trying to keep things that way, prioritizing building a border wall, ramping up deportations, and urging the international community to mediate.

Abi Nader said during an event held in Washington last week that Haiti “represents one of the greatest challenges the Dominican Republic has faced in several decades.” Supporting border security has “drained the resources we needed for economic development.”

Wall Street appears to agree with Abinader's strategy. While he has boosted the government's debt load by 30% during his term, the additional yield required by investors to hold the country's offshore bonds has more than halved since mid-2022, according to data from JPMorgan Chase & Co., Barclays PLC and Barclays Bank. BancTrust recommends investors purchase dollar-denominated securities. Money managers from Vontobel Asset Management to M&G Investment Management and Eaton Vance are also promoting the country's local notes.

“The government has actually done a very good job, not only of satisfying investors, but also a good job of satisfying its population,” said Carlos de Souza, portfolio manager at Vontobel Asset Management in Zurich.

Tourism wave

Abi Nader was CEO of Grupo Abicor, his family-owned construction company focused on tourism development, and a director at the National Association of Hotels and Restaurants, before winning the 2020 election with 53% of the vote.

As president, he remained in his wheelhouse. After the pandemic, the Dominican Republic reopened to tourists much sooner than most Caribbean countries, and is still reaping the rewards. Last year, the country received more than 10 million visitors, a record number. (International tourism in Haiti has collapsed, with airlines suspending flights and Royal Caribbean halting cruises to its own peninsula in Haiti.)

Abi Nader is promoting this industry as a way to support neglected areas of the country and diversify the economy. Overall, the government says there are 19 major projects underway worth more than $2.9 billion, ranging from cruise ports and airports to mega hotel projects.

However, for many Dominicans, the influx of visitors is not associated with progress, but rather with rising prices and gentrification. Housing costs jumped 24% from 2020 to 2024, with increases being greater in tourist-heavy areas where there was an influx of foreign buyers.

“The general narrative in the country is that tourism will save us and bring us work and income,” said Moraima Capellan Pichardo, who works with an environmental group called Cabarete Sostenible. “But what we are witnessing is the displacement of people due to rising prices, and the construction of homes that no citizen here can afford.”

There are few projects that reflect the government's strategy like Punta Bergantin. On 2,400 acres of beachfront on the northern coast, the government is promoting an eco-friendly resort that it says will include 4,000 hotel rooms, more than 2,000 residential units, a golf course, a hospital, a water park and a tennis club.

Tourism officials say they already have commitments from Grupo Puntacana, in alliance with Melia Hotels International; Grupo Martinon, which operates the Hyatt Ziva and Hyatt Zilara brands; And Charisma Hotels.

Andres Maranzini, who heads the Punta Bergantin project, says more than half of the $800 million needed for the first phase has been committed.

The project is also scheduled to include a 148-acre cinema area. fast and angry Star Diesel's One Race Films has signed A note To reach an understanding with Abinader in 2021 to develop it. One Race Firms referred calls about the effort to its talent agency, which did not return emails and messages. The project is “definitely happening,” Maranzini said.

Last month, officials announced that Bergantin would also include an innovation hub, dubbed “Silicon Beach.” They envision bringing together government agencies, academia and the private sector to create a technology incubator and accelerator. Officials have not yet determined the price of the complex.

One of the country's biggest goals is to become a semiconductor manufacturing hub for a U.S. market that has been trying to distance itself from Asia. While that goal is still far away, these types of projects could attract the kind of talent and workers needed to make this a possibility, according to Economy Minister Pavel Issa Contreras.

Juan Urena, a 74-year-old carpenter, visited Bergantin on a recent weekend after hearing campaign ads on the radio that made him believe the area was ready to start hosting thousands of tourists and Hollywood celebrities. But except for the newly paved road and the sign warning him to stay away, there wasn't much to see.

“They've been talking about this for years, and there's nothing here,” Orena said, standing next to a wooded patch of land on the beach. “I feel like they're just talking about this to get our votes.”

The government says its broader vision for the country will take time, and construction on Punta Bergantin will begin in earnest in August — the same month Abinader hopes to begin his second term.