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FRANK RAINIERI MARRANZINI: CREATOR OF DREAMS
The state clearly intended to focus its efforts to develop the economy on three main areas: tourism, tax-free
zones, and industrial development under Law 299 of 1968, which granted exemptions from rent, tariffs, and
sales tax. Likewise, the Dominican government established several industrial parks within the free zones, in-
vested in infrastructure, and financed independent businessmen, primarily through the Banco Central’s Fondo
de Inversión para el Desarrollo (FIDE, or Development Investment Fund). This presented a great opportunity
for Dominican tourism.
On June 19, 1971, Law 153—also known as the law for the incentive and development of tourism—was
passed. Article 1 of said law clearly stated its purpose to be the establishment of an accelerated and stream-
lined process for the development of the tourism industry, the fundamental objectives of which would be
established at a later date.
The geographic regions destined to receive state funds were designated as “polos turísticos” (tourist zones)
through Decree 2152, issued in 1972, and Decree 3133, issued the following year. The East, where the Punta
Cana and the Bávaro zone are currently located, did not yet exist in the minds of government officials or econ-
omists.
1. FIRST TOURIST ZONE: Costa Caribe, comprising Santo Domingo, Boca Chica, Juan Dolio, San Pedro de
Macorís (up to the Higuamo River), and La Romana.
2. SECOND TOURIST ZONE: Costa Ámbar or Puerto Plata. The country’s north coast, stretching from
Punta Rusia to Cabrera and comprising La Isabela, Luperón, Long Beach, Cofresí, Puerto Plata, Sosúa,
Cabarete, Río San Juan, and Cabrera itself.
Further evidence of Dr. Balaguer’s interest in tourism was his passage of Law 542 on December 31, 1969.
This law created the Corporación de Fomento de la Industria Hotelera y Desarrollo del Turismo (Hotel and
Tourism Development Corporation) with the goal of coordinating the nation’s activity toward the develop-
ment of the hotel industry in general and tourism marketing, specifically.
Thus, the industry that fueled many dreams and expectations brought its first 15 years to a close, heralding
the start of a new chapter for the island’s eastern region.
The Dominican East: The Forgotten Macondo
During the 1970s, tourism in the country undoubtedly grew, although growth was markedly unequal. Thus
far, all development efforts had been concentrated in the North and the nation’s capital, including La Romana.
The deep East was not among the government’s list of priorities, nor did the government agency responsible
for investing in tourism include it in its plans. Only a handful of foreign investors showed interest in the region.
Even OAS experts hired by the Balaguer administration had overlooked the region in their technical proposals
for the creation of a tourism development plan.
Despite private and official opposition to the idea, some developers—Frank Rainieri among them—insist-
ed that it was necessary to invest in the eastern region, particularly La Altagracia province. They argued it was
the only way to end the destitution and neglect that wrought havoc on its residents. These developers also
argued that crops such as sugar, coffee, tobacco, and cacao—which made up most of the region’s economic
output—were losing their market dominance and would, at best, be subject to destabilizing cycles dictated by
the law of supply and demand. The United States was the primary market for sugar, while Spain imported
more tobacco. The future of these crops was at the mercy of the changing interests and demands of these
imperial powerhouses. Tourism, they argued, was a good alternative for attracting foreign capital.
Convinced of his vision for the region’s future, Rainieri pitched his tourism policy plan to the new gov-
ernment that had formed in 1982. Based on his reflections on the Caribbean’s touristic development and the
policies that had been developed and implemented thus far, Rainieri’s plan comprised the following points: