A Personal Letter From Raul Calvet in Nicaragua

Dear Friends,

I’m pleased to report a series of meetings and presentations have transpired recently that will serve to enhance investment in Nicaragua and enhance the reputation of our country within the international community.

The government has been an active participant in these meetings, which are designed to bolster investor confidence and ensure that free market principles and private property laws are strictly adhered to.

Immediately after the elections I promoted a meeting and took 120 investors who work with our organization to meet with the new administration. We asked the president directly what his policy objectives were going to be. We expressed concern about the possibility of a return to the way things were handled in the 1980’s. We were surprised and pleased to find that a completely different mentality existed. Significant time has passed from the days when they were a revolutionary government. Now they are a democratically elected government, and their mentality is not the same.

The Sandinistas have been members of the parliament for the last 18 years. So it’s a completely different situation in Nicaragua. The government assured all the investors that their policy was going to be to promote and foster private investment in order to bring wealth to the country through the creation of jobs and better distribution of taxes. They stressed that everybody should pay taxes and that taxes should be fair. There should be no corruption on the government side in the distribution of these monies.

Government Meetings

The government meetings we are having are part of a very important program that was agreed on between the administration and the most important economic groups of Central America. The purpose is to ensure that all the economic measures this government is taking are in accordance with the best practices of the free market economy. It is vital to reassure investors that their private property investments are secure.

Accordingly, the government agreed to create at least five teams based on the five most important areas of the economy. Each team contains five members of the private sector and five members of government. The five members of the government are either five ministers, or five members of cabinet at the highest level.

I was nominated to be one of the five representatives from the private sector representing investment and tourism. We have been meeting with the five members from the government for the past two and a half months deciding what will be the best course of action for this government in regards to our area. We have been very productive. Our aim is to ensure that there is a firm understanding of how to incentivize investment and give total respect to private property.

It is important to understand that the engine of the economy is the free market—with a twist. This government plans to focus on, and we all agree that it is necessary, to be very much aware of the economic situation of the majority of the population, which is poor. Our aim is to ensure that new projects and new enterprises take that into consideration in their investment programs.

It could be thorough direct donations to the community, or it could be through health care, or contributing with roads, or electricity and many other areas. In other words, the goal is not to come and invest and be insulated from the wider community, but to integrate with the community so the benefits of development influence everybody.

Investor Presentation Meetings

I have also been involved in a series of presentation meetings throughout the United States and abroad. Besides marketing and meeting with potential buyers, the important aspect of these meetings is that we are bringing the reality of Nicaragua to the international market. Our contribution to the country is not only in the infrastructure, but also in placing Nicaragua in a better market position regarding international competition.

Nicaragua does have a tourism institute and an investment promotion agency. Those are the two institutions responsible for promotion. But they do not have a budget that is sufficient to cover the work.

I have worked in this business for many years and I know that a sustained campaign in the United States to promote a country will cost no less than 70 to 100 million dollars, if one is to create a lasting impact. There is no sense having one advertisement in Times Magazine and another advertisement six months from now. It is similarly ineffective to have one TV spot now and another one two years from now. If there is no consistency, if there’s no targeting, no continuity, money is being wasted. And Nicaragua does not have that kind of money.

So that is the importance of the presentation meetings we have been holding. On a personal level we are going from group to group, letting people know exactly what is happening in Nicaragua and what opportunities are available for investors. And then the international consumer begins to know the reality of the country. It’s a reality that is not widely available in the news media. People have to actually come to Nicaragua to see what is happening with their own eyes.

It always happens. When people come here the first thing they say is, “I never knew Nicaragua was like this.”  That means there is a truth that is not being transmitted. And that is one of the things this program seeks to address.

There are other people and other projects doing this type of work as well, and it’s creating a momentum for Nicaragua that is growing. It’s exponential. Twenty-two people in a meeting today will turn to others and then you’ll have forty-four people, and so on.

For example, a Canadian experience comes to mind. I have worked with another company that I own that has at least 60,000 Canadians in my charter programs. Those Canadians have spoken to at least another 300,000 people who now know Nicaragua favorably through that program. There are a lot of positive things happening in Nicaragua simultaneously. That gives added security to anyone investing as a first time investor or developer, or someone just buying a condo or villa. You know that your villa is secure and that you will be able to see the value increasing every year.

Grupo Mariana

One project that I have worked with extensively is founded by Mr. Kevin Fleming, Chairman of Grupo Mariana. We have been accompanying the board of directors in their negotiations with Nicklaus Design and Kemper Sports management, with Land Design and ESA, two of the best architecture and design companies in the US. We have been there for the major decisions from the moment of purchase to the decisions on vision, concept and design. We have also assisted technically with environmental studies for the proper permits and the geological risk analysis and geological surveys. But most of all, our involvement is on the strategic side.

It is very satisfying to work with a project that wants to go that extra mile. What I have found in Kevin Fleming is that for him and for his team members, it’s not all about the money. Grupo Mariana is helping to put into place programs that put a considerable amount of profit back into the community—back into the employees, back into the project itself and to the original investors who believed in him and his vision. They are setting trends and elevating the standards for Nicaragua.

I have also been impressed with the strict adherence to legalities demonstrated by Grupo Mariana. They have spent a lot of money to be as legal as possible. This is the first time I have seen a project go through the Securities and Exchange Commission registration process. This is the very first Nicaraguan project to go through the extensive requirement process for the SEC. Grupo Mariana is also the first project to file the required documents with HUD (Housing and Urban Development) and the Canadian Legal Disclosure process. They have spent a lot of time and money adhering to these strict regulations. Grupo Mariana has also gone through the process of a creating very sound membership programs and very sound Homeowner’s Association documents and CC&R’s, with the very best lawyers in the industry, Saxon Gilmore in Boca Raton, Florida.

All these factors serve to demonstrate how serious Grupo Mariana is about investment. And it will definitely set a high standard in Nicaragua. Grupo Mariana is setting a precedent. The next projects that come along, if they want to have that level of pride, will have to do the same. The market will be the best judge. I think Grupo Mariana has done a great service for investors, for the Nicaraguan people and for the standards of the country.

Participating in a project like this from the very beginning is extremely satisfying. In the future I will be proud to say that I was one of the creators of this project.

Nicaragua benefits immensely from having numerous development projects. Each project brings tourists and investors to the country. This allows the international community to see firsthand what Nicaragua is really about. It enhances our reputation through word of mouth, which is vital.

I have worked happily with many good projects in Nicaragua. Most of them are doing very well. Many of them are creating a foundation of benefits for the local communities in which they reside. Each high caliber project adds to the allure of the country. I don’t see the projects as competitors, but rather projects working in conjunction to reshape the image and reputation of Nicaragua. Together they are of great benefit to the country.

Raul F. Calvet
President
Calvet & Associates
www.rcalvet.com

About Grupo Mariana

Grupo Mariana is involved in the development and sale of Nicaraguan real estate, the creation and management of authentic Nicaraguan hospitality experiences, and the export and promotion of Nicaraguan products. A core part of the company’s mission is to reinvest in the country’s growth and economic development.

When you’re interested in receive further details about an early investment opportunity in Nicaragua, we can give you even more excellent reasons to explore a new life in Nicaragua, whether you’re interested in vacationing, retiring, starting a new business or investing in the lucrative opportunities that abound.

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