Where in the Caribbean is good to set up a new dive school

Question
Hi Mike

Im a 37 year old ex-marine, my buddy is a top level naval diver with too many qualifications to mention, hes been diving for 20 years. We both are married with youngish families and we both want to invest in a dive school of our own with related business (like dive shop etc) We were both dead interested to read your article, and I wonder if you can offer us any practical help in getting started. Where should we start? Where is a good spot there thats safe for our families, and anything you have that might help us would be so so appreciated. We just want to live in a nice location and enjoy the work we do. hoping you know of some prime areas or even a dive school up for grabs. Look forward to hearing from you.

Alex

Answer
Hi Alex,

First, thanks very much for your military service.  It's because of people like you that we are able to enjoy the freedoms we have today...including the right to pursue our dreams.

As you know, there are lots of islands in the Caribbean and they are owned by several different countries.  In addition, there are several dive shops on these islands and competition can be fierce.  In some cases, the Cayman islands for example, you cannot own a business unless it is at least 50% partnered by a Caymanian.

In order to operate a dive business, you MUST have diver accessibility.  Most of the accessible areas have already been colonized by dive shops and other businesses which rely on tourist trade.  

As I'm sure you know, the tourist business is what sustains most of these island economies.  Most of the Caribbean island populations are very poor.  There are rich people, of course, but most of the population earns a subsistence living.  Governments will tend to be corrupt and controlled by the landed gentry and local crime and theft can be a major problem.  Since the rich are isolated from all this, it gets very little attention from the local police.  Of course, these problems will also affect the security and wellbeing of your families.  You will NOT see any of this publicized in the tourist brochures!!

Medical care and education are frequently less that what we've come to expect in the United States so factor that into your decisions as well.

In ALL cases, I would strongly suggest that you work for a Caribbean dive operation first and see if you really want to do this for the next 20 years.  If you don't want to actually perform the hands-on daily activities of the dive shop and simply want to invest in one, then spend a month or so at your chosen shop and see how it runs.  As a potential investor, many operation owners will welcome your presence but be aware that they'll be trying to impress you so you may not get the real picture.  Try to talk to dive customers without divulging your true intentions.  You may be surprised at how lax the staff may be.  Do you really want these folks to be in charge of spending your money?  Keep in mind that, as in investor, you are the gravy train and the staff is simply riding the train.  They may have little incentive to help you make money and may simply ride the train until the money runs out.  Current owners will most likely NOT want to give you a controlling interest so you may not have a lot of say over how your investment money is spent.  Of course, not everyone is like that but you have to be prepared  for the worst case scenario so I'm presenting it like that.

I'd suggest looking at the U.S. Virgin Islands or Puerto Rico as a potential investment site.  There you'll be able to enjoy some of the protections provided by the U.S. Constitution.  I cannot overstate the importance of our constitutional protections when it comes to your money and your family's best interests.

In any event, I'd strongly suggest going to some of these resorts and spending some time.  Try to look behind the flashy veneer and see what goes on when the customers aren't looking.

Another thing to consider is the cost of getting supplies to your dive operation.  Many countries have significant import duties on these items and this can double the cost of your supplies.  Clearing customs can add several weeks to your delivery schedule.

There are a number of dive operations for sale in the Caribbean.  You can find them listed in the classified sections of most dive magazines.  It's a good place to start but you need to ask yourself why they're for sale in the first place.

Alex, I know I haven't painted a rosy picture but I think it's important that you approach foreign investing with your eyes open.  I wish you all the best but I don't want to see you burned in the process.


Semper Fi,

Mike Giles
Mike's Dive Center
mikescuba.com