Business now is smoking for Dominican cigars
Locked-down smokers around the world are proving to be a boon for the Dominican Republic’s cigar and tobacco industry.
Already the world’s largest cigar producer, the Caribbean nation is on track to export a record $1 billion worth of tobacco products this year. That would represent a 6 percent jump over the $942 million it sold abroad in 2019, government figures show.
The cigar industry has emerged as a bright spot for the region’s largest economy, which is expected to shrink 5.5 percent this year, as its critical tourism and services sectors are hammered by coronavirus-related restrictions.
As global cigar aficionados have been unable to frequent bars and restaurants, they’re spending more money and time on their smoking habit, said Hendrik Kelner, the president of the Association of Dominican Cigar Manufacturers.
“Initially, we were very worried, because we saw all these stores and smoke shops closing — some of them for good,” he said by phone from the Dominican Republic.
But sales quickly moved online and have been strong, he said. “Despite everything, we are seeing strong export levels — the tobacco industry isn’t being hurt.”
If Dominican tobacco exports break the 10-digit mark this year, they will become the nation’s fifth billion-dollar export industry, along with gold, electrical products, textiles and medical devices, central bank data shows.
The Dominican Republic is thought to be one of the birthplaces of the cigar; islanders were rolling and smoking tobacco centuries before Columbus set foot on the island.
When Cuba nationalized its cigar industry during the 1959 revolution, many of the top growers moved to the neighboring island, propelling the Dominican industry.
Since then, the sector has surged.