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LATE NEWS OF BELIZE

By Lan Sluder

Here is a round-up of news and opinion on Belize by BELIZE FIRST MAGAZINE
Editor/Publisher Lan Sluder.

TOURISM DOWN:  Statistics just released by the Belize Tourist Board show that tourism is down
significantly in Belize this year.   It is off by almost one-fifth (18.2%) in the second quarter from
the same period in 1995, and off 7.2% for the first half of the year.   That conclusion is supported
by dozens of interviews by BELIZE FIRST MAGAZINE with tourism operators in every part of
Belize.  A few hotels report stable or increasing occupancy, but most -- at least 75% of those
surveyed -- say occupancy is down by a significant amount compared to last year, especially since
May.  Operators attribute this to several factors, including the Olympic games held in the U.S.
which syphoned off business from those who could only take one trip this summer, the cheap peso
which has made Mexico more attractive to vacationers, and the new higher taxes and fees in Belize.
Average hotel occupancy in Belize was only 32% during the first six months of 1996.  That's less
than one-half the occupancy rate in the U.S.

Instead of cutting rates to attract more business, as is done in most of the world, hotel owners in
Belize are trying to make up the slack with higher room rates, and monthly hotel room revenue for
the first six months of 1996 dropped by only 4.6%, to about US$10 million.

Ambergris Caye had the highest occupancy, at 42.2% for the first six months of 1996, followed
by Belize District at 40.1%.  Toledo had the lowest occupancy, at an amazingly low 11.1%,
followed by Corozal at 16.6%.  The month of May showed the greatest drop, 20%, and only
February in the first half of the year had an increase over 1995.  Ambergris Caye, Caye Caulker,
and Placencia all showed drops in occupancy, while Cayo and Belize districts edged up slightly.
International tourist arrivals at the international airport in Belize City showed a 7.4% drop for the
first six months of 1996, to 48,326.  Some softness in overall Caribbean Basin tourism has been
reported this year, but not to the degree felt in Belize.

BELIZE COSTS CONTINUE TO RISE:   Belize continues to price itself out of the regional and
world market, due to continued high import duties (the VAT was supposed to result in offsetting
lower duties for imported goods, but in few cases is that evident five months after the imposition
of the VAT ), short-sighted retailers, and economically challenged government officials.   For
example,  a 20-pack of Kraft American cheese slices in Rock's new store on Ambergris Caye is
BZ$11.65 (US$5.83), more than twice the U.S. price.  Six 10-ounce Belikins are BZ$18 (US$9)
plus bottle deposit in grocery stores around Belize, whereas beer in the U.S. is as cheap as
US$2.50 to $3 a six-pack (in 12-ounce cans.)  Many of the better resorts in Belize are now
charging rates as high or higher than those prevalent in Cancun and on Caribbean islands  --
US$125 to $200 a day or more for room only, not including service (generally 10%) or tax (now
7%, and going to 10% later in the year) or meals (add another US$30 to $40 per person, plus 15%
VAT.)

The economy of northern Belize has been devastated, as Belizeans from Orange Walk north find
that shopping in Mexico costs one-half or less the cost  in Belize.  Two to six thousand Belizeans
visit Chetumal each week to shop for value they can't find in Belize.  Stores in Belize have only a
nodding acquaintance with market economics.  For example, even large Belize resort hotels have to
buy goods from Belize stores at retail prices, not wholesale.  The fact that most items in Belize are
imported, and the small population of Belize, are used to justify the high costs, but if anyone has
ever visited, say, the island of St. Maarten/St. Martin in the Caribbean, the absurdity of that view
is apparent.  That island has fewer than 50,000 people, imports almost everything, and yet food
prices in the island's groceries are about the same as in Canada and only slightly higher than in the
U.S.  The Dutch side of the island is duty free and prices for consumer goods are as low as, or
lower, than in the world's most-efficient economy, the U.S.  St. Maarten/St. Martin gets more
than 750,000 international air visitors a year, compared with fewer than 150,000 to Belize, despite
Belize's far more wonderful attractions.  What's wrong with this picture?

CONFUSION OVER VAT:  Speaking of the VAT, the most-common complaint we have heard
about it regards the confused way it has been implemented.  Many businesses, including tour
operators, are angry over the lack of advance information on the tax, the constant changes to it, and
the paperwork involved in being designated as a VAT trader (larger companies with sales over
BZ$100,000).

POLITICAL CONCERNS:  At BELIZE FIRST Magazine, we steer clear of Belizean political
issues. However,  even we cannot overlook the constant steam of comments on the state of Belize
politics from every corner.  The UDP government, of course, comes in for a great deal of criticism
from all sides for its tax and fiscal austerity programs.  UDP stalwarts and friends do point to the
tough, belt-tightening decisions made by the UDP and look ahead one or two years when these
may pay off in new economic growth.  However, for the first time in years, we've heard
expressed some real concerns about the jingoist, anti-foreign attitudes of some government
officials, especially the Deputy Prime Minister, Minister of Foreign Affairs,  and Minister of
Immigration and Nationality Dean Barrow.  Ironically, Belize newspapers have reported recently
that despite his anti-U.S. rhetoric Barrow holds a U.S. green card, a type of permanent residence
card.

DOZENS OF BELIZE RESORTS AND HOTELS FOR SALE:  Even in the best of times, most
tourism operations are for sale at some price.  In the currently touchy Belize market, however,
more resorts than ever are actively on the market.  Prices in most cases are highly optimistic,
especially given that the return on investment on some of these resorts is lower than can be
obtained from U.S. or European stocks and bonds, without any personal involvement at all in the
operation.  Several of the resorts offered for sale now have been for sale for years, with few if any
serious offers being made.  Among those said to be for sale are these:

Ñ  Jungle Drift Lodge, Community Baboon Sanctuary, Bermudian Landing, US$200,000
Ñ  Singing Sands, Placencia,  for sale
Ñ  Playador, Ambergris Caye, is being sold in 30 shares, each US$90,000
Ñ  Duplooy╒s in Cayo,  for sale for US$1.5 million
Ñ  Mountain Equestrian Trails (M.E.T) for sale
Ñ  The Anchorage, Caye Caulker, for sale for US$400,000
Ñ  Hideaway, Ambergris Caye, asking US$500,000
Ñ  Colton House, Belize City, for sale for US$375,000
Ñ  Serenity, Placencia, for sale for US$1.5 million
Ñ  Turtle Inn, Placencia, still for sale for a reported US$1 million
Ñ  Belize French Quarter, Placencia, for US$489,000
Ñ  Blackbird Caye, for sale
Ñ  The dive shop operation at Kitty's Place, Placencia, asking US$45,000
Ñ  Manta Resort, on the block for a reported US$3.5 million

Several other resorts, including some of the biggest names in Belize tourism, allegedly are also on
the market.  Lamanai Outpost Lodge, in northern Belize,  sold in late July reportedly for more than
US$1 million.

INTERNET AND E-MAIL MAKING HEADWAY IN BELIZE:  On a recent visit to Belize, we
made reservations at some 15 hotels.  More than one-half of these confirmed reservations by e-
mail, an astounding percentage given that e-mail was virtually unknown in Belize just one year
ago.  Scores of resorts and hotels in Belize now have home pages on the Internet, and the
Turquoise Group, Belize Online, Belize by Naturalight,  and other Web developers are fighting for
participants.  New Web sites for Ambergris Caye and San Ignacio are being readied now.  Despite
high access costs in Belize, the Internet is getting strong acceptance from more-affluent residents in
Belize.  Direct Internet access is now available in most parts of the country, provided by the local
telephone monopoly, Belize Telecommunications, Ltd., and ONLY by it,  for US$30 per month
for SLIP/PPP connections, including 2 megs of disk storage.  Each additional meg is US$5.
There is a US$15 account activation charge.   Dial-up access with dedicated port is US$62.50 per
month.  In either case, hours over 10 a month are US$4 up to 20 hours, then US$2 per hour.
These services are presently available only for those resident in Belize, and not for transients.
Eva's Restaurant in San Ignacio has a cybercafe with e-mail and Internet access, and some hotels
will permit Internet access through their own accounts. Those in more-remote areas with radio
phones and fixed cellular systems have some problems accessing the Internet because of low
through-put speeds, however.

LITTLE DAMAGE YET FROM HURRICANES:  Hurricane Cesar dumped heavy rain and raised
winds of 60 mph and higher at Placencia and points south in late July, but little damage was
experienced in Belize.  Costa Rica by contrast had 32 deaths as a result of winds and flooding from
Cesar.   Dolly on August 20 did only light damage to northern Belize.  Visitors and residents,
however, report that they are concerned that the country is ill-prepared for a major hurricane.  In a
big blow, low-lying areas of Belize, including Belize City, could be hit with storm surges as high
as 20 feet.  The experience of this reporter, who was on Ambergris Caye during the period when
Cesar was forming in the Gulf of Honduras, suggest that hotels and authorities would be hard-
pressed to evacuate anyone to safe ground should there be a major storm.

GAMBLING COMING TO BELIZE?  At least two developments, a 30-room hotel near the
Corozal Free Zone, and a mixed-use residential and hotel development on north Ambergris, Royal
Belize Village,  expect to have gaming facilities.

COROZAL FREE ZONE IN TROUBLE?  Reports are that the Corozal Free Zone is in trouble,
with management problems and possible criminal investigations underway.  The concept of the
duty-free zone may be a good one, but the implementation has been poor, and when BELIZE
FIRST heard of the connections to New Orleans politicians, that immediately raised a red flag,
since we are intimately familiar with the shenanigans of Louisiana politics and politicians.

REAL ESTATE PRICES FALLING:  It's a soft real estate market in Belize.  Prices in prime areas
such as Ambergris Caye have been flat in the last year or two.  One well-established real estate
developer and broker on the mainland is slashing prices on his inventory by as much as one-third
to one-half to generate sales.  Rental rates for North American-style housing in Corozal, Belize
City,  and in southern Belize have dropped by a third or more since the peaks of a few years ago.
Only in Placencia and a few other areas are real estate prices trending up, and that may be a
temporary phenomenon.  Prices seem to be limited by lack of financing, oversupply, the too-
optimistic development of recent years, and concerns about rising crime, high prices,  the over-
valued Belize dollar,  and increasing taxes in the country.

BETA NO LITTA:  The Belize Ecotourism Association (BETA) has done a wonderful job in
raising consciousness about litter in Belize.  Signs have sprouted all over the country, sponsored
by more than 70 businesses, noting that a stretch of roadway is being kept clean by the
participating company.  Mick Fleming at Chaa Creek was instrumental in getting this program off
the ground.

POWER OF TV:  The best-selling magazine in Belize is TV Times, according to the publishers.
Along with local stations, visitors to Belize can watch the latest news from U.S. stations in North
Carolina, Colorado, Illinois and elsewhere, plus HBO, ShowTime, Disney, TBS-Superstation,
CNN and other U.S. cable offerings.  Direct satellite TV (with the small 18-inch disks) is
beginning to show up in Belize.

24-HOUR GAS:  Belize is getting an influx of modern new gas stations, especially Texaco.
Several of the stations on the Northern Highway are open 24 hours.  Regular gas in Belize is about
US$2.45 a gallon, with premium (unleaded) going for up to US$2.60.

NEWS FROM AMBERGRIS CAYE:
[Note:  A previous report here on The Essene Way on North Ambergris Caye was incomplete.
The following is a more comprehensive report  reflecting input from Thomas Ciola, director of The
Essene Way.  Look for additional information on The Essene Way in upcoming traditional
magazine and our Web editions.]
 Ñ  The Essene Way, a multi-million conference facility and resort located at the site of a failed
resort, The Belizean, is set to open early next year on the northern end of the island, just above
Captain Morgan's.  Based on interviews with a number of Ambergris Caye residents, The Essene
Way apparently remains a mystery to many people on the island, even those who are located near
it.   Some expressed concern.  However, Thomas Ciola, director of The Essene Way, says that
facility is simply "a non-profit, charitable organization set up exclusively for humanitarian
purposes."  He describes it as a non-denominational organization, "not a religious sect" and
without an "end-of-the-world orientation," as some San Pedranos have feared.  When it opens,
Ciola says, "Our resort will be providing week-long, all-expenses-paid vacations to terminally ill
cancer victims and their families."

It is very sad, Ciola says, that "most people are so intolerant of things that are new or unfamiliar."
According to Ciola, "we have tried to explain over and over again to anyone that asks just what this
resort is all about."

Ciola says that his board includes "some of the most respected people in medicine, politics, sports,
business and entertainment."    The organization is based in Orlando, Florida,  and associated with
National Health Products, Inc., a health food and supplement supplier.   "Funding for this venture
is coming from my own company and numerous other corporations throughout America," Ciola
says.  Ciola and his backers reportedly have pumped millions into the former Belizean resort
facility, adding new buildings and installing a sophisticated reverse osmosis water plant and what
is thought to be the largest private solar array in the Caribbean Basin.   Costs ran US$2 million for
the solar system alone.  The Disneyesque statuary and elaborate landscaping, a part of the millions
of dollars poured into The Essene Way, show that it is for a legitimate purpose, says Ciola.  The
grounds are open to visitors and curiosity-seekers, says Ciola.  Essene Way management has
sometimes cooperated with nearby property owners, donating, for example, the use of their chapel
for a wedding of Captain Morgan guests.

The only secure area is a storage facility in the back where "we store supplies and hundreds of
thousands of dollars worth of tools."  Initially, says Ciola, "I was very trusting of the local people
and had no such provisions for security.  All of our supplies were left out in the open.
Unfortunately, I learned the hard way that thievery is a way of life for some of the locals.  After an
untold number of incidents and lies, my patience grew weary.  I authorized the building of a secure
area and guard dogs to send a definitive message to all locals that The Essene Way was no longer
going to be an easy target."
Ñ  San Pedro airstrip will be resurfaced and lengthened to 3,000 feet, with work scheduled to begin
in September or October.
Ñ  Royal Belize Village, a 200-acre mixed-use development 13 miles north of San Pedro at Punta
Azul, is close to reality, developers claim.  Representatives of Dolphin Development International
Ltd. and McIntosh Alliance International Hotel Development, Inc. say they are finalizing plans for
a 10-year program of development.  Eventually, the facility will include about 350 residential units,
250 hotel rooms, restaurants, a casino, and other amenities, developers say.
Ñ  The new Ambergris museum -- in the Island Shopping Center across from Fido╒s -- is nearly
completed and is expected to open soon.
Ñ  The island's unsightly dump, which has caused problems for tourism operators and residents at
the south end of the island, especially when the wind shifts causing rancid smoke to be blown
southward,  is scheduled to be moved (maybe, at last, one hopes) south of the desalinization plant.
Ñ  Capricorn, on the northern end of the island above the cut, just south of Captain Morgan's, is the
hot new restaurant.  Capricorn Resort  also offers three cabaûas.
Ñ  A new Tex-Mex restaurant, La Margarita,  is set to open in a lavish new setting near the new
Rock╒s grocery south of San Pedro Town.
Ñ  Shark-Sting Ray Alley has proved very popular with dive and snorkel visitors.
Ñ  Royal Palm Villas, the condo development south of South Pedro Town, is going timeshare.
This is one of the few timeshares in Belize, and most observers say it is an unwelcome
development.
Ñ The Belize Yacht Club is expanding with a new meeting facility and a new restaurant.  The new
Austrian management has indicated it wants to move the property to more of a hotel orientation,
much to the distress of some owners of condos at the BYC.  Former management and unit owners
were for some time at odds over rentals and the proper accounting of revenues.
Ñ  A new ferry across the cut is bringing new traffic (on foot, bikes and carts) to the north of
island, but it only runs until 6 p.m.
Ñ  Condo development continues at a rapid pace all over the island.   Villas at Banyan Bay,
arguably the most luxurious condos on the island,  are scheduled to be completed in November.
Some units are open now.  Prices are in the US$160,000 to $175,000 range for two-bedroom,
two-bath villas, with daily rentals under the "condotel" concept going for $175 a day double.
Chateau Caribe, south of Victoria House, is offering fee-simple half-interests for US$67,500.
Mayan Princess, The Palms, Belizean Reef, and other condo-style developments have sprung up
in San Pedro and all over the island.
Ñ  Journey╒s End, abandoning its "life styes of the rich and famous" approach,  is doing well with
its new lower prices and family/fun positioning.  On a recent visit this summer, it was one of the
few hotels on Ambergris Caye which was near full occupancy.
Ñ A taxi union has started in San Pedro with 18 members, rotating days for airport pickup.  It
promises there will be no more ╥rushing╙ tourists at airport. In the past,  taxis were grabbing
tourists to collect commissions from hotels of up to BZ$300.
Ñ  A new resort, Aquarius, is open on north end of island.

NEWS FROM COROZAL & ORANGE WALK:
Ñ  Eastern Equine Encehphalamyelitis has been discovered in horses in Orange Walk and Corozal
districts.  This disease, transmitted by mosquitoes, potentially also affects humans.  The
government has inoculated most of the horses in these districts.  There is concern that the disease
may spread to Cayo and other districts.
Ñ  Lamanai Outpost Lodge has been sold.  Colin and Ellen Howell have sold the lodge, which
opened in 1992 and has been considered one of the best, most-successful,  and best-run resorts in
the country, to a family who took ownership in late July.  The Howells reportedly may build a
retirement complex in Belize.  Purchase price was not disclosed, but hotel operators in Belize say
the resort was being peddled by the Howells for up to US$1.5 million.
Ñ   Tony╒s Inn in Corozal Town has built a new restaurant, La Vista del Sol.
Ñ   Chetumal continues to draw Belizeans from all over Corozal and Orangewalk districts for low-
price shopping.  Belizeans go there for everything from grocery shopping (twice as many groceries
for the same  money, in many cases), beer (US$5 a six-pack or less compared with US$9 a six-
pack for Belikin), rum (US$3 a bottle compared with US$7 for the cheapest Belizean rum) to
nightlife (bars in Chetumal stay open all night) to vacations (Bacalar is one-third the price of San
Pedro) to TVs (there are several people in Corozal Town who offer 50% reduction on customs tax
-- they pay off the customs officials each week, locals say.)  Corruption in the Belize customs
service at Santa Elena reportedly is rampant.  "I'm afraid of nobody but the customs people and the
police," says one Corozal district hotel operator.
Ñ   A new hotel, Hok'ol K'in (Mayan for "the coming of the rising sun), run by former Peace Corp
volunteer and her family, has opened in Corozal Town, on the bay just north of Tony's.  The new
inn, with prices lower than Tony's (rates are US$40 double year-round) and with spic 'n span
rooms, reportedly is doing a 50 percent occupancy.
Ñ   Crime has come to the formerly safe Consejo area -- there have been reports of carjackings on
road to Consejo Shores.
Ñ   A new 30-room hotel with casino is under construction near the Corozal Free Zone.  It is being
built by, guess who, a consortium of Chinese investors.

NEWS FROM BELMOPAN AREA:
Ñ  Jaguar Paw, a new luxury jungle resort which opened earlier this year off Mile 37 of the Western
Highway, is beautiful ... but will it work?  The owners say they invested US$1.4 million.  Two
large generators provide 24-hour air conditioning at a cost of US$4,500 a month for diesel fuel
alone.   The resort, on 215 acres on the Caves Branch River adjoining a large cave system, offers
luxury accommodations in uniquely decorated rooms at US$155 a night (including breakfast).
Dinner includes such dishes as ribeye steak for BZ$49 not including service, VAT, or drinks.
Owners Donna and Sy Young have struggled to make the concept work in this remote area.   They
say at one point they were threatened with kidnapping by Guatemalans, who later killed at least one
villager.
Ñ  The Belize Zoo (still a wonderful spot!) now has a black jaguar, Ellen, who arrived in March.
Ellen, who was born in captivity in Lufkin, Texas, seems to be getting along well, if playfully,
with C.T. Katun, the male spotted jaguar whose enclosure she shares.
Ñ  Pook's Hill, a new lodge with seven cabaûas on 300 acres bordering the Roaring River and the
Tapir Mountain Reserve, has been opened by the the Snaddons, of South Africa and Britain.
Rates in season are US$90 double.  The lodge is on a small Mayan plaza. Pook's Hill is raising
green iguanas, as are some other hotels including Nautical Inn in Seine Bight and Hotel San
Ignacio in Cayo.

NEWS FROM CAYO:
Ñ  Duplooy's is actively for sale for US$1.5 million.  Ken Duplooy continues to suffer with heart
disease.  The grounds, however, have never looked better, due to Ken's extensive plantings of
exotic plants, trees, and shrubs from all over Belize, Guatemala and Honduras.  Duplooy's ought
to be renamed the Belize Arboretum.
Ñ  Chaa Creek, which is NOT for sale, also has never looked better.  The grounds are immaculate,
and the food, bar,  and service remain among the best of any resort in Belize.  The Natural History
Museum and Blue Morpho butterfly facility are coming along well.  A new office is being built on
the grounds.  Chaa Creek's new "safari camp,"  with its tents on platforms, is struggling to make it
place.  Some consider the price too high -- US$90 per couple, and you have to do your own dishes
and keep your own hooch clean.    But Mick Fleming notes the rate includes Belizean-style meals,
taxes, and VAT. Time will tell whether this innovative idea works or has to be rejiggered to add
more value.
Ñ  Chinese continue to expand their business interests in Cayo;  they reportedly own at least 70
businesses in San Ignacio.
Ñ  Bob Jones at Eva's in San Ignacio has a good thing going with his "cyberspace cafe."  His
computers stay busy much of the day, particularly by those sending e-mail.  He charges BZ$3 per
e-mail message.
Ñ  Hidden Valley has been rumored to be for sale, but management denies it.
Ñ  A new resort, Mystic Mountain, is under construction.

NEWS FROM BELIZE CITY:
Ñ  An expansion of the apron at the international airport has begun, funded by a BZ$10 million
Kuwait loan. Observers wonder why, with so many roads needing paving in Belize, that the
airport apron is a priority.
Ñ  Hattieville Prison on the Boom Road is a time bomb waiting to explode, some say.  It has about
1,000 prisoners, including most of the country's most-dangerous criminals, but only about 100
guards.   Escapes are fairly common. For example, in early August, three inmates got away.  They
were recaptured after a shoot-out a few days later.
Ñ  A new maritime museum has opened in Belize City, at the old fire station building on North
Front Street.  It has a marine terminal, gift shops, and a museum with displays on Belize's boating
building industry and marine life.
Ñ   By all accounts, Betex '96, the first tourism trade show for wholesalers to be sponsored by the
Belize Tourism Industry Association, was a big success.  Some 100 wholesalers from North
America, South America, the Caribbean,  and Europe attended.
Ñ  A continued shortage of U.S. dollars at Belize banks has shaken up Belize businesses.  Some
companies report they have been unable to easily convert Belize dollars to US dollars to pay for
travel outside Belize or to cover imports.

NEWS FROM PLACENCIA PENINSULA:
Ñ  Business in Placencia has been extremely slow this summer.  For example, Kitty╒s closed in
July and will close again for September . The popular hotel in June ╘95 had occupancy of around
60% -- it was in the 20%-range for June ╘96.  Christmas bookings look strong, though.
Ñ   Lots of places are for sale:  The newly expanded Serenity Resort (with, believe it or not at this
formerly alcohol-free facility, a bar) for US$1.5 million;  Belize French Quarter (not yet finished)
for $489,000,  Singing Sands;  and Turtle Inn.
Ñ  Cocaine has been floating into Placencia by sea -- it's a ╥gift from God,╙ say villagers.
Ñ  Many restaurants and other businesses have closed for part of summer, and perhaps for longer.
Brenda╒s and Tentacles are among those dark.  The best food is-now at Flamboyant, Kitty╒s, Rum
Point, Green Parrot,  Jaguar and Jaguar Inn,  the Galley, and Lorraine╒s.  Alfredo's, an ambitious
new place serving Italian dishes, is set to open soon.
Ñ  Growth continues in Placencia/Seine Bight:  Green Parrot is doing well;  the eccentric but
interesting Hotel Seine Bight is up and running.  Coming soon are Tarpon Village, Alfredo╒s,  and
several other properties.  Rum Point is expanding with a new two-story unit.

NEWS FROM HOPKINS/SITTEE POINT:
Ñ   A new hotel, Jungle Sea Lodge, is  planned by the operator of Jaguar Reef Lodge, Bruce
Foerster. The new property, which will be oriented to family soft adventure market,  will be just
south of Jaguar Reef.  Foerster also is looking to open a new lodge in northern Belize, on the New
River Lagoon.  The Vancouver resident claims to have strong occupancies at Jaguar Reef, thanks
to the marketing efforts of Neil Rogers, a minority owner who is involved with International
Expeditions.
Ñ   Many lots in the Sittee Point area have been sold, at US$39,000 to US$50,000 for 50-foot
ocean frontage ($780 to $1000 a front foot).
Ñ  Sugar Mill ruins near Sittee Point are now open and operating as tourist site.
Ñ  Toucan Sittee Lodge, once for sale for US$450,000, has been taken off the market.
Ñ  Cockscomb Preserve has built new cabin accommodations for overnight visitors.  The new
facilities have electricity (from solar panels) and rent for US$15 a night per person.  The use of the
kitchen facilities is US$1 per person extra.
Ñ   Raleigh International is working on completing a hiking trail to Victoria Peak.  This should open
Belize's highest mountain to more visitation, via the Cockscomb Preserve.

NEWS FROM TOLEDO:
Ñ  Cholera has struck this summer in the Maya villages near P.G.  At least 23 cases have been
reported.
Ñ  The Southern Highway continues to be the worst main road in Belize;  many vehicles have been
stuck on the road due to flooding and boggy conditions. The paving, paid for by a Kuwait loan,
which was supposed to have begun in February near PG,  has not yet started.\

INVESTIGATION CONTINUES IN BRUTAL MURDER OF LEADING BELIZE AUTHOR: So
far, one person had been arrested in connection with the murder of Byron Foster, and at least two
others, who may have been involved in another robbery and rape in Cayo, are being sought. Dr.
Foster was murdered May 19 at his farm near Yalbac. According to news reports, the noted
anthropologist and sociologist was found dead in his burning house by his wife, Vilma Foster,
who had gone to report to police an apparent break-in at their house. Dr. Foster suffered gunshot
wounds to the back and a machete chop to the cheek. Robbery may have been the motive. Dr.
Foster, 46, was born in London. He had studied social anthropology at the London School of
Economics and political science at Cambridge. Among his books on Belize were Heart Drum,
Spirit Possession in the Garifuna Communities of Belize, and The Baymen's Legacy: A Portrait of
Belize City.

SOUTHERN HIGHWAY A BOG DUE TO HEAVY RAINS: Heavy rains in July and August in
Toledo have made a mess of many roads, including the Southern Highway, which was effectively
closed in places with many stalled cars as of the third week in July.

LOGGING CONTROVERSY CONTINUES: Mayans in Toledo and Belize and international
conservationists are raising hell about alleged environmental damage by a Malaysian company,
Atlantic Industries, granted a government concession to log 1200 acres of pristine forest in the
Columbia and Maya Mountain forest reserves each year for 20 years. The Belize Audubon Society
and others allege that Atlantic has violated several clauses in its license. The government and
Atlantic deny any violation. Reportedly at least 15 logging concessions have been granted in
Toledo District.  Also, the much-touted new Terra Nova biological reserve reportedly is no more
and may be due for logging.

DESTINATION BELIZE PUB AVAILABLE: The 1997 edition of Destination Belize, a color
guide to Belize published by the Belize Tourism Industry Association and distributed (for a US$5
shipping and handling charge) by the Belize Tourist Board, was published in early July. This 146-
page issue may be the best edition of the popular guide, according to industry observers. Although
it focuses on those hotels and tourism operators who are BTIA members and presents only the
positive side of Belize tourism, this handsome guide is full of valuable travel information.
Unfortunately, distribution is still spotty.  In a survey of some 50 hotels by BELIZE FIRST in
July and early August, only two had even seen the new edition, and not one hotel had it on display
or in the rooms.

NEW MARINE PARK AT AMBERGRIS: A new 28,000-acre national park and marine reserve,
Bacalar Chico National Park, has been created around the northern tip of Ambergris Caye.

SEAT BELTS NOW REQUIRED IN BELIZE: Effective June 1, the driver and all front-seat
passengers must wear seat belts on any Belize road. Violations earn a fine of BZ$25.

U.S. WARNS BELIZE -- STRAIGHTEN UP OR LOSE FAVOURED NATION STATUS:
Concerned about drugs, auto smuggling, the sale of citizenship papers, and money laundering in
Belize, a senior U.S. official warned that Belize may be in danger of losing is favoured nation
status with the U.S. "Belize is essentially uncontrolled territory," said Gerard Gallucci, the U.S.
embassy's chief of mission in Belize. "It is possible for drug traffickers to work with almost
complete impunity (in Belize)," he said, in an interview in The Reporter newspaper. Among other
things, the U.S. diplomat pointed to the legal defence of two men charged with cocaine trafficking
by the brother of the Belize Attorney-General, suggesting that this creates an effect on the judge
and jury that drug interdiction is not a priority. Reactions from Belizeans appears mixed. Some
accused the U.S. of the equivalent of gun-boat diplomacy, while others agreed that corruption and
crime in Belize have reached epidemic proportions.

SEXUAL HARASSMENT LAW PASSED: In late June the Belize House of Representatives
enacted legislation by unanimous vote establishing the offence of sexual harassment. The law
prohibits employers, prospective employers, landlords, operators of accommodations, and others
from making it appear that the worker's prospects or conditions of work are contingent upon the
worker's acceptance of sexual advances. The Senate has ratified the bill.

AUTHORITIES POST DRUG ARRESTS: In June, Belize International Airport authorities
detained a U.S. woman for allegedly trying to smuggle four pounds of cocaine from Belize. Also
in June, group of four smugglers, one each from Colombia, Ecuador, Jamaica, and the Dutch
West Indies, were intercepted by Belize authorities near a caye off Punta Gorda. About 30 pounds
of cocaine was confiscated. In May, an Orange Walk businessman was indicted on drug-related
charges.

OIL DRILLING TO BEGIN: An international consortium will begin to drill for oil off the Belize
coast this fall. The drilling will begin about 20 miles off Placencia in 1,000 feet of water. The
Environmental Impact Statement provided by Dover Technology of Houston assures that
environmental concerns on the sensitivity of the reef and the protection of the reef system will be
met. Maybe so, say some environmentalists, but have you visited South Louisiana recently?

VEHICLE SCAM: Several Belizeans have been arrested in an on-going investigation of auto
smuggling, where vehicles are imported and licensed without customs duties being paid. "So what
else is news?" ask Belize wags.

NEW TOURIST TAX: Beginning June 1, visitors leaving Belize are hit with an additional tax of
BZ$7.50. This new tax is called a conservation fee, supposedly to help conserved protected
national parks.  The total fee for international departures is now US$15 per person.

GUN-TOTING BUSINESSMAN FINALLY RELEASED BY MEXICO: Ruben Vargas was
released in early June by Mexican authorities after spending more than seven months in a Mexican
jail. The manager of Brodies' wholesale division had been charged with possession of an illegal
firearm after a vehicle search in Chetumal in October. He was tried and sentenced to five years in
jail in Mexico. Vargas claimed he had forgotten the gun was there. Belize and Mexico had been
negotiating his release for some time .Belize, with its high crime rate, has a more tolerant attitude
toward weapon possession than does Mexico.

GERMANS CONTINUING VICTIMS IN COSTA RICA:   It's been a bad year for German
visitors to Costa Rica. Germans have been killed, kidnapped, robbed, and, most recently, victims
in a mass accidental drowning. According to reports in The Tico Times, four German visitors and
their Tico guide were killed in early July at Jaco Beach on the Pacific, when a huge wave hit them
as they stood in knee-deep water near the Jaco Beach Hotel, celebrating a German victory in
European Cup soccer. A rip current then pulled the three women and one man out to sea where
they drowned. Jaco Beach has notoriously bad rip currents, and at least 11 people have drowned
along the same stretch of beach. In January of this year, a German tourist and her Swiss tour guide
were kidnapped on the Atlantic Coast and held 71 days until ransomed (recently published photos
of the German victim kissing one of her captors has raised questions about the kidnapping,
however.)  Just a few weeks earlier, 15 German tourists on a tour bus were stopped in the Orosi
Valley area and robbed of more than US$50,000 in cash and goods. In March, a German man was
killed in a dispute in the southern Nicoya Peninsula town of Cabuya. Although the man had
identification papers, Tico police failed to notify the German embassy or the man's family of his
death, and his body lay in the San Jose morgue for two months, until it was sent to a San Jose
university, destined for dissection by medical students. Eventually the man's brother came from
Germany looking for him, and local police then traced the embalmed cadaver to the university.
While the exact number of German visitors to Costa Rica isn't known, in recent years they have
become the largest group visiting from Europe. Some hotel operators believe the spate of problems
for German visitors has reduced the number of German tourists to Costa Rica.

NEW BELIZE NOTES: In June, Belize introduced new $5 and $10 notes, with metallic threads
and other features to thwart counterfeiters. The old notes will continue to be legal tender. New
BZ$50 and $100 notes will be introduced next year.

ONE-FOURTH OF BELIZE GOVERNMENT SPENDING GOES TO DEBT SERVICE: About
25 percent of government spending goes to service debt. This level of spending exceeds even the
debt service of the United States, which totals about 15 percent of outlays.

BELIZE FIRST MAGAZINE is published quarterly in traditional and Internet editions, with
periodic updates of the Internet edition.  Subscriptions to the traditional paper edition are US$29
and include a free map of Belize.  Contact BELIZE FIRST MAGAZINE, 280 Beaverdam Road,
Candler, NC 28715, fax [phone], or e-mail [e-mail] or
[e-mail].  Our Web sites are at http://www.turq.com/belizefirst and
http://www.turq.com/equator.