Insider Information

Brian, the owner of El Diablo Tranquilo is an interesting character. We had the chance to chat with him while he was building us a fire in our fireplace. I want to pass on some of the things he told us because they were pretty interesting. However, I haven't done any research to back this information up, so I can't promise any of the the below is fact.

Brain is American, 27 years old and has approximately $170,000 in debt on the hostel and the restaurant/bar (they just celebrated their 2 year anniversary) in Punta del Diablo. This week last year (right before the actual season there begins), the El Diablo Tranquilo was the only hostel/hotel open for business. This year there are 11 others open as well. Brain was concerned that this fact might reduce traffic at El Diablo Tranquilo during these first weeks, when in the past they were guaranteed to get the business from any and all travelers coming through. However, on the night we spoke with him, they only had one available bed and the other local hostel owners who are open now (because they are trying – and failing – to imitate El Diablo Tranquilo) were demanding that El Diablo Tranquilo share their business with them! However, they are not contributing to the tourist community, or working with the El Diablo Tranquilo in any other way that would warrant a partnership. In fact, they are missing the point of a hostel completely. In place of the desirable qualities of a hostel (free internet, relaxing living space, necessary items for rent/borrow), the other local spots switched their double beds for bunk beds and penned a sign on the door, period.

Rewind...Uruguay. As a whole, 47% of the population of Uruguay is unemployed and most of this number collect some form of public assistance. In fact, it is almost undesirable to a person living in a small town like Punta del Diablo to work, as the majority of their paycheck gets withheld in taxes and they would lose their public benefits. In addition to this, responsibility and money are not linked to employment. The American dream, of working hard and becoming independently wealthy does not exist here. If you are born into poverty, you die in poverty, no questions asked. Success and money are a birthright, not something you earn. As with everything, there are exceptions. In a city like Montevideo (4-5 hours away), there may be people willing to work hard enough to keep a business going, but that is not the norm. Initially, Brian attempted to hire the locals to work for him but they would regularly skip shifts, stop showing up completely and stand around idly instead of completing tasks. He offered a 40% raise to a couple of the more promising workers if they would act as example setters for the other employees (no additional hours or responsibilities, just act as a good example by wiping down the bar or picking up around the hostel while others are standing idly) and 3 out of 4 declined the offer, saying that they did not want to lose their public assistance by making too much money.

Today, most of the workers at the El Diablo Tranquilo are American, but they are still trying to contribute as much as possible to the community. Some of the current things they do include: Offering a free beer in exchange for a full bag of trash picked up on the beach, a scholarship program given to some local students, which will provide them with business training and a $6000 budget to start their own business within Uruguay, a donation program to help control the stray dog problem in Punta del Diablo, continued job opportunities at the restaurant and the hostel and surfing lessons and horseback tours offered by the hostel with local instructors.

The horseback tour is actually an interesting story. About a year ago, one of the kids that came to work at El Diablo Tranquilo was the well-off son of a Mexican rancher who owned, bred and trained horses. During his stay in Punta del Diablo, he passed on his expertise to a local single father with two sons, who was interested in horses, teaching him how to train, ride and care for them. After this local proved his desire to work and capability to excel in the job, El Diablo Tranquilo purchased him a few horses and some second-hand tact and began to offer tours. I was lucky enough to take a horseback tour with Fabian, the local who runs them. We did a 5 and ½ hour tour through Santa Theresa National Reserve and along the beach and I can attest to the success of the program.

Punta del Diablo is a relatively accessible spot, on the coast, with a decent tourist population in the summer. To me, it looks like Brain has his work cut out for him, but with some grit and determination, its a great business decision. In fact, I think he has tapped into a goldmine. Abby and I have discussed this concept many times and would love to try to do some business here in Buenos Aires, open up an organic market or cafe in San Telmo, where we feel there is a need for it, but we have heard time and time again that the politics of business here are very difficult, especially without being fluent in the language or the culture. Sales and business skills here are very low, and offering any sort of customer service would be sure to stand out as a selling point. Contrary to my ideas before arrival, the shops do not solicit you at all. Even the street vendors are almost indifferent as you peruse their wares. Its nice to be left alone but its also easy to walk away from something you might have purchased with the littlest bit of persuasion. Needless to say, the economy of both Argentina and Uruguay would probably prosper greatly with a little bit of business training and a taste of prosperity...but, I do believe these are topics for another entry. :) In the meantime, why don't we all contemplate the severity of 47% unemployment...?! In the USA we are devastated by the idea of 10%. It puts things in perspective.

Lots of love comin' at you. Thanks for reading!!

P.S. About 30 minutes after Brian left our room, as we were playing Scrabble, one of the logs from the fire rolled out of the fire place and onto the floor at the foot of the bed. Abby, in an extreme act of bravery, picked up the blazing log and put it back into the fire (I assumed the role of shocked yet encouraging bystander). Due to her selflessness (and possibly out of fear of the nearby bed-skirt going up in flames), the El Diablo Tranquilo is not a pile of rubble and ash today.
P.S.S. I kicked her ass at Scrabble. Just sayin'.