On the advice of friends, we spent a week of diving at Castle Comfort Lodge / Dive Dominica last March, 2010. Our friends were right, and the diving was terrific. A variety of dive sites within a 15-20 minute boat ride along the coast, many in semi-protected waters. Some dramatic and fairly deep dives (80 feet) close to shore in the caldera of a flooded volcano. You don't see the typical fringing or barrier reefs here, but the mostly wall and pinnacle dive sites are spectacular, and there are a variety of habitats. And terrific wildlife including turtles, seahorses, lots of fishes (including garden eels), many invertebrates (including the "golden crinoids"), and oh those sponges. (We don't get very excited about sponges up north, but the Dominica sponges are beautiful, large, and abundant.) It's a great place for UW photographers.
The dive staff were also terrific -- friendly, helpful, knowledgeable. The dive boats are medium-sized (not giant cattle cars), well-designed, comfortable, and have heads. Castle Comfort is well set up for diving and Derek Perryman (owner) is hands on, helpful, and runs a good dive operation. We felt we were safe and in good hands, and the diving was easy and low-stress.
The included breakfasts were terrific. Up at 7:00, breakfast at 7:30, leave the dock at 8:30. Easy. The little restaurant overlooking the water is convenient for lunch after the morning dive. Things may have changed, but the lunch and dinner menu is limited, but still convenient. It's also easy to go into town for dinner. It's a 10-15 minute ride to Rosseau (flag down the frequent vans rather than paying much, much more for a taxi), which has several restaurants and the Fort Young Hotel. Also try the good restaurant in the opposite direction (and walkable) -- the Sea View Lounge, a real French restaurant on a veranda (pricey, but a treat).
Dominica calls itself "The Nature Island" and they have protected much of the interior as a preserve. There are excursions to the interior, but you can get a good feel for it on the hour-long drive from the airport, which crosses over the middle on mountain roads. We thought that the best thing about Dominica, and the best reason to go there, is the diving, which is spectacular.
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