Wednesday, March 10, 2010Cuba

Kaletha HenryIs the Region Ready

The American passport is considered by many to be one of the most coveted travel documents in the world. It’s the golden ticket that allows hassle-free access into a myriad of ports worldwide without one having to be scrutinized, interrogated, or threatened. For the most part, Americans don’t even need Visas to travel to the destination of their choice. At the spur of the moment, U.S. passport holders can book a ticket, pack a bag, print a confirmation, and head straight to the airport. Possessing the little navy booklet with the gold emblazoned Great Seal of the United States is a natural inheritance for most, and yet a symbol of achievement for others.

Through this 32-page booklet Americans are free to visit all seven continents and any Caribbean island of their choice; except for Cuba, the largest island in the Greater Antilles.

ACCESS GRANTED
International and American leaders are calling for the removal of the economic embargo that America placed on Cuba in 1960. In 1992 the Cuban Democracy Act was passed – described as a vehicle for moving Cuba towards democracy – that prohibits foreign-based subsidiaries of U.S. companies from trading with Cuba, travel to Cuba by U.S. citizens, and family remittances.

In 2009 an estimate of 25,000 U.S. citizens and up to 50,000 plus visitors of Cuban descent reportedly traveled to Cuba. While Americans are known for taking unapproved trips to Cuba by way of Jamaica, Mexico and Canada, Americans traveling to Cuba are required to seek permission from the U.S. Government in the form of a license – which also permits them to spend money in the country – that is typically purpose based: academic travel, teaching abroad, journalists on assignment, humanitarians working on specific projects, athletes, and persons returning to visit relatives.

Flights to Cuba from the U.S. are executed by charter planes because U.S. commercial flights are prohibited. However, once the U.S. Government inevitably removes the travel restrictions, a surge of visitors are expected to descend on Cuban soil, an island whose population the Central Intelligence Agency claims as over 11,450,000.

While the forecasted explosion of visitors to Cuba has economists, diplomats, policy makers, and government leaders analyzing and strategizing for any repercussions that may occur, it has provided tourism officials and analysts both regionally and internationally with a unique set of perspectives.

American INSIGHT
Mr. John Kavulich, former Head and current Senior Policy Advisor of the U.S. based U.S. Cuba Trade and Economic Council (USCTEC) is equipped with an arsenal of information regarding Cuba. Having worked on gathering information on the island for the past 20 years, Kavulich said the organization was also the first of its kind to conduct major tourism reports on the island’s airlines, food services, rental cars, and cruise ships. As a seasoned policy advisor, he foresees an initial wave of American tourists visiting Cuba as soon as they’re permitted to travel there freely. But, unless Cuba addresses its infrastructural problems he cautions many travelers will find themselves immensely disappointed, and the negative impact will send American tourists back to their favorite destinations. “It depends what Cubans decide to do and what kind of infrastructure they put in place. [It depends] on how their commercial, economic and political structures are fairing when they make these changes.”

The outcome on American tourism to Cuba is largely dependent upon how the travel door opens, Kavulich says. For air travelers in search of high end hotels, it would take at least two to three years for the country to establish itself and erect true five-star properties that equal the level of accommodations to which many Americans are used to enjoying. Until that’s provided, he doesn’t foresee other islands having too much at stake.

However, tourists arriving by sea, pose a different threat. “Cuba does have a possibility to impact Caribbean countries more immediately because the cruise ships do not require the same type of infrastructure as air travel. All Cuba needs is ground transportation which it has and which is easily increased.” In the long-term, he believes Cuba has the potential to be a substantial player within the cruise ship industry.

Excellent food venues are reportedly absent as well. Aside from El Floridita and El Aljibe, an eatery famous for chicken dishes, Cuba lacks quality restaurants. “Most people enjoy the beaches, but believe the food offerings are from horrible to acceptable, and the overall infrastructure from horrible to acceptable.” Although eating facilities can be created relatively quickly Kavulich notes two big questions must be answered: When the flood of tourists come, where are they going to eat lunch and where are the land based travelers going to sleep if the majority of existing hotels are booked? “Cuba’s tourism today is primarily Canadian, Spanish, German, and Italian, and these people go to Cuba in the high season. If the U.S. market is available then you’ve got a capacity issue.”

Regarding a downturn in tourism to the British Virgins Islands, Kavulich doesn’t see the same demographics of travelers to the BVI as he sees visiting Cuba. From his perspective, the top three countries more likely to feel the initial impact of American tourism to Cuba are the Bahamas, Jamaica and Mexico, specifically the city of Cancun.

HOW WILL THE REGION BE AFFECTED?
Honorable Chantal R. Figueroa, Deputy Commissioner of Tourism for the U.S. Virgin Islands, recognizes the intrigue U.S. travelers will have for Cuba. As a new destination it holds a lot of possibilities, yet the Deputy Commissioner and her marketing team have an advantage with the American traveler. “We’re focusing on developing the U.S. Virgin Islands experience. Only 27 percent of Americans have a passport. Cuba may not be an option immediately, but you would still need a passport and we’re going to continue to play up this selling point.

“One of the other benefits that we have for U.S. tourists is that our language is the same, our political and legal systems are the same, our currency is the same.

“Yes we’re all in the Caribbean, we all offer beautiful beaches, and we have nice weather but because of our three main islands, we have such distinct personalities,” she explained while highlighting the cultural experiences found on St. Croix, the ecotourism available on St. John, and the widespread shopping awaiting tourists on the streets of St. Thomas.

Deputy Commissioner Figueroa’s position on whether or not the region has any reason to feel threatened by American travel to Cuba is one of optimism. “Well I think whenever someone else comes into the playing field, we can look at it as an opportunity.” As she and her marketing team make preparations for their own territory, she explained others [islands] should question what they can do to strengthen their product; how they can gain the loyalty of their travelers; and how they can improve their destination overall. “Repeat traveler business is paramount. What can you provide that will lure them back? Even if they stray, we need to keep in mind how to get them back or how not to let them go at all.”

Jamaica has had a relationship with their Cuban neighbor for years; and according to Honorable Edmund Bartlett, Minister of Tourism for Jamaica, travel to Cuba by American tourists neither poses a threat to their country’s tourism product, nor hints to any debilitating numbers in visits to their island. Jamaica ranked within the top three Caribbean destinations in terms of visitor arrivals and up to September 2009 the country received 1,359,000; a 3.8 percent increase in arrivals from the year prior. “We do not perceive that Jamaica’s tourism product would be threatened if Americans were allowed to travel freely to Cuba. We would see it as friendly rivalry, which would push Jamaica to enhance our product to an even higher level. We consider Cuba as a fine destination with which Jamaica has had a long tradition of mutual friendship and respect. We share a great deal with Cuba. A lot of our nationals migrated to that country, and Cuba has trained many of our professionals. Jamaican owned hotels are operating very successfully in Cuba.”

In terms of how the region could be affected economically, Minister Bartlett says there is value in competition and believes it would be good for the island. “Cuba’s presence in the market would, in fact, be beneficial to Jamaica, as it would present an opportunity to offer two aspects of the Caribbean – the Spanish and the English speaking traditions. In fact, we are about to sign a Memorandum of Understanding to engage in marketing of our destinations jointly, especially to long haul visitors.”

MYSTERY, MAGNETISM, HISTORY, AND CULTURE
Cuba is envisioned by numbers of Americans as an island transfixed in time: for having 1950 classic American automobiles like Chevrolets and Buicks; and for the renowned tobacco notes found in their first-class cigars. For legendary celebrities and the well-heeled, Cuba evokes memories of an era synonymous with partying, gambling, drinking, and vacationing in style. It was the Caribbean’s Monaco.

Today, Americans are yearning to discover what has been kept from them for so long. They want to see the place “frozen in time” before it becomes saturated with American consumerism and materialism.

Each Caribbean island has at least one component with which its neighbors cannot compete. Kavulich describes Cuba as having varied topography, lush mountains, one of the longest reefs for scuba diving in the world, and a very rich history. Locations such as Old Havana, Ernest Hemingway’s house and the Bay of Pigs site are just a few of the notable interests.

In the meantime, Americans will have to quell their anxiety for a glimpse into Havana’s crumbling façades and rich history while they continue to wait for the removal of travel restrictions to a country where visitors from the rest of the world are already being received, and the region will have to make plans for what is yet to come.

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