Who wins — and who loses — if Obama opens travel to Cuba?

by Janice Hough on April 20, 2009

One of my very favorite pictures is a black-and-white photo of my grandparents enjoying an evening out at a bar in Havana in 1930. Unfortunately, following in their footsteps has so far been impossible without resorting to illegal travel tactics. (Which while tempting, I have avoided)

But now, with President Obama lifting some travel restrictions for Cuban Americans, and Raoul Castro saying nice things about our new government, it looks like travel for ordinary Americans to Cuba will soon be possible. Along with an end to the trade embargo.

So what does this mean for the travel industry?

First, cruise lines will be in a great position. Havana is less than 250 miles from Miami, and with the tenders available on most ships, the city doesn’t even need a serious cruise ship port to welcome tourists. Some European ships already sail there.

In fact, some years ago on a Celebrity Cruise Line sailing, the ship had to cancel a Grand Cayman stop due to weather and there was much discussion of an alternative port. The favorite amongst the passengers, go to Havana and “promise” the U.S. Government that only Europeans and Canadians would be allowed ashore. Alas, we were overruled and the ship went back to Cozumel.

In addition, many resort companies like Sandals, Occidental and Sol Melia already have Cuban hotels and resorts, catering to Europeans and Canadians. Some are in or near Havana. Many are all-inclusives located in the resort town of Varadero, about 85 miles from the Cuban capital.

These resorts, while not up to the standards perhaps of some other Caribbean resorts, will be no doubt booked solid with Americans willing to forgo some comforts for the ability to be amongst the first to return to Cuba.

The U.S. travel industry as a whole, in fact, is likely to do well with Cuba open for business. Many Americans might be watching their travel dollars, especially when it’s a question of the “same old same old” beach trip. But given a chance for something previously impossible, well, it’s hard to imagine that many of us might not spring for a trip. Particularly since it will be so much less expensive than say, a trip to Antartica or Cambodia.

And no doubt duty-free shops will do well with the previously embargoed Cuban rum and cigars. Most travelers to Mexico and the Caribbean know that these items are easily available now but legally must be consumed before returning to the U.S. (Not that they don’t occasionally make their way to our shores.)

Now, who loses?

I would have to think, number one, the Bahamas. While Nassau is not everyone’s favorite destination, it has for some years enjoyed the distinction of being the closest foreign port for U.S cruise ships. And it’s hard to imagine the port won’t lose traffic to Havana.

The same rationale applies to other nearby sun destinations from the U.S. — the Dominican Republic, maybe Cancun? (Varadero, in fact, is sometimes referred to as the Cancun of Cuba.) The novelty factor is a big part of many peoples’ vacation plans, and one reason cruise lines keep coming up with new ships. Cuba would be both an easy, and exotic, destination alternative.

And then presumably, if Cuban products are available duty-free, sales of other products might be impacted. Travelers looking for a fun souvenir seem far more likely to be tempted by say, Cuban rum than say, the Blackbeard rum sold to tourists from Grand Cayman.

No doubt there will be other winners and losers. And we’re not there yet. In any case, as a travel agent, and as that granddaughter of that young couple smiling over drinks in a Havana bar, it’s an exciting time.

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Cuba Opens Up - Travel Restrictions Ease | Top Trips
May 1, 2009 at 8:39 am

{ 8 comments… read them below or add one }

Marilyn Long April 20, 2009 at 2:39 pm

I hope that the Cuban people would be winners, too. Surely, if tourism increases (as it would if US citizens are allowed to go there), more jobs will be created and ordinary Cuban citizens will find more lucrative employment. Our embargo all these years has apparently not hurt the Castro brothers, but it has not helped the average Cuban.

UrbanSpaceman April 20, 2009 at 6:12 pm

Marilyn–that may be true, but being a communist country, how much of Cuba’s new riches via tourism will flow to the people of the country?

Considering that the USA was about the only country with a Cuban embargo, allowing other countries to trade with Cuba, how come most pictures of Cuba I see show the Cubans driving 50-year-old USA cars, as opposed to new Peugots or some Russian sedan? I am thinking that lifting the embargo will help the Castro boys but not the average Cuban.

As an aside, I am also concerned with the USA now trying to “play nice” with communist countries (in this case, Cuba and Venezuela).

Gelad April 21, 2009 at 7:30 am

To UrbanSpaceman; I just would like to ask you what the difference is between Cuba, Venezuela, whom we don’t deal with and China whom we deffinately do!! The embargo obviously hasn’t worked, It’s time for another tactict.

Benito Segovia April 23, 2009 at 11:17 am

I see a social problem coming up, the cubans who left due to Castros philosophies are still Cuban citizens, but what will happen with the ordinary CUBANO who have stayed in Cuba all this time without any choices for a better life for them and their families while the MARIELITOS in Miami and calle 8 have lived all this time enjoying the privileges that only God Bless America can offer, the question is: will the local citizens in Cuba will ever enjoy the well deserved “WHAT’S COMING FOR THEM” or the story will continue hoping for a better tomorrow for them?

I strongly suggest that before we spend a penny in Cuba we keep an eye on the CASTRO BOYS AND AL PACINO’S INVESTORS

Thank you Sir Obama, it is a great begining now lets go all the way to free these guys

Marlene McCuistion April 23, 2009 at 12:03 pm

Since Cuba is only 75 miles from Key West , it will be a very short hip, next to most of the other trips, even round trip! John was on the Tampa Fire Dept for 22 years, when many Cuban moved to Florida and made Spanish easy to learn.
Thanks, John & Marlene McCuistion

Joyce White April 23, 2009 at 12:12 pm

I think it is a wonderful idea.T he cuban people have suffered enough.Hopefully it will create jobs and create a better standard of living for my cuban brothers and sisters.I would love to see that beautiful country.I enjoy their delicious food ,music and the warmth of the people.God bless PresidentObama and the cuban goverment for wanting a dialogue.It has been a long time in coming.I will be looking forward to traveling there in the future

Harold Flagg April 23, 2009 at 4:01 pm

It’s no fair! Cuban-Americans can go to Cuba and spend big bucks, but I, as a US-born American can’t go. I keep hearing the US is a free country but if we have no freedom of travel, we got nada, nix, nein, nyet. Also, is it okay for Cuban-Americans to spend dollars in Cuba and it won’t help the Brothers Castro, but my dollars are toxic?

John McAuliff August 29, 2009 at 5:36 pm

Cubans and Americans will benefit from the end of travel restrictions.

Tomorrow the President could allow unlimited non-tourist travel for educational, cultural, humanitarian, religious and other people to people purposes, the essential precursor to Congress restoring everyone’s right to visit Cuba.

You can urge he do so via the White House Office of Public Engagement http://www.whitehouse.gov/ope/contact/

Even simpler is to join the 85,000 Americans who have signed the Orbitz petition at http://www.opencuba.org

John McAuliff
Fund for Reconciliation and Development
http://www.ffrd.org

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