The View from Europe: Cuba and the Caribbean tourism sector

By David Jessop:



The announcement in mid-December by President Obama and President Castro that Cuba and the US are moving to normalise relations has resulted in speculation about what this may mean for the Caribbean’s tourism sector.

For the most part what has been said and written has failed to understand the nature or complexity of what the US president has proposed, the process involved, or the fact that Cuba has revealed very little about what its detailed response will be.

That said, the news of a changed US-Cuba relationship is of course welcome, long overdue and begins to end the US imposed isolation of a Caribbean nation. It involves the full restoration of diplomatic relations by both sides and includes a range of measures for which the US president does not need the approval of Congress.

Although the US president made clear that, when it comes to US travellers, more US citizens will be able to visit Cuba under what is expected to be looser licensing arrangements, he was not freeing all individual US travel to Cuba.

Instead, the implication is that the granting of licences to travel in 12 identified US Treasury permitted areas* will be made easier. He also said that US credit and debit cards will be permitted for use by travellers to Cuba, US companies will be able to improve infrastructure linking the US and Cuba for commercial telecommunications and internet services, and according to a fact sheet accompanying his statement, foreign vessels will be able to enter the United States “after engaging in certain humanitarian trade with Cuba”.

Sometime in the coming weeks the new US Treasury regulations on Cuba will be published, which will spell out how these and other aspects of the new US travel regime will work. However, the present consensus in the US travel industry is that in future a general licensing system will enable tour operators to develop programmes within identified categories such as educational activities and US citizens will then be able to freely buy and travel within such packages on the basis they are giving the US government their word they are not simply engaging in tourism.

How this will work in practice and the extent to which current draconian US rules on the use of currency, or whether Cuba has the facilities or is geared up to receive many more visitors on this basis, remains to be seen.

Of more fundamental importance, although not directly related to tourism, was the announcement that President Obama was authorising his Secretary of State, John Kerry, to review, based on the facts, Cuba’s US designation as a state sponsor of terrorism. A change in this area would not only enable companies in the tourism sector, but in every other sector as well to be able to freely move funds in US dollars, invest, trade, book hotels or flights on airline websites on US servers, and much more.

The increasingly tough interpretation by the US Treasury in the last few years of regulations that flow from this designation has severely constrained all third country trade and services including from the Caribbean, as many companies and international banks have withdrawn from the Cuban market in order not to face huge fines in relation to the transfer of funds.

What happens next in practical terms may be slow and uncertain. However, it is clear that President Obama has initiated a process that he thinks will be sustainable beyond any Democrat administration. Although not spelt out, it would seem that he calculates that, in the case of Cuba, freer US travel and the weight of US corporate interest may force an unstoppable economic opening that a Republican dominated House and Senate or any future Republican president will not wish to turn back.

For his part, President Castro has made clear that Cuba will work with the US to improve relations but that that his country’s principal focus will be on an improved economic relationship and functional co-operation.

What this means is that, while US tourism (or more precisely the number of non Cuban-American US visitors travelling to Cuba) will remain constrained for the time being, there could be a quite sudden opening in between two to four years time, but only if that is what Cuba wants.

In this context, the most likely changes in the short term related to tourism are increasing pressure on the number of hotel rooms in Havana and popular destinations, and an upward trend in Cuba’s presently low room rates; increased investment in the hotel sector by foreign companies particularly in conjunction with military controlled tourism companies; pressure from US legacy carriers to fly scheduled services to Cuba out of the US; the increased attraction of sailboats into the newly completed marinas that Cuba has been constructing; an increasing number of calls by non-US cruise ships and perhaps, in time, US cruise ships if they home port in Cuba; and the rapid diversification and decentralisation of Cuba’s already significant tourism product.

Speaking recently in Barbados about the opportunity, the Caribbean Tourism Organisation’s secretary general, Hugh Riley, said that, contrary to the fears in some parts of the region, the strengthening of Cuba as a Caribbean tourism destination was good news, as it would attract more visitors into the region and could prove a gold mine for those willing to capitalise on it. The region, he said, needed to view normalised relations from an entrepreneurial point-of-view to determine how it could strike partnerships that would allow it to benefit.

The figures amplify Mr Riley’s point. While overall visitor arrivals totalled 2.8 million in 2013 – the spend was US$2.3 billion – Cuban official statistics record that only 92,000 US citizens visited Cuba that year; a figure that does not include another 350,000 to 400,000 Cuban Americans who visit annually, as Cuba does not consider them as visitors.

President Castro and President Obama both noted that the agreement to normalise relations would be challenging and take time. The announcement of an improved US-Cuba relationship is therefore best regarded in tourism terms as the starting gun for all Caribbean tourism interests to consider how, over time, they will respond to increasing competition for the US market.

*These are family visits; official business of the US government, foreign governments, and certain intergovernmental organizations; journalistic activity; professional research and professional meetings; educational activities; religious activities; public performances, clinics, workshops, athletic and other competitions, and exhibitions; support for the Cuban people; humanitarian projects; activities of private foundations or research or educational institutes; exportation, importation, or transmission of information or information materials; and certain export transactions guidelines.

January 10, 2015

Caribbeannewsnow 

The Caribbean in sight, sound, soul and speed

by Bevan Springer
New York Amsterdam News



Recently, I traveled to a beautiful island, the City of Brotherly Love and back to a number of inspiring events in two of New York City's boroughs. It was a seven-day trip which reinforced my belief in the Caribbean and its endless capacity to inspire.

First, it was to the azure waters of the Caribbean island nation of Antigua and Barbuda for sailing week activities with some newly found media colleagues from the US and the UK. The non-stop Continental Airlines flight from its New Jersey hub at Newark was a breeze.

I have visited Antigua, which boasts 365 beaches, several times since I was a young lad: on national duty as a tennis player, the past decade to produce a media conference, last December to try out Caribbean Airlines' new nonstop service from JFK Airport, and even to enjoy its alluring summer carnival.

This time, I gained an even greater appreciation for the twin islands' strength as a Caribbean tourism player.

I was particularly impressed with its beautiful, pristine environment and the quality of accommodations on island. And, there are some very attractive properties, including the four-star Blue Waters Antigua and Sandals Grande Antigua Resort & Spa in the north, and the well appointed Sugar Ridge boutique hotel on the southwest coast of the island.

Antigua and Barbuda has so much to offer, at surprisingly affordable rates and truly deserves a more aggressive marketing charge across the globe.

Unfortunately, my Caribbean jaunt was short-lived and before I knew it I was deplaning a jet plane in Newark and driving to Philadelphia for the historic Penn Relays where many an athletic star is born.

The Caribbean spirit was strong at this meet thanks to the thousands of Jamaicans who assembled to cheer on their athletes. Other Caribbean nations such as the Bahamas, Barbados and Trinidad and Tobago also took to the track, and plenty of praise must be showered on the Caribbean companies who sponsored their athletes.

That same evening, the Spanish Caribbean was the focus at the Jamaica Performing Arts Center in Jamaica, Queens where Xiomara Laugart, the Afro-Cuban vocalist gave a memorable performance. Patrons enjoyed her sultry tones and the band's pulsating Caribbean rhythms generated welcome warmth on a cool April evening.

Following an inspiring church service in Brooklyn on Sunday morning, I attended an event hosted by Country Team Barbados at the Sheraton in Brooklyn (who knew there was a Sheraton in Brooklyn?) in support of athletes from three Barbadian high schools which participated at the Penn Relays.

Even though the Bajans did not return with any medals, I was heartened to learn that two female athletes from my Barbadian alma mater, the St Michael School, performed so well they were offered athletic scholarships.

From Antigua to Philadelphia to Queens and Brooklyn, the Caribbean has so much to be proud of, and I am thankful to carry on witnessing the beauty and excellence of our region in sight, sound, soul and speed.

May 11, 2011

caribbeannewsnow

Bahamas Blog International

Regionalism: The Caribbean prospective - Part 1

By D. Markie Spring
Turks and Caicos Islands:


It is evident that individual islands within our region cannot stand alone; therefore we need regional integration into every aspect of our system.

However, it must be noted that there are some islands in the region that are doing well. The Bahamas, Barbados, the British, American, French and Netherlands overseas territories, states and departments have sustained economies; British and US Virgin Island, Cayman Islands, Turks and Caicos Islands, the ABC Islands, Guadeloupe and Martinique.

Conversely, Jamaica, Trinidad and Guyana have weakening economies, but they have sport teams that are competitive at the highest level. The Eastern Caribbean has semi-strong economies.

In my honest opinion, I believe that the Caribbean could be a force to be reckoned with; only if we unite all of our efforts. As a region we should come together and compete against the rest of the world.

Let me start this debate with sports. The Caribbean had regionalised its effort to build the most successful cricket team in the world. This had worked for many years until the West Indies cricket team was severed by a number of factors, including poor player selections. It was clear that, if the West Indies unites its other resources, we could accomplish many things. Why do we have so many individual sport teams?

We should also combine our efforts in tourism. Although some Caribbean nations greet millions of tourists per year, this is not a fraction of the amount of tourists that travel to other parts of the globe.

To illustrate this further, the Bahamas has more than a million tourists visiting its shores annually, when France alone has 74 million.

Many citizens across our region believe that only the Caribbean has lush valleys and mountains, and white sandy beaches with crystal clear waters. No, my people, the Philippines, Thailand and other far eastern Asian countries also boast these qualities.

We should adapt the business term called Comparative Advantage, where each country identifies its strongest attractions and builds on them -- from a regional prospective. This means that countries such as Turks and Caicos Islands should market its white sand beaches, while other countries like St Vincent and the Grenadines promotes its eco-tourism environment.

Furthermore, the Caribbean has to integrate its economy into a single economy, if it wants to create an economy that is recognised and competitive to the world. These days, individual markets are developing impeding problems. Our regional economies are too dependent upon each other.

There is, however, some strong evidence that a single economy would derive better results. Although the OECS countries are not fully integrated through economic efforts, its dollar has maintained comparative and competitive value for decades.

In this sense, it is safe to say that our regional leaders do not have that regional vision needed to push our nations forward. We cannot depend upon developed economies to assist us -- not in these difficult economic times.

Countries like the Bahamas, Turks and Caicos, BVI and USVI and the Cayman Islands often decline membership and their willingness to integrate. One thing these nations must realise, though, is that their economies are not diverse enough to stand on their own for much longer; therefore, we need to unite as one Caribbean.

Some leaders and citizens alike believe that the economies of too many islands are too weak to have successful integration. We must look at the European Union. The only countries in the EU that are economically vibrant are those located in Western Europe. To date, the EU combined maintains the world’s biggest GDP. Is this something to learn from?

We must direct our efforts away from Individualism and start thinking collectivism. All we are doing in the region is competing against each other and stealing the little we possess.

I realise that some readers may find this article contrary to their beliefs. However, with this criticism I am ready to debate my ideologies. I am a young professional who believes in oneness and that there is no form of survival without unity. In addition, I believe that people with different ideologies may be isolated and their lives might be spearheaded by political affiliations.

July 29, 2010

Regionalism: The Caribbean prospective - Part 2

caribbeannetnews

Bahamas Blog International

Poor outlook for doing business across the Caribbean, says CDB president

GEORGETOWN, Guyana -- President of the Caribbean Development Bank (CDB) Compton Bourne believes the outlook for doing business in the Caribbean is a very poor one as it takes “forever” to get the paperwork and regulations to set up a business in the region.

Addressing the Georgetown Chamber of Commerce and Industry’s (GCCI) annual awards and dinner presentation on Wednesday, Bourne says another challenge is the slothfulness of the court system in resolving business disputes.

He has called for authorities across the Caribbean to address these shortcomings, so that the environment for doing business can be more conducive and attractive.

Turing his attention to the global financial crisis and its impact on the Caribbean, Bourne said several sectors in the Caribbean have been severely hit by the crisis, including tourism trade and bauxite.

He also cited the decrease in foreign investment in the Caribbean as another effect of the crisis.

However, Bourne said the CDB will not sit idly by and allow the crisis to shrivel the regional economies as already it is responding to the challenges facing the region.

“We at the CDB have been doing our best to modify policies and provide assistance... we have reduced the counterpart funding required for countries seeking to borrow money from the CDB, we are currently making fuller use of our policy based loans which provide strategy support to countries." Bourne explained.

He added that the bank has also reduced the interest rates continuously to the clients of the bank.

The CDB president added that two major initiatives are on stream to assist indigenous banks and hotels affected by low visitor arrivals.

The CDB will provide liquidity support to some banks, particularly indigenous banks that are in some difficulty, and liquidity support to some hotels in the region that would normally be viable but whose vulnerability is threatened by fall in visitor arrivals.

December 5, 2009

caribbeannetnews

Bahamas Blog Bahamas