Obama Visits Cuba - What Does it Mean?

Date: 21 Mar 2016 09:05


Yesterday, the President of the United States, Barack Obama became the first active president to visit Cuba in almost 100 years. On the surface, it may just seem like an opportunity to pose for pictures and anger conservatives calling for the Embargo to continue until the Castro’s leave power. But this trip promises to be much more than that.

Perhaps finding common ground between the two nations - who couldn’t be further apart politically - seemed impossible. However, for Obama the answer was simple. What is the language that everybody speaks? Business. Money talks. Cuba might be socialist but people still have to eat and the economy still matters. Raul Castro, unlike his brother, Fidel, realizes that the time is now to begin opening their economy to the world.

But the only way that foreign direct investment will arrive at the shores of Cuba is if there are guarantees that the investor will see a large ROI. Changes also need to be put in place for labor and legislation. This means, by default, compromising slightly on the rigid communist ideology that has brought Cuba to its knees. Obama has brought with him more than 30 members of Congress and 11 Executives & CEOs of major global companies including Marriott Hotels, Starwood Hotels, Paypal, Airbnb, Xerox and Think Food Group among others.

In the short term, what does it mean? Travel barriers are teetering and cracking, soon to fall. Trade talks are navigating the legality of how to proceed. Food exporters are eyeing the island as a market. Hotel Chains will be the first to be let in, then cruise liners and ferries. Hotel Chains will begin purchasing and developing hotels and properties in Cuba. At the moment, there are only an approximate 63,000 hotel rooms and another couple of thousand rooms that are rented out by those willing to make an extra few pesos from paying tourists.

Five More Cruise Companies Gain Approval to Sail to Cuba

Date: 14 December 2016

A new wave of cruise companies, a total of five, working under either the Royal Caribbean & Norwegian Cruise Lines holdings umbrellas are entering the South Florida – Cuba ferry market. Norwegian will become the only operator headquartered in the USA that will have the entirety of its brands sailing to the once-forbidden island. The three brands, Norwegian Cruise Line, Regent 7 Seas and Oceania Cruises, will sail to the island while acting in accordance with US Department of Treasury regulations. In addition to these three, Azamea Club Cruises and Royal Caribbean will also begin operations from Florida to Cuba. Under the regulations as classified by the Office of Foreign Assets Control (OFAC), passengers would engage in ‘people-to-people activities’.

Key West to Advance on Plan for Ferry Route to Cuba

Date: 06 December 2016

Hardly more could have changed in the US/Cuba dynamic in the last month. With the surprise election of Donald Trump, everything seemed to be reverting to the Cold War period. But after breaking campaign promise after campaign promise, the threats seem less and less viable. Compound that with the recent death of Cuban, Marxist-Leninist revolutionary, Fidel Castro and everything seems up in the air. With the more moderate Raúl Castro now pulling the strings, without any interference from his brother to moderate any advances in economic policy, the possibility for change is there.

Cuba Outstretches Hand for FDI

Date: 29 November 2016

The leader of the Cuban Revolution is dead. Now all the backlog of change, 50 years’ worth of it, can slowly start. Until he passed the baton to his brother Raul Castro (2008), Cuba had resisted change for almost half a century. After Raul took over, the country started changing slowly but surely. The automatic ‘no’ answers, to anything and everything that involved change, became ‘maybes’ and ‘under certain conditions’. This gave way to laws that permitted private businesses and private property, previously outlawed in Cuba.

Business to Trump Politics in Cuba

Date: 22 November 2016

A collection of big multi-nationals who started planning for life after the embargo will attempt to pander to president-elect Trump’s self-proclaimed superior business acumen. Dozens of companies are either planning to, or have started expanding into Cuba already. Trump threatened to shut the doors on the newly re-opened American embassy in Havana, as well as flirting with reverting to previous Cold War economic relations and travel agreements. However, the Chamber of Commerce will be pushing to maintain the current status quo after Obama’s reform created loads of promising commercial prospects. The strategy is trying to pull at strings that are key pieces to the Trump persona. If an opportunity makes good business sense, then why would a proficient businessman turn it down?

Spanish Businessmen Hurry Up their Plans for Cuba

Date: 16 November 2016

Spanish businessmen with pending plans for the island have made no attempt to hide their fear that the first mover’s advantage benefits of certain big American companies could create barriers that will make their entry into the market more difficult. Even though, stateside, the fear is that the politics will revert to the times before the Obama rapprochement two years ago.

New Presidential Directive Working Already

Date: 07 November 2016

The new Presidential Policy Directive (PPD) is working already. The PPD, which was enacted last month, is the latest in a course of events in the Cuban Thaw that, through executive action, loosened travel and trade to Cuba. It allows for the import of Cuban medicines to the USA. CIMAvax, an encouraging lung-cancer vaccine, will soon commence Food and Drug Administration (FDA) clinical trials in the USA. As of today, never before has a Cuban drug been run in clinical trials in the USA. At first glance, the shipment of delicate cargo seemed a precarious obstacle. However, after a successful test run to ensure the delicate cargo would arrive intact, shipping a box of water, it seems that the USA are ready to receive the delicate cargo.

TripAdvisor Awarded Permit Allowing Bookings to Cuba

Date: 31 October 2016

TripAdvisor has become one of the inaugural American companies given permission by the US government to sell “travel-related services” to Cuba bound travelers worldwide. The US Treasury Department’s license grants TripAdvisor permission to stimulate and support “educational and cultural engagement between global travelers and the Cuban people.”

US Abstains in UN Vote Against Embargo

Date: 27 October 2016

On Wednesday, October 26th, the United States took another massive step towards ending the Cuban Embargo. The US changed its vote from ‘in favor’ to ‘abstain’ for the UN General Assembly’s resolution for an end to the embargo. This marks the first time since the fall of the Soviet Union in 1991 the US has not voted in favor to maintaining the embargo. Normally, several smaller nations vote in line with the USA. However, this time, of the 193 UN member countries, 191 voted against the embargo with just Israel siding with the USA in abstention and nobody opposing the reform.

Why is US Rapprochement with Cuba Nearly Irreversible Now?

Date: 20 October 2016

As time ticks down on President Obama’s tenure in office, he has yet again pushed the envelope in the Cuban Thaw. In what has become one of the most significant developments in American foreign policy in the last half century, Obama has, in a new directive, urged for a policy of “positive engagement as opposed to perpetual hostility” as the future of American-Cuban relations, in a bid to make the rapprochement “irreversible”.

Baleària Proposes Re-Establishment of Domestic Ferry Routes

Date: 14 October 2016

The President of Baleària, Adoldo Utor, has offered to assist in re-establishing an internal ferry route network in Cuba. This comes after a recent trip to the island to discuss plans, as mentioned in our previous article, for Baleària to be the first ferry company to operate the crossing from Miami and Cuba.