Castro’s Resignation and Cuba’s Hotel Industry
I’m never one to get into a political argument – because unless the person you are arguing with believes in the same things you do – neither side will win, and both sides will probably end the conversation more upset than they started. But something that has always interested me is Cuba’s former President – Fidel Castro – and how he has single handily ostracized his entire country from the United States and in a way – the world. Now, I’ll entertain the argument that it’s the United States that ostracized Cuba, but just for this blog post’s sake – please bear with me in keeping with my line of thought.
Since the 1960′s the United States has had an embargo on both travel and trade with Cuba, essentially Cuba is dead to America. Really the only Americans who can legally travel to Cuba are reporters and educators, and you will not find any American companies or brands setting up shop within the country since trade between America and Cuba is forbidden by the American Government.
Why does this matter? Cuba is incredibly close to America – only 90 miles south of Miami – and it is an incredibly beautiful country with many natural features, weather and of course – the history of the Cuban culture.
Castro’s resignation is the first step in once again re-opening trade with Cuba. Even though his brother Raul has taken over the presidency, not much is expected to change immediately, but its a very important step in the right direction. Raul knows that trade with America is important for the further growth of his country and it is a priority of his to try to re-open trade, but it will take time. One major issue that the American government has had with the Cuban government is its very very basic land ownership rules. In Cuba, land ownership, and property boundaries are not very well respected. Meaning that there are constant land disputes between supposed owners and the government itself who has really made no attempt to solve these issues. In the past few weeks Raul has publicly said that he wants to change these issues. The solving of simple issues that we Americans take for granted will build up the respect that the American Government has for Cuba and help its chances to begin trade with us again.
Why is trade so important between Cuba & America?
Well for one, Cuba’s tourist potential is huge – its very very close to America, yet almost a world away. A lot of history, historic structures and just an overall warm weather environment is all very appealing to both American Tourists and American firms that are in the tourism industry.
Currently, the way it stands today, Cuba couldn’t be any further away from America – once the embargo is lifted, expect to see all the major hotel firms – Starwood Hotels, Starwood Capital, Hilton, Hyatt, Marriott, etc immediately begin to open shop (Starwood Hotels even has a leg up since they technically still own land in Cuba). Cruise companies will immediately set up destination ports in and around the island and Airlines will finally be able to make flights to Cuba. Since Cuba is so close to America, most airlines should be able to easily add service at an inexpensive price since transatlantic equipment will not need to be used.
In fact, I do not think its too far from the truth to say that the major hotel and resort firms have had informal talks with investors from other countries (who are able to trade with Cuba) or have started to prepare, or have prepared plans on their own that simply require the embargo to be lifted – thus setting in motion the development of tourism related areas throughout the country.
I’m hoping in the next 10-15 years we will see the embargo lifted (or softened) between America and Cuba and it will almost be like Columbus discovering a new world – except instead of starting from scratch, the infrastructure just needs to be upgraded, then we will have another world class tourist destination.
What are your thoughts on Cuba and its inevitable transformation into a tourism goldmine?
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Category: construction, hilton, Hotel Development, Hotels, hyatt, real estate, resorts, Starwood Capital Group, Starwood Hotels
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Actually, Cuba already has numerous resorts along its coast, catering to everyone except U.S. citizens. Google cuba resorts.
And they have been trying to normalize relations with the U.S. for at least 15 years but hit a stone wall in Washington. I hope Obama will change that.
FYI: Havana is 90 miles south of Key West– Key West is 145 miles southwest of Miami. Check out http://www.keywest2havana.com for lots of background info. Key West has been perfecting its role in the Cuban tourist industry for close to two hundred years– we’re chomping at the bit to participate in it again.