Cuba Prepares for Influx of American Tourists

There has been a rising demand to visit the Caribbean island of Cuba, especially amongst Americans. Many remember decades of estrangement following the countries’ trade embargo of 1960 and the travel ban imposed on US citizens visiting Cuba. But following the reestablishment of diplomatic relations and the re-opening of the US Embassy in Havana in 2015, more American tourists are looking forward to enjoying all that Cuba has to offer—just like their Canadian neighbors and European travelers have been doing for years.

New Travel Guidelines Usher in New Travel Opportunities

According to an article on Reuters, Cuba welcomed a record 3.52 million visitors in 2015, up 17.4% from 2014, and American visits rose 77% to 161,000. And as noted in Feature: Cuba Looks to Attract Tourists to Island’s Eastern Region on New China’s website, over 94,000 US citizens visited the Caribbean island in the first four months of 2016, a 93% increase from the same period of 2015.

Until recently, Americans have only been allowed to travel to Cuba for a tight set of approved educational, research or people-to-people programs. Today, American tourists are permitted to take individual, unguided trips falling into 1 of 12 categories of authorized travel that include educational, humanitarian, professional, religious and journalistic. According to U.S. News & World Report, “Americans will be required to have a full-time schedule of authorized activities intended to enhance contact with the Cuban people, support civil society in Cuba, or promote the Cuban people’s independence.”

For more information, see Guidance Regarding Travel Between the United States and Cuba from the U.S Department of the Treasury or details on the website of the U.S. Government Publishing Office

Insight into American Traveler Sentiments

To learn more about Americans’ attitudes about traveling to Cuba since the easing of travel restrictions, travel insurance provider Allianz Insurance conducted a survey during President Obama’s historic visit to Cuba in March 2016. Here’s what they uncovered:

• 42% of Americans say they’d like to visit Cuba
  • Just 7% would actually be “very likely” to plan a trip to Cuba and 70% of them are currently unlikely to do so.
• Major anxieties for Americans are:
  • Safety concerns (44%)
  • Fear of Communist government (15%)
• Those surveyed feel there is a lack of:
  • Information on Cuba’s travel experiences (18%)
  • Travel infrastructure (12%)
  • Internet/mobile connectivity (7%)
  • Appropriate healthcare facilities (6%)
• The things likely to make them more interested in visiting Cuba:
  • Beach resorts (33%)
  • Cultural attractions (24%)
  • Cuban people (12%)
  • Cuban food and rum (11%)
  • Classic 1950s American cars (9%)
  • Cuban cigars (5%)
  • Family and friends (5%)

Getting Ready for More Visitors

Is Cuba ready to receive the additional American tourists? Their travel industry is going through rapid development in order to accommodate increased demand:

Transportation: The skies have been reopened for commercial air traffic between the US and Cuba, as the US Department of Transportation recently awarded six airlines the ability to begin direct flights to Cuba as soon as this fall: American Airlines, Frontier Airlines, JetBlue Airways, Silver Airways, Southwest Airlines and Sun Country Airlines. For more information, see this USAToday article. In addition, cruise lines have only been able to offer Cuba-based services to non-Americans due to the US embargo of the country. But now, some US lines will join their European counterparts along the Cuban harbors.

Lodging: Thanks to the current and anticipated continuing travel surge, there’s an expected shortage of hotel rooms in Cuba’s cultural centers, with figures in the ballpark of 63,000 nationwide. To meet demand, as discussed in Reuters, the Cuban government plans to reach 85,000 hotel rooms nationwide by 2020, but the pace is slow and development has favored beach destinations. However, with restrictions lifted, American hotel chains including Marriott and Starwood have plans to enter the country with new properties and Airbnb now boasts over 4,000 listings countrywide.

We’ll continue to watch the Cuba’s evolving travel industry and report on the factors driving change and progress. Stay tuned for insights into business travel to the island and the impact American corporate travelers are likely to have on the economy.