A sudden wave of American tourists has Cuba changing in a big way.
Reuters reports luxury hotels are going up in order to quickly capitalize on the influx of Americans thirsty for Cuban rum, unique delicacies and fresh locales.
There is an obvious issue looming on the horizon, however: A possible rollback of the Obama-era détente by the current administration. As the report reminds, President Donald Trump is expected to impose stricter travel restrictions on visiting Cuba at some point soon.
Such a policy would hamper new installations such as the Gran Hotel Manzana, situated in Havana.
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The luxury hotel is opening Wednesday, and its developers, Swiss-based Kempinski Hotels SA, hope eased restrictions on travel continue for interested American travelers.
Alessandro Benedetti, Kempinski marketing director, explains to Reuters on the possibility that his new hotel might see fewer Americans under Trump's watch: "We hope that trade and travel restrictions eased by the Obama administration will not be tightened again by the current U.S. government. That would not be favorable for any kind of businesses connected to tourism, such as cruise ship operators, airlines or hotel chains."
Grant Hotel Manzana is just one of three new luxury hotels that will soon adorn the Paseo de Prado. Spain's Iberostar and France's Accor SA ACCP.SA are reportedly working on their own lavish confines for future visitors.
Betting big on the Cuban market makes a great deal of sense for these brands. Reuters states Havana is sold out in respects to accommodations for the remainder of the year. It also spoke with Cuban Tourism Minister Manuel Marrero who explained that visitors were expected to rise from four million in 2016 to 4.2 million during 2017.
He also stated that about 2,000 rooms are being added to accommodate the new wave of interest-Americans visits alone have risen 74 percent.
With that sudden interest comes a demographic used to the finer things in life. Rather than backpack around a foreign land or hop from one hostel to another, many are seeking out the promise of comfort, even amid a struggling economy.
Francisco Camps is the deputy general manager for Spain's Meliá Hotels International S.A. in Cuba, a brand that Reuters states has aims to launch two products shortly.
Camps explains that the time is now to pounce on the Cuban fervor: "With this increase, it would be appropriate to have products of high standard."
Gran Hotel Manzana is one of the first to go up as Americans enjoy a renewed relationship with its neighbor to the south.
The Telegraph is quick to highlight the stark dichotomy between the haves that might enjoy the opulence inside and the have nots that live and work in the immediate area, per Kempinski's website:
"Close your eyes for a moment and imagine you are there. Waves crashing against a mildewed sea wall; a young couple cavorting in a dark, dilapidated alley; sunlight slanting across rotten peeling paintwork; a handsome youth in a guayabera shirt leaning against a Lada; the smell of diesel fumes and cheap aftershave; tourists with Hemingway beards…"
Luxury brands, much like a great many throughout the industry-including cruise and airlines-are still getting a feel for the budding Cuban market. The overarching dilemma remains President Trump and what his administration might change about the infusion of cash taking place throughout Cuba.
Lobby group Engage Cuba recently unveiled a study which cautioned that discontinuing the current détente would amount to $712 million in losses for both the cruise industry and airlines.
The outlook was different heading into May's Latin American Hotel and Tourism Investment Conferences, with some believing the president would actually leave the policy as it stands, allowing the market to bolster and thrive.
Hyatt senior vice president David Tarr stated at the time: "We are very interested in Cuba as a destination for our guests. Certainly we hope relations will be normalized. Our guests want to visit, which is why we are here."
Reports then suggested at the end of May that Trump's administration would roll back the times. It's a shift that is expected to take place at some point in June.
[READMORE]READ MORE: Why a Cruise Is the Best Way to Experience Cuba [/READMORE]
It's extremely difficult to completely cut off a destination as enticing as Cuba, especially as so many have already witnessed first-hand its grandeur.
It's also noteworthy that any Trump policy, as is apparently the case with Obama orders, may very well be temporary.
Another administration may be just a few years away. These luxury brands want to be in place at that time to welcome travelers with figurative carry-on bags filled with cash.
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