PHOTO: Tours of tantalizing Cuba come closer and closer as tour oprators wait to see exactly how restrictions are lifted. (photo by David Cogswell)
After the Obama Administration announced on Thursday that a new set of regulations for travel to Cuba would go into effect the next day, tour operators scrambled to get the information and figure out what it will mean for their businesses.
Tour operators must figure out not only what the regulations will be, but what the ramifications will be and how it will all play out.
Ronen Paldi, one of the longest running operators to Cuba, told TravelPulse, "I just walked into the office to a rainstorm of phone calls and emails."
According to Paldi, his OFAC attorney said the new regulations will be released on Friday. Even attorneys are unsure what the regulations will be, what the ramifications will be, and finally what Cuba's response will be.
"Frankly I'm confused and I don't understand exactly the ramifications," said Paldi. "From what I read on the BBC and the New York Times it seems that it is open season for everybody. But I'm not so sure. I'm waiting for more clarifications."
Although it is still hard to say how the new regulations will play out, Paldi does not believe that it is possible for the situation to change so drastically in one day from the extremely tight control of the previous years to a completely unregulated flow of tourists to Cuba.
"I can only tell you one thing," said Paldi. "The Cubans will not allow Americans to come free and open into the country. Already in January, February and March Havana is fully booked. It's very difficult to find a room. There is no capacity in Cuba for the extra flow of American tourism; not enough buses, not enough tour guides, parking spots for buses, let alone rooms. It's simply not there. And the Cubans have already raised prices based on the anticipation. So whatever people are hoping and thinking, I frankly don't believe that will happen. The main change will come if OFAC will allow American carriers to fly to Cuba as they fly to other destinations from anywhere in the United States."
Mayflower Tours, a more recent entry into the Cuba market, is eager to find out what the changes will actually bring.
"I'm so glad to hear about this," said John Stachnik, president of Mayflower. "We had conversations with OFAC at USTOA last week, saying it would be happening in a few weeks. That made us a little nervous because the first time they said a few weeks it was more than a few weeks. So that is very exciting.
"We've been telling our people that it's imminent," said Stachnik. "Then every day that it doesn't happen you get more nervous. Now that it is imminent, that should make a lot of people happy, including myself."
Looking over Thursday's statement, anticipating Friday's release, Stachnik read the new announcement as a restatement of what Obama presented in his speech.
"This is basically what they said the first time around," said Stachnik. "It hasn't changed, that you can go still under the people regulations; airlines and travel agents will provide tours without a specific license; travelers can use credit cards to spend money in the country to bring back souvenirs, including up to $100 worth of tobacco or alcohol. It's not a change from what they said would happen. But of course it's a bellwether change. It reinforces what he said a month ago."
One thing is generally agreed on. "This is a positive move for tourism," Melanie Gravdal, a spokeswomen for the Globus family of brands. "Since introducing our Globus tours to Cuba in 2013, we know that there is high demand. Making travel more convenient by lifting currency and communication restrictions is a very tangible positive change. While in the long term, this will help Cuba emerge as a mainstay destination, in the short term, working through a trusted operator like Globus to help navigate the changing requirements, is the best way to go. Licensed tour operators also remain the most practical way to experience the best of Cuba's people, art and culture. And until the air access situation changes, licensed operators remain the only legal way to go."
If travel to Cuba is opened up to everyone, tour operators will no longer hold the key to the market as they do now. But even under that scenario, the tour operators are best equipped and educated as to how to make the most of travel to Cuba under whatever regulations must be navigated through.
Amelia Sugerman, Communications and Public Relations Specialist for Collette, told TravelPulse, "We want to emphasize that Cuba is still a long way away from becoming a destination where travelers can book a flight to, immerse themselves into culture and take part in local customs. There is a still a very long way (we anticipate at least 3-4 years) until the infrastructures are in place to allow all of these aspects to work."
"Although Americans will no longer require a license from the US, travel to Cuba will still be limited to 12 existing categories, including family visits, U.S. government business, journalism, professional research, educational or religious activities and support for the Cuban people," Sugarmen continued. "The short answer of whether 'non-travel industry friends' can go to Cuba is yes (if they can fit into one of those 12 categories) but there will be significant red tape and justifications for this."
Although the new regulations will take effect on Friday, there will be a significant need for credit card systems to be implemented, hotels to be built, and in general more staffing and funding for the Cuban people. Again, it will take time for Cuba to become known as a tourist destination in the same way that Americans head to Punta Cana or Puerto Vallarta.
Editor's note: This is obviously a very huge and very multi-dimensional story in the world of travel. To see the implications of today's announcement on air travel, click here. For ASTA's reaction to the news, click here.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
