Tour operators have mixed reactions to latest loosening of Cuba restrictions

Tour operators have mixed reactions to latest loosening of Cuba restrictions
By David Cogswell Published September 21, 2015

People-to-people exchange tours in Cuba have opened up academic,
educational, sports, cultural, scientific and other exchanges between
Cuba and the U.S.
New steps taken by the Obama administration to further reduce
restrictions on trade and travel with Cuba are being welcomed by U.S.
tour operators, but with little enthusiasm because the changes will have
little immediate effect on travel.

The lifting of restrictions on travel has already overtaken the capacity
of Cuba to handle the increased flow of tourists.

Modified regulations are set to go into effect Sept. 21 and are designed
to ease the flow of business between the countries in the fields of
travel, telecommunications, banking, Internet-based services and
business operations in general.

The current changes in rules will not affect who can visit Cuba, but
they will open some possibilities for travel by offering the chance for
transportation companies to become licensed to provide transportation to
Cuba.

New rules will make it easier for U.S.-based firms to export computer
and Internet technology to Cuba, will also eliminate caps on the amounts
of money that can be sent from the U.S. to Cubans and will allow
American travelers to open bank accounts in Cuba.

Under the new rules, U.S. firms can export civil aviation equipment to
Cuba. Internet-based educational courses will be allowed onto the island
and disaster relief will be allowed by the U.S. government.

Though the relaxing of restrictions is incremental, any sign of reduced
barriers to travel to Cuba is welcomed by American tour operators, who
are already enjoying a boom in demand for travel to Cuba.

"This is tremendous news," said John Stachnik, president of Mayflower
Tours. "Last week was our highest week yet for sales of our programs to
Cuba. Yet the greatest single barrier we have had to face with
prospective travelers is that they fear 'regimentation' more than
anything. They want an experience that allows them to have organized
independence and this will certainly bode well as we move forward with
plans for upcoming departures."

Although American travelers continue to move toward preferring greater
independence when they travel, Cuba is a special case. Independent
travel in Cuba will continue to be difficult for the foreseeable future
not only because of the restrictions by the U.S. government, but because
of the limits in capacity and the infrastructure in Cuba. So
people-to-people travel continues to be the most attractive and
effective means of traveling in Cuba for most Americans.

Though people-to-people travel is highly restricted, it also provides
maximum opportunities for personal interaction and cultural exchange
with the natives, opportunities that are increasingly desired by
American travelers in virtually all destinations.

"Ironically our programs, which operate under the people-to-people
banner, have been coming back with ratings that go through the roof,"
said Stachnik, "so we do not want to lose too much of the flavor of Cuba
by creating only independent vacations, rather than the life-enriching
experiences we promise our travelers."

Tour operators believe that the additional opening of trade between the
two countries will encourage more travel to Cuba by those who want to
see the island before the changes that will inevitably come as relations
between the two countries continue to open.

"I think these additional steps encourage the continued growth of
people-to-people travel to Cuba," said Robert Drumm, president of
Alexander + Roberts. "This 'deeper green light' makes the appeal of
visiting Cuba at this transitional time greater, before Cuba experiences
wider change."

"As Cuba continues to enhance and improve accommodations, restaurants
and activities, many Americans will become more and more intrigued with
the prospect of visiting," said a spokeswoman for Collette, the Rhode
Island-based tour operator. "These changes will increase economic
development and will aid in tourism as well."

However, while the relaxation of restrictions can increase the flow of
visitors to Cuba, it does not in itself provide more places for them to
stay when they get there.

Ronen Paldi, president of Ya'lla Tours, said that the rate of the
relaxation of restrictions has already outpaced Cuba's capacity to
accommodate those who do travel to Cuba.

"This change will have no effect because Cuba, as is, is oversold," said
Paldi. "There is not enough space at the hotels, and 'easing more the
embargo' will only create more pressure on a limited infrastructure."

On the other hand, the limited capacity of Cuba makes the support
provided by the people-to-people model of travel more attractive and
practical.

"The main issue is really hotel space," said Gianni Miradoli, CEO of
Central Holidays. "Cuba cannot accommodate mass traffic currently. The
number of Hotel rooms that can be utilized by the American market (four
and five star properties) are very limited and consequently only tour
operators that can assure blocks of space can work with Cuba travels."

"The practical issues of a weak tourism infrastructure — and
extraordinarily limited hotel availability suitable for American
travelers — makes people-to-people touring by land or water the most
appropriate way to visit this beautiful and arresting island," said
Alexander + Roberts' Drumm.

The full text of the new regulations will be unveiled on Monday.

"What I've read so far is positive," said Tom Popper, president of
Insight Cuba, "but it won't affect tours and travel in a significant
way. However, the Department of Treasury said the new regulations will
come out on Monday, so let's see what they say."

Source: Tour operators have mixed reactions to latest loosening of Cuba
restrictions | Fox News -
http://www.foxnews.com/travel/2015/09/21/tour-operators-have-mixed-reactions-to-latest-loosening-cuba-restrictions/