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HOW TO TRAVEL TO CUBA NOW: SPECIAL REPORT<br />

The Magazine for Trade & Investment in <strong>Cuba</strong><br />

<strong>August</strong> 2017<br />

SISTER CITIES<br />

Mobile’s long relationship with<br />

Havana, yesterday and today<br />

THE MILITARY FOOTPRINT<br />

How much of the economy is theirs?<br />

GRANTS FOR ENTREPRENEURS<br />

The U.S. government program<br />

THE CORPORATE FALLOUT<br />

Business reactions to Trump<br />

TIME TO TEE UP?<br />

<strong>Cuba</strong>’s quest for more golf<br />

At the entrance to Havana<br />

Harbor: Pierre Le Moyne,<br />

founder of Mobile<br />

AUGUST 2017<br />

CUBATRADE<br />

1


American wheat<br />

growers stand ready<br />

to meet demand<br />

in <strong>Cuba</strong>.<br />

It’s time to end<br />

the embargo.<br />

AUGUST 2017<br />

CUBATRADE<br />

1


Arkansas: Outfront on <strong>Cuba</strong> Trade<br />

Arkansas is leading the U.S. in economic and agricultural collaboration with <strong>Cuba</strong>. And because<br />

Arkansas is the nation’s number one producer of rice as well as a national leader in poultry, we’re<br />

a natural for sprinting to the front of the pack when it comes to food-source trade with <strong>Cuba</strong>.<br />

In Arkansas, we’re proud to help our neighbors to the south by sharing our resources and our<br />

expertise — which in the end will help both economies to grow and prosper.<br />

Arkansas’<br />

Business<br />

Climate is Like<br />

No Other.<br />

With a booming economy that includes<br />

six homegrown Fortune 500 companies<br />

and a growing number of global<br />

business success stories, there’s more<br />

to Arkansas than meets the eye. Visit<br />

ArkansasEDC.com to learn how your<br />

business can become part of the scenery.<br />

ArkansasEDC.com | 1-800-ARKANSAS


content 08/2017<br />

UP FRONT<br />

24 WASHINGTON REPORT<br />

Could a US call for grant proposals<br />

support <strong>Cuba</strong>n entrepreneurship and<br />

foster bilateral research?<br />

26 CUBA BRAND<br />

The <strong>Cuba</strong> exhibit at New York’s<br />

American Museum of Natural History<br />

showcases US-<strong>Cuba</strong> collaboration<br />

10 PANORAMA<br />

Deals, events and transactions of note<br />

for trade and investment in <strong>Cuba</strong><br />

14 INDEX<br />

<strong>Cuba</strong>n entrepreneurs have created<br />

a market that exceeds $3 billion<br />

annually<br />

28 REAL ESTATE<br />

Inside <strong>Cuba</strong>'s quest to become a golf<br />

destination<br />

34 ENTREPRENEURS<br />

<strong>Cuba</strong>’s storied bartending tradition<br />

gets a boost from an innovative public-private<br />

partnership<br />

LIFESTYLE<br />

16 IDEAS + INNOVATION<br />

From rare and luxurious <strong>Cuba</strong>n<br />

rum to creating clothes and household<br />

goods from recycled materials<br />

18 INTERVIEW<br />

An interview with Vicki Huddleston,<br />

former head of the U.S. Interests<br />

Section in Havana<br />

DEPARTMENTS<br />

20 LEGAL<br />

Property claims against <strong>Cuba</strong> stand in<br />

the way of completely normal bilateral<br />

relations<br />

22 SANCTIONS<br />

The military has a huge role in the<br />

economy, but some analysts say it’s<br />

much less than originally reported<br />

30 TRAVEL<br />

How Florida-based International<br />

SeaKeepers Society facilitates legal<br />

travel to <strong>Cuba</strong><br />

32 ENVIRONMENT<br />

US and <strong>Cuba</strong>n conservationists are<br />

reintroducing endangered crocodiles to<br />

their natural habitat<br />

76 ART<br />

A South Beach hotel puts on a curated<br />

show of <strong>Cuba</strong>n artists born after the<br />

Revolution<br />

FINAL WORD<br />

80 IN CLOSING<br />

The harm behind Trump's restrictions<br />

on US travel to <strong>Cuba</strong><br />

4 CUBATRADE AUGUST 2017


features<br />

36<br />

Tours and Travel<br />

Your <strong>Cuba</strong> Travel Specialist<br />

36 WHAT NOW FOR U.S. CORPORATIONS?<br />

Trump’s <strong>Cuba</strong> policy directives leave US businesses with<br />

reason to pause. Nonetheless, some are continuting to move<br />

forward—especially those in transportation.<br />

48 HOW TO TRAVEL TO CUBA NOW<br />

Trump's new policies, with the declared intention of ending<br />

individual people-to-people travel, could shake up travel<br />

to <strong>Cuba</strong>. Here's what you should—or should not—worry<br />

about.<br />

48<br />

67 MOBILE: HAVANA'S SISTER CITY<br />

Alabama's port city has a relationship with Havana that<br />

goes back three centuries, right to the port of Havana,<br />

where a statue of Mobile's founder looks homeward.<br />

Today it is one of the largest shippers of US goods to <strong>Cuba</strong>.<br />

ON THE COVER<br />

Pierre Le Moyne, founder of Mobile, in Havana<br />

Photo by Tom Kilroy<br />

6 CUBATRADE AUGUST 2017<br />

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www.cubatoursandtravel.com • customerservice@cubatoursandtravel.com


editors note<br />

The Power of Misinformation<br />

It has been more than a month since President Donald Trump<br />

announced his <strong>Cuba</strong> policy. It will be many more months before<br />

that policy is precisely defined, with specific regulations to be<br />

issued by the U.S. Treasury Department. In the meantime, we are<br />

awash in misinformation.<br />

This is to be expected. The policy itself is based on misinformation.<br />

First, there is the assertion that most of the <strong>Cuba</strong>n economy<br />

is controlled by the military. It is repeated time and again by media<br />

outlets, that the <strong>Cuba</strong>n military “controls most of the <strong>Cuba</strong>n<br />

economy,” as the Miami Herald printed in a July 21 article.<br />

In actuality, as you can read in Nick Swyter’s story (pg. 22)<br />

this month, some analysts challenge that claim. More than one<br />

expert says enterprises controlled by the military only contributed<br />

about 20 percent of the country’s gross income in 2016.<br />

The next bit of misinformation underlying the new policy is<br />

the idea that prohibiting individual person-to-person travel for<br />

Americans will drain money from the military, since the military<br />

controls much of the tourism sector, and that this will also somehow<br />

help the <strong>Cuba</strong>n people.<br />

As Collin Laverty argues in our “In Closing,” stopping this<br />

type of travel will actually take money directly from the growing<br />

entrepreneurial sector that includes bed-and-breakfasts and private<br />

restaurants. Yes, they pay taxes to the government, so cutting<br />

their income reduces state revenue. But that revenue also pays for<br />

basic social services; even here the Trump policy hurts the people.<br />

Then there is the public and corporate misunderstanding of<br />

Trump’s policy, the next wave of misinformation washing ashore.<br />

Many Americans don’t realize, for example, that none of the<br />

current rules for travel have changed, at least not yet. You can still<br />

travel to <strong>Cuba</strong> with relative ease, and can do so until the rules are<br />

written, published, vetted, and signed into law.<br />

“The announced changes do not take effect until the new<br />

regulations are issued,” said a Frequently Asked Questions document<br />

posted July 25 on the U.S. Department of the Treasury’s<br />

Office of Foreign Assets Control (OFAC). It also said those<br />

ammendents are expected to take months.<br />

Julienne Gage’s article (pg. 36) notes there is also trepidation<br />

about moving forward on the corporate side as well, especially<br />

for companies that have yet to establish a presence on the island.<br />

All transactions permitted under Obama, however, are also still<br />

permitted. As OFAC’s latest FAQ sheet says, deals cut before the<br />

new directive will be permitted “provided that those commercial<br />

engagements were in place prior to the issuance of the forthcoming<br />

regulations.”<br />

But, instead of taking advantage of the <strong>Cuba</strong>n opportunity,<br />

much of the public and corporate community instead is reacting<br />

to Trump’s blustery smoke about pulling back.<br />

Doing business in and with <strong>Cuba</strong> is already hard enough<br />

under the weight of the embargo. The added fog of misinformation<br />

only makes it worse.<br />

J.P. Faber. Editor-in-Chief<br />

Publisher<br />

Richard Roffman<br />

Art Director<br />

Jon Braeley<br />

Senior Writer<br />

Doreen Hemlock<br />

Copy Editor<br />

Larry Luxner<br />

Vice President Sales<br />

Sherry Adams<br />

Moore & Company, P.A.<br />

Editor-in-Chief<br />

J.P.Faber<br />

Chairman<br />

Todd W. Hoffman<br />

Director of Operations<br />

Monica Del Carpio-Raucci<br />

Production Manager<br />

Toni Kirkland<br />

Managing Editor<br />

Julienne Gage<br />

Associate Editor<br />

Nick Swyter<br />

Writers<br />

Ted A. Henken<br />

Suzette Laboy<br />

Victoria Mckenzie<br />

Emilio Morales<br />

Ana Radelat<br />

Photographers<br />

David Ramos Casin<br />

Matias J. Ocner<br />

Tom Kilroy<br />

Mario Luis Reyes<br />

Thos Robinson<br />

Manager, New Business<br />

Development<br />

Magguie Marina<br />

Aviation Consultant<br />

Lauren Stover<br />

Maritime • Art • Aviation Law<br />

<strong>Cuba</strong> Trade Magazine (ISSN 2573-332X) is published each month by Third Circle<br />

Publishing, LLC, at 2 S. Biscayne Blvd., Suite 2450, Miami, FL USA 33131.<br />

Telephone: (786) 206.8254. Copyright 2017 by Third Circle Publishing LLC. All<br />

rights reserved. Reproduction in whole or part of any text, photograph or illustration<br />

without prior written permission from the publisher is strictly prohibited.<br />

8 CUBATRADE AUGUST 2017<br />

Postmaster: Send address changes to Third Circle Publishing, LLC, 2 S. Biscayne<br />

Blvd., Suite 2450, Miami, FL USA 33131. Subscription information domestic and<br />

foreign (786) 206.8254. Send general mailbox email and letters to the editor to info@<br />

cubatrademag.com. BPA International Membership applied for December 2016.<br />

<strong>Cuba</strong>trademagazine.com Thirdcirclepublishing.com<br />

www.moore-and-co.com


panorama<br />

Deals, events<br />

and transactions<br />

of note for trade<br />

and investment<br />

in <strong>Cuba</strong><br />

Farming frustrations<br />

More than half of <strong>Cuba</strong>’s arable land is<br />

still unused nearly a decade after President<br />

Raúl Castro vowed to revamp the country’s<br />

agriculture sector, according to a government<br />

report. The report also said food production<br />

has only improved slightly from<br />

last year. Castro’s reforms have put more<br />

than 30 percent of the country’s farmland<br />

in the hands of private farmers who lease it<br />

from the state, <strong>Cuba</strong>n officials said. <strong>Cuba</strong><br />

imports 75 to 80 percent of its food.<br />

Recession recovery<br />

<strong>Cuba</strong> recovered from its economic recession<br />

in the first half of this year, according<br />

to data released during a National Assembly<br />

committee meeting. The news comes<br />

after the <strong>Cuba</strong>n economy contracted by<br />

0.9 percent in 2016—the country’s first recession<br />

in 23 years. In December, the <strong>Cuba</strong>n<br />

government said it expects the GDP<br />

to grow by 2 percent in 2017, though most<br />

economists say that target is unlikely.<br />

<strong>Cuba</strong> not included in annual terror<br />

review<br />

The State Department’s 2016 review of terrorist<br />

threats around the world only mentions<br />

<strong>Cuba</strong> once, in reference to <strong>Cuba</strong>ns<br />

attempting to transit to the U.S. through<br />

Colombia. After spending 33 years on the<br />

state sponsor of terrorism list, <strong>Cuba</strong> was taken<br />

off the list in 2015. At the unveiling of his<br />

10 CUBATRADE AUGUST 2017<br />

Farming frustrations: More than half of <strong>Cuba</strong>’s arable land is still unused<br />

new <strong>Cuba</strong> policy, President Donald Trump<br />

did not mention whether his administration<br />

will place the island back on that list.<br />

Trade finances go from bad to worse<br />

Cash-strapped and import-dependent <strong>Cuba</strong><br />

is struggling to obtain trade credits because<br />

of late payments to suppliers, according to<br />

Economy Minister Ricardo Cabrisas. He<br />

said export revenues through June were<br />

short of expectations by $400 million. He<br />

also said imports in 2017 will be $1.5 billion<br />

less than planned. By May, <strong>Cuba</strong> only managed<br />

to finance about 41 percent of its imports<br />

through commercial credits—a huge<br />

drop from last year’s 85 percent.<br />

Colombia makes moves<br />

Colombian President Juan Manuel Santos<br />

and <strong>Cuba</strong>n President Raúl Castro vowed<br />

to expand bilateral trade during a meeting<br />

in Havana. The two leaders also discussed<br />

building multi-destination tourism packages<br />

between Bogota and Havana. Santos<br />

inaugurated the <strong>Cuba</strong>-Colombia Business<br />

Forum, where he discussed the country’s<br />

interest in investing in <strong>Cuba</strong>.<br />

A change of leadership<br />

Jeffrey DeLaurentis, who served as the U.S.<br />

Embassy’s top diplomat in <strong>Cuba</strong>, left Havana<br />

after completing his three-year mission.<br />

Scott Hamilton, deputy chief of mission in<br />

Havana for the last two years, was named<br />

interim Charge d’Affaires. Hamilton did<br />

not comment on DeLaurentis’ next post<br />

or if the Trump administration intends to<br />

nominate a formal ambassador to <strong>Cuba</strong>.<br />

New post for top US negotiator<br />

Josefina Vidal, the outgoing Director General<br />

of the U.S. Division of the Ministry of<br />

Foreign Affairs, was sworn in as ambassador<br />

to Canada. Officials said Vidal’s deputy<br />

Gustavo Machin will become ambassador<br />

to Spain. The <strong>Cuba</strong>n government has not<br />

said who will take their places.<br />

Pedaling back on self-employment<br />

The <strong>Cuba</strong>n government suspended the issuance<br />

of new private sector permits for<br />

activities related to bed-and-breakfasts,<br />

restaurants, tailoring, party planning, and<br />

computer programming, among others.<br />

The government also announced it will no<br />

longer issue new licenses for wholesale and<br />

retail agriculture vendors, CD and DVD<br />

sellers, and recreation equipment operators.<br />

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The government says it will continue issuing<br />

permits once “self-employed work is<br />

perfected,” which may include measures<br />

to curb tax evasion and the accumulation<br />

of private wealth.<br />

One of Venezuela’s few remaining friends<br />

The <strong>Cuba</strong>n government accused Washington<br />

of orchestrating an international operation<br />

to delegitimize a Venezuelan election<br />

that created a new legislative superbody<br />

that answers to President Nicolás Maduro.<br />

Countries across the Americas and Europe<br />

denounced the July 30 election, which gives<br />

Maduro power to rewrite the constitution.<br />

Business as usual for another six months<br />

The Trump administration suspended<br />

a provision of the trade embargo that<br />

lets Americans use U.S. courts to sue<br />

non-American companies that use land<br />

and property stolen during the <strong>Cuba</strong>n Revolution.<br />

That provision of the Helms-Burton<br />

Act must be repeatedly suspended every<br />

six months.<br />

On track for a record year in tourism<br />

<strong>Cuba</strong>n Tourism Minister Manuel Marrero<br />

Cruz said he projects tourist arrivals<br />

in <strong>Cuba</strong> to reach 4.7 million in 2017—up<br />

from just over 4 million tourists in 2016.<br />

Marrero said about 2.7 million tourists visited<br />

<strong>Cuba</strong> in the first half of this year, producing<br />

more than $1.5 billion in tourism<br />

revenue. Factors influencing the increase<br />

are the recovery of the Canadian market,<br />

loosened U.S. travel restrictions, and increased<br />

flights from Europe.<br />

Oil woes continue<br />

Venezuelan oil and fuel deliveries to <strong>Cuba</strong><br />

have decreased by almost 13 percent in the<br />

first half of this year, according to documents<br />

belonging to Venezuela’s state-run oil monopoly<br />

that were viewed by Reuters. <strong>Cuba</strong><br />

has responded to declining oil deliveries by<br />

12 CUBATRADE AUGUST 2017<br />

rationing energy and seeking higher-priced<br />

oil from other producers, including Russia.<br />

Minnesota presses on<br />

Minnesota will continue its efforts to sell<br />

food to <strong>Cuba</strong> despite Trump announcing<br />

tighter restrictions on trade with the island,<br />

Lt. Gov. Tina Smith told Reuters. The<br />

comments came shortly after Smith visited<br />

the island with a business delegation. The<br />

state sees food sales to <strong>Cuba</strong> as a prime opportunity<br />

to bolster its agricultural sector<br />

during a period of low crop prices.<br />

Housing shortage<br />

At the end of 2016, <strong>Cuba</strong> recorded a deficit<br />

of more than 880,000 homes needed to<br />

adequately house its population of 11 million<br />

inhabitants. There are about 3.8 million<br />

homes across the island. Deteriorated<br />

buildings, depleted housing funds, and<br />

overpopulation in urban areas are among<br />

the main causes of the housing shortage,<br />

said a Construction Ministry official.<br />

Entrepreneurs go to Washington<br />

A group of eight <strong>Cuba</strong>n entrepreneurs sent<br />

a letter to the Trump administration urging<br />

it to support policies that strengthen the<br />

country’s burgeoning private sector. The<br />

letter’s policy recommendations include<br />

continuing individual people-to-people<br />

travel, not limiting remittances, and loosening<br />

restrictions on <strong>Cuba</strong>ns using bank<br />

accounts in the U.S.<br />

Mining outlook<br />

<strong>Cuba</strong> intends to produce nearly 55,000<br />

tons of nickel and cobalt sulfides this year,<br />

according to state media. That’s a slight<br />

drop from last year. <strong>Cuba</strong> is ranked 10th in<br />

the world in nickel production and sixth in<br />

cobalt, but declining global prices and productivity<br />

have slowed the country’s output<br />

in recent years. A new $278 million lead<br />

and zinc mine in northwestern <strong>Cuba</strong> is<br />

scheduled to open in October. It’s expected<br />

to produce 100,000 tons of zinc concentrate<br />

and 50,000 tons of lead concentrate<br />

annually, executives at the Swiss-<strong>Cuba</strong>n<br />

joint venture told Reuters.<br />

The return of the love shack<br />

The <strong>Cuba</strong>n government announced it will<br />

allow the reopening of some hourly hotels<br />

aimed at helping lovers in an overcrowded<br />

housing market find intimacy. The hotels<br />

were shut down and used as hurricane<br />

shelters in the ‘90s when the <strong>Cuba</strong>n economy<br />

came to a standstill.<br />

Southwest cuts back<br />

Southwest will end its Fort Lauderdale<br />

flights to Santa Clara and Varadero on<br />

Sept. 4. It will not, however, stop flying to<br />

Havana. The airline will continue its twice<br />

daily service from Fort Lauderdale and daily<br />

service from Tampa. The airline applied<br />

with the Department of Transportation for<br />

an additional daily round trip between Fort<br />

Lauderdale and Havana.<br />

Calling Euro interference<br />

The <strong>Cuba</strong>n government applauded the European<br />

Parliament for voting in favor of its<br />

first-ever trade agreement with the island.<br />

However, <strong>Cuba</strong>n officials expressed their<br />

concern over a non-binding clause encouraging<br />

<strong>Cuba</strong> to improve its human rights and<br />

make steps toward democracy. It called the<br />

resolution meddlesome and unnecessary, saying<br />

it hurt the principles of mutual respect<br />

contained in the rest of the document. H<br />

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INDEX<br />

The Emergence of a <strong>Cuba</strong>n ‘Middle Class’<br />

<strong>Cuba</strong>n entrepreneurs have created a market<br />

that exceeds $3 billion annually<br />

Source: Havana Consulting Group based on statistics published by Ministry of Labor and Social Security and other sources.<br />

*CUCs are about equal to USD<br />

** Refers to the total of licenses for house and room rentals, both in CUC and in CUP.<br />

** Refers to the licenses of different businesses involved in beauty salon activities: masseuses, hairdressers, barbers, manicures,<br />

trainers, and makeup artists.<br />

<strong>Cuba</strong>n society is experiencing a transformation<br />

in the economic sphere, initiated<br />

by the domestic policy openings implemented<br />

by President Raúl Castro starting<br />

in 2010, and supported by the changes<br />

in <strong>Cuba</strong> policy implemented by former<br />

President Barack Obama. The result is<br />

<strong>Cuba</strong>n entrepreneurs, despite limitations,<br />

have been able to create a market with an<br />

annual turnover that exceeds $3 billion.<br />

The <strong>Cuba</strong>n private sector has, in fact,<br />

experienced a boom since 2010, with<br />

entrepreneurs developing very successful<br />

and profitable business models. Due to<br />

the number of licenses that are active<br />

and the volume of business they generate,<br />

the most significant businesses are:<br />

privately-owned restaurants, popularly<br />

called paladares ; hostels for renting rooms,<br />

popularly called casas particulares; beauty<br />

salons; cellphone repair shops; footwear<br />

sales and repair; transportation; and<br />

wholesale activities. The last activity was<br />

developed even without being approved<br />

in the government’s list of 201 categories<br />

of self-employment.<br />

Altogether, these industries generate<br />

a volume of business estimated at between<br />

14 CUBATRADE AUGUST 2017<br />

By Emilio Morales<br />

Estimated revenue generated by the private sector in the seven most profitable modes, 2016*<br />

Industries Licenses Estimated annual Estimated annual<br />

minimum revenue (CUC) maximum revenue (CUC)<br />

Wholesale market - 1,500,000,000 2,000,000,000<br />

Restaurants 1,712 369,792,000 693,360,000<br />

Lodging** 35,066 163,676,232 429,926,418<br />

Transport 54,350 215,226,000 286,968,000<br />

Shoes production 7,902 104,094,400 142,580,800<br />

Telecommunications 24,440 96,782,400 129,043,200<br />

Beauty salons*** 17,837 80,222,172 120,185,556<br />

Others 393,693 50,000,000 80,000,000<br />

Total 535,000 2,579,793,204 3,882,063,974<br />

2.5 and 3.8 billion CUC annually (approximately<br />

the same in U.S. dollars).<br />

The private sector now officially<br />

employs 535,000 people, with another<br />

half million operating informally. These<br />

workers receive an average wage ten times<br />

higher than state workers. This significant<br />

jump in income has given rise to new<br />

market segments with divergent levels of<br />

purchasing power and patterns of consumption<br />

different from the rest of the<br />

population.<br />

Two aspects of consumption show<br />

the emergence of what undoubtedly<br />

represents the birth of a middle class on<br />

the island. First, the growth of national<br />

tourism in hotels that charge in dollars,<br />

which in 2016 hosted 991,122 <strong>Cuba</strong>ns.<br />

Second, and travel by <strong>Cuba</strong>ns abroad,<br />

which saw some 671,000 citizens travel<br />

outside the island between January 2013<br />

and December 2016. These trips represented<br />

an estimated expenditure of more<br />

than $1 billion just for air fares. The<br />

performance of both statistics marks an<br />

astonishing break from the past. H<br />

Emilio Morales is CEO of the Havana Consulting<br />

Group<br />

“One of the greatest impediments to doing business in <strong>Cuba</strong><br />

has been the lack of thorough, objective and un-politicized<br />

market intelligence. The THCG Business Report changes<br />

that and provides investors and exporters with the<br />

crucial first blush of data and insight that they need.”<br />

John Price<br />

Managing Director at America’s Market Intelligence<br />

“The Havana Consulting Group Business Report is the most in-depth business<br />

and legal analysis for planning market entry into <strong>Cuba</strong> I have ever seen. The research<br />

is detailed, analytical and directional, with interesting background and<br />

future projections data.”<br />

Tim Grainey, Founder<br />

Strategic Research Initiative LLC, Queen Creek, AZ<br />

“…THCG BUSINESS REPORT, is a full information report on<br />

<strong>Cuba</strong>. Frank, clear, and independent analysis and opinions<br />

based on the most recent information available. Anyone investing<br />

in <strong>Cuba</strong> must read it. Knowledge is the key. ”<br />

Remittances, Tourism, Real estate, Energy, Telecommunications, Retail market, Transportation, Automotive, Manufacturing, Cell phone market, Agriculture,<br />

Sugar industry, Infrastructure, Cruises market, Brands, Legal, Chicken meat market, Private sector, Biotechnology, Nickel, Payment networks,<br />

Care & hygiene products industry, Shoes production, Tobacco, Accommodation, Housing, Logistic, Income population in USD and other topics.<br />

To place your order please contact Monica Raucci at 786-206-8254. Ext 410 or email mraucci@cubatrademag.com<br />

Copyright © 2016 - 2017 All Rights Reserved. THCG & Tech LLC.<br />

Hugo Cuevas-Mohr<br />

President and CEO of Mohr World Consulting<br />

OBTAIN STRATEGIC HIGH VALUE INFORMATION AND BUSINESS INTELLIGENCE ANALYSIS IN:<br />

Annual subscription $5,000 USD. 6 issues per year.<br />

Buy a 2 year subscription to receive a 50% discount.<br />

Includes 84 Market Research.


IDEAS + INNOVATION<br />

THE PRICE OF LUXURY<br />

How much are you willing to pay for <strong>Cuba</strong>n rum that is rare and luxurious?<br />

Executives at Havana Club have been betting that connoisseurs<br />

of the island’s “liquid gold” are ready to pony up more than $1,600 for<br />

a half liter bottle. Dubbed Havana Club Máximo, only 1,000 bottles<br />

of the precious, aged rum are produced each year. Technically, the rum<br />

cannot be marketed in the U.S. But you can snatch a bottle online<br />

through UK’s Whiskey Exchange for £1,235 pounds sterling. As for<br />

the taste, “notes of pear and dried fruit percolate through the drink’s<br />

smoky oak base before melting into a cinnamon finish,” said one review<br />

in London’s The Telegraph.<br />

Your Personal Concierge<br />

Service in <strong>Cuba</strong><br />

WET & WILD<br />

Taking a page from nearby Florida, <strong>Cuba</strong>’s<br />

Tourism Ministry plans to court foreign<br />

investment for theme and water parks in<br />

this year’s Portfolio of Opportunities for<br />

Foreign Investment. According to a XinhuaNet<br />

interview with Reinaldo Daniel<br />

Alonso, the ministry’s director of business<br />

development, some 140 new projects<br />

will be presented in the hospitality sector.<br />

While most of these will be for new hotels<br />

and golf courses, several will seek capital<br />

for amusement parks. Details will be announced<br />

at this year’s Havana International<br />

Fair in November.<br />

Photo by Alexandre Meneghini/Reuters<br />

CHIC RECYCLING<br />

The absence of wholesale stores and a scarcity of raw materials<br />

in <strong>Cuba</strong> has forced many designers to rummage through<br />

trash cans and sidewalks for materials, according to Reuters.<br />

The designers have succeeded in creating clothes, household<br />

goods, and stylish appliances out of the recycled materials<br />

they gather. One entrepreneur said he uses leftover carpentry<br />

scraps and the frames of discarded windows and doors<br />

to make bases for his lamps. Another entrepreneur said she<br />

makes bags out of old trousers, while the backs of shirts are<br />

used to make patchwork quilts.<br />

A dedicated service guaranteed to make your travel to <strong>Cuba</strong> effortless<br />

whether for business or pleasure, Bespoke has been in the travel business<br />

solely to <strong>Cuba</strong> for 10 years.<br />

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• Individually curated itineraries for each and every traveller<br />

Please contact us for all your <strong>Cuba</strong> travel needs: 212-352-8012<br />

Bespoke Custom <strong>Cuba</strong> Travel<br />

16 CUBATRADE AUGUST 2017<br />

41 Union Square West #725 • New York, NY 10003


INTERVIEW<br />

An interview with<br />

Vicki Huddleston,<br />

former head of the U.S.<br />

Interests Section in Havana<br />

Years before the U.S. and <strong>Cuba</strong> reopened embassies in<br />

Washington, D.C. and Havana, both countries maintained<br />

communication channels through interests sections.<br />

Vicki Huddleston, a former ambassador to Madagascar<br />

and Mali, served as the head of the U.S. Interests<br />

Section from 2000 to 2002. Currently, she is writing a<br />

book titled “Our Woman in Havana” describing her time<br />

on the island. Here are excerpts from our interview.<br />

(AP Photo/Jose Goitia)<br />

By Nick Swyter<br />

Back in the Day: Huddleston holds a short wave receiver during an interview at her residence in Havana on May 7, 2002<br />

How did <strong>Cuba</strong> and the <strong>Cuba</strong>n government<br />

receive you while you were the head<br />

of the U.S. interests section?<br />

When I arrived in <strong>Cuba</strong>, I thought the<br />

<strong>Cuba</strong>n government would be pleased I<br />

had the title of ambassador. I was also a<br />

woman. Fidel Castro is known to like to<br />

deal with women. And Bill Clinton was in<br />

the process of attempting for the second<br />

time an opening with <strong>Cuba</strong>. So I thought<br />

all these were great signs.<br />

Well it turned out the <strong>Cuba</strong>ns didn’t<br />

think so. The last head of the interests section<br />

for the <strong>Cuba</strong>ns in Washington, D.C.,<br />

didn’t care for me and he reported back to<br />

the <strong>Cuba</strong>ns that I was really a hardliner.<br />

One of the first things that happened<br />

was that Governor [George] Ryan of<br />

Illinois decided to bring a delegation to<br />

<strong>Cuba</strong>. He was the first governor of a U.S.<br />

state to visit <strong>Cuba</strong> since the Revolution,<br />

so the <strong>Cuba</strong>ns were very pleased. They<br />

treated him almost as if he were a head<br />

of state. I had arranged for him to meet<br />

with other ambassadors and to meet with<br />

human rights activists. Well, after meeting<br />

with the human rights activists he told the<br />

waiting press corps that he thought the<br />

problem with <strong>Cuba</strong> was Castro.<br />

Castro was furious. Ryan had to deny<br />

that he said it, so that he could still have<br />

his dinner with Castro. But Castro was<br />

especially annoyed with me. So as soon<br />

as Ryan left, Castro went on TV and he<br />

proceeded to denounce me. That was the<br />

beginning of my relationship with Fidel.<br />

Did your relationship ever change?<br />

It changed quite radically with the advent<br />

of little Elian Gonzalez, the child found<br />

floating in the Florida Straits. The <strong>Cuba</strong>ns<br />

had to deal with us. They appreciated<br />

that I was trying to help them obtain the<br />

return of the child, and our relationship<br />

improved exponentially. [chuckles.] Then I<br />

would do something that he disapproved<br />

of, and suddenly the relationship would be<br />

off again.<br />

For example, I began handing<br />

out little AM/FM shortwave portable<br />

radios in transparent plastic bags with a<br />

little pamphlet with the sayings of José<br />

Martí. At first the government didn’t say<br />

anything when I handed them out [in<br />

Havana]. But then I began to hand them<br />

out all over the island. And Fidel was<br />

furious. He claimed the radios were tuned<br />

to Radio Martí so we could get around the<br />

jamming. He held a tribunal abierta across<br />

the river in Alamar of about 20,000 people<br />

to denounce my activities and those of<br />

the interests section. The ‘nest of spies’ he<br />

called us.<br />

What was the impact of tough talk on<br />

<strong>Cuba</strong> from Miami on your diplomatic<br />

efforts?<br />

It was essentially an enormous fight between<br />

Fidel Castro and the diaspora. He<br />

hears them, but he scorns them. He was<br />

determined to win this battle.<br />

So, he had all these enormous<br />

marches. Six in a six-month period. He<br />

called them “million man marches,” but<br />

they ran to 200 to 300 thousand people<br />

marching down the bay past the interests<br />

section. He turned the country into<br />

a theater, in which the <strong>Cuba</strong>n people<br />

were the actors and he was the director.<br />

And of course, Miami, led by Jorge Mas<br />

Santos of the <strong>Cuba</strong>n American National<br />

Foundation, had their own show and<br />

their own marches. It had to have been<br />

the most epic clash between <strong>Cuba</strong> and<br />

the United States with perhaps only the<br />

Bay of Pigs and the Missile Crisis—<br />

which was more between the US and the<br />

Soviets—equal to the emotion and vitriol<br />

it involved.<br />

What impact does Trump’s approach<br />

have on the Obama-era normalization?<br />

Can bilateral ties still exist even if there<br />

is animosity from the executive branch?<br />

Definitely. There will continue to be<br />

an embassy. There will continue to be a<br />

Charge d’Affaires. We will continue to<br />

have diplomatic relations. And we still<br />

have the 23-plus bilateral agreements<br />

that improve our cooperation with<br />

<strong>Cuba</strong> on issues that are vital to both<br />

countries.<br />

What I think is the most disappointing<br />

and destructive element of the Trump<br />

rollback is that it rolls back the Obama<br />

opening. It means there isn’t going to<br />

be any further progress in establishing a<br />

normal, respectful relationship with <strong>Cuba</strong>.<br />

And that’s very sad, because this country<br />

is 90 miles away from us. It’s in our interests<br />

for all sorts of reasons, from political<br />

to security to militaristic.<br />

Trump said the purpose of his policy<br />

is to weaken the <strong>Cuba</strong>n military. Is the<br />

U.S. entrenched enough to really make a<br />

significant enough impact on weakening<br />

the military?<br />

No. That’s ridiculous. I mean, he could<br />

have said for human rights, and he<br />

did to some degree, but it’s really hard<br />

to justify human rights when you just<br />

come back from Saudi Arabia and you<br />

have lovely things to say about [Filipino<br />

President] Duterte and [Egyptian President]<br />

Al-Sisi. So, we can hardly say that<br />

<strong>Cuba</strong>’s human rights is the reason for the<br />

rollback. The military isn't going to stop<br />

running the tourist sector because we<br />

forbid dealing with them. The military<br />

took over the agriculture and the tourism<br />

sector when <strong>Cuba</strong> was on its knees<br />

during the special period. Their relatively<br />

effective management of those sectors<br />

allowed <strong>Cuba</strong> to survive and develop<br />

<strong>Cuba</strong>n tourism as we know it today.<br />

There’s a lot of talk about Russia and<br />

China moving deeper into <strong>Cuba</strong>’s<br />

economy and military. Does the Trump<br />

administration’s move nudge them<br />

towards that?<br />

Yeah, I think it nudges them. It was clear<br />

they were already very interested. The<br />

Russians signed an agreement between<br />

the militaries last year. The Chinese are<br />

putting in a significant amount of investment.<br />

It’s not anything new, but I think it<br />

will add a little ‘oomph’ to it.<br />

Is there anything else you would like to say?<br />

I keep wondering what can one say that<br />

will persuade the Trump administration<br />

or conservative <strong>Cuba</strong>n-Americans that it<br />

doesn’t help to keep repeating a failed policy.<br />

I just can’t see any logic to it. If we want<br />

to see change in <strong>Cuba</strong>, it must be through<br />

a different policy that allows communication,<br />

transportation, the ability to talk to<br />

the country’s leaders, and to work together<br />

on issues of mutual interest. H<br />

18 CUBATRADE AUGUST 2017<br />

AUGUST 2017 CUBATRADE<br />

19


LEGAL<br />

Much of the obstruction comes<br />

from the U.S. government...<br />

Pennsylvania lawyer Hayes Hunt<br />

WE GROW TRADE ®<br />

CELEBRATING 10 YEARS OF TAKING THE BEST OF ARKANSAS TO THE WORLD<br />

Attorney Hayes Hunt: The U.S. government<br />

is shielding companies<br />

SEEKING A<br />

SETTLEMENT<br />

Property claims against<br />

<strong>Cuba</strong> stand in the way of<br />

completely normal bilateral<br />

relations. One path<br />

to resolution: Suing the<br />

US government<br />

20 CUBATRADE AUGUST 2017<br />

By Ana Radelat<br />

In addition to the countless hurdles that<br />

stand in the way of total U.S. rapprochement<br />

with <strong>Cuba</strong> lies the minefield of millions<br />

of dollars in civil judgments in U.S.<br />

courts against the <strong>Cuba</strong>n government.<br />

The case of Rafael Del Pino is one of<br />

them.<br />

Pennsylvania lawyer Hayes Hunt is<br />

trying to secure a $235 million judgment<br />

awarded in 2008 by a Dade County, Fla.,<br />

court to Del Pino’s children, who said<br />

Fidel Castro tortured and murdered their<br />

father. To try to satisfy that judgment—<br />

which has accrued interest and is now<br />

worth about half a billion dollars—Hunt<br />

has sued the federal government to ferret<br />

out information about U.S. companies<br />

that do business with <strong>Cuba</strong>. He hopes to<br />

garnish payments the <strong>Cuba</strong>n government<br />

receives from those transactions.<br />

Lawsuits like Del Pino’s were allowed<br />

after Congress amended the Foreign Sovereign<br />

Immunities Act to allow civil suits<br />

by U.S. victims of terrorism against certain<br />

countries supporting terrorism. But legal<br />

experts give Hunt’s efforts long odds.<br />

Other claims against the <strong>Cuba</strong>n government<br />

have been satisfied—but that was<br />

years ago, when the U.S. government had<br />

about $200 million in frozen <strong>Cuba</strong>n assets<br />

at its disposal.<br />

That money was used to partially<br />

satisfy the families of those killed when<br />

<strong>Cuba</strong>n aircraft shot down two Brothers<br />

to the Rescue planes in 1996. The pilots’<br />

families had been awarded $188 million in<br />

damages. Frozen funds were also used to<br />

pay $87 million to the daughter of a CIA<br />

pilot shot down over <strong>Cuba</strong> during the<br />

1961 Bay of Pigs invasion.<br />

“That pot is now dry,” said Richard<br />

Feinberg, former senior director of the<br />

National Security Council’s Office of<br />

Inter-American Affairs.<br />

And as for other bank accounts to go<br />

after, Hunt says <strong>Cuba</strong> now “systematically”<br />

Continued on page 35<br />

RICE<br />

TIMBER<br />

POULTRY<br />

SOY


SANCTIONS<br />

How big is the<br />

military footprint?<br />

The military has a huge role in the economy, but some<br />

analysts say it’s much less than originally reported<br />

By Nick Swyter<br />

Photos by Jon Braeley<br />

Owned by the military: La Floridita Bar & Restaurant (left), the Manzana de Gomez shopping center (middle), and Kempinski's Gran Hotel Manzana<br />

....Revenue from GAESA and Interior Ministry<br />

(which oversees the police) entities constituted<br />

about one fifth of <strong>Cuba</strong>’s gross income in 2016<br />

Havana Consulting Group<br />

<strong>Cuba</strong>n entities controlled by the military<br />

are in the spotlight for all the wrong reasons.<br />

President Donald Trump’s prohibition<br />

on conducting transactions with those<br />

companies will likely reveal new information<br />

on the military’s participation in the<br />

<strong>Cuba</strong>n economy—a topic that has steered<br />

U.S. policy toward the island for decades.<br />

Trump’s policy intends to weaken the<br />

Revolutionary Armed Forces’ (MINFAR)<br />

massive GAESA conglomerate, whose<br />

holdings include hotels, retail chains,<br />

banks and remittance services, import and<br />

export companies, bars and restaurants,<br />

and construction companies, among others.<br />

GAESA’s expansive portfolio has led<br />

many to ask how entrenched the military<br />

is in the economy.<br />

In the days leading up to Trump’s announcement,<br />

several media outlets including<br />

<strong>Cuba</strong> Trade reported that some <strong>Cuba</strong><br />

experts estimated the military to control up<br />

to 60 percent of the economy. Economic<br />

analyses conducted by the Havana Consulting<br />

Group and Back Channel to <strong>Cuba</strong><br />

author William LeoGrande challenge that<br />

claim. They show revenue from GAESA<br />

and Interior Ministry (which oversees the<br />

police) entities constituted about one fifth<br />

of <strong>Cuba</strong>’s gross income in 2016.<br />

So what’s behind the huge difference?<br />

In June, LeoGrande claimed the 60<br />

percent figure originated from a 2004<br />

Miami Herald report that cited the<br />

USAID-funded <strong>Cuba</strong> Transition Project<br />

conducted by the Institute for <strong>Cuba</strong>n<br />

and <strong>Cuba</strong>n-American Studies (ICCAS).<br />

Outgoing ICCAS director Jaime Suchlicki<br />

confirmed the figure’s origins. “This<br />

is based on the [<strong>Cuba</strong> Transition Project]<br />

analysis of <strong>Cuba</strong>’s government control<br />

of businesses in <strong>Cuba</strong>, including Grupo<br />

Gaesa, the largest military complex in the<br />

island,” he wrote.<br />

One of the major problems with the<br />

60 percent figure, says LeoGrande, is that<br />

ICCAS refers to entities led by current or<br />

former military officers, and not entities<br />

that report to MINFAR. An example of<br />

Suchlicki specifically discussing the participation<br />

by military officers in the economy<br />

appears in a 2007 Harvard International<br />

Review essay he wrote: “Today, more<br />

than 60 percent of major industries and<br />

enterprises are in the hands of current or<br />

former military officers.”<br />

Suchlicki says the findings about<br />

military officers leading industries and<br />

enterprises should be treated as an equivalency<br />

to the armed forces operating 60<br />

percent of the economy.<br />

LeoGrande and Morales disagree,<br />

insisting there is no basis to the claim<br />

that the armed forces control enterprises<br />

and ministries led by active or retired<br />

military officers. “Sometimes the government<br />

decides to put somebody who was<br />

working in the army into a civil company.<br />

That doesn’t mean it belongs to the army,”<br />

Morales said.<br />

The Havana Consulting Group used<br />

a narrower definition of military participation<br />

in the economy to conclude it<br />

contributed less than 21 percent of the<br />

island’s gross income in 2016. Its analysis<br />

used data Morales has collected over the<br />

last 15 years to generate revenue esti-<br />

mates for GAESA and Interior Ministry<br />

entities. Those figures were compared to<br />

estimates for state-controlled and private<br />

entities.<br />

LeoGrande says his analysis, which<br />

used the same definition of military<br />

participation in the economy, produced<br />

similar estimates.<br />

Now, the Trump administration<br />

faces the difficult task of identifying military-controlled<br />

entities. That decision<br />

may have significant impacts on sectors<br />

such as tourism, because GAESA’s<br />

Gaviota tourism wing controls about 40<br />

percent of country’s hotel rooms. And<br />

Tourism Minister Manuel Marrero Cruz<br />

is a former colonel. The military’s participation<br />

in that sector, however—like<br />

others—will vary depending on who is<br />

being asked. H<br />

22 CUBATRADE AUGUST 2017<br />

AUGUST 2017 CUBATRADE<br />

23


WASHINGTON REPORT<br />

Funny<br />

Money?<br />

Could a US call for grant proposals support<br />

<strong>Cuba</strong>n entrepreneurship and foster bilateral<br />

research? Perhaps, say experts.<br />

A boost to the private sector? The U.S. Embassy in <strong>Cuba</strong> offers grants to entrepreneurs<br />

Photo by Matias J. Ocner<br />

Photo by David Ramos Casin<br />

At a time of shrunken international<br />

aid budgets, many a humanitarian and<br />

entrepreneur would be glad to hear that the<br />

U.S. Embassy in some emerging economy<br />

is offering as much as $100,000 for projects<br />

relating to small business development,<br />

environmental protection, and the advancement<br />

of global health. But in <strong>Cuba</strong>n engagement<br />

circles, news of a grant offer for<br />

just that came with some mixed reactions<br />

this summer.<br />

That’s because, while many countries<br />

have experienced some form of pressure<br />

from the U.S. government, <strong>Cuba</strong> is among<br />

those who have felt it the most.<br />

In July, the U.S. Embassy in Havana<br />

announced that U.S. and <strong>Cuba</strong>n individuals<br />

and nongovernmental organizations<br />

have until Aug. 15 to email project proposals<br />

to foster <strong>Cuba</strong>’s burgeoning private<br />

sector. The proposals should focus on<br />

training for “efficiency, creativity, customer<br />

service, and innovation,” according to the<br />

announcement published on the embassy<br />

website.<br />

In addition, it is considering projects<br />

that support agricultural initiatives aimed<br />

at promoting plant and animal health,<br />

“I think if we have cool heads working at the U.S.<br />

Embassy and at State, it behooves everybody to work<br />

with them and to get informed as to the real purpose<br />

of the program."<br />

with special attention to scientific and<br />

environmental concerns, such as the spread<br />

of pathogens. Also eligible are proposals<br />

exploring sustainable fisheries, marine pollution,<br />

endangered marine life, coral resilience,<br />

wildlife conservation, and terrestrial<br />

protected areas. Programs that improve<br />

cooperation on the research and prevention<br />

of diseases such as cancer, diabetes, and the<br />

Zika virus will also be considered.<br />

The grants can’t be used as seed<br />

money, but they can pay for workshops,<br />

academic exchanges, and capacity building<br />

collaborations that promote “exchange<br />

of information, best practices, scientific<br />

collaboration, research, and monitoring,”<br />

By Julienne Gage<br />

Ric Herrero, former executive director of the #<strong>Cuba</strong>Now campaign<br />

confirmed a U.S. Embassy spokesperson in<br />

Havana.<br />

“Some aspects of the program might<br />

be particularly well received,” said Mayte<br />

Pinon, a South Florida-based <strong>Cuba</strong>n<br />

agronomist. “For example, everyone wants<br />

to know how we insert this kind of knowledge<br />

into the globalized market.”<br />

The timing of the grant announcement<br />

appears to be an extension of President<br />

Donald Trump’s June 16 announcement<br />

of policies intended to limit the flow of<br />

money to entities controlled by the <strong>Cuba</strong>n<br />

military and to support the island’s private<br />

sector instead.<br />

It is and it isn’t. The embassy says<br />

the first call for proposals came last year<br />

under former President Barack Obama.<br />

The spokesperson was able to confirm that<br />

the funds were disbursed last year but did<br />

not have immediate information on who<br />

received them and for what projects.<br />

But the embassy spokesperson said<br />

the program aligns with the “priorities<br />

outlined in President Trump’s National<br />

Security Presidential Memorandum on<br />

Strengthening the Policy of the United<br />

States toward <strong>Cuba</strong>.”<br />

The <strong>Cuba</strong>n government did not return<br />

requests for comment on the grant.<br />

“Federal funding of on-the-ground<br />

programs in <strong>Cuba</strong> is highly sensitive,” noted<br />

Ric Herrero, former executive director<br />

of the pro-engagement campaign #<strong>Cuba</strong>Now,<br />

which ran from early 2014 through<br />

November 2016. As such, he believes <strong>Cuba</strong>ns<br />

and Americans who request funding<br />

will likely be under some form of <strong>Cuba</strong>n<br />

government scrutiny.<br />

For decades, U.S. State Department<br />

funding was contentious because programs<br />

like its Human Rights and Democracy<br />

Fund covered the salaries and covert activities<br />

of hardline <strong>Cuba</strong>n exiles. It also paid<br />

to distribute messages aimed at undermining<br />

the leadership of the Castros through<br />

the U.S. Broadcasting Board of Governors’<br />

Miami-based Radio Martí.<br />

In recent years, the State Department’s<br />

United States Agency for International<br />

Development (USAID) made headlines<br />

for several controversial programs<br />

with similar aims. Between 2010 and<br />

2012, USAID ran a covert micro-blogging<br />

platform known as Zunzuneo. On the outside,<br />

it operated much like Twitter, but its<br />

aim was to foment a “<strong>Cuba</strong>n Spring,” much<br />

like the social media-inspired Arab Spring<br />

that led to civilian protests and uprisings<br />

throughout the Middle East during the<br />

same time period.<br />

In 2014, the Associated Press uncovered<br />

a covert USAID program to infiltrate<br />

<strong>Cuba</strong>-based HIV outreach and prevention<br />

Techie Skills Required: Workers repair computer equipment in Havana<br />

programs with Latin American youth<br />

who were to be tasked with identifying<br />

“social change actors.” Run by the Washington-based<br />

international aid program<br />

Creative Associates International (CAI),<br />

the program appears to have begun in<br />

2009. This USAID-funded organization<br />

continued to run it for several years, even<br />

after the December 2009 arrest of U.S.<br />

government contractor Alan Gross, held<br />

in <strong>Cuba</strong> until 2015 for smuggling radios to<br />

the island’s Jewish community. The arrest<br />

prompted U.S. officials to privately encourage<br />

CAI to suspend the program.<br />

The Trump administration has since<br />

proposed slashing USAID and State Department’s<br />

budget all over the world, <strong>Cuba</strong><br />

included, as a way to save money.<br />

“Among the most inefficient USAID<br />

programs were the ones for <strong>Cuba</strong>,” said<br />

Lopez Levy. “The <strong>Cuba</strong> program was out<br />

of any accountability standards. It was a<br />

loose cannon and still is.”<br />

Continued on page 35<br />

24 CUBATRADE AUGUST 2017<br />

AUGUST 2017 CUBATRADE<br />

25


CUBA BRAND<br />

A Way Forward Through Science<br />

Now in its last month, the <strong>Cuba</strong> exhibit at New York’s<br />

American Museum of Natural History is also a display<br />

of cooperation between US and <strong>Cuba</strong>n scientists<br />

Strategic Planning / Public Affairs Consulting<br />

By Victoria Mckenzie<br />

Photo by AMNH/D.Finnin<br />

Leapin' Lizards: Museum attendees examine an exhibit showcasing <strong>Cuba</strong>'s wetlands<br />

It began 125 years ago, when the American<br />

Museum of Natural History sent<br />

ornithologist Henry Chapman in search<br />

of new treasures on the Caribbean’s most<br />

biologically diverse island: <strong>Cuba</strong>.<br />

Ever since that 1892 voyage, AMNH<br />

scientists have continued to work with their<br />

<strong>Cuba</strong>n colleagues in common devotion to<br />

cave bats, lizards, coral reefs, tree frogs, and<br />

other creatures—participating in more than<br />

30 joint expeditions over the last century.<br />

“In the last five years, we had a bit<br />

of a deepening, or a broadening, of the<br />

collaboration,” says Ana Luz Porzecanski,<br />

director of the museum’s Center<br />

for Biodiversity and Conservation, and<br />

co-curator of the <strong>Cuba</strong>! exhibit. The show<br />

is the result of joint field research between<br />

the AMNH and the National Museum of<br />

Natural History in Havana, which began<br />

in 2013 and culminated in the first largescale<br />

expedition to Humboldt Natural<br />

Park, among the most biologically rich<br />

tropical island forests on earth.<br />

“We have built a significant collection<br />

of <strong>Cuba</strong>n specimens here, which means<br />

this is a very valuable place for <strong>Cuba</strong>ns to<br />

26 CUBATRADE AUGUST 2017<br />

come and study,” Porzecanski told <strong>Cuba</strong><br />

Trade. “In addition, it builds personal<br />

relationships between the scientists, which<br />

transcend whatever’s going on in the political<br />

sphere…. They find a way forward.”<br />

<strong>Cuba</strong>! is the museum’s first completely<br />

bilingual show. Since it opened last<br />

November, it has garnered a high level of<br />

interest, particularly from schools with bilingual<br />

programs. For some <strong>Cuba</strong>n-American<br />

visitors, seeing the exhibit has been an<br />

emotional experience, occasionally moving<br />

them to tears. “It brings them back to their<br />

childhoods in <strong>Cuba</strong>,” said Porzecanski.<br />

After passing through Voices of <strong>Cuba</strong>,<br />

large portraits of ordinary <strong>Cuba</strong>ns with<br />

short interview excerpts, the exhibit opens<br />

to a pedestrian boulevard bracketed by<br />

colonial architecture, complete with an<br />

outdoor “cafe” allowing visitors to explore<br />

<strong>Cuba</strong>n cuisine, play dominos, and watch<br />

a film of Havana. Through pillars on each<br />

side, seven rooms feature natural habitats,<br />

wildlife, and cultural traditions.<br />

The habitat rooms are particularly impressive.<br />

Walking through the ecosystems<br />

(caves, forests, coral reefs, and wetlands),<br />

you’re hit by island’s singularity: over half<br />

of <strong>Cuba</strong>’s plant species, 85 percent of its<br />

lizards, and 95 percent of its frogs are endemic<br />

to the island—meaning they cannot<br />

be found anywhere else.<br />

Most of the displays were built from<br />

scratch, but thanks to past collaborations,<br />

there are a few exceptions—such as the<br />

Megalocnus rodens skeleton, a giant sloth discovered<br />

by <strong>Cuba</strong>n and U.S. scientists during<br />

an early expedition. Next to it perches a<br />

newly constructed, realistic, and terrifying<br />

Giant <strong>Cuba</strong>n Owl, which likely “stomped its<br />

prey to death,” said Porzecanski.<br />

On the other side of the promenade,<br />

three rooms offer perspectives on <strong>Cuba</strong>n<br />

culture. One features Santería shrines to<br />

the orishas, another, the inside of a tobacco<br />

drying house, and the third, a display of<br />

contemporary art, including 35 art posters<br />

by young <strong>Cuba</strong>n designers.<br />

For their next step, Porzecanski<br />

and her colleagues hope to replicate<br />

portions of the exhibit to share with the<br />

Natural History Museum in Havana, to<br />

be featured as part of their permanent<br />

collection. H<br />

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REAL ESTATE<br />

Jorge Luis Acosta, director general of Palmares<br />

Taking a cue from its Caribbean neighbors, <strong>Cuba</strong> has ambitious plans to become a<br />

golf destination. Although the island now has just one 18-hole course in Varadero and<br />

a nine-hole one in Havana, it has plans for up to 30 more courses in the next decade or<br />

so—all linked to major tourism developments featuring hotels and vacation homes.<br />

Achieving this goal will take some effort. Major golf projects have been touted for<br />

years, but not yet broken ground. <strong>Cuba</strong> Trade spoke with engineer Jorge Luis Acosta,<br />

director general of state company Palmares, on <strong>Cuba</strong>’s golf plans and why they’re likely<br />

to move forward now. Palmares handles tourism services other than hotels including<br />

restaurants, gift shops, night clubs, and now, massive golf-real estate developments.<br />

ON THE<br />

FAIRWAY<br />

By Doreen Hemlock<br />

Inside <strong>Cuba</strong>'s quest<br />

to become a golf<br />

destination<br />

Photo courtesy <strong>Cuba</strong>n Government<br />

Varadero 18-hole golf course<br />

What is the status of golf projects in<br />

<strong>Cuba</strong>?<br />

We now have 13 real-estate projects with<br />

golf components that have foreign partners<br />

selected for their development. Of<br />

course, there will be other foreign partners<br />

involved too, such as construction companies<br />

and hotel managers.<br />

We plan to have all 13 projects set up<br />

as joint ventures by the end of 2018. So<br />

far, we have three joint ventures established:<br />

Bellomonte, located 20 minutes<br />

from Havana by Playas del Este; Carbonera<br />

in the Havana-Matanzas corridor,<br />

some 26 kilometers [16 miles] from Varadero;<br />

and Punta Colorada, announced<br />

in May at the <strong>Cuba</strong> International Tourism<br />

Fair, which is in the far west of Pinar<br />

del Rio province. We plan to set up eight<br />

more joint ventures this year, and next<br />

year, we’ll have two more to finalize.<br />

The projects we’ve been discussing<br />

haven’t been frozen in time. There’s a<br />

schedule. These 13 projects together run<br />

$14.3 billion. They’re very complicated.<br />

Just their first phase takes us through<br />

2025. Because they’re so complex, negotiations<br />

with foreign partners have been<br />

taking time. And frankly, we <strong>Cuba</strong>ns have<br />

no experience in this type of development,<br />

so we’re on a learning curve.<br />

Today, Bellomonte and Carbonera are<br />

in the pre-investment stage. We’re doing<br />

the feasibility studies.<br />

When will you break ground on those<br />

two projects?<br />

We hope later this year.<br />

Tell me more about the three projects<br />

approved.<br />

The largest is Punta Colorada. It spans<br />

more than 3,000 hectares [more than<br />

7,000 acres] and has seven golf courses.<br />

Just the first phase will require $3 billion<br />

in financing by 2020. Punta Colorada<br />

will revolutionize business for Palmares.<br />

In addition to golf, it will have a marina,<br />

a retail complex, and more than 20,000<br />

residential units. It’s the most ambitious<br />

project we have in the country.<br />

Who is the foreign partner for Punta<br />

Colorada?<br />

A Spanish company called Havana Golf<br />

will handle the golf development. Later,<br />

we will sign contracts for project management,<br />

sales and marketing, hotel management,<br />

marina management and other<br />

aspects of the project. This will be done in<br />

phases over some 25 years.<br />

And where will the $3 billion come from?<br />

Hasn’t funding been a sticking point?<br />

That $3 billion won’t come in one shot. The<br />

joint venture gives <strong>Cuba</strong> 51 percent and<br />

the foreign partner 49 percent ownership.<br />

There’s a timetable for what each partner<br />

gives. For example, <strong>Cuba</strong> now has to<br />

provide millions of dollars worth of surface<br />

rights to the land, and the foreign partner<br />

will give an amount mutually agreed upon<br />

to fund feasibility studies and other costs<br />

for this initial phase.<br />

And where will the rest of the $3 billion<br />

come from? Funding has been a problem<br />

in <strong>Cuba</strong>, even for foreign companies.<br />

One of the most complicated parts in<br />

forming these joint ventures is verifying<br />

the financial and economic capacity of the<br />

foreign partner. For <strong>Cuba</strong> to form a joint<br />

venture, we first do an investigation into<br />

where the foreign partner gets its money and<br />

how solvent the partner is. That’s one of the<br />

reasons that these negotiations take time.<br />

For the golf projects, we’ve also had<br />

to make sure that we can offer the surface<br />

rights to the foreign partner. At Bellomonte,<br />

for example, we paid CUC 72<br />

million [about $72 million] to make sure<br />

the land rights are clean, which involved<br />

helping move companies operating there<br />

and relocating individuals living on those<br />

parcels. The law says that for legal residents<br />

the joint venture must pay to build a<br />

similar home elsewhere.<br />

So, if you’ve verified their creditworthiness,<br />

why haven’t these projects started?<br />

The issue hasn’t been funding. It’s been<br />

negotiations, surface rights, the learning<br />

curve… We’re working on projects for 30<br />

golf courses.<br />

How does the real-estate component of<br />

these golf developments work? What are<br />

the terms for foreigners to buy properties<br />

in <strong>Cuba</strong>?<br />

Recent laws and regulations allow foreigners<br />

to have [leasing] rights for properties<br />

for 99 years, up from 75 years before. The<br />

sale of homes and apartments in these<br />

projects is legal. You become the owner for<br />

99 years. You can sell, exchange, barter and<br />

even inherit that property.<br />

And what happens after 99 years?<br />

You’re the owner in perpetuity.<br />

What do you think will be the prices for<br />

the vacation homes, and who will be the<br />

buyers?<br />

That depends on what the feasibility studies,<br />

and on what the sales and marketing<br />

studies show.<br />

How will <strong>Cuba</strong> differentiate itself from<br />

Mexico, the Dominican Republic, and<br />

other golf destinations?<br />

One differentiator will be nature - our<br />

beaches and national parks.<br />

<strong>Cuba</strong> has no real history of golf, at least<br />

in recent years.<br />

The Capdevila course in Havana is from<br />

1945. It’s the oldest in the country. But<br />

you’re right, golf is new for us. It’s a<br />

revolution. One thing we want for the<br />

future are schools to teach and practice<br />

golf, because golf is not as well known or<br />

as well publicized as baseball, soccer, or<br />

other sports.<br />

So, what’s the biggest challenge to <strong>Cuba</strong><br />

becoming a golf destination?<br />

Speed. We need to work quickly. H<br />

The interview, conducted in Spanish, has<br />

been translated and edited for space and<br />

clarity.<br />

28 CUBATRADE AUGUST 2017<br />

AUGUST 2017 CUBATRADE<br />

29


TRAVEL<br />

Right: Photos of marine life taken by yacht owners<br />

Below: Lawyer Michael T. Moore (left) and Commodore Jose Miguel Díaz<br />

Escrich (right) at the Hemingway Marina in Havana<br />

Smooth Sailing<br />

How Florida-based International<br />

SeaKeepers Society facilitates<br />

legal travel to <strong>Cuba</strong> under the<br />

mantel of ocean conservation<br />

By Julienne Gage<br />

Photos by International<br />

SeaKeepers Society<br />

Marine and aviation lawyer Michael T.<br />

Moore sits at the conference table of his<br />

Coral Gables, Fla., law firm, carefully interpreting<br />

a printout of current regulations<br />

on U.S. travel to <strong>Cuba</strong>, issued by the U.S.<br />

Treasury Department’s Office of Foreign<br />

Assets Control (OFAC).<br />

“If you don’t dig deeply enough, you<br />

won’t understand it. Most people stop<br />

right after the first paragraph,” he says as<br />

he reaches the bottom of the document<br />

and underlines a sentence in the humanitarian<br />

section authorizing U.S. citizens to<br />

go to <strong>Cuba</strong> for “environmental projects”<br />

and “projects involving formal or non-formal<br />

educational training.”<br />

Moore’s 30-year career in maritime<br />

law and his interest in environmental conservation<br />

have made him a leading legal<br />

advisor on yacht travel to <strong>Cuba</strong>. According<br />

to him, President Donald Trump’s new<br />

<strong>Cuba</strong> directive won’t affect this type of<br />

travel. In fact, as chairman of the board of<br />

the International SeaKeepers Society, he<br />

can create a legal passage.<br />

Currently headquartered inside<br />

Moore’s law firm, the International Sea-<br />

Keepers Society is a nonprofit dedicated to<br />

supporting marine science and conservation<br />

by using yachts for maritime research, educational<br />

outreach, and the deployment of<br />

oceanographic instruments. It was founded<br />

in Monaco in 1998 by a half dozen yacht<br />

owners who were concerned with the<br />

impact of pollution and ecological damage<br />

to the waters they sailed. It relocated to<br />

Moore’s Coral Gables office in 2009 when<br />

he became chairman of the organization.<br />

Two years ago, when then President<br />

Barack Obama began relaxing travel<br />

restrictions on <strong>Cuba</strong>, Moore and the Sea-<br />

Keepers team were inundated with calls<br />

from American yachters excited by the<br />

idea of legally sailing into <strong>Cuba</strong>n waters—<br />

under the OFAC permitted categories for<br />

humanitarian reasons, as well as professional<br />

research and the research activities<br />

of private foundations. Like most U.S.<br />

travelers, yachters don’t want to be fined<br />

or jailed for violating the U.S. embargo,<br />

and they also worry about the government<br />

confiscating their yachts.<br />

“We started looking at the law and I<br />

concluded this was perfect for SeaKeepers.<br />

It’s right in our wheelhouse. It’s about<br />

water, marine ecology, and marine environmentalism,”<br />

says Moore. He consulted<br />

with OFAC on a legal framework for<br />

yacht travel to <strong>Cuba</strong>, and concluded that<br />

yachters could comply with the guidelines<br />

by building an appropriate itinerary and<br />

maintaining records of their activities.<br />

At the beginning, the yacht owners<br />

offered to collect data for scientists. They<br />

still do, but today members also lend<br />

their yachts to the researchers themselves.<br />

“Ninety percent of the cost of ocean<br />

research is the research vessel,” explained<br />

SeaKeepers’ president and CEO Richard<br />

Snow. As Moore puts it, “The primary<br />

mission is to give rides to scientists. We<br />

are the Uber of the seas for scientists.”<br />

So, yacht owners, especially those<br />

who were philanthropically minded, began<br />

boarding scientific researchers and equipment<br />

on their vessels. This allowed them<br />

to enjoy an ocean cruise and contribute<br />

to marine conservation at the same time.<br />

And what yachter wouldn’t want that kind<br />

of an experience with <strong>Cuba</strong>?<br />

“(Yachters) will come to us and say,<br />

‘Here’s what we want to do,” and we say,<br />

‘Here’s what you can do that fits into what<br />

you want to do, and the good news is what<br />

we’re proposing is better than what you<br />

wanted to do,’” explains Moore, whose law<br />

firm has facilitated some 230 vessel trips to<br />

<strong>Cuba</strong> for everything from sporting events<br />

and fishing tournaments to university research<br />

projects. Of those, 60 were scientific<br />

expeditions conducted with SeaKeepers.<br />

On the SeaKeepers E3 <strong>Cuba</strong><br />

Experience itinerary, for example, yachters<br />

can dive along <strong>Cuba</strong>’s pristine coral<br />

reefs with U.S. or <strong>Cuba</strong>n scientists, join<br />

a tour of <strong>Cuba</strong>’s historic ports, and dine<br />

in <strong>Cuba</strong>’s up-and-coming restaurants all<br />

while complying with the laws of both<br />

nations. SeaKeepers also encourages them<br />

to use a special research app where they<br />

can upload pictures of unique ecological<br />

findings, or to carry underwater video<br />

cameras to shoot footage for scientists;<br />

one yacht owner is photographing a<br />

one-mile living reef in the Jardines de la<br />

Reina – the Gardens of the Queen – a<br />

reef off <strong>Cuba</strong>'s southern coast. The goal<br />

is to create a baseline to monitor the reef<br />

system's health.<br />

SeaKeepers charges about $1,000<br />

for tailoring a legal itinerary according to<br />

the timeframe and requests of the client,<br />

a drop in the bucket for philanthropists<br />

who are likely to donate much more to<br />

the organization after an inspiring trip.<br />

“Participation in a full-time schedule of<br />

OFAC-approved environmental, educational,<br />

and ecological activities during the<br />

trip is what makes the trip compliant with<br />

U.S. Law,” says Moore.<br />

Collin Laverty, founder and president<br />

of the Washington-based <strong>Cuba</strong> Educational<br />

Travel, seconds that. “It makes sense<br />

if they’re traveling under humanitarian<br />

projects. Where this passes the legitimacy<br />

test is the purpose of travel,” he says.<br />

For the standard general license, yachters<br />

have a maximum of 14 days, including a<br />

day of sailing into and a day of sailing out of<br />

<strong>Cuba</strong>n waters. Longer trips, which require<br />

additional licensing from the Department<br />

of Commerce, are also available. On these<br />

trips, it would be common for academics<br />

and other researchers from around the<br />

world to fly down and meet up with the<br />

yacht crew and then utilize the yacht to<br />

engage in more intensive investigation,<br />

oftentimes with their <strong>Cuba</strong>n counterparts.<br />

Even small research contributions<br />

help raise awareness about preserving the<br />

ecology of the <strong>Cuba</strong>n coastline. American<br />

yacht captain Jonathan Kline, for example,<br />

piloted his vessel for a SeaKeepers excursion.<br />

He started with a trip from Key West<br />

across the Gulf Stream, landing at sunrise<br />

in Marina Hemingway near Havana. He<br />

then carried a biologist to the Bay of Pigs,<br />

where in April 1961, <strong>Cuba</strong>n exiles backed<br />

by the CIA tried to overthrow the newly<br />

formed government of Fidel Castro.<br />

“Our biologist and guests found<br />

some interesting snorkeling spots and<br />

logged their findings,” he said, noting how<br />

they were able to document the lion fish<br />

invasion and deploy a drifter that collects<br />

scientific data about ocean health.<br />

“<strong>Cuba</strong>, is a phenomenal opportunity<br />

because it hasn’t had any demand on their<br />

coral reefs whatsoever. So, their coral reefs<br />

are our coral reefs in 1960, which we love,”<br />

said Richard Snow. SeaKeepers aims to<br />

help keep them that way. H<br />

30 CUBATRADE AUGUST 2017<br />

AUGUST 2017 CUBATRADE<br />

31


ENVIRONMENT<br />

Preserving a<br />

Symbol of<br />

National Identity<br />

US and <strong>Cuba</strong>n conservationists<br />

are reintroducing endangered<br />

crocodiles to their natural habitat<br />

32 CUBATRADE AUGUST 2017<br />

By Nick Swyter<br />

<strong>Cuba</strong>’s Zapata Swamp is a little more<br />

crowded thanks to U.S. and <strong>Cuba</strong>n conservationists<br />

who recently reintroduced<br />

ten critically endangered <strong>Cuba</strong>n crocodiles<br />

to the ecosystem.<br />

The release, which happened on June<br />

8, is promising news for a species whose<br />

wild population has dwindled to about<br />

4,000, according to the International<br />

Union for the Conservation of Nature. It’s<br />

also a win for partnerships between the<br />

Wildlife Conservation Society (WCS)<br />

and various <strong>Cuba</strong>n environmental organizations,<br />

which date back to 1999.<br />

WCS <strong>Cuba</strong> Program Manager<br />

Natalia Rossi says <strong>Cuba</strong>n crocodiles are<br />

particularly important because they only<br />

naturally occur in small sections of <strong>Cuba</strong>’s<br />

Zapata Swamp and Isle of Youth. One of<br />

their main contributions to these ecosystems<br />

are caves they build that become<br />

habitats for fish larvae, shrimp, and small<br />

fauna. As top predators, they also regulate<br />

the populations of other species further<br />

down the food chain.<br />

However, if conservationists don’t find<br />

solutions for ongoing issues, such as illegal<br />

hunting or hybridization with American<br />

crocodiles, their population will continue<br />

to decline.<br />

Rossi says she is grateful to the <strong>Cuba</strong>n<br />

institutions collaborating with WCS on<br />

conservation efforts and research. The<br />

Ministry of Science, Technology, and Environment<br />

oversees all conservation efforts in<br />

Zapata National Park and provides permits<br />

and technical expertise on crocodile research<br />

and monitoring. The Empresa Nacional para<br />

la Protección de la Flora y la Fauna oversees<br />

and provides information on captive and re-<br />

Born to be Wild: A <strong>Cuba</strong>n crocodile is reintroduced to Zapata National Park<br />

introduced <strong>Cuba</strong>n crocodiles. The Fundacion<br />

Antonio Nuñez de la Naturaleza helps WCS<br />

facilitate ground research.<br />

“I continue to be impressed with the<br />

sheer level of talent, capacity, and creativity<br />

in the scientific community, as well the<br />

highly-committed workforce working on<br />

protected areas to manage and conserve—<br />

often times with limited resources—their<br />

outstanding biodiversity,” Rossi said.<br />

The partnership understands that<br />

simply reintroducing <strong>Cuba</strong>n crocodiles<br />

to their natural habitat is not enough.<br />

The new additions to the Zapata Swamp<br />

were released in an area where American<br />

crocodiles do not exist—a move expected<br />

to prevent hybridization. WCS’s recovery<br />

strategy also includes educating a new<br />

generation of ecologists. That’s why the recent<br />

release included a workshop attended<br />

by 30 international experts and 40 <strong>Cuba</strong>ns<br />

who work closely with crocodiles.<br />

That combination of direct action, research,<br />

and educational outreach has been<br />

a consistent theme throughout WCS’s<br />

history in <strong>Cuba</strong>. WCS and its partners<br />

are also involved in protecting raptors in<br />

the inland forests of eastern <strong>Cuba</strong>, as well<br />

as sharks in the underwater Jardines de<br />

la Reina National Park. WCS has also<br />

helped train conservation educators and<br />

decision makers, in addition to developing<br />

comprehensive management plans for the<br />

island’s most important protected areas.<br />

Looking ahead, WCS is preparing<br />

for upcoming projects focusing on support<br />

for Caribbean manatees and sea turtles,<br />

as well as a citizen science monitoring<br />

project for birds and amphibians in the<br />

mountains of central <strong>Cuba</strong>. H<br />

Photo by WCS<br />

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ENTREPRENEURS<br />

Mixology at<br />

the “Club de<br />

Cantina”<br />

<strong>Cuba</strong>’s storied bartending<br />

tradition gets a boost from<br />

an innovative public-private<br />

partnership<br />

Story and photo by Ted A. Henken<br />

Mean Mojitos: Claudia Martínez Romero, 25, graduated from the Club de Cantina bartender school<br />

Seeking a Settlement continued from page 20<br />

moves its monetary assets through the<br />

global financial system “such that they<br />

remain out of reach.”<br />

In fact, the <strong>Cuba</strong>n government has<br />

never defended any of the lawsuits brought<br />

against it, mostly in sympathetic courts in<br />

South Florida. <strong>Cuba</strong> could have claimed<br />

sovereign immunity from these lawsuits,<br />

but resisted because it did not want to<br />

recognize the jurisdiction of a U.S. court.<br />

In an effort to instead sue U.S.<br />

companies doing business with <strong>Cuba</strong>, in<br />

2015 Hunt filed a Freedom of Information<br />

Request to the Justice Department and the<br />

Treasury Department’s Office of Foreign<br />

Assets Control (OFAC), which issues licenses<br />

that let U.S. companies do business<br />

with <strong>Cuba</strong>. He said he’s particularly interested<br />

in information about the U.S. cruise<br />

lines—especially Carnival and Norwegian—that<br />

are now bringing thousands of<br />

Americans to <strong>Cuba</strong>. These companies pay<br />

the <strong>Cuba</strong>n government tens of thousands<br />

of dollars in docking fees every time one of<br />

their ships reaches a <strong>Cuba</strong>n port.<br />

Hunt said his repeated requests for<br />

information have been ignored. So, in<br />

January, he filed a lawsuit in a Pennsylvania<br />

federal court to try to force the release<br />

of information. “Much of the obstruction<br />

comes from the U.S. government,” Hunt<br />

said of his efforts to find <strong>Cuba</strong>n assets.<br />

“They have shielded U.S. companies.”<br />

OFAC did not respond to questions<br />

for this story, but in the past it has refrained<br />

from talking about companies that<br />

have special licenses to conduct business in<br />

<strong>Cuba</strong>, saying it is protected information.<br />

Hunt is also trying to tap $8 billion<br />

in penalties from BNP-Paribas Bank<br />

collected by the federal government after<br />

the bank was found to have violated U.S.<br />

sanctions on Sudan, Iran, and <strong>Cuba</strong>. U.S.<br />

companies with property claims against<br />

<strong>Cuba</strong> are also eyeing that pot of money.<br />

Feinberg says satisfying judgments<br />

like the one in the Del Pino case “are a<br />

long shot,” but that “some of the lawyers<br />

have made a lot of money on these cases.”<br />

Washington-based attorney Robert<br />

Muse said the buildup of civil judgments<br />

against <strong>Cuba</strong>, totaling more than $1 billion,<br />

can “obstruct the full normalization<br />

of relations” between the United States<br />

and <strong>Cuba</strong>. Muse said the U.S. government<br />

should say it’s in the national interest to<br />

vacate all “bogus” judgments against <strong>Cuba</strong>.<br />

But the Obama administration didn’t<br />

take any steps toward this and the Trump<br />

administration isn’t expected to, either.<br />

Meanwhile, controversy surrounds<br />

Del Pino’s story.<br />

Del Pino’s family say he was a friend<br />

of Fidel Castro who became disillusioned<br />

with the revolution and was captured after<br />

being enticed to return to <strong>Cuba</strong> to help<br />

a family member. They say Del Pino was<br />

tortured in captivity until his summary<br />

execution in 1977. But in his book The<br />

<strong>Cuba</strong>n Revolution, Hugh Thomas writes<br />

that Del Pino was an informant for<br />

former <strong>Cuba</strong>n dictator Fulgencio Batista<br />

who returned to <strong>Cuba</strong> to lead an abortive<br />

expedition against Castro, was jailed and<br />

died in prison. H<br />

Cocktails have long been a way of life in<br />

<strong>Cuba</strong>n culture. Lately, with foreign tourism<br />

on the rise, they’ve become a life line<br />

for young <strong>Cuba</strong>ns aspiring to work in one<br />

of the island’s most traditional trades: that<br />

of the cantinero, or bartender.<br />

While the production and distribution<br />

of spirits remains off limits to <strong>Cuba</strong>’s<br />

private sector, mixology is not. Beginning<br />

last year, Havana Club International—a<br />

joint venture between state enterprise<br />

<strong>Cuba</strong> Ron and French multinational<br />

Pernod Ricard—has helped <strong>Cuba</strong>ns<br />

maintain their tradition of fine spirits<br />

and hospitality by co-sponsoring Club de<br />

Cantina, a six-month bartender school, in<br />

conjunction with private entrepreneurship<br />

nonprofit Artecorte.<br />

“It took me out of the world I was<br />

in,” said Yohan Manuel Sibello Hidalgo,<br />

28, an ex-convict from Trinidad and a<br />

recent graduate of Club de Cantina. He’s<br />

one of several dozen young adults to hone<br />

their skills with the program’s volunteer<br />

teachers, all bartenders in Old Havana’s<br />

private restaurants or paladares. Now, said<br />

Sibello, “I’ll be able to work with dignity<br />

in a job I enjoy.”<br />

Founded in 1999 as a nonprofit<br />

community outreach project for youth in<br />

Old Havana’s Santo Angel neighborhood,<br />

Artecorte is a pioneer in a country better<br />

known for its strong central government.<br />

Working alongside Havana’s Office of the<br />

City Historian, a key economic development<br />

agency, it began by training youth in<br />

familiar professions such as hairdressing,<br />

carpentry, and bartending. Today, its collaboration<br />

with public-private entities also<br />

incorporates customer service training.<br />

“We aim to improve living conditions<br />

by incentivizing both individual and collective<br />

neighborhood initiatives, training<br />

young adults in traditional trades and<br />

helping them find employment, promoting<br />

local entrepreneurial solidarity, and<br />

fomenting public-private partnerships,”<br />

explained Gilberto “Papito” Valladares, the<br />

organization’s founder and director.<br />

Artecorte staffer Camilo Condis,<br />

currently a student of nonprofit management<br />

in a U.S. certificate program, said he<br />

hopes to expand the model to the rest of<br />

the island. He said positive engagement<br />

of <strong>Cuba</strong>n entrepreneurs (cuentapropistas)<br />

with the public sector comes down to<br />

“developing our neighborhood in every<br />

way possible.”<br />

Havana Club International, which<br />

markets <strong>Cuba</strong>n rum in <strong>Cuba</strong> and Europe,<br />

uses its name and a portion of its profits<br />

to help its local partner Havana Club S.A.<br />

provide Club de Cantina with student<br />

uniforms, alcohol, and bartending<br />

tools. Artecorte meanwhile provides the<br />

teachers, classrooms, and most of the necessary<br />

non-alcoholic products like juices,<br />

fruits, and ice. No money is exchanged,<br />

but know-how imparted has resulted in<br />

private-sector jobs for most graduates.<br />

Four graduates, for example, just got<br />

jobs as bartenders on the international<br />

routes of Europe’s MSC Cruise Line, the<br />

world’s largest privately-owned cruise line.<br />

Among them is Claudia Martínez Romero,<br />

25, who can’t wait to set sail.<br />

“As a woman, I felt I was at a disadvantage<br />

relative to the men,” she said. “The<br />

fact is that I’d never even made a drink before.<br />

However, I gave it my all and was even<br />

selected as the top graduate of my class!”<br />

On international cruise ships, she’ll<br />

have a competitive edge, because in<br />

addition to her new-found skills in the art<br />

of mean mojito making, she is fluent in<br />

English and French. “Our horizons have<br />

literally expanded,” she said. H<br />

Funny Money continued from page 27<br />

All of these programs happened<br />

during the same Obama administration<br />

that made the largest strides in normalizing<br />

relations with the <strong>Cuba</strong>n government. But<br />

<strong>Cuba</strong>n entrepreneurship was also something<br />

Obama promoted during his tenure.<br />

“A central tenant of Obama policy<br />

was always to help the <strong>Cuba</strong>n people<br />

increase the flow of contacts, resources,<br />

and opportunities for the burgeoning<br />

private sector in <strong>Cuba</strong>,” Herrero said.<br />

“What the Obama policy did not do was<br />

lift the embargo. Only Congress can do<br />

that since it’s codified into law under the<br />

Helms-Burton Act.”<br />

Frank Calzón, executive director<br />

of Center for a Free <strong>Cuba</strong>, says that it<br />

remains to be seen if this grant program<br />

violates the Helms-Burton Act, since the<br />

law does not authorize U.S. funds for<br />

small businesses in <strong>Cuba</strong>.<br />

“I do not have any problem with<br />

any American government initiative that<br />

is carried out according to the law. The<br />

problem is that during the last administration,<br />

a lot of stuff was done in a way to get<br />

around the law,” said Calzón, adding that<br />

time will tell if this grant is one of them.<br />

While Calzón said he works pro-bono,<br />

and has not received USAID funding for<br />

eight years, he did say he receives “a small<br />

amount” of operational support from the<br />

federally funded National Endowment for<br />

Democracy (NED). The last NED annual<br />

report is from 2015, and shows the Center<br />

for a Free <strong>Cuba</strong> had received $107,000.)<br />

Within the pro-engagement camp,<br />

the general consensus is that U.S. citizens<br />

and <strong>Cuba</strong>ns interested in accepting the<br />

funds should proceed with caution. They<br />

say the <strong>Cuba</strong>n government won’t likely<br />

intervene unless it appears a program is<br />

focused on regime change.<br />

<strong>Cuba</strong>n émigré Arturo Lopez Levy, a<br />

lecturer at University of Texas-Rio<br />

Grande Valley, says this grant seems to be<br />

more upfront, and therefore may be seen<br />

more favorably by <strong>Cuba</strong>n authorities.<br />

“I think the <strong>Cuba</strong>n government will<br />

decide on a case-by-case basis because<br />

most of these programs are already infiltrated<br />

or run with great incompetence,”<br />

said Lopez Levy, who worked as a political<br />

analyst for the <strong>Cuba</strong>n government<br />

from 1992 to 1994. “They won’t arrest you<br />

for just one thing. They’ll wait to have a<br />

good case against you.”<br />

But hardliners such as Jaime Suchlicki,<br />

the outgoing director of The Institute<br />

of <strong>Cuba</strong>n and <strong>Cuba</strong>n-American Studies,<br />

still believe that the covert style was<br />

better. “Not only that, some of the people<br />

that could apply would be government<br />

officials,” he added.<br />

At least on that latter point, the far<br />

more progressive Lopez Levy agrees with<br />

Suchlicki. “This is asymmetric political<br />

warfare. The <strong>Cuba</strong>n government has always<br />

said guerrillas get their weapons from<br />

their enemies’ arsenal,” Lopez Levy said.<br />

“I think if we have cool heads working<br />

at the U.S. Embassy and at State, it<br />

behooves everybody to work with them<br />

and to get informed as to the real purpose<br />

of the program,” said Herrero, noting that<br />

diplomacy grants like the ones currently<br />

offered in <strong>Cuba</strong> are bipartisan, and have<br />

been offered in many countries. <strong>Cuba</strong>, he<br />

notes, is simply more contentious.<br />

“Ultimately if you want to help the<br />

private sector in <strong>Cuba</strong>, the best thing to<br />

do to is further open our private sector to<br />

them and get our government bureaucrats<br />

out of the way,” Herrero said. H<br />

34 CUBATRADE AUGUST 2017<br />

AUGUST 2017 CUBATRADE<br />

35


WHAT NOW FOR<br />

U.S. CORPORATIONS?<br />

Trump’s <strong>Cuba</strong> policy directives leave<br />

U.S. businesses with reason to pause<br />

Corporate Cruising: Many U.S. Companies want to continue engagement<br />

By Julienne Gage<br />

Photo by Carnival Corp.<br />

A<br />

year ago this time, a myriad of U.S. businesses were rushing<br />

to be the first in their respective industries to pen deals<br />

with <strong>Cuba</strong>. With then President Barack Obama loosening<br />

the U.S. embargo toward <strong>Cuba</strong>, it appeared trade would soon be<br />

flowing between the two countries. Then, a surprising November<br />

victory by Republican presidential candidate Donald Trump<br />

threw those plans into uncertainty. Trump, who originally said<br />

he was “fine” with Obama’s détente, vowed to roll it back, and for<br />

more than half a year the U.S. business community awaited word<br />

of what that meant.<br />

In June, Trump began to define his <strong>Cuba</strong> policy, announcing<br />

he would prohibit U.S. businesses from doing deals with entities<br />

controlled by the <strong>Cuba</strong>n military, as well as forbid U.S. travelers<br />

from visiting <strong>Cuba</strong> on self-directed people-to-people trips. The<br />

months between Trump’s announcement and the final publication<br />

of corresponding regulations are still cause for uncertainty—<br />

but experts say there could still be some silver linings.<br />

Many sectors of interest to American corporations such as<br />

biopharmaceuticals, agriculture, and joint ventures in mining and<br />

manufacturing, do not appear to be under military control, so<br />

they should not be affected. U.S. transportation companies, i.e.<br />

airlines and cruise lines, will be allowed to continue. According to<br />

a frequently asked questions document published July 25 on the<br />

website of the U.S. Treasury Department's Office of Foreign Assets<br />

Control (OFAC), business deals will be permitted "provided<br />

that those commercial engagements were in place prior to the<br />

issuance of the forthcoming regulations."<br />

Trump also made no mention of about two dozen bilateral<br />

agreements signed since late December 2014 when Obama initially<br />

began the détente. Those include points of common interest<br />

such as border security and drug trafficking, as well as scientific,<br />

educational, and recreational exchanges.<br />

And, because it will take at least 120 days to publish the new<br />

regulations, there is also ample opportunity for U.S. businesses to<br />

lobby for a less severe articulation of the rules.<br />

“We continue to talk with the government and give them<br />

examples of the type of opportunities that exist for US manufacturers<br />

and job growth in the United States by improving the<br />

relationship,” explained Alexander Russ, director of International<br />

and Regulatory Affairs at the Association of Equipment Manufacturers<br />

in Washington.<br />

Nonetheless, Trump’s announcement has created anxiety in<br />

some U.S. businesses worried about inadvertently engaging in<br />

illegal transactions with <strong>Cuba</strong>’s armed forces, which some media<br />

suggested could control as much as 60 percent of the <strong>Cuba</strong>n<br />

economy. Some economists, such as Emilio Morales of the Havana<br />

Consulting Group, put that number at closer to 20 percent.<br />

Regardless, it will take many months for the U.S. State Department<br />

to come up with a list of just who or what is off limits.<br />

“He [Trump] has not defined the word military. How expansive<br />

that definition is will have a great effect on whether this will<br />

severely curtail business or be limited,” said Jason Marczak, director<br />

of the Latin America Economic Growth Initiative at the Atlantic<br />

Council’s Adrienne Arsht Latin American Center in Washington.<br />

On the one hand, Marczak says it’s important to publish the<br />

new regulations as quickly as possible, as “businesses are in limbo<br />

until they publish them.” On the other hand, he agrees with Russ<br />

that lobbying is of the essence. “Our focus right now is how we<br />

can influence the regulatory process,” he said.<br />

THE CORPORATE LINE<br />

As far as public statements go, the business community remains<br />

adamant in their support for continued expansion of commerce<br />

36 CUBATRADE AUGUST 2017


Alexander Russ, Director of International and Regulatory Affairs, Association<br />

of Equipment Manufacturers in Washington<br />

Myron Brilliant, Executive Vice President and Head of International,<br />

Affairs at the U.S. Chamber of Commerce<br />

with <strong>Cuba</strong>.<br />

The U.S. Chamber of Commerce’s U.S.-<strong>Cuba</strong> Business<br />

Council, the membership of which includes such corporate<br />

heavyweights as American Airlines, Caterpillar, DHL, Dow and<br />

GE, issued an immediate statement after Trump’s announcement.<br />

“U.S. private sector engagement can be a positive force for<br />

the kind of change we all wish to see in <strong>Cuba</strong>. Unfortunately,<br />

today’s moves actually limit the possibility for positive change<br />

on the island and risk ceding growth opportunities to other<br />

countries…,” said the statement by Myron Brilliant, the Chamber’s<br />

executive VP and head of international affairs. “We remain<br />

committed to working with all relevant parties to remove the<br />

antiquated policies that hinder the empowerment of the American<br />

and <strong>Cuba</strong>n people.”<br />

Individual members of the USCBC issued their own<br />

statements, as well. One of those companies is heavy equipment<br />

manufacturer Caterpillar. While it has yet to finalize any business<br />

deals with <strong>Cuba</strong>—beyond donating $500,000 to restore Hemmingway’s<br />

house outside of Havana—it has been in exploratory<br />

phases for some time.<br />

“Caterpillar believes that engagement with <strong>Cuba</strong> continues<br />

to represent a strong opportunity—not just for American business,<br />

but to serve as a powerful tool for change. We will continue<br />

to work closely with policymakers on the best way to accomplish<br />

these goals,” the company said in a statement following Trump’s<br />

announcement of the rollback.<br />

Other members are continuing to move forward, albeit<br />

cautiously. General Electric, for example—which signed memorandums<br />

of understanding in March 2016 to provide power,<br />

aviation, and medical equipment to the <strong>Cuba</strong>n government—is<br />

still advancing its plans. The company recently secured a deal to<br />

revitalize an existing power plant on the island, said a Washington-based<br />

industry expert who asked not to be named. That deal<br />

is expected to be honored since it was made prior to the enactment<br />

of the new Trump directive.<br />

CONTINUED TRAVEL<br />

Although Trump’s new policy intends to change the course of<br />

self-directed people-to-people trips to <strong>Cuba</strong>, it has not eliminated<br />

all forms of travel. U.S. citizens of <strong>Cuba</strong>n origin will<br />

be allowed to continue their regular familial visits; academics,<br />

researchers, and business people can continue to board flights;<br />

and people-to-people group travel, including cruise line tours,<br />

will keep going.<br />

“We can’t speculate as to what if any impact these new<br />

regulations will have on the number of people traveling. However,<br />

American is well positioned since Miami-Dade County is home<br />

to the majority of <strong>Cuba</strong>n-Americans in the U.S., and we are<br />

the leading carrier from Miami International Airport, where we<br />

operate nine out of 10 daily frequencies,” American Airlines said<br />

in a July statement.<br />

Cruise lines of various sizes, including giants Carnival and<br />

Norwegian, are not only continuing their existing cruises to<br />

<strong>Cuba</strong>, but expanding their itineraries for next year. Norwegian,<br />

for example, announced a new 2018 cruise to <strong>Cuba</strong> from Port<br />

Canaveral nearly a month after Trump’s announcement. Carnival,<br />

the first cruise company to send vessels to <strong>Cuba</strong> in 2016, announced<br />

it was preparing to send its affiliated Holland America<br />

Line to <strong>Cuba</strong>, and is waiting to introduce other brands to <strong>Cuba</strong>,<br />

pending approval.<br />

“Travel brings people and cultures together, so we are excited<br />

about the upcoming cruises to <strong>Cuba</strong> for our guests,” Carnival<br />

Corporation said in a statement.<br />

GOING FORWARD<br />

AkinGump, the Washington DC-based legal powerhouse, has<br />

numerous clients interested in opportunities in such <strong>Cuba</strong>n<br />

sectors as pharmaceuticals, hospitality, agriculture, and financial<br />

services. Their advice to clients, says Scott Parven, the attorney<br />

who heads their <strong>Cuba</strong> practice, is to stay the course.<br />

“We are advising our clients to lean in—and they are doing<br />

so—and to lean in with their lawyers by their side, to make sure<br />

they are clearly understanding the law versus the rhetoric,” says<br />

Parven. “We are reminding clients that <strong>Cuba</strong> is always going to be<br />

a long-term play, that hasn’t changed. This is a speed bump, and we<br />

will get past it…. For those companies that have considered <strong>Cuba</strong><br />

a market, it’s a just an issue of re-aligning strategies and tactics.”<br />

Attorney Anya French, another member of the Akin Gump<br />

<strong>Cuba</strong> team, says that the firm has also been approached by new<br />

clients looking for clarification on the Trump policies. “It comes<br />

down to how the regulations are written,” she says. “There are<br />

sectors where there doesn’t seem to be an affect, but it’s not<br />

clear… that is what we are working on in our advocacy effort. The<br />

military is the primary issue.”<br />

Charles Serrano, whose consulting firm Antilles Strategy<br />

Group has led some 200 commercial missions into <strong>Cuba</strong>, says<br />

that regardless of particular rules, Trump’s announcement has<br />

had a chilling effect on corporate interest in <strong>Cuba</strong>.<br />

“I don’t think the corporate executives and general counsels<br />

that I normally deal with are making statements that we should<br />

Smooth Landing: U.S. commercial airlines can still fly to <strong>Cuba</strong><br />

rush in and get things done before the regulations change,” he<br />

says. “It’s more like, ‘Let me just see how the regulations turn<br />

out.’ And that is sad, because any indicator that [some activity]<br />

might be illegal or might increase the risk—especially for the big<br />

corporations we are talking to—those people are going to step<br />

back, not step forward.”<br />

Included in that risk assessment is whether traditional Republican<br />

hardliners like Florida Sen. Marco Rubio will push to<br />

make the regulations even more debilitating for U.S. business.<br />

“Will there be additional announcements if he [Trump]<br />

doesn’t feel that the <strong>Cuba</strong>ns are doing enough, or additional if<br />

he needs the support of Rubio?” asked Marczak. “There are a<br />

host of unknowns here that could cause investors to give second<br />

thoughts… in some cases, there is so much profit potential that<br />

they will be willing to take the risk.”<br />

Having said that, the corporate community remains a strong<br />

champion of improving relations with the <strong>Cuba</strong>n government,<br />

and will continue to be an advocate of loosening restrictions, right<br />

up to the point when the new regulations are actually printed.<br />

“Our companies that go over there and try to understand the<br />

market always come back to talk about the overwhelming opportunities,”<br />

said Russ, especially in basic infrastructure. “There’s a lot<br />

of need over there, and we’d like to have U.S. companies be able to<br />

fulfill that need.” H<br />

J.P. Faber also contributed to this report<br />

Photo by Delta Airlines<br />

38 CUBATRADE AUGUST 2017<br />

AUGUST 2017 CUBATRADE<br />

39


SPECIAL TRAVEL SECTION<br />

Educational<br />

¨<br />

Historic<br />

G<br />

Adventure<br />

P<br />

Ecotourism<br />

M<br />

Music<br />

Custom VIP<br />

Corporate<br />

Maritime<br />

Cuisine<br />

The 12 Categories of Authorized Travel to <strong>Cuba</strong><br />

How To Travel<br />

to <strong>Cuba</strong> Now<br />

Trump’s new policies, with the declared intention<br />

of ending individual people-to-people<br />

travel, could shake up travel to <strong>Cuba</strong>. Here’s<br />

what you should—or should not—worry about<br />

By Suzette Laboy<br />

• Family Visits<br />

• Official business of the U.S. government, foreign governments,<br />

and certain intergovernmental organizations<br />

• Journalistic activities<br />

• Professional research or professional meetings<br />

• Educational activities and people-to-people exchanges<br />

• Religious activities<br />

• Public performance, clinics, workshops, athletic or other<br />

competitions and exhibitions<br />

• Support for the <strong>Cuba</strong>n people<br />

• Humanitarian projects<br />

• Activities of private foundations or research or educational<br />

institutes<br />

• Exportation, importation, or transmission of information or<br />

informational materials<br />

• Travel related to certain authorized export transactions<br />

Not long ago, Americans traveling to <strong>Cuba</strong> relied solely on<br />

specialized travel agents and tour operators for help with<br />

everything from booking flights to obtaining travel visas.<br />

Then came President Obama’s loosening of travel restrictions,<br />

along with an overnight explosion of Airbnb options across the<br />

island, and Americans could suddenly book their own travel. The<br />

result was a surge in travel by Americans to <strong>Cuba</strong>, from a 102,000<br />

in 2013 to 287,000 last year—a figure that does not include travel<br />

by 519,000 <strong>Cuba</strong>n-Americans.<br />

Now that President Donald Trump has announced his<br />

intended policy to limit individual people-to-people journeys to<br />

the island, the travel landscape may shift once again. While it is<br />

unlikely that the numbers of U.S. travelers to <strong>Cuba</strong> will ever fall<br />

to pre-Obama levels, the use of what are called Travel Service<br />

Providers (TSPs)—agencies that hold special U.S. government<br />

licenses for authorized travel to <strong>Cuba</strong>—may once again dominant<br />

the terrain.<br />

In the meantime, what you need to know is this: Until the<br />

new regulations are written, published and signed into law, nothing<br />

has changed. You can still travel to <strong>Cuba</strong> as an individual in<br />

the people-to-people category—or any one of 11 other approved<br />

categories. And those visas are available from airlines or cruise<br />

ships when you check in, at a cost of between $50 and $100 each.<br />

That doesn’t mean travel to <strong>Cuba</strong> is without its challenges.<br />

Credit cards, except for those issued by Stonegate Bank in Florida,<br />

or Banco Popular in Puerto Rico, are useless. Instead you need<br />

to bring cash, which you can change into CUCs once you arrive<br />

in <strong>Cuba</strong>. Fortunately, <strong>Cuba</strong> is one of the safest place to travel<br />

anywhere in the world, with virtually no violent crime and even<br />

less against tourists.<br />

Finding a place to stay in <strong>Cuba</strong> is another part of the puzzle.<br />

Thanks to a demand that exceeds the supply, hotel rooms<br />

are high-priced and hard to come by in season, usually booked<br />

months in advance. Rooms that would fetch $200 to $300 in<br />

the U.S. can cost double that in Havana. The good news is that<br />

the island now has tens of thousands of bed and breakfasts<br />

that can be booked through Airbnb, and it’s not hard to find<br />

rooms with showers and air conditioning that cost from $40<br />

to $60.<br />

“<strong>Cuba</strong> is a unique destination, and even with the 2015<br />

liberalization there are still hoops travelers have to jump through,<br />

both on the U.S. government side and the <strong>Cuba</strong>n side,” said<br />

Eben Peck of the American Society of Travel Agents. “The travel<br />

infrastructure in <strong>Cuba</strong> (hotels, airports, access to money, etc.)<br />

has suffered from a historical lack of investment and can present<br />

challenges to U.S. travelers.”<br />

If you do want a travel plan that’s a little more structured,<br />

even thematic, you can take advantage of the approximately 300<br />

TSPs in the U.S. with a special license from the U.S. Treasury<br />

Department’s Office of Foreign Assets Control (or OFAC).<br />

Using one of these agents, you can turn your random journey into<br />

an adventure in ecotourism, for example, or a cultural jaunt in<br />

Havana that mixes art, music and cuisine.<br />

TSPs come in handy when the traveler doesn’t speak Spanish<br />

and “is nervous about finding a place to stay and organizing their<br />

program,” said John McAuliff, executive director of the Fund for<br />

Reconciliation and Development and himself a coordinator of<br />

people-to-people trips to <strong>Cuba</strong>. Airbnb’s English-language site<br />

may help fill that void, he said, though many travelers still prefer<br />

to stay in hotels and many online sites may not be as effective in<br />

<strong>Cuba</strong> is a unique destination, and<br />

even with the 2015 liberalization there<br />

are still hoops travelers have to jump<br />

through, both on the government side<br />

and the <strong>Cuba</strong>n side.”<br />

Eben Peck, American Society of Travel Agents<br />

terms of price and availability.<br />

Typically, these TSP agents use a tour guide on the <strong>Cuba</strong><br />

side provided by the government tourism ministry. Sometimes<br />

the TSPs will have their own representatives on the island as<br />

well, and travelers can turn to independent tour guides who have<br />

“found a niche,” though this is a grey area, since they are not<br />

registered with the government.<br />

The other big caveat is that tourist travel, per se, remains<br />

banned under the U.S. embargo. Americans are required to travel<br />

for other reasons, such as religion, business, or education, and<br />

they are supposed to keep records of their travel (though no one<br />

is checking, at this point.) They are not supposed to be relaxing<br />

on the beach.<br />

Continued to page 55<br />

40 CUBATRADE AUGUST 2017<br />

AUGUST 2017 CUBATRADE<br />

41


SPECIAL REPORT<br />

ABC Charters<br />

¨ G<br />

Abercrombie & Kent USA<br />

M<br />

P<br />

ABC Charters is one of the oldest travel service providers for<br />

<strong>Cuba</strong>, having first established themselves as a charter air<br />

service to <strong>Cuba</strong> in 2000. Since then they have evolved into<br />

a full-service travel and tour operator, flying their clients down<br />

aboard the major U.S. airlines with scheduled commercial service<br />

to the island.<br />

Today ABC can arrange everything the traveler to <strong>Cuba</strong><br />

needs, from transportation to hotel accommodations. Moreover,<br />

they can also handle corporate travel and events planning, with<br />

an expertise in educational and cultural trips for clients such as<br />

Tulane University. The average cost for a group of students for nine<br />

nights on a people-to-people educational trip is about $2,100 for<br />

single occupancy and $1,800 for double occupancy, not including<br />

airfare, staying in three-star hotels.<br />

At the other end of the spectrum, ABC can book you in a<br />

top-rated hotel, such as the Melia Cohiba or the Iberstar Parque<br />

Central, with room prices going for between $400 and $660 a<br />

night. Like other TSPs, they take blocks of rooms in advance, so<br />

even if you can’t get a top hotel on your own, you can through<br />

them. ABC can also accommodate private, high-end travel to<br />

<strong>Cuba</strong> from any U.S. international airport to any authorized airport<br />

in <strong>Cuba</strong>. Prices on demand.<br />

Having been involved in <strong>Cuba</strong> travel for the better part of two<br />

decades, ABC prides itself on longevity and reliability. Next year,<br />

2018, will “show who the true experts in the industry are based on<br />

who will be able to survive the changes,”according to Tessie Aral,<br />

president of the company.<br />

Abc-charters.com<br />

Each itinerary provided by Abercrombie & Kent USA is<br />

filled with people-to-people educational exchanges that take<br />

groups to experience the architecture, agriculture, arts, and<br />

cuisine of <strong>Cuba</strong>. Their aim is to provide authentic experiences<br />

buffered by luxury, beginning with a stay at the 5-star Gran<br />

Hotel Manzana Kempinski in Havana and proceeding to the<br />

countryside for activities such as making earthenware pots at a<br />

pottery studio in Camagüey.<br />

“Our clients tend to be experienced international travelers fascinated<br />

by emerging destinations where the rapid pace of change<br />

offers a rare glimpse into a traditional culture,” said Keith Baron,<br />

President of Abercrombie & Kent. The company began offering<br />

travel to <strong>Cuba</strong> in 2013 under an OFAC general license.<br />

A&K’s guided small group journeys (maximum of 24 guests)<br />

focus on art, culture, eco-tourism, and adventure. Travelers can cruise<br />

aboard a boutique sailing yacht and visit Punta Francés, one of the<br />

most pristine coral reefs in the Caribbean; travel through the colorful<br />

<strong>Cuba</strong>n countryside from Camagüey to Remedios; meet with<br />

local fishermen; take a private dance lesson; or stroll through the<br />

historic streets of Habana Vieja (Old Havana) with a local architect.<br />

Prices for their people-to-people programs begin at $6,795 per<br />

person, double occupancy, for their 10-day journey that goes from<br />

Havana to Camagüey and back. Their 13-day journey that goes<br />

through Santiago and ends in Hoguín, costs $9,795 per person.<br />

The cost reflects “the dramatic rise in hotel prices due to the limited<br />

availability of luxury accommodations on the island,” said Baron.<br />

Further details for 2018 programs will be announced in the fall.<br />

Abercrombiekent.com<br />

42 CUBATRADE AUGUST 2017


SPECIAL REPORT<br />

AC Journeys (Anthropologie)<br />

j<br />

Antilles Strategy Group<br />

j<br />

“At AC Journeys, we don’t have fixed itineraries. We<br />

customize for every single client,” says José Pineda, the<br />

founder and CEO of a Travel Service Provider that is<br />

best described as Custom VIP.<br />

Originally called Anthropologie when launched in 2009<br />

(thanks to Pena’s background in Academia) AC Journeys has<br />

since evolved into a kind of <strong>Cuba</strong> travel-service-for-the-stars,<br />

with a substantial clientele from Hollywood, California.<br />

“One of the groups that we did recently was for the families<br />

of two Hollywood producers, a group of 10 people,” says Pineda.<br />

“They are affluent and have money and like to travel nicely. They<br />

were paying $7,000 per person, so they had the best that you can<br />

get in <strong>Cuba</strong>.”<br />

Pineda keeps the identity of his travelers confidential unless,<br />

in the case of client Jerry Springer, they want to make their <strong>Cuba</strong>n<br />

experiences public. More often than not, clients that range from<br />

senators to movie stars to industry moguls like to keep their travel<br />

plans hush-hush.<br />

On the <strong>Cuba</strong>n side, however, it’s all about exposure to the<br />

right people. Pineda can put his clients into the studio of a leading<br />

artist, or into a jam session with accomplished musicians. “I have a<br />

wide range of contacts in <strong>Cuba</strong>. We can always have [important]<br />

guests at lunch…”<br />

“Right now I am working with a guy who is interested in<br />

doing a joint venture in the energy industry. So I am researching<br />

with who in the energy industry in <strong>Cuba</strong> he can talk with,” he says.<br />

“I can connect people at the higher levels.”<br />

www.acjourneys.com<br />

While others bring tourists to <strong>Cuba</strong>, Charles Serrano, CEO<br />

of Antilles Consulting Service, specializes in executives<br />

and university brass. In the last decade, he has led some<br />

200 missions to <strong>Cuba</strong>, mostly business leaders interested in exploring<br />

investment and trade opportunities on the island.<br />

“We sell the whole package, getting the visa and the airline,”<br />

says Serrano. “Other travel companies don’t necessarily do that, but<br />

instead advise you where to get your flight and visas.”<br />

Serrano also operates as a consultant to U.S. companies looking<br />

to do business in <strong>Cuba</strong>, which gives him an advantage when<br />

dealing with these clients when it comes time to travel.<br />

While the final rules implementing Trump’s announced <strong>Cuba</strong><br />

policies are many months off, Serrano says he is already holding<br />

the hands of business clients worried that it will be impossible to<br />

move forward. “You have to be able to explain [the new policies]<br />

well to corporations,” he says. “Those that are seriously engaged<br />

in <strong>Cuba</strong> have some understanding, and realize that even after the<br />

regulations are published there will still be a lot of opportunities in<br />

biotech, research, agricultural, and other areas.”<br />

Serrano says he has already devised a variety of solutions that<br />

will permit his clients to travel as individuals to <strong>Cuba</strong>, including<br />

memberships in such organizations as the Council on Latin<br />

American Relations. “If you go to non-profit, non-government<br />

events, with artists or various foundations, that will suffice… the<br />

only control mechanism is when you return to the U.S. If you lie,<br />

then you’re in trouble. If you say <strong>Cuba</strong>, then you’ll have to have<br />

documents for that.”<br />

Antillesstrategygroup.com<br />

44 CUBATRADE AUGUST 2017


SPECIAL REPORT<br />

Bespoke Custom <strong>Cuba</strong> Travel<br />

G<br />

Carlson Maritime Travel<br />

G<br />

Your Full Service <strong>Cuba</strong> Connection: SEA, AIR, LAND,<br />

CARLSON MARITIME TRAVEL<br />

Your Full Service <strong>Cuba</strong> Connection: SEA, AIR, LAND<br />

BOATING TO CUBA FROM U.S.<br />

YACHTS, SPORT FISHERMEN, SAILBOATS<br />

Suzanne Carlson,<br />

President<br />

Soon after Trump’s policy was announced, New York Citybased<br />

Bespoke Custom <strong>Cuba</strong> Travel began providing clients<br />

a set of documents to have on hand when they re-enter the<br />

U.S. It includes their full itinerary, travel affidavit and more.<br />

“As soon as the announcement was made, the public at large<br />

thought this would be immediate and did not realize that there is<br />

always a lag,” said president Myriam Castillo. “To ease our clients<br />

fears, we said ‘OK we are going to give you this, you can show<br />

them this, that legitimately lays out you are not doing anything<br />

that is against the current policy, or whatever the future policy may<br />

be.’”<br />

About 45 percent of their business focuses on art and architecture,<br />

Castillo said. The rest is a mixture of travelers interested in<br />

dance, music, history and more. They have infrastructure in <strong>Cuba</strong>,<br />

relying on their own drivers and guides. Trips are broken down<br />

into the focus categories of history, music/art, and museums; they<br />

have also provided tours for foodies, and for private schools in<br />

New York City.<br />

Bespoke is now booking clients who want to travel to <strong>Cuba</strong><br />

in the late fall and end of the year. They organize entire itineraries<br />

and prepare all documents or visas required to travel to <strong>Cuba</strong>. They<br />

can also organize the use of commercial airlines, private jets, or<br />

chartered yachts.<br />

Depending on time of year and length of time, trips that average<br />

four to five nights cost $3,500 to $4,300, with all services, docs<br />

and visas included.<br />

Find Bespoke Custom <strong>Cuba</strong> Travel on Facebook<br />

46 CUBATRADE AUGUST 2017<br />

Carlson Maritime has been around since 2009, and as a boutique<br />

travel agency, it specializes in <strong>Cuba</strong>, Greece, and the<br />

Mediterranean. “Most agencies just do <strong>Cuba</strong>,” says CEO<br />

Suzanne Carlson. “But we do the world as well.”<br />

Like their name suggests, Carlson Maritime specializes in<br />

waterborne journeys to <strong>Cuba</strong>, namely trips taken by yachts into<br />

<strong>Cuba</strong>n waters and marinas.<br />

“Or maritime packages for all types of vessels include the<br />

components required for safe and legal maritime travel to <strong>Cuba</strong>,”<br />

says Carlson. These services include all documentation for entering<br />

<strong>Cuba</strong>n territorial waters, securing marina slips, and U.S. re-entry<br />

information. Once these arrangements have been secured, clients<br />

are handed over to Havana Tours, with which Carlson has a direct<br />

contract.<br />

The aim, says Carlson, is to ensure that her clients experience<br />

the real <strong>Cuba</strong>. “They have done ‘shiny and pretty,’ and they want<br />

authentic. They want to do homestays, they want to go to a rooftop<br />

to get lessons in making mojitos in someone’s home.”<br />

Carlson cut her teeth on <strong>Cuba</strong> sea travel in 2010, when she<br />

got an OFAC license to set up a terminal on the Miami River for a<br />

commercial ferry service to <strong>Cuba</strong>. That proved to be an uphill battle,<br />

but what she learned “worked quite well for sending yachts to<br />

<strong>Cuba</strong>,” she says. Prices depend on the budget and taste of the client.<br />

“For a variety of reasons, boating to <strong>Cuba</strong> is different from<br />

any other Caribbean island and requires a significant amount of<br />

planning,” says Carlson. “That’s what we do.”<br />

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CLUB NAUTICO


SPECIAL REPORT<br />

<strong>Cuba</strong> Road Trip<br />

M<br />

<strong>Cuba</strong> Tours and Travel<br />

G<br />

Departures from Miami, Tampa and Key West.<br />

Operated by<br />

When Presidents Obama and Raul Castro announced the<br />

normalization of diplomatic relations in December 2014,<br />

photojournalist and <strong>Cuba</strong>n-American Alfredo De Lara<br />

began receiving requests from friends and family wishing to visit<br />

the island “before <strong>Cuba</strong> was ruined forever.” By early 2016, he<br />

turned his passion into a small business—<strong>Cuba</strong>RoadTrip.org—as<br />

a side gig to his usual reporting assignments.<br />

<strong>Cuba</strong>RoadTrip.org offers intimate, privately guided tours for<br />

five people or less, with guests staying with a <strong>Cuba</strong>n host family.<br />

The tours are specifically tailored to the travelers’ interests, with<br />

custom itineraries in all the categories listed for travel authorized<br />

by U.S. law. His clients include U.S. media companies as well as<br />

scientific and humanitarian NGO’s.<br />

“I very much go after the niche adventure travel market,” said<br />

De Lara, adding that the tours include local guides for rock climbing,<br />

hiking, and traveling in classic 1950s cars across the <strong>Cuba</strong>n<br />

countryside.<br />

De Lara said he aims “to facilitate an experience as authentic<br />

as if you were visiting your own <strong>Cuba</strong>n family on the island.” The<br />

six-day, five-night tours run under $2,000. De Lara is required to<br />

keep detailed records on file for five years showing that the trip<br />

had a full-time schedule of activities that produced a meaningful<br />

interaction between the traveler and individuals in <strong>Cuba</strong>.<br />

“This is a personal thing close to my soul,” he said.<br />

Price: Between $1,750-1,950 per person depending on the<br />

season. Ask about any special offers he may have at the time of<br />

booking.<br />

<strong>Cuba</strong>RoadTrip.org<br />

has lost a little of its cache,” says Peter Sanchez.<br />

“Back when it was illegal, you had friends coming back<br />

“<strong>Cuba</strong><br />

and bragging that they went to <strong>Cuba</strong>.”<br />

If anyone can recapture that cache, it is Sanchez, the founder<br />

and CEO of <strong>Cuba</strong> Tours and Travel. He is one of the true pioneers<br />

in cultural travel to <strong>Cuba</strong>, having been at it for 16 years. “You have<br />

to be agile, you have to be small, and you have to work within the<br />

law,” he says. “For me it is a 30-year commitment.”<br />

One of his early specialties was connecting artists with potential<br />

collectors from North America. Among the artists he has dealt<br />

with, a half dozen sold their first paintings to his clients. “Now<br />

some are famous artists, working for Citigroup.”<br />

While <strong>Cuba</strong> Tours and Travel can take you most anywhere on<br />

the island—they have tours to <strong>Cuba</strong>’s eastern, central and western<br />

regions—where CT&T shines is in the arts, including the visual<br />

arts, dance, music and even film.<br />

Among the special trips they have organized is a Jewish Cultural<br />

and Musical Weekend in Havana last March, and an upcoming<br />

“Havana Spice” tour where you can cook and eat with James<br />

Beard Awarded Chef Douglas Rodriguez. The price for that weeklong<br />

journey: $4,695, not including air flight.<br />

And as far as music goes, it was Sanchez who brought the<br />

Preservation Hall Jazz Band from New Orleans to Havana in<br />

2015—along with 200 of their fans. Need we say more? Expect<br />

the documentary soon.<br />

<strong>Cuba</strong>toursandtravel.com<br />

Phone: 305-615-4151<br />

48 CUBATRADE AUGUST 2017


SPECIAL REPORT<br />

Friendly Planet Travel<br />

G<br />

Havana Air/ViajaHoy<br />

Wholesale operator Friendly Planet Travel sells tours to 45<br />

different countries, including some exotic locations. But<br />

since 2012, <strong>Cuba</strong> has been one of their top sellers.<br />

The company, based in Jenkintown, Pennsylvania, specializes<br />

in small group tours and custom packages. It was also one of the<br />

first American tour companies to be awarded a people-to-people<br />

license for travel to <strong>Cuba</strong> in September 2011.<br />

What distinguishes Friendly Planet is their affordability. Their<br />

five-day tour of “Authentic Havana” is priced at $1,899, and includes<br />

airfare as well as all the fixin’s. Their eight-day Captivating<br />

<strong>Cuba</strong> tour, which takes you to Havana, Cojimar, Varadero, Trinidad,<br />

Santa Clara and Sancti Spirtus, runs $3,599, with everything<br />

included. Groups max out at 24 people.<br />

By 2012, the company sent more than 1,500 travelers to<br />

<strong>Cuba</strong>. And the numbers kept growing throughout the years until<br />

2016, when the number dropped because so many travelers were<br />

choosing to go individually instead of with a tour operator.<br />

Founder and president Peggy Goldman predicts that her<br />

company will see a decline in tours to <strong>Cuba</strong> again this year because<br />

of Trump’s announcement. “Trump gave the impression: travel to<br />

<strong>Cuba</strong> at your own risk,” she said, “making American travelers nervous<br />

about paying deposits on tours.”<br />

“We don’t anticipate any problems,” she said of the basic outline<br />

of the travel rules. “We just have to convince people that isn’t<br />

the case.” Those who aren’t afraid to book trips now will want to<br />

reserve their seven-day Havana Jazz tour 2018, for a mere $3,999<br />

per person.<br />

Friendlyplanet.com<br />

Few travel providers are as in touch with the best places to<br />

visit as are the people at Havana Air and their tour division<br />

ViajaHoy. Just a visit to their web site will tell you that these<br />

folks know how to have a good time. What other travel agency<br />

has 15 restaurant reviews on their web site? These are places that<br />

the owners of Havana Air personally visit and vouch for.<br />

As a full-service travel service provider, Havana Air also<br />

brings into play the fact that they also own a charter airline. Or,<br />

if you prefer, they can fly you down in a private aircraft.<br />

That same sort of range applies to their various tours. You can<br />

book seven-day trips starting at $3,799, with pre-arranged dates<br />

and itineraries in Havana or beyond, similar to other journeys that<br />

explore the culture of <strong>Cuba</strong>. But then they have trips that go beyond<br />

such family-oriented vacations, such as their Havana Nights<br />

tour, or their Culinary Expedition.<br />

“We can have an entire program planned just for you, for a<br />

group of two or three or four,” says Mark Elias, president of Havana<br />

Air. “On the other hand, we are bringing in an LGBT group of<br />

160, flying into Key West and then into Havana.” Their art tours<br />

include visits to the top private art galleries, and taking it down<br />

to the minutia, they can also arrange a car rental for your touring<br />

pleasure, or a boat ride around the island.<br />

Regardless of the itinerary, or size of the group, Havana Air/<br />

ViajeHoy are true insiders that deliver the best of contemporary<br />

<strong>Cuba</strong> in a way that few others can match.<br />

www.havanaair.com<br />

50 CUBATRADE AUGUST 2017


SPECIAL REPORT<br />

Why Us? Simple…Flexibility!<br />

insight<strong>Cuba</strong><br />

¨<br />

G<br />

Letty’s <strong>Cuba</strong> Travel Agency<br />

¨<br />

Prior to 2000 the only visitors to <strong>Cuba</strong> were <strong>Cuba</strong>n Americans<br />

on family travel, journalists and government officials.<br />

When insight<strong>Cuba</strong> started doing tours, most people in<br />

the U.S. thought travel was off limits. Few knew that the restrictions<br />

allowed some travel, however limited.<br />

That’s when insight<strong>Cuba</strong> jumped in, as one of the first licensed<br />

travel service providers for <strong>Cuba</strong>. It remains one of the largest providers<br />

today, specializing solely in legal people-to-people travel to<br />

<strong>Cuba</strong> for Americans.<br />

“<strong>Cuba</strong> isn’t just one or two pages in our travel catalog. It is our<br />

travel catalog,” said marketing manager Lauren Vikander.<br />

When the company won approval to travel to <strong>Cuba</strong> in 2000, it<br />

sent 30 Americans to the Caribbean island at a time when little was<br />

known about <strong>Cuba</strong>—and even less about how to visit. Since then,<br />

they have sent more than 20,000 Americans to <strong>Cuba</strong> under the<br />

people-to-people category. Last year, they sent close to 3,500 guests<br />

to <strong>Cuba</strong> and will likely exceed that number by the end of 2017.<br />

Insight<strong>Cuba</strong> offers fully-escorted, small group travel through<br />

their <strong>Cuba</strong> Tours, Cruises and Getaways with over 250 departure<br />

days spread out over 14 tours.<br />

“We really cover the length of the country,” Vikander said.<br />

“Because we’ve been there for so long, we are treated like family.”<br />

Among the trips offered by insight<strong>Cuba</strong> is their eight-day/<br />

seven-night Classic <strong>Cuba</strong> Tour which includes Havana, Cienfuegos<br />

and Trinidad, for $4,695 to $5,395, depending on time of<br />

year. Their 12-day Undiscovered <strong>Cuba</strong> Tour, which takes you from<br />

urban Havana to tiny Baracoa, runs between $5,895 and $6,495.<br />

52 CUBATRADE AUGUST 2017<br />

Insight<strong>Cuba</strong>.com<br />

Leticia Annett began Letty’s <strong>Cuba</strong> Travel Agency in 2015,<br />

offering an authentic <strong>Cuba</strong>n experience through the use of<br />

private cars and private houses in her customized university<br />

groups, business research, humanitarian work, and more.<br />

But, what makes Annett unique among the dozens of other<br />

travel agents is her collaboration with <strong>Cuba</strong>’s favorite pastime:<br />

baseball.<br />

“We wanted something nice to happen between the two<br />

countries,” she said. “I think that Fidel’s passion for baseball motivated<br />

the new generations of kids to love the game. It also helped<br />

that because you don’t need specialized equipment, kids could play<br />

anytime on empty fields or on the streets just with a ball and stick.”<br />

The idea for the Baseball Friendship Cup came to her when<br />

she returned to her childhood neighborhood in <strong>Cuba</strong> (Lawton,<br />

in Havana) after nearly three decades. She reconnected with her<br />

childhood friends as they watched <strong>Cuba</strong>n youth playing ball.<br />

The first game took place in <strong>August</strong> 2015, just a few months<br />

after she started the company. Annett is constantly looking for<br />

participants ages nine to 18 (full teams preferable). If coaches<br />

want to coordinate a game, they can go through Leticia who has<br />

the approval from the <strong>Cuba</strong>n government agency that takes care<br />

of sports on the island.<br />

Despite its baseball specialty, Letty’s can also handle any level<br />

of budget, from single weekends in three-star hotels with visits to<br />

rum and tobacco factories, to week long stays in many of Havana’s<br />

top hotels, from the iconic Nacional to the Saratoga, where Madonna,<br />

Jay-Z and Beyoncé stayed on their trips to the island.<br />

www.lettycuba.com<br />

You choose! Small or large groups, B&B or hotel, private cars or tour bus,<br />

full package including airfare and visa, or just a land package. An authentic <strong>Cuba</strong>n<br />

experience based on personal knowledge and relationships your way!<br />

• Cultural People-to-People • Youth/Adults Sports Competitions & Friendly Exchanges<br />

• Business Research/Corporate Incentive Travel • Cruises • Customized/Special Events<br />

• Religious or Humanitarian • Educational Institutions<br />

LETTY’S CUBA TRAVEL AGENCY<br />

1545 North Park Dr. Suite 102, Weston, FL 33326<br />

954-368-0546 • www.lettycuba.com<br />

letty@lettycuba.com


SPECIAL REPORT<br />

Oceans For Youth Foundation<br />

M<br />

P<br />

Xael Charters<br />

G P M<br />

¨<br />

Travelers can see one of the healthiest marine ecosystems<br />

in the Caribbean with packages offered by the Oceans for<br />

Youth Foundation.<br />

Its week-long trips to the Gardens of the Queen National<br />

Park in the southern coast of <strong>Cuba</strong> are unique because no other<br />

organization operates an eco-exploration vessel in the park.<br />

Voyages on the 100-foot boat emphasize marine science and<br />

fall under the group “people-to-people” category of authorized<br />

travel to <strong>Cuba</strong>, making it especially appealing to high school and<br />

university students.<br />

“It’s not until you see what a healthy Caribbean marine<br />

ecosystem from 50 to 100 years ago looks like, that you realize<br />

what needs to happen in terms of conservation,” said Samantha<br />

Whitcraft, Director of Conservation and Outreach. “There’s no<br />

place in the Caribbean like this anymore.” Oceans for Youth<br />

Foundation offers two different eight-day, seven-night itineraries<br />

that are loaded with snorkeling and scuba diving opportunities.<br />

Both itineraries cost $2520 per person, which includes accommodations,<br />

activities, transportation, and meals.<br />

The EcoExploration Program focuses on exploration and natural<br />

history. Marine scientists who know the area intimately have<br />

daily discussions with participants about their field observations.<br />

There are also optional evening natural history presentations.<br />

The Classroom-at-Sea Program emphasizes marine ecology<br />

and conservation. Participants learn about proper conservation<br />

practices and species identification by attending daily lessons and<br />

seminars led by marine scientists.<br />

www.oceansforyouth.com<br />

The moment you enter the Xael Charters Inc. website, you feel<br />

the jazzy <strong>Cuba</strong>n vibe. Between the nostaligic photos and the<br />

music that flows through your computer speakers, it's hard<br />

not to. That tropical hospitality is exactly what Xael wants clients<br />

to know they’ll receive when they sign up for the company's curated<br />

travel programs.<br />

Xael is both a Charter and Travel Agency. They can accommodate<br />

all travel services directly or through organizations which<br />

do their own groups and require certain services such as hotels,<br />

transportation, or reservations on charter flights, as well as on conventional<br />

airlines.<br />

Whether it’s a <strong>Cuba</strong>n family visit, a cultural exchange exploring<br />

Havana’s art, a bicycling event in the countryside, a religious<br />

pilgrimage to the island’s sacred sites, or snorkeling along a coral<br />

reef, Xael knows clients come to <strong>Cuba</strong> looking for an otherworldly<br />

yet down home experience. Xael’s trips bring the thrill of a new<br />

destination and the comforts of places that feel familiar.<br />

“Xael prides itself on its professionalism. We treat our customers<br />

with courtesy and respect, and consider them part of the<br />

Xael family,” says Xiomara Almaguer-Levy, chairperson, president<br />

and CEO of Xael Charters Inc.<br />

It’s nice to know your travel company comes with a wealth of<br />

cultural and logistical wisdom. That matters in a place as unique<br />

and beautiful as <strong>Cuba</strong>. Xael is well-prepared to handle the details<br />

that can make a trip anything less than superb.<br />

“We’ve been working on these kinds of exchanges for 19<br />

years,” adds Xael Vice President Mercy Casals, “We come with a<br />

lot of experience in navigating the various rules and regulations on<br />

both sides, and we firmly believe in family and cultural exchange.”<br />

www.xaeltocuba.com<br />

Continued from page 41<br />

This is a missed opportunity, according to Peck of ASTA.<br />

“At least two million additional Americans would visit <strong>Cuba</strong> by<br />

2019 if the tourism ban were to be lifted this year,” he said. The<br />

organization has 92 members who self-identify as <strong>Cuba</strong> specialists<br />

and 320 who mention <strong>Cuba</strong> somewhere in their profile<br />

on the consumer-facing website TravelSense.org. Two ASTA<br />

members, <strong>Cuba</strong> Select Travel and Marysol Travel <strong>Cuba</strong>, are also<br />

based in Havana.<br />

If the travel agents and their leaders have anything to do with<br />

it, any and all prohibitions against travel to <strong>Cuba</strong> would be lifted.<br />

“ASTA continues to believe that the American people<br />

are the best ambassadors of U.S. values abroad, and should be<br />

allowed to freely travel to any destination they wish without<br />

restriction from their own government,” said ASTA president<br />

and CEO Zane Kerby in a statement after Trump announced his<br />

policy changes. “Rather than shutting the door to this market 90<br />

miles off our shores, we call on policymakers to enact legislation<br />

to do away with the statutory <strong>Cuba</strong> travel ban once and for all.”<br />

According to the society, there was a slight uptick in inquires<br />

from people interested in going before the rules change. But no<br />

huge swings have occurred one way or the other. Cruise bookings<br />

remain solid (as evidenced by the fact that the cruise lines keep<br />

adding ships to <strong>Cuba</strong>) and cruises appears to be entirely unaffect<br />

ed by the new rules.<br />

In terms of U.S. travelers booking directly with AirBnBs<br />

themselves, however, there has been an immediate—and negative—impact.<br />

“The overall aggressive tone of the announcement and<br />

subsequent mixed messages from Washington to would-be<br />

American travellers has already had a very disheartening effect on<br />

people considering a visit to the island,” says Alfredo De Lara of<br />

<strong>Cuba</strong>RoadTrip.com.<br />

Speaking from <strong>Cuba</strong>, De Lara said many of the private<br />

family homes he uses in his tours “have reported a devastating<br />

number of cancellations from American travellers that had already<br />

booked with them via AirBnB. They say they are confused<br />

and worried about what happens next after having made such big<br />

investments improving their homes,” he said. “They say they will<br />

make due as they have for many years accommodating European<br />

and Canadian visitors, but many high hopes were hung on the<br />

promise of more American visitors.”<br />

For at least the next three or four months, however, all<br />

options remain open to Americans, from large tour agencies to ad<br />

hoc individual journeys, with plenty of advice on how to enhance<br />

their <strong>Cuba</strong>n experience. H<br />

54 CUBATRADE AUGUST 2017<br />

AUGUST 2017 CUBATRADE<br />

55


Tampa to Havana!<br />

We are proud to annouce new cruise itineraries including<br />

Havana, <strong>Cuba</strong>.<br />

beginning<br />

April 30, 2017!<br />

1101 Channelside drive, tampa, Florida 33602<br />

www.porttb.C om | 800-741-2297<br />

56 CUBATRADE AUGUST 2017<br />

AUGUST 2017 CUBATRADE<br />

57


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TIMELY<br />

TARGETED<br />

EFFECTIVE<br />

Mobile:<br />

Havana’s<br />

Sister City<br />

Alabama’s port city has a relationship<br />

with Havana that goes back three<br />

centuries, right to the port of Havana,<br />

where a statue of Mobile’s founder<br />

looks homeward. Today it is a large<br />

shipper of U.S. goods to <strong>Cuba</strong>.<br />

By Doreen Hemlock<br />

Everything you need to know on:<br />

Tourism Transportation Agriculture Investments<br />

Energy Manufacturing And much more …..<br />

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Mobile – Fast Facts<br />

Population: 193,000 city, 414,000 metro area<br />

Major Industries: Port of Mobile, Aerospace manufacturing<br />

Major Employers: Port of Mobile, Austal, Airbus, ThyssenKrupp<br />

Ground Transportation: 2 Interstate Highways, 5 Class 1 Railroads<br />

Water Transportation: Port of Mobile (54 million+ tons annually)<br />

Airports: Mobile Regional (AA, United, Delta); Brookley (Air Cargo)<br />

Port of Mobile: Economic Impact of $22.8 billion<br />

City Fathers: Mobile’s mayor William S. “Sandy” Stimpson poses with the Statue of French naval hero Pierre Le Moyne<br />

Deep Water: Aerial view of Mobile's docks and harbor<br />

At the entrance to Havana harbor stands an eight-foot<br />

statue of French naval hero Pierre Le Moyne, dressed<br />

in an elegant overcoat, a sword at his side. Le Moyne is<br />

known for founding the capital of French Louisiana in 1702. Havana<br />

was a lifeline to the city near the Gulf of Mexico, supplying<br />

the settlers with building materials, weapons, and even French<br />

women who transited through <strong>Cuba</strong>. LeMoyne died in Havana<br />

and was buried there.<br />

An identical statue now graces the waterfront of the city<br />

LeMoyne founded: Mobile, in today's Alabama. The bronze<br />

figure looks toward its <strong>Cuba</strong> counterpart just over 600 miles away<br />

across the Gulf. Leaders of Mobile had the replica made and<br />

installed in 2002 to honor the city’s three centuries of ties with<br />

<strong>Cuba</strong>, a relationship that continues strong to this day.<br />

Mobile might not come first to mind when considering<br />

U.S.-<strong>Cuba</strong> relations, but there are plenty of reasons to put Alabama’s<br />

only seaport city high on the list––even baseball.<br />

For 315 years, the port city—alternately French, Spanish,<br />

British, and finally American—has been trading with <strong>Cuba</strong>. In<br />

the past it imported sugar, tobacco, coffee, and rum while sending<br />

down rice, cotton, timber, and paper. Today, Mobile ships tons<br />

of U.S. chicken to <strong>Cuba</strong> monthly, ranking among the top U.S.<br />

export hubs to the island.<br />

When the Soviet Union dissolved, Mobile was the first U.S.<br />

town to develop a Sister City link with the communist island.<br />

Since 1993, its nonprofit Society Mobile-La Habana has been<br />

organizing trips, conferences and other exchanges, long before<br />

engagement with <strong>Cuba</strong> became popular.<br />

Perhaps most startling, Mobile stands out as the place that<br />

gave <strong>Cuba</strong> its beloved sport of baseball. Two <strong>Cuba</strong>n brothers who<br />

attended Mobile’s Spring Hill College learned the sport and returned<br />

home to start Havana’s first baseball team some 150 years<br />

ago, building an enduring cultural bond.<br />

To be sure, Mobile lacks the big <strong>Cuba</strong>n-American community<br />

that ensures links to the island for other U.S. cities such<br />

as Miami. But that may be an advantage for the coastal town<br />

that combines the Old South charm of Savannah with the<br />

French-Spanish flair of New Orleans.<br />

“We don’t have the political biases in our community that<br />

some of the southern cities in Florida have in their population,”<br />

said William S. “Sandy” Stimpson, Mobile’s mayor since 2013.<br />

When it comes to <strong>Cuba</strong>, Mobile is pragmatic. Business-minded<br />

Stimpson even visited <strong>Cuba</strong> last year, looking to expand trade.<br />

Indeed, it was the Alabama State Port Authority that filled<br />

the void this winter when Florida seaports decided not to sign<br />

cooperation agreements with <strong>Cuba</strong> amid new political pressures.<br />

Port leaders from Mobile traveled to Florida to sign their own<br />

cooperation pact with <strong>Cuba</strong>n port officials who were visiting<br />

Tampa. “With that signing, we made a very public statement<br />

that we’re very much in favor of trade with <strong>Cuba</strong>,” said James<br />

K. Lyons, CEO of the state agency based in Mobile. The city’s<br />

decades-long engagement encouraged Alabama’s governor and<br />

state legislature to recently call for lifting the U.S. embargo on<br />

<strong>Cuba</strong>, a move that state officials said would help boost Alabama<br />

and U.S. business.<br />

“Mobile really stepped out before anyone else did in trying<br />

to develop the <strong>Cuba</strong> relationship,” said attorney Grey Redditt Jr.,<br />

president of the Society Mobile-La Habana and a frequent visitor<br />

to the island. “As a result, the <strong>Cuba</strong>ns view Mobile as a close<br />

friend, more so than South Florida cities where there is a lot of<br />

pushback for opening up.”<br />

Why Mobile (and Alabama) back <strong>Cuba</strong> trade<br />

It might seem strange that Alabama, a Republican-led state,<br />

would be so keen to engage with <strong>Cuba</strong>. But Alabama counts<br />

agriculture among its largest industries, and that’s where <strong>Cuba</strong><br />

offers opportunity now.<br />

Since Congress passed an embargo waiver in 2000 allowing<br />

sales of U.S. farm goods to <strong>Cuba</strong>, poultry has been the biggest<br />

U.S. export to the island. Alabama is second in the nation in<br />

producing broiler chickens after Georgia, and Mobile is key to<br />

shipping that chicken to <strong>Cuba</strong>. The city’s port lately has been<br />

sending one or two ships of frozen chicken parts to <strong>Cuba</strong> per<br />

month, typically with some 4,500 tons per load. Shipments<br />

neared 50,000 tons last year, U.S. government data shows.<br />

“From the standpoint of costs, it’s a benefit for <strong>Cuba</strong> to ship<br />

poultry from Mobile. It’s a straight shot from Alabama” near U.S.<br />

chicken production sites and roughly a day-and-a-half sail away,<br />

said Dan Autrey, chief of staff and legal adviser at the Alabama<br />

Department of Agriculture and Industries. Autrey has visited<br />

<strong>Cuba</strong> three times on official missions, twice with the state’s agriculture<br />

commissioner.<br />

Still, some shipments now go first to Kingston, Jamaica, and<br />

then to <strong>Cuba</strong>’s Mariel port. Volume remains limited by U.S. rules<br />

that require <strong>Cuba</strong> to pay cash in advance for farm products. If<br />

sales to <strong>Cuba</strong> were allowed on credit, “we could potentially triple<br />

the business that we’re doing,” said Lyons, eager to establish regularly<br />

scheduled service directly to <strong>Cuba</strong>’s leading port.<br />

Financing for sales would be welcomed by the Alabama<br />

Poultry and Egg Association, which says their industry provides<br />

a $15 billion impact and 86,000 jobs in the state. “When we visit<br />

<strong>Cuba</strong>, Commerce and Agriculture people always tell us, 'Other<br />

countries sell us on credit. You don’t,’” said Ray Hilburn, an<br />

associate director, who has visited the island twice. “We want to<br />

increase demand for our product.”<br />

Beyond poultry: Manufacturing, tourism and imports<br />

Of course, Mobile has lots more to offer <strong>Cuba</strong> than chicken. The<br />

coastal city of some 200,000 people is part of a metro area of<br />

nearly 1 million residents, Alabama’s third largest. While its port<br />

and trade have long been its main economic engine, the city has<br />

recently been attracting foreign investment to major manufacturing<br />

operations, including the first U.S. aircraft assembly plant by<br />

Europe’s Airbus, a $1 billion-plus steel mill owned by Luxembourg’s<br />

ArcelorMittal, and shipbuilding by Australian contractor<br />

Austal. Just Austal’s naval shipyard alone employs more than<br />

4,000 people.<br />

“We’re the only place in North America where big airplanes<br />

and ships are being built. There are ship-builders around, and<br />

Seattle and Charleston build airplanes, but no one else is doing<br />

60 CUBATRADE AUGUST 2017<br />

AUGUST 2017 CUBATRADE<br />

61


The Sister City<br />

Link<br />

Soon to be 25 years old, the Society<br />

Mobile-La Habana forged the first<br />

U.S.-<strong>Cuba</strong> sister city, and has since<br />

encouraged other U.S. cities to<br />

follow suit<br />

As a young lawyer trained in <strong>Cuba</strong>,<br />

Giselle G. San Roman never imagined<br />

that one day she’d be working in Alabama.<br />

Now the 25-year-old is learning<br />

the ins-and-outs of U.S. law, thanks to the<br />

Society Mobile-La Habana, a nonprofit<br />

developing Sister City links between the<br />

towns.<br />

San Roman entered the picture<br />

through an aunt in <strong>Cuba</strong>, who had met<br />

a visiting member of the Society and<br />

married him. When a fellow Society<br />

member traveled to Havana, he reached<br />

out to his colleague’s <strong>Cuba</strong>n family. Over<br />

a home-cooked dinner, the visiting lawyer<br />

met Giselle, talked shop and invited her<br />

for an internship. She liked the experience<br />

so much that she earned a master’s in U.S.<br />

law at Loyola University in New Orleans<br />

(magna cum laude) and now works as a<br />

paralegal in Moble. She aims to take the<br />

Alabama bar exam soon.<br />

The Mobile lawyer who showed her<br />

such southern hospitality: Grey Redditt Jr.,<br />

the current president of Society Mobile-La<br />

Habana. “Life takes unexpected turns,” said<br />

San Roman, dressed in a black pants suit,<br />

the attire typical in U.S. law offices. “Grey<br />

is an example for me in every way,” said the<br />

University of Havana Law School graduate.<br />

“He and his wife have always treated<br />

me like family.”<br />

Over 24 years, the Society has<br />

forged wide-ranging Mobile-<strong>Cuba</strong><br />

links from law and diplomacy to historic<br />

preservation, business and music. It<br />

has hosted top-level <strong>Cuba</strong>ns in Mobile<br />

such as Havana’s historian, Havana’s city<br />

Grey Redditt Jr., president of<br />

Society Mobile-La Habana<br />

planner, <strong>Cuba</strong>’s Methodist archbishop,<br />

the president of <strong>Cuba</strong>’s largest Jewish<br />

synagogue, physicians, environmental<br />

specialists, and <strong>Cuba</strong>’s ecumenical choir.<br />

Recent <strong>Cuba</strong>n guests include diplomat<br />

Carlos Alzugaray, TV anchor Cristina<br />

Escobar, and economist Juan Triana.<br />

Hundreds of Americans have also visited<br />

<strong>Cuba</strong> through the Society, some bringing<br />

medical supplies.<br />

The Mobile nonprofit helped create<br />

the U.S.-<strong>Cuba</strong> Sister City Association,<br />

which now includes such partnerships as<br />

Pittsburgh-Matanzas, Oakland-Santiago,<br />

and Madison-Camagüey, among others.<br />

Today, the Society Mobile-La Habana<br />

has more than 50 active members, with<br />

a board of directors that meets monthly<br />

and activities that are usually offered each<br />

quarter. Redditt said he joined, “because<br />

it’s fun to be exposed to different cultures,<br />

economic systems, and ways of thinking.”<br />

Redditt developed an interest in<br />

Latin America as a child, when his father<br />

traveled the region for work and “would<br />

send back cases of pineapple.” Visiting<br />

<strong>Cuba</strong> for many years, he’s most impressed<br />

by the people: “I’ve been all over the world,<br />

and I’ve never met anyone so universally<br />

friendly, open, and accepting.”<br />

Long-time member and port official<br />

Maria Conchita Mendez appreciates how<br />

the Society takes its mission personally<br />

and to heart—the way Redditt did with<br />

Giselle. “We’re a living, breathing organization,”<br />

said Mendez. “We’re always trying<br />

to bring knowledge and friendship and to<br />

build bonds.”<br />

both,” said Mayor Stimpson proudly.<br />

City leaders have been reaching out<br />

to manufacturers touting relatively low<br />

costs, favorable taxes, and connectivity by<br />

sea, rail, air, and road. Another major offering:<br />

long runways and ample land at the<br />

former U.S. Air Force Base at Brookley,<br />

where Airbus now builds its A320s and<br />

flies them out.<br />

“It’s an old Air Force base, under-utilized<br />

for the past 30 or 40 years, and Airbus<br />

is bringing new life to it,” said Mark<br />

McVay, director of finance and administration<br />

at the Mobile Airport Authority.<br />

“We’re creating an aerospace cluster,<br />

starting with Airbus service providers.”<br />

Mobile is also hot on expanding tourism,<br />

highlighting its restored colonial fort,<br />

antebellum homes, and fun-packed Mardi<br />

Gras celebrations that began years before<br />

the famous fetes in New Orleans. The notto-be-missed<br />

Mobile Carnival Museum<br />

displays over-the-top gowns and jewels<br />

worn by local Mardi Gras nobility.<br />

Recently, Mobile scored big in tourism<br />

when cruise giant Carnival Cruise<br />

Line added cruises to Mexico. “What we<br />

would love to see is a cruise to <strong>Cuba</strong>,”<br />

said Redditt of the Society Mobile-La<br />

Habana.<br />

Longer term, there’s also potential<br />

for two-way trade with <strong>Cuba</strong>. Mobile<br />

could bring in <strong>Cuba</strong>n nickel, possibly for<br />

its stainless-steel mill, and import <strong>Cuba</strong>’s<br />

tropical fruits and vegetables. It could<br />

send down Alabama-made cars, steel, and<br />

building materials that include lumber<br />

produced from nearby forests. “I like to<br />

say we have more pine trees than people<br />

in Alabama,” a state of nearly 5 million<br />

residents, joked port leader Lyons.<br />

In the past decade, Alabama has<br />

emerged as one of the top five U.S. states<br />

for producing cars, hosting large factories<br />

for Honda, Hyundai, Mercedes Benz, and<br />

Toyota. Autos now rank as the state’s No.<br />

1 export by value. They helped push total<br />

state exports beyond $20 billion for the<br />

first time in 2016, a whopping 48 percent<br />

jump from 2006 levels.<br />

“We built more than one million<br />

cars in Alabama last year, and with some<br />

modifications at the port, I think we’d certainly<br />

have the ability to export transport<br />

vehicles to <strong>Cuba</strong>,” said Mayor Stimpson.<br />

62 CUBATRADE AUGUST 2017


They sell the greatest T-shirt on the base,<br />

It says Guantanamo: Close but No Cigar<br />

In Guantanamo: Jerry Lathan, a long-time<br />

Republican leader in Alabama, sits on the<br />

Alabama state council of Engage <strong>Cuba</strong><br />

Today, <strong>Cuba</strong> represents just a tiny fraction of Mobile’s port<br />

activity. With more than $850 million in improvements since<br />

2000, the seaport now handles more than 54 million tons of yearly<br />

cargo at its public and private terminals, including petroleum<br />

products bound for refineries. That hefty volume typically ranks<br />

the seaport among the top dozen or so nationwide by tonnage.<br />

But when two-way trade with <strong>Cuba</strong> starts, Mobile could<br />

have an edge over U.S. rivals. “We’ve built relations over the years<br />

with different people in <strong>Cuba</strong> that put Mobile in a favorable<br />

light, so if there’s contestable cargo where it can go to this port or<br />

that port, maybe Mobile could garner a position of some favor,”<br />

Lyons told <strong>Cuba</strong> Trade.<br />

Small business interest: From construction services to farm<br />

equipment and mangoes<br />

64 CUBATRADE AUGUST 2017<br />

Owners of small businesses in Mobile see <strong>Cuba</strong>n opportunities<br />

too, including Jerry Lathan, who founded The Lathan Company<br />

36 years ago. His firm started out doing roofing and branched<br />

out to historic restoration. It now employs about 40 people and<br />

brings in $8 million-plus a year, he said.<br />

Lathan sits on the Alabama state council of Engage <strong>Cuba</strong>, a<br />

group lobbying for greater ties with the island. He sees engagement<br />

helping draw <strong>Cuba</strong> into the global commercial system.<br />

“Being involved with trade that promotes agricultural goods<br />

and helps relations with our port is a better path than abject<br />

isolationism,” said Lathan, a long-time Republican leader in Alabama.<br />

“Staring contests usually don’t get you anywhere. Engagement<br />

is different than surrender. We need to find a way to make a<br />

difference and change.”<br />

Lathan recently visited the U.S. naval base at Guantanamo<br />

in eastern <strong>Cuba</strong> to explore a possible roofing contract and wondered<br />

when Washington will let U.S. contractors work in the rest<br />

of the island. “They sell the greatest T-shirt on the base,” Lathan<br />

recalled. “It says: Guantanamo: Close but No Cigar.”<br />

Already building <strong>Cuba</strong> ties is The Woerner Companies, a<br />

fourth-generation family farming business based near Mobile<br />

that employs some 300 people, operates nationwide, and brings<br />

in more than $40 million a year in revenues. The family started<br />

out farming potatoes and other vegetables in Alabama, but<br />

now mainly grows and sells turf grass for homes and real-estate<br />

developments. It’s also building a factory to dehydrate fruits and<br />

vegetables into flour and, maybe later, for healthy snacks.<br />

Christina Woerner McInnis first visited <strong>Cuba</strong> several years<br />

ago with an Alabama agricultural exchange mission and got<br />

hooked, returning several times since. “You get where everyone<br />

has their set ways of doing things. It’s real hard to change. But<br />

when you go to <strong>Cuba</strong>, you get a totally fresh perspective,” she<br />

said. That includes growing food without chemicals and using<br />

limited machinery, often producing fruits little known in Alabama,<br />

like the creamy tropical mamey. “They have ingenuity to<br />

think outside the box. It’s all natural,” she said. “And they are<br />

willing to share everything they do.”<br />

To reciprocate the hospitality, the Woerners welcomed a<br />

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Man with a Mission<br />

As mayor for 16 years, Michael<br />

C. Dow spearheaded Mobile's<br />

engagement with <strong>Cuba</strong><br />

Then-Mobile Mayor Michael C. Dow (center) with <strong>Cuba</strong>n officials and others in a 1999 photo.<br />

If one man can be credited with leading<br />

Mobile's engagement with <strong>Cuba</strong>, it's Michael<br />

C. Dow. A Vietnam veteran who lost<br />

his best friend in the war, Dow believes that<br />

dialogue can reduce conflict.<br />

Dow was mayor of Mobile for 16<br />

years until 2005, serving without party<br />

affiliation and working to bring consensus<br />

behind common goals such as economic<br />

development. He ran for office, after<br />

co-developing Mobile-based tech startup<br />

QMS (Quality Micro Systems) with his<br />

brother-in-law into a global competitor<br />

listed on the New York Stock Exchange.<br />

The spark for Dow’s <strong>Cuba</strong> engagement<br />

came from Mobile’s historian Jay<br />

Higginbotham. The scholar had asked the<br />

previous mayor to form a Sister City link<br />

with Russia’s seaport Rostov-on-Don,<br />

which he did. Dow, as a private citizen,<br />

agreed to pick up Rostov’s mayor when he<br />

visited. Flying into Mobile over water, the<br />

visitor joked: “To an alligator, an American<br />

and Russian taste the same,” and the two<br />

became friendly. When Higginbotham in<br />

1993 suggested a similar <strong>Cuba</strong> link, Dow<br />

as mayor agreed.<br />

“I love people. I always felt that we<br />

have more in common than we do differences,<br />

and if you can find that commonality,<br />

you can solve a lot of problems,” Dow<br />

told <strong>Cuba</strong> Trade over breakfast on the<br />

terrace of Spot of Tea café in downtown<br />

Mobile, an area he helped revitalize.<br />

But opposition flared to the Havana<br />

link, especially from <strong>Cuba</strong>n circles in<br />

66 CUBATRADE AUGUST 2017<br />

Photo courtesy Mobile Press-Register<br />

South Florida. Dow said even the FBI<br />

came to see him and warn him to be<br />

careful. He persisted, convinced that the<br />

U.S. Cold War policy towards <strong>Cuba</strong> had<br />

not been working and that dialogue could<br />

build bridges. With the Society Mobile-La<br />

Habana group, Dow repeatedly visited<br />

<strong>Cuba</strong> with delegations, brought <strong>Cuba</strong>n<br />

groups to his city, and in 2005, helped<br />

organize a two-day National Summit on<br />

<strong>Cuba</strong> in Mobile.<br />

Dow was used to challenges. His<br />

father, a military man, abandoned the<br />

family when Dow was nine. His mom<br />

suffered a breakdown soon after and ended<br />

up institutionalized. Dow was shuttled<br />

between foster homes before being adopted<br />

by his grandfather. As a teen, When he<br />

was old enough, he headed off to war. He<br />

had visited Mobile to see an uncle and<br />

there met the love of his life, married her,<br />

and made the city his home.<br />

Reading up on the Vietnam conflict,<br />

Dow concluded: “We made some miscues<br />

on dialogue, more people became our<br />

enemies, and we spent years fighting wars<br />

that could have been avoided.”<br />

Since finishing four terms as mayor,<br />

the hard-working Dow has continued<br />

to focus on Mobile’s economic development<br />

and its ties with <strong>Cuba</strong>. He’s<br />

currently helping the nonprofit Alabama<br />

Contemporary Art Center organize a<br />

<strong>Cuba</strong>n art exhibit. Said Dow, “We are<br />

trying to show culturally who the <strong>Cuba</strong>n<br />

people are.”<br />

<strong>Cuba</strong>n group from the Indio Hatuey<br />

Research station in <strong>Cuba</strong>’s Matanzas<br />

province. The <strong>Cuba</strong>ns were impressed by<br />

U.S.-made spriggers and harvesters that<br />

together plant, cut and harvest grass turf.<br />

Through an affiliate called Gulfwise<br />

Commerce, Woerner received a license last<br />

year from the U.S. Department of Commerce<br />

to export the machinery to <strong>Cuba</strong> at<br />

a price of around $100,000, a first for U.S.<br />

agriculture, according to the U.S.-<strong>Cuba</strong><br />

Trade and Economic Council.<br />

But the shipment from Mobile has<br />

yet to be completed, partly because of<br />

problems with logistics, said McInnis. One<br />

headache: Ships bound from the U.S. to<br />

<strong>Cuba</strong> typically come back empty, because<br />

nearly all imports from <strong>Cuba</strong> are off-limits<br />

under terms of the U.S. embargo.<br />

McInnis hopes face-to-face talks with<br />

<strong>Cuba</strong>ns during her visit in November for<br />

the annual International Trade Fair in<br />

Havana can help speed the delivery. “I’d<br />

love to see a bilateral agricultural relationship,”<br />

she said. While Alabama sells <strong>Cuba</strong><br />

poultry and other farm goods, “we’d like to<br />

ship back organic produce and other farm<br />

products for our supply. That would be a<br />

win-win for both countries.” She’s already<br />

received requests from buyers for organic<br />

mango powder that could potentially be<br />

made from <strong>Cuba</strong>n fruit.<br />

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Attorneys at Maynard Cooper & Gale,<br />

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such complexities. Their clients<br />

exploring <strong>Cuba</strong> business include not only<br />

agriculture companies but also a shipyard<br />

looking to open a repair operation<br />

in Mariel, Indian-American hoteliers<br />

interested in <strong>Cuba</strong>’s booming hospitality<br />

sector, as well as suppliers of infrastructure<br />

services and consumer goods.<br />

Alan Ensler, who leads the firm’s<br />

international division from Birmingham,<br />

advises clients to think long-term on<br />

<strong>Cuba</strong>—but build relations now. “It doesn’t<br />

happen overnight, and it takes tailoring,<br />

so that you are offering something unique”<br />

not already provided by Europeans or others<br />

in <strong>Cuba</strong>, he said. Still, one big obstacle,<br />

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B O R N T O C E L E B R A T E<br />

Field Research: Christina Woerner McInnis of The Woerner Companies visiting <strong>Cuba</strong><br />

“the regulatory unknown. Obviously, no one wants to invest<br />

significant time and resources on something on potentially shaky<br />

ground,” said Ensler.<br />

At Woerner, McInnis definitely takes the long view, focusing<br />

on what <strong>Cuba</strong> and the U.S. have in common. She laughs out<br />

loud about the time her uncle Eddie met a farmer in <strong>Cuba</strong> who<br />

looked like his double and was equally hyperactive. “They said,<br />

“Mi hermano,” [My brother],” recalled McInnis, as she snapped a<br />

photograph of the burly, gray-haired, mustached duo. “It was the<br />

funniest picture you ever did see.”<br />

Long-term interest in <strong>Cuba</strong> extends even to the state’s<br />

visionary business leader David G. Bronner, who took the<br />

Retirement Systems of Alabama (RSA) from a $500 million<br />

fund in 1973 to top $34 billion today, partly by investing in real<br />

estate from golf resorts to office buildings. In Mobile, the pension<br />

fund built the RSA Battle House Tower, described as the tallest<br />

building on the U.S. Gulf Coast outside Houston. The spired<br />

tower rising 745 feet takes its name from the adjacent, historic<br />

Battle House hotel, which was elegantly renovated as part of the<br />

complex opened in 2007. Montgomery-based RSA also owns or<br />

developed other key buildings and hotels in greater Mobile.<br />

“I’m totally fascinated by <strong>Cuba</strong>. It’s really the island of the<br />

whole Caribbean that everyone looks to,” Bronner said. He visited<br />

with former Mobile Mayor Mike Dow, who spearheaded the<br />

city’s push for <strong>Cuba</strong> engagement starting in the 1990s and remains<br />

a friend. Bronner has seen how <strong>Cuba</strong> is opening its market<br />

and would like Washington to let U.S. business in. “There will be<br />

big changes in the next decade. Everyone in the world recognizes<br />

<strong>Cuba</strong>. We’re the last country that doesn’t,” said Bronner.<br />

Building links through exchanges in education,<br />

research and art<br />

With the embargo limiting U.S. business, many exchanges with<br />

<strong>Cuba</strong> now focus on education and culture. Especially active is the<br />

long-established University of Alabama, whose <strong>Cuba</strong> Initiative<br />

kicked off in 2002 and grew into a Center for <strong>Cuba</strong> Collaboration<br />

and Scholarship. The Center has sent more than 100 faculty<br />

members and at least 80 students to <strong>Cuba</strong>, some for repeated<br />

visits, from its base in Tuscaloosa in west-central Alabama. It’s<br />

been organizing semester-abroad programs in <strong>Cuba</strong> since 2009,<br />

some involving classes at the University of Havana, said co-director<br />

Steve Miller, who first visited in 2002.<br />

In Mobile, the Center has been helping with varied <strong>Cuba</strong><br />

projects, recently linking local curators with artists in <strong>Cuba</strong> for<br />

an upcoming exhibit at the Alabama Contemporary Art Center.<br />

“<strong>Cuba</strong> is our closest foreign country. We don’t operate in a vacuum,<br />

and we need to connect with people near us,” said curator<br />

Amanda Solley, 30, a painter who visited Havana in April to help<br />

organize the Mobile show.<br />

Solley first met artists from the island at the University<br />

of Alabama’s third annual <strong>Cuba</strong> Week held last October in<br />

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68 CUBATRADE AUGUST 2017


Play Ball: Founded in 1830, Spring<br />

Hill College, has strong <strong>Cuba</strong>n ties<br />

On the outskirts of Mobile, up a quiet<br />

oak-lined avenue, past a lane of azalea<br />

bushes, you’ll find the birthplace of <strong>Cuba</strong>n<br />

baseball: Spring Hill College.<br />

The oldest institution of higher learning<br />

in Alabama, Spring Hill was founded<br />

in 1830 by the area’s Catholic bishop. It set<br />

up its first baseball field in 1839. From early<br />

on, administrators reached out to recruit<br />

students from areas with large Catholic<br />

populations, including nearby <strong>Cuba</strong>.<br />

Two <strong>Cuba</strong>n brothers, Nemesio and<br />

Ernesto Guillo, attended with a friend in<br />

the 1860s. Nemesio returned to the island<br />

in 1864 with a baseball and bat. By 1868,<br />

the duo and pals formed <strong>Cuba</strong>’s first baseball<br />

team, the Havana Baseball Club. The<br />

team gained attention by allegedly winning<br />

a game against the crew of a U.S. schooner<br />

that had anchored in Matanzas for repairs,<br />

according to “The Pride of Havana: A History<br />

of <strong>Cuba</strong>n Baseball” by Yale University<br />

professor Roberto Gonzalez Echevarria.<br />

Spanish leaders disliked the spread of<br />

the U.S. sport in their colony, and in 1869<br />

during <strong>Cuba</strong>’s Ten Years War for independence,<br />

they banned the game. But islanders<br />

later brought it back and further developed<br />

their skills. Today, <strong>Cuba</strong>n players are mainstays<br />

of U.S. Major League Baseball.<br />

At Spring Hill, students still love the<br />

sport. The leafy campus boasts the oldest<br />

Batter Up!<br />

One of the deep links between<br />

Mobile and Alabama is baseball<br />

U.S. college baseball field in continuous<br />

use for inter-collegiate games: the Stan<br />

Galle Field, active since 1889. Fans for the<br />

visiting team sit on a small set of bleachers,<br />

but home-team fans to this day sit<br />

above and near the dugout. Many revel in<br />

the intimacy of being so close to the field<br />

and players.<br />

Frank Sims, head baseball coach for<br />

Spring Hill’s Badgers team for 32 years,<br />

takes pride in the rich baseball heritage<br />

and the startling <strong>Cuba</strong> connection. “I<br />

think the importance of baseball in <strong>Cuba</strong><br />

is huge,” Sims told <strong>Cuba</strong> Trade. “To know<br />

we were the school where these young<br />

men learned baseball, then took it back to<br />

<strong>Cuba</strong> and started a game that is now part<br />

of the culture there, I must say is a very<br />

proud moment in Spring Hill College<br />

history.”<br />

Spring Hill now hosts some 1,500<br />

students, who mostly live on campus. Yet<br />

at its veteran field, the <strong>Cuba</strong> link remains<br />

news to some. On a recent weekday, art<br />

teacher Jason Outlaw, 36, was coaching<br />

a children’s baseball camp when he<br />

learned that fellow alum from <strong>Cuba</strong> had<br />

brought baseball to their homeland. “I got<br />

chill-bumps now seriously,” said Outlaw,<br />

curious to know more about the Guillos.<br />

“I had no idea that connection was there.<br />

That’s crazy.”<br />

Tuscaloosa. The event featured 25 visiting<br />

<strong>Cuba</strong>ns in varied disciplines. “We had a<br />

whole crew come up from Mobile. It was<br />

so exciting,” said Miller, calling Mobile Alabama’s<br />

most engaged city on <strong>Cuba</strong> affairs.<br />

The newer University of South Alabama,<br />

based in Mobile and founded in<br />

1963, also is revving up on <strong>Cuba</strong>, looking<br />

for exchanges in fields from eco-tourism<br />

to coastal engineering. “The strongest<br />

collaboration we have now is in health<br />

sciences, in diabetes research with the University<br />

of Havana,” said Lynne Chronister,<br />

vice president for research and economic<br />

development.<br />

Those growing links have stimulated<br />

<strong>Cuba</strong>-themed business inside Mobile<br />

too. Restauranteur Bob Baumhower, a<br />

former football player with the University<br />

of Alabama and the Miami Dolphins, is<br />

planning to open a <strong>Cuba</strong>n-style piano bar<br />

in downtown Mobile soon. The speak-easy<br />

will be a tribute to the El Floridita bar in<br />

Havana frequented by American novelist<br />

Ernest Hemingway.<br />

Baumhower fell in love with all things<br />

<strong>Cuba</strong>n during his time in Miami, partly by<br />

reading Hemingway. He’s since visited the<br />

island three times with Alabama missions—once<br />

with a chef who prepared such<br />

Alabama specialties as shrimp and grits, as<br />

well as chicken with white barbecue sauce.<br />

“The more people hear about relations<br />

with <strong>Cuba</strong>, the more they’ll come out,” said<br />

Baumhower of the speakeasy, which will<br />

join 11 other locales in his Aloha Hospitality<br />

Group. His Dauphin’s restaurant on<br />

the 34th floor of the Battle House Tower<br />

already offers such <strong>Cuba</strong>n cuisine as mojo-marinated<br />

meats and flan dessert.<br />

Building on travel ties forged before the<br />

Revolution<br />

Mobile’s <strong>Cuba</strong> buzz seems natural to the<br />

city’s elders, such as Sally Tonsmeire Morrissette,<br />

a vivacious 82-year-old active with<br />

the carnival museum. She was queen of the<br />

Mobile Carnival Association in 1955.<br />

Morrissette recalls that her parents<br />

were in <strong>Cuba</strong> when the U.S. entered World<br />

War II in 1941, and how as a child, she was<br />

frightened and wanted them home sooner.<br />

Her husband partied with friends in Havana<br />

before the couple’s 1955 wedding. “They<br />

had such a good time the groomsmen went<br />

70 CUBATRADE AUGUST 2017


Ready for Takeoff: Brookley Airport has runways in excess of 9,000 feet that can handle direct flights to <strong>Cuba</strong><br />

back the next year,” said Morrissette. When a friend visited <strong>Cuba</strong><br />

this spring, she found it a welcome revival of the travel link.<br />

Still, there’s no direct commercial flights from Mobile to<br />

<strong>Cuba</strong> at present. The city airport is regional, not international,<br />

and travelers now fly to <strong>Cuba</strong> through Tampa, Houston or other<br />

airports. That may change at some point, however.<br />

Both Brookley Airport, where Airbus is located, and Mobile<br />

Regional Airport, which serves the flying public, have runways<br />

longer than 9,000 feet that can handle the largest international<br />

aircraft, including direct flights to <strong>Cuba</strong>. Mobile Regional is<br />

currently served by American, Delta and United, which all offer<br />

<strong>Cuba</strong> flights from other U.S. cities.<br />

“We are always looking for routes that the citizens are interested<br />

in,” says airport director McVay. “If <strong>Cuba</strong> is on the radar<br />

and something the citizens are interested in, then it’s something<br />

we are interested in,” he says, though “ultimately it’s up to the<br />

airlines to make that decision.”<br />

Direct air links would help <strong>Cuba</strong>n-Americans visiting their<br />

homeland, including Maria Conchita Mendez, who leads trade<br />

development with Latin America for Alabama’s port authority.<br />

A long-time advocate for engagement with <strong>Cuba</strong> and frequent<br />

visitor to the island for decades, she left work at Florida ports 14<br />

years ago to help Mobile build ties with <strong>Cuba</strong> and other Latin<br />

American nations.<br />

Some call Mendez the resident ambassador for Mobile’s<br />

small <strong>Cuba</strong>n-American community. On a recent weekday, she<br />

paid a visit to 77-year-old Josefina Pacheco, who came from the<br />

rural <strong>Cuba</strong>n town of Manicaragua in Villa Clara province 17<br />

years ago. Pacheco is happy in Mobile, preferring its slower pace<br />

to noisier, more urban Miami or Tampa. “Everyone greets me<br />

here. They say, “Hola Josefina,” she said, with fresh coffee on the<br />

stove. “It’s so friendly and peaceful.”<br />

Committed to <strong>Cuba</strong> for the long-run, beyond Trump<br />

President Donald Trump’s announcement this June that he will<br />

tighten U.S. restrictions on trade and travel with <strong>Cuba</strong> hasn’t<br />

chilled Mobile’s decades-long push for engagement with the<br />

island.<br />

“I think people are cautiously optimistic,” said Bill Sisson,<br />

president and CEO of the Mobile Area Chamber of Commerce,<br />

who visited <strong>Cuba</strong> last year with the mayor and other local leaders.<br />

“They are watching and waiting for normalization of relations, so<br />

they can open up trade – the same with the entire state. They are<br />

eager to participate in the economic development of <strong>Cuba</strong>.”<br />

Like the Le Moyne, depicted in statues on the waterfronts of<br />

Mobile and Havana, the city’s leaders want to build two-way ties<br />

with <strong>Cuba</strong>.<br />

“The biggest challenge for <strong>Cuba</strong> will be competition, if they<br />

do open up,” says Sisson. “Every port city is going to want to do<br />

business there. But we have had this long-term relationship and<br />

connectivity.” H<br />

J.P. Faber contributed to this report.<br />

72 CUBATRADE AUGUST 2017


With the support of<br />

La Union <strong>Cuba</strong>-Petroleo<br />

Official Media Partner<br />

Bringing insight into the<br />

issues facing <strong>Cuba</strong>’s oil and<br />

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opportunities ahead<br />

27–29 September 2017<br />

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www.cuba-energy.com<br />

To discuss the most<br />

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please contact the organising<br />

committee today:<br />

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74 CUBATRADE AUGUST 2017


ART<br />

Sebastien Laboureau, curator<br />

THE '80s<br />

GENERATION<br />

A South Beach hotel puts on a curated show of <strong>Cuba</strong>n<br />

artists born after the Revolution, who came of age in<br />

the ’80s, and who are collectable now<br />

By J.P. Faber<br />

Imagine a museum-quality exhibition where, at the end of the<br />

show, you can buy any of the pieces displayed.<br />

That is the idea behind “<strong>Cuba</strong>n Artists: The Prodigious<br />

Decade,” a curated exhibit at the Sagamore Hotel in Miami<br />

Beach with more than 100 works by 25 <strong>Cuba</strong>n artists born at the<br />

time of the <strong>Cuba</strong>n Revolution or shortly afterwards.<br />

The show was crafted by Sebastien Laboureau, who first began<br />

curating exhibits at the hotel in the summer of 2016. He calls<br />

the Sagamore “one of the first art hotels in the world;” it began<br />

exhibiting the private collection of its owners in the late 1990s.<br />

When new owners purchased the Sagamore two years ago<br />

they engaged Laboureau as the property’s official art advisor. Laboureau,<br />

an avid art lover, had been counseling private collectors<br />

for nearly a decade after leaving his job as an investment banker<br />

at Goldman Sacks.<br />

That investment perspective brings a unique element to the<br />

exhibit. “We do museum-like exhibits, but everything is for sale,”<br />

says Laboureau. And, as a South Beach gallery-cum-museum, the<br />

Babel C<br />

by Consuelo Castañeda<br />

76 CUBATRADE AUGUST 2017<br />

AUGUST 2017 CUBATRADE<br />

77


La Diaspora<br />

by Leandro Soto<br />

Better Days Ahead<br />

by Ruben Torres Llorca<br />

Sagamore brings its own twist. “We are the only art institution open<br />

twenty-four-seven to the public—plus you can have a drink,” he says.<br />

Laboureau says he wanted to create a show that also contributed<br />

to the understanding of <strong>Cuba</strong>n art. “<strong>Cuba</strong>n art has become<br />

some kind of a fashion statement, with everyone talking about<br />

it since Obama’s attempts to open relations. The reality is that<br />

<strong>Cuba</strong>n art is something that has been very special for centuries. I<br />

came to [the Hotel’s owners] and said we want to do an exhibit<br />

about this generation [the ’80s], the ones who led the effort for<br />

<strong>Cuba</strong>n contemporary art.<br />

“All of them were born right after the Revolution, and knew<br />

no <strong>Cuba</strong> outside of the Revolution. In the ’80s, they started creating<br />

very innovative art that was also controversial in its commentary.”<br />

Among the more notable of the 24 artists, some of whom<br />

now live in U.S. and some in <strong>Cuba</strong>, are names such as José Bedia,<br />

Arturo Cuenca, Ruben Torres Llorca, Glexis Novoa, and José<br />

Toirac. To celebrate the show, 14 of them came to Sagamore for<br />

the opening. “It was an emotional moment, a historical moment,<br />

to bring them all together,” says Laboureau.<br />

In addition to hotel’s art advisor, the show was co-curated by<br />

Dr. Adriana Herrera and Willy Castellanos from Aluna Curatorial<br />

Collective. “The term ‘Prodigious Decade’ is the designation<br />

given to a turning point in the history of <strong>Cuba</strong>n art,” says<br />

Herrera. “It was a time of aesthetic divergences that questioned<br />

the relation of the artists with official institutions.”<br />

What impresses Herrera is how the artists “through various<br />

forms of aesthetic ruptures, disrupted the limits of what was<br />

permitted,” despite being “formed” at the Instituto Superior de Arte<br />

(ISA) school in Havana. At the time these artists came of age, she<br />

says, the iconic imagery of <strong>Cuba</strong>’s revolutionaries (think Che Guevara)<br />

and its workers “was what the art had to be.” The new generation<br />

began to work instead with other types of images, such as those<br />

from forgotten or prohibited religious practices, or from classic art.<br />

“It was not abajo [down with] the Revolution or abajo <strong>Cuba</strong>, but<br />

Art Soiree: 14 artists attended the opening at the Sagamore Hotel<br />

rather saying they could embrace another type of aesthetics.”<br />

The result is a fascinating array of paintings, with a handful<br />

of video installations and sculptures added to give the exhibit dimension.<br />

One of the more arresting is Jose Bedia’s “Killing in the<br />

name of…”, an eight-by-seven-foot canvas with a massive aircraft<br />

carrier surging toward the viewer. On its deck is a military jet,<br />

as well as a tiny sacrificial scene. “If you see the details, you see<br />

iconic references to certain [religious] practices. But Bedia is not<br />

alluding to Havana issues. It’s about the violence in the world,<br />

which could be created by the U.S., for example.”<br />

Other works are more specifically <strong>Cuba</strong>n referenced, such as<br />

Leandro Soto’s 1998 “La Diaspora,” which shows an abandoned<br />

rowboat in what are presumably Caribbean waters, or Ruben<br />

Torres Llorca’s “Surrealismo Socialista,” a play on Social Realism:<br />

a pencil on paper image of a female <strong>Cuba</strong>n factory worker (think<br />

Rosie the Riveter) whose lower half is the tail of a genie.<br />

More than political commentary, however, the ’80s generation<br />

was one that explored the visual space in an exuberant<br />

fashion, almost restlessly breaking out of the mold of social<br />

realism (think propaganda art). Those same artists have continued<br />

their playful use of images they literally turn on their heads—like<br />

Consuelo Castañeda’s “Babel C,” a 2012 canvas on three panels<br />

that flips a classic Tower of Babel upside down. Or Ruben Torres<br />

Llorca’s 2015 “Better Days Ahead,” which makes pop art from<br />

the paranoid imagery of the Cold War.<br />

As for the prices, they range from $4,000 to $50,000:<br />

“Surrealismo Socialista” is priced at $6,000; “Babel C” at $7,500;<br />

“La Diaspora” at $9,000; “Better Days Ahead” at $26,000; and<br />

“Killing in the name of…” at $44,000.<br />

“We have sold a few already. It’s very important for the artists,”<br />

says Laboureau. “In terms of prices, I do believe as a finance<br />

guy and an art advisor, that there is an investment opportunity<br />

for investors to enrich their collections. I believe that <strong>Cuba</strong>n art is<br />

still undervalued.” H<br />

Killing in the Name of<br />

by Jose Bedia<br />

78 CUBATRADE AUGUST 2017<br />

AUGUST 2017 CUBATRADE<br />

79


in closing<br />

Mark Your Calendar<br />

The Harm<br />

Behind Trump’s<br />

Restrictions on<br />

US Travel to <strong>Cuba</strong><br />

By Collin Laverty<br />

President, <strong>Cuba</strong> Educational Travel<br />

The US <strong>Cuba</strong><br />

Agriculture Forum<br />

Chicago, Illinois October 18, 2017<br />

An all-day forum on the opportunities for<br />

agriculture and food product trade with <strong>Cuba</strong><br />

Millions of <strong>Cuba</strong>ns on the island watched President Donald<br />

Trump’s June 16 announcement with a feeling of sadness, disbelief<br />

and a sense of Déjà vu. Once again, political theater in Miami<br />

and Washington was filled with false rhetoric about helping the<br />

<strong>Cuba</strong>n people, while simultaneously sweeping the rug out from<br />

under their feet. It is clear the Trump administration’s new policy<br />

will not help <strong>Cuba</strong>ns or the <strong>Cuba</strong>n economy. What is left to be<br />

seen is exactly how much damage it will cause.<br />

In terms of the new travel restrictions, <strong>Cuba</strong>ns across the<br />

board are bound to suffer. The growing private sector in <strong>Cuba</strong> has<br />

seen incredible growth as a result of internal reforms and increased<br />

U.S. visits, with bed and breakfasts, restaurants, car services, and<br />

independent travel guides popping up left and right. Knowing<br />

that visiting Americans must take part in people-to-people<br />

activities, many <strong>Cuba</strong>n entrepreneurs even adapted their business<br />

models to individual U.S. travelers seeking those types of experiences.<br />

Many businesses not in the hospitality sector cater mainly<br />

to <strong>Cuba</strong>n entrepreneurs and state workers in that space, meaning<br />

they will also be hit by the decline in visitors.<br />

<strong>Cuba</strong>ns working for the state, who depend on tips to survive,<br />

are very nervous about the potential dwindling number of Americans,<br />

commonly referred to as most generous visitor. Moreover,<br />

tourism earnings, whether through taxes on the private sector<br />

or direct payments to the state sector, are redistributed through<br />

the federal budget and used for education, health care, and other<br />

government spending, affecting all 11 million <strong>Cuba</strong>ns. Nobody in<br />

<strong>Cuba</strong> is excited about the new policy.<br />

Between January and June 2017, 346,000 Americans visited<br />

<strong>Cuba</strong>, a 149 percent increase from the same period in 2016. This<br />

is in addition to 207,000 <strong>Cuba</strong>n Americans, putting the U.S on<br />

pace to soon surpass Canada as the largest source of visitors to<br />

the island. Americans finally felt like it was okay, normal, and<br />

legal to book a flight with a major airline and head off to <strong>Cuba</strong>.<br />

That psychological element has had a tremendous impact on how<br />

many people visit, and we were finally making progress. President<br />

Obama led by example, traveling with his whole family, sending a<br />

message that we should visit, engage, and make friends.<br />

The new restrictions will certainly reduce the number of<br />

visiting Americans. The rhetoric surrounding the announcement<br />

about audits, fines, and banned hotels scares law-abiding Americans<br />

who don’t want to look over their shoulder while planning a<br />

holiday. Confusion over what you can and can’t do, and what the<br />

requirements are, will deter many would-be travelers.<br />

Expect increased complications for companies working in<br />

the space as well. Internal compliance departments at banks will<br />

get tougher with companies doing business with <strong>Cuba</strong>, making<br />

transactions more costly and complicated. <strong>Cuba</strong>n entrepreneurs<br />

can expect challenges visiting the U.S., opening bank accounts,<br />

and processing transactions.<br />

Despite the obstacles, Americans will continue to visit and<br />

<strong>Cuba</strong>ns will continue to welcome them with open arms. Many will<br />

visit on cruises, tours, study trips, conferences, and other approved<br />

categories of travel. Dozens of highly specialized organizations like<br />

my own <strong>Cuba</strong> Educational Travel will continue to offer experiences<br />

for small groups that want flexibility, intimacy, and color not obtainable<br />

with larger, more generic experiences. And the <strong>Cuba</strong>n people<br />

will do what they have done for decades: open up their homes,<br />

offer unique experiences, and build long-lasting friendships. H<br />

Brought to you by the<br />

U.S. Agriculture Coalition for <strong>Cuba</strong><br />

and<br />

<strong>Cuba</strong> Trade Magazine<br />

Go to US<strong>Cuba</strong>AgForum.com for further information<br />

80 CUBATRADE AUGUST 2017<br />

AUGUST 2017 CUBATRADE<br />

81


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American Airlines and the Flight Symbol logo are marks of American Airlines, Inc.<br />

oneworld 82 CUBATRADE is a mark of the oneworld AUGUST Alliance, 2017 LLC. © 2016 American Airlines, Inc. All rights reserved.

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