Carnival, Holland America will sail to Cuba as planned

Carnival Fathom in Havana

Carnival Corp. said it understands the policy changes on Cuba that President Trump will announce in Miami today do not include any changes for cruises.

In a statement, Carnival said it is "pleased" that its ships will continue to sail to Cuba.

Carnival Cruise Line plans sailings from Tampa to Cuba starting later this month and Holland America Line recently announced plans to visit Cuba in the fall.

Trump is expected to end the ability of travelers to "self-certify" that they comply with rules for traveling to Cuba, which became the practice last year under President Obama.

"We will review the extent of the tightening of the travel rules, but our guests have already been traveling under the 12 approved forms of travel to Cuba since we undertook our historic first cruise to Cuba more than a year ago," a Carnival Corp. statement said.

The first cruise to Cuba from a U.S. port in decades was by Carnival's Fathom brand, which has since returned its single ship to P&O Cruises.

"Our experience in Cuba this past year has been extremely positive," Carnival Corp. said. It also said other Carnival Corp. brands have applied to travel to Cuba.

Costa included Cuba on some itineraries from 1995 to 1998, before it was purchased by Carnival Corp. from its Italian owners.

Other cruise lines chimed in after Trump finished giving his speech in Miami.

"Based on the information shared today, we are very pleased to learn the news that cruises to Cuba will continue under the new guidelines laid out by the administration," a statement from Norwegian Cruise Line Holdings said.

NCLH operates Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, all of which sail to Cuba.

Royal Caribbean Cruises Ltd. also praised the new Cuba policy.

"Royal Caribbean is pleased there is no impact to any of our cruises to Cuba as announced in the new U.S. policy toward Cuba today," said a statement from RCCL, whose Royal Caribbean International and Azamara Club Cruises brands make stops in Cuba.

Although cruise lines appear to have emerged unscathed from the Cuba policy review, the exact impact will depend on rule revisions forthcoming from the Treasury Department and other U.S. agencies.

"We will continue to review the full and exact scope of the policy changes and any updated regulations during the implementation period which may take several months," RCCL said.

Both cruise companies emphasized that their shore excursion programs were already in compliance with Treasury regulations governing Cuba tourism.

Both also said that their cruises with Cuba in the itinerary are popular. NCLH said it has 70,000 bookings for future cruises that include Cuba. "We are delighted our guests will continue to have the opportunity to experience the wonderful culture and incredible history of Cuba." the statement said. 

Carnival CEO says Trump likely to be pro-business

Carnival Corp. CEO Arnold Donald with Travel Weekly editor in chief Arnie Weissmann at CruiseWorld. Photo Credit: Jamie Biesiada

Carnival Corp. CEO Arnold Donald said that the election of Donald Trump as president has the potential to be good for the cruise industry, but he also said he hopes that Trump will do "the right thing" internationally.

Donald made the comment during a conversation with Travel Weekly editor in chief Arnie Weissmann at CruiseWorld, an annual Travel Weekly event in Fort Lauderdale that brings together travel agents and travel suppliers.

Asked by Weissmann for his response to the election, Donald quoted Secretary of State John Kerry, who several years ago said that there are no winners or losers after a U.S. presidential election. "The next morning we all wake up as Americans" who work on problems together, Donald said.

More specifically, Donald said, "On the surface, President Trump will be pro-business. At the same time, I hope he does the right thing internationally. Most of our business is outside the U.S."

In a follow-up about Cuba, Donald said that despite Trump's campaign rhetoric about reversing President Obama's openings toward Cuba, "I'm cautiously optimistic that bringing the two countries together is the right thing to do."

Earlier this year, Carnival Corp.'s Fathom brand became the first line to regularly shuttle passengers between the U.S. and Cuba in over 50 years.

Donald said Carnival continues to work on a private destination in the Bahamas but isn't ready to announce anything. Carnival executives have said in the past they have a potential site picked out on Grand Bahama Island.

"We want the right one on the right terms," Donald said. "We think we have something coming soon, but we don't want to count the chickens before they hatch, so to speak."

Donald took the chance to show the audience of several hundred travel agents clips from the new Carnival-produced Saturday-morning network TV shows, such as "Vacation Creation" and "Ocean Treks with Jeff Corwin."

He also regaled the group with a tale of highlights from his rise to CEO of Carnival Corp. He said his initial introduction to Carnival Corp. chairman Mickey Arison was engineered by board member Uzi Zucker, a Bear Stearns partner who also served as an adviser to a private equity firm of which Donald was a part.

He also told about his ambition as an 11th-grader to be a very specific level of manager at a specific type of Fortune 50 company. He said the teachers at the all-boys Catholic high school in New Orleans he attended on scholarship constantly reminded their students to think big.

"Three times a day they told us, 'Gentlemen, prepare yourselves. You're going to run the world.'"

Big changes in Cuba, but infrastructure needs to catch up

Kempinski is refurbishing the Hotel Manzana de Gomez in Old Havana. Photo Credit: Johanna Jainchill

In advance of President Obama’s historic trip to Havana this week, his administration made perhaps the most significant changes so far to the regulations surrounding Cuba tourism by allowing Americans to visit the island without being a member of a tour group. 

On its face, the rules about what U.S. visitors can do in Cuba don’t change: Individuals are only allowed to travel to Cuba for one of 12 reasons, including “people-to-people educational” trips. But on people-to-people trips, they no longer have to travel with a licensed group. 

Regular tourism to Cuba is still technically illegal, but the rules are essentially unenforceable. Americans will be able to travel on their own in Cuba by self-certifying via an affidavit that they are conforming to the regulations, which the Department of the Treasury defined as “a full-time schedule of educational exchange activities intended to enhance contact with the Cuban people, support civil society in Cuba or promote the Cuban people’s independence from Cuban authorities and that will result in a meaningful interaction between the traveler and individuals in Cuba."

Ronen Paldi

Tour operators to Cuba said last week that they were not concerned about the effects of the new rule on their business. Even if the embargo were lifted tomorrow, they said, the island is sorely lacking in the infrastructure necessary to accommodate a mass influx of individual travelers. 

“Cuba is facing tremendous challenges,” said Ronen Paldi, the president of Ya’lla Tours USA, which has been operating in Cuba since 2002. “In the last 15 to 16 months, the administration is doing all this easing of the restrictions. But what has not changed is the infrastructure in Cuba. Hotels are full, completely sold out until May 2018. Prices are going up, space is becoming more and more limited.”

Diane Mullahy, the president of in Framingham, Mass., has been building a Cuba business since regulations first relaxed last year and has had to contend with a lack of rooms and restaurants. 

“The problem is travel there has increased 70% since last year, and there are not enough hotels, and each time I go the restaurants are packed,” she said. “It’s just so busy. They have a long way to go.

Diane Mullahy

“I have clients go down, and I tell them anything can happen. You have to be flexible.”

Another major impediment to the ease of traveling individually is that even though the Obama administration last year made it legal for credit-card companies to operate in Cuba, U.S.-issued credit cards are still not usable on the island, and U.S. banks have not enabled ATM withdrawals there, meaning everyone has to go with cash only. 

“The problem is that, so far, relatively few U.S. banks have been willing to go through the process of making arrangements with the Cuban government and with Cuban merchants to actually accept U.S. credit cards,” said William LeoGrande, a professor at American University. “The profit margin is small, and they are afraid of large fines from the Department of the Treasury if they inadvertently violate the embargo.” 

And while the Obama administration said the change was intended to make educational travel to Cuba more accessible and less expensive for Americans, so far the opposite is true. 

“We’ve seen costs increase by 40% and 20%, respectively, over the past year,” said Tom Popper, president of Insight Cuba. “If demand increases, it’s more likely we will see prices increase even more.” 

But for some businesses, the relaxed regulations are a boon.

Tom Popper

Havana-based Cuba Travel Network has specialized in individual travel to Cuba since 2002. Founder and CEO Eddie Lubbers, who is Dutch, said that while his business is predominately non-Americans, that is changing: Americans represented 6% of his business in 2014, a number that shot up to 23% in 2015. With the recent changes, he expects the U.S. portion to grow to as much as 50% of his business. 

The company is ideally positioned to take advantage of the recent changes because it enables travelers to book individual components in Cuba, such as hotels, flights and cars online, and also offers individual itineraries that fall into the categories under which people can legally travel. 

Lubbers said the U.S. travel agent side of his business is also growing, with agents using Cuba Travel Network to book entire itineraries for small groups or individuals and receiving commission.
“It gives them a perceived expertise in the market,” he said. 

While the changes may mean the opening of new businesses geared toward individual Cuba travelers, Paldi is among the long-time operators who noted that having years of relationships and experience in Cuba means more than ever right now, especially with hotel space so limited. 

“We can service you [last-minute] because we have access to what’s available and what’s not available,” Paldi said. 

Lubbers added that Cuban leaders recently made it clear at events in Europe that they respect companies that have been doing business in Cuba during the last 20 years.

“Agencies will spring up and say, ‘We are going to offer travel to Cuba,’ ” he said. “They may be able to do that from the demand side, but from the supply side it’s more difficult.”

In Puerto Rico, a Cuba-like cruise experience

This year, everyone is excited about visiting Cuba. With good reason: President Obama’s attempt to thaw relations revived dreams about the possibilities of the island nation 90 miles off Florida’s coast.

Yet except for the Celestyal Crystal operated by Cuba Cruises, and a few other small ships, cruising in Cuba is still not possible. Some cruise executives say it is at least three to five years off.

So what to tell clients about visiting the island? One answer is to suggest Cuba’s cousin, Puerto Rico. There’s a lot of what a client would experience in Cuba itself, with the bonus of being available today, not in the hazy future.

Cuba and Puerto Rico share a common heritage. Both were freed from Spain in the lopsided Spanish-American War of 1898. Cuba’s independence movement was more advanced, so it became a new nation. Puerto Rico became a territory of the U.S., which it remains today.

Much of what travelers would find in Cuba they can also find in Puerto Rico, including Caribbean-Latin cuisine, great music, fabulous beaches and intriguing Spanish colonial architecture. The mountains, the foliage, the urban energy and rural charms are the same.

An arrival at San Juan harbor with its picturesque 16th century forts is a real pleasure, with the ships docking conveniently at the foot of the Old San Juan historic district.

Some things are different, of course. Charming 1950s automobiles are harder to find, and McDonald’s and other signs of U.S. commerce are part of the landscape. Making up for that, perhaps, is widely prevalent bilingualism and the comforts of being in U.S. territory (with the simultaneous appeal of being someplace that feels foreign).

About 1.5 million cruise passengers arrived or departed a cruise in Puerto Rico last year. A Quantum of the Seas call in December marked the largest cruise ship ever to dock there.

San Juan is unusual in being both an active port of call and a homeport for Royal Caribbean International and which offer southern Caribbean itineraries that are different and less traveled than those departing from mainland ports. 

Next year, Carnival plans to station a larger ship in Puerto Rico, the 2,758-passenger Carnival Victory, which will visit Barbados and St. Lucia, among other stops. It is expected to carry 150,000 passengers annually.

For someone who really wants a Cuba-like cruise experience without waiting for the bureaucratic and diplomatic wheels to turn, Puerto Rico is a good bet.

At Disney World, Obama reveals plan to increase U.S. tourism

Praise for the executive order President Barack Obama issued Thursday to ease visa-processing in an effort to boost tourism came swiftly from around the travel industry. Read More

LAKE BUENA VISTA, Fla. — With Cinderella Castle as a backdrop and under a cloudless blue sky, President Barack Obama on Thursday issued a message to the world: “America is open for business.”

Obama earlier in the day issued an executive order to ease U.S. visa policies and expand the number of countries in the Visa Waiver Program, with the goal of increasing inbound U.S. tourism.

“I want America to be the number one tourist destination in the world,” Obama told the crowd at Disney’s Magic Kingdom.

To do that, Obama said he has directed his administration to increase by 40% the visa-processing capacity in China and Brazil, where securing a visa to visit the U.S. can take up to a year.

He noted that Brazil and China have emerging middle classes and citizens with growing disposable income, but that onerous U.S. visa policies mean their citizens have difficulty getting to the U.S.

“People want to come here, and Brazil and China are two of the countries with the biggest backlogs,” Obama said. 

  

“That’s what today is all about: telling the world that America is open for business.”

Obama said the new tourism strategy is part of his job-creation plan.

“The more folks who visit America, the more Americans we get back to work,” he said. “It’s that simple.”

Touching on the difficult balance between maintaining safe borders and the interests of the tourism sector, Obama said, “There’s no reason we can’t do both.”

Obama also said he is instructing his administration to expand the Visa Waiver Program to more nations, including Taiwan. (Although Taiwan is ruled by China, Taiwan has its own visa policies.)

In addition, the Obama administration aims to expand Global Entry, a program that allows expedited clearance at the airport for pre-screened international travelers.

While it has been suggested that Obama’s speech was as much about his reelection campaign (Florida is projected to be a key swing state) as it was about tourism, U.S. Travel Association CEO Roger Dow commended Obama for being “the first sitting president to say that increasing travel and tourism is important.” 

At Disney World, Obama reveals plan to increase U.S. tourism

By Johanna Jainchill