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What President Trump’s Cuba Policy Means for Travel

by Nicole Quaste

Jun 20, 2017
eFlyer Lead

Last week, President Donald Trump announced a stricter policy toward Cuba. What does this mean for travel?

The travel industry — including airlines, cruise lines, tour operators and hotel owners — has been at the heart of the expanded contact between the United States and Cuba over the past few years, after President Barack Obama eased restrictions in early 2016.

Under the new regulations, individual American travelers will not be able to visit the island on what are known as people-to-people trips, the most common mode of travel adopted since President Obama’s relaxed policy was put in place. Per President Trump’s regulations, people-to-people trips will be permitted only for groups and must be organized by a licensed tour operator.

Though the initial announcement left a lot of questions unanswered, the Department of Treasury has since clarified details. For those who already have trips planned, the Department of Treasury ensured the new changes will not apply “provided that the traveler has already completed at least one travel-related transaction (such as purchasing a flight or reserving accommodation) prior to the President’s announcement on June 16, 2017.”

In terms of timing, the Department of Treasury’s Office of Foreign Asset Controls also clarifies that, “OFAC expects to issue its regulatory amendments in the coming months. The announced changes do not take effect until the new regulations are issued.”

Cruises
The policy as it stands does not include significant changes for cruise lines, as itineraries already offer authorized tours on land, which are allowed. What is not clear is whether or not cruise passengers will be able to explore the destination on their own while in Cuba.

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

“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.

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

“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 Royal Caribbean Cruise Line, whose Royal Caribbean International and Azamara Club Cruises brands include Cuban destinations on itineraries.

Hotels
The new policy prohibits American travelers from completing transactions with companies run by the Cuban military, a significant restriction given that many of Cuba’s branded hotels and attractions are managed or owned by the Cuban military’s Grupo de Administración Empresarial S.A. (GAESA) Gaviota division.

Americans can stay in a private home in Cuba, such as those offered through Airbnb, but likely will not be able to stay in a hotel. There are currently 22,000 Airbnb listings in Cuba.

The Gaviota division of GAESA signed management deals with Starwood Hotels in March 2016 to operate three hotels in Cuba. Marriott acquired Starwood in September 2016, but both companies received treasury approval to do business in Cuba. The future of these hotels is unclear at this time.

Airlines
As it stands, the new policy does not prohibit U.S. flights flying to and from Cuba.

Currently, American Airlines, United Airlines, Delta Air Lines, JetBlue Airways, Southwest Airlines and Alaska Air Group, among others, operate flights to Cuba. While several airlines have adopted a wait-and-watch policy, they continue to operate normally.

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