Global Update embracing the culture ,” Joyce explains . “ Cuba has miles of unspoiled beaches and a rich Caribbean history . We see it as a destination that will be embraced by U . S . travelers .”
Operational concerns Once American hoteliers ’ boots are on the ground , a new set of challenges will arise . After a hotel is assigned to an operator and parameters of the contract are clear , the next phase includes capital expenditure and human resources .
“ If the hotel is an existing asset , the operator will have to negotiate what capital expenditures can be added , if any , to the expense of the government ,” he says . “ In most instances this will not be possible and the operator will incur expenses opening and renovating the property .”
Another challenge will be training the staff . “ With the exception of the general manager and other cluster positions , the entire staff is local and managed by government companies ,” Yuste says .
Given other countries ’ tourism in Cuba ,
miles of untouched real estate will become
incredibly competitive and we want to have properties underway as soon as possible after the trade embargo is lifted and the door is truly open .
- ChoiCe hotels international Ceo steve JoyCe .
Zozaya says the nation is ready to welcome the U . S . Currently , European hotel giant Accor has two Cuban properties , and Meliá Hotels International has 28 properties .
“ Cubans are not only the highest educated people in Latin America and the Caribbean , but they also have many years of experience taking care of tourists from Europe , Canada and Latin America ,” Zozaya explains .
Cuba ’ s socialist government will present more challenges but doesn ’ t present a roadblock large enough to prevent growth . “ As long as there is clarity , goodwill and the right legal frame and protection for the investors , there are always opportunities to invest and conduct business ,” Zozaya says .
Since the Cuban government already has a tendency to switch hotel operators with somewhat high frequency , Yuste says it is “ very likely ” that American management companies with credible records of success will be offered a contract more easily than existing operators .
“ The Cuban government is looking to increase the receipt of U . S . dollars ,” Yuste explains . “ To the extent that American companies have greater penetration into the U . S . customer base , I think American hotel groups will be more than welcome .”
Meeting expectation The key question for American companies should indeed revolve around the large amounts of traffic that the U . S . will send to Cuba .
According to the United Nations World Tourism Organization , Cuba received 2.8 million tourists in 2012 . The Dominican Republic , half the size of Cuba , received 4.7 million tourists in 2013 . With a population of 300 million people , a third of which own a passport , the U . S . will likely make a considerable footprint .
However , the shake-up will not happen overnight . Zozaya believes cruise ships will be the first big hospitality engines to take advantage of the new travel region while hotels will use the existing infrastructure and reflag with franchises then implement new management .
“ The size of the opportunity is great - as great the growth of the market in the Caribbean and Latin America ,” Zozaya adds . “ We can expect to see growth similar to the one we have seen in Punta Cana in the Dominican Republic or in the Riviera Maya in Mexico . Cuba could grow 5,000 rooms per year over the next 10 years .”
The rules
AS Of Mid-JAnuAry , HErE ArE THE nEw ruLES in THE u . S . fOr TrAvEL TO CubA :
• Most U . S . travelers will still be required to travel to Cuba on “ supervised group trips ,” but almost any U . S . company or organization can embark on trips without the paperwork and inspections that were required .
• Although airlines are interested in flying from the U . S . to Cuba , commercial flights will not be available until the governments agree on treaty terms .
• According to the U . S . Department of Commerce , only about 170,000 authorized Americans traveled to Cuba in 2014 . However , if the ban is ultimately lifted , qualified American travelers would be able to make arrangements much more easily and quickly through any service provider that complies with the U . S . Department of Treasury ’ s Office of Foreign Assets Control regulations governing travel services to Cuba .
www . hotelsmag . com March 2015 HOTELS 13