HotelsMag March 2017 | Page 36

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Jorge Duany , director of the Cuban Research Institute at Florida International University , has two opinions on U . S . -Cuba relations : The embargo probably won ’ t go away as long as Congress remains in Republican control ; and the U . S . will probably restrict the 12 categories of travel that are currently allowed .
Despite that , “ the opening has in general been good to families on both sides of the Florida straits ,” Duany says . However , one of the main goals of the U . S . engagement policy was to improve human rights in Cuba , and there is evidence that is has gotten worse , he says , citing a crackdown on peaceful demonstrations during former President Barack Obama ’ s 2016 visit . Tourism is driving construction and providing opportunities for a populace with one of the highest literacy rates in Latin America . “ The problem is that you have a mismatch between a very well-educated labor force and the kinds of economic opportunities now available . That ’ s been one of the tragedies of the Cuban economy since the 1990s ,” Duany says . “ It ’ s not uncommon to find a PhD driving a cab or running a restaurant . They earn more money than in their own profession .”
Republic . The company has been managing more , says Juan Perez , senior vice president of sales and marketing – USA at BHG Latin America , although acquisitions aren ’ t off the table . Barcelo aims to grow in higher-end segments in both resort and urban destinations . It manages two Cuban properties and will add a third in Varadero this year . “ The destination will continue to be a priority market ,” Perez says .
SPEAKING OF WHICH “ We would welcome the opportunity to come back to Cuba ,” Hilton ' s Corvinos says . “ We ’ re patiently waiting to get regulatory approval to get back on the island .”
Marriott gained a coveted foothold in Havana through its acquisition of Starwood last year . Its Four Points by Sheraton opened a few months ago , and the Hotel Inglaterra , a Luxury Collection , is being renovated . “ We are continuing with business as usual , and we will comply with U . S . regulations . We ’ re waiting to see what happens ,” Acevedo adds .
The main challenge for the Four Points is customer expectation . “ The Cuban people are really amazing ,” Acevedo says . “ They have a great attitude for service , but they ’ ve never been trained based on the U . S . standard , so I just think it is part of the education process . But the attitude and willingness is there .”
“ We welcome the competition ,” says André Gerondeau , executive vice president of hotels at Palma de Mallorca , Spain-based
The lobby of the Meliá Jardines del Rey in Cuba
Meliá Hotels International . It ’ s been in Cuba since 1990 and has 28 hotels and over 30,000 rooms , mainly Meliá and Paradisus brands , with three in the pipeline . That ’ s 21 % of inventory and 28 % of marketshare , he says . Meliá just opened the 1,076-room Meliá Jardines del Rey , an all-inclusive on Cayo Coco , and intends to bulk up its higher-end portfolio .
Is Gerondeau ready for new competition in Cuba ? “ We are probably the strongest players in the all-inclusive and high-end all-inclusive , and we have a strong position in the Caribbean ,” he says . “ We understand the culture , the market , the customer probably much better than anyone else does .” He echoes the training challenges but points to consistent improvement that isn ’ t directly related to increased U . S . interest as much as it is to changing customer habits and rising demand in general .
That isn ’ t stopping Wyndham . “ We plan on looking at opportunities this year to introduce our brands to Cuba ,” says Paulo Pena , president and managing director , Latin America and Caribbean . “ We ’ ll be talking to potential partners and attending development conferences , but will work within the necessary legal framework to bring hotels to the island .”
THE VACUUM “ The process of the relationship recovery between Cuba and the U . S . is a way without return ,” says Arturo Garcia Rosa , founder and president of SAHIC , the South Amer-
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