U.S. travel agencies eye Cuban opportunities

May 16, 1998
Web posted at: 6:12 p.m. EDT (2212 GMT)

HAVANA (CNN) -- It may be illegal still for U.S. businesses and U.S. citizens to do business in Cuba, but some folks are already setting their sights on a future cash crop that could follow warming ties between the United States and its Communist neighbor.

For the first time since the Cuban Revolution in 1959, representatives from the U.S. travel industry ventured to Cuba last week for the island's annual tourism convention.

Before Fidel Castro came to power, Havana rivaled Miami as a destination point for tropical travelers from the United State and other nations. But Castro closed Cuba's doors to tourists.

He reopened them at the beginning of this decade to help bring money into an economy that lost a large chunk of funds when Cuba backers in the Soviet bloc crumbled.

Since then, Cuba's beaches have drawn millions of tourists from Italy, Canada and other nations. U.S. companies are hoping they, too, can soon get in on the act.

Gee Gee Morgan and her brother run a Florida-based company, "Sea Tour," that rescues yachts in distress.

"We have bought the rights for the Sea Tour Cuba for if and when the embargo is lifted to bring the company to Cuba," Morgan told CNN.

U.S. getting tougher

Each year, thousands of U.S. citizens circumvent the federal ban on travel to Cuba. Some enter the island from a third country, like Mexico or the Bahamas; others sail to Cuba's shores.

Thousands of Americans who visit Cuba travel through a third country such as Mexico

Most of them argue they aren't breaking U.S. law because they aren't spending money in Cuba. Those who sail say they're providing their own food and lodging. Others claim Cuban hosts are picking up the tab.

The U.S. travel industry may hope Washington will ease restrictions on commerce with Cuba, but the government is showing less and less tolerance for those who circumvent the laws against Cuba.

President Clinton's administration recently announced it will presume any U.S. citizen who travels to Cuba without permission is engaging in illegal spending. The burden of proof will be on the traveler, who must show evidence that someone else picked up the tab.

The penalty: fines of up to $1 million and up to 10 years in prison.

Italy's latest investment

Until the embargo, which has been in place since the early 1960s, is lifted, other countries continue to take advantage of their foothold in Cuba's tourism industry.

CNN's Lucia Newman reports on Cuban tourism 2 min. 38 sec. VXtreme video
	1.5 MB K / 2 min. 38 sec. / 160x120 2.4 MB K / 2 min. 38 sec. / 240x180 QuickTime movie

The Cuban government Friday said it had signed a preliminary investment agreement with the Italian firms La Cascina and Simest Spa.

The accord anticipates the construction of a 250-room hotel in the resort of Santa Lucia and 150 bungalows in the resort of Varadero, both on Cuba's northern shores.

The deal's worth is estimated at $18 million.

Cuba received 1.2 million visitors in 1997, led by 200,000 Italians. Castro's government is aiming for 2 million visitors by 2000.

Correspondent Lucia Newman andReuters contributed to this report.

Related sites:

Note: Pages will open in a new browser window

• Republic of CUBA WWW: Home Page
• CubaTravel - Specialized Cigar / Scuba Tours / Cuban Vacations
• Lonely Planet - Destination Havana

External sites are not endorsed by CNN Interactive.

---

 

---

Sound off on our message boards & chat

© 1998 Cable News Network, Inc.
A Time Warner Company
All Rights Reserved.

Terms under which this service is provided to you.
Read our privacy guidelines.