Cuba offers multi-billion dollar US travel market
Various US legislators are pushing for a return to normal relations with Cuba which could give a multi-billion dollar boost to tourism, according to various officials.
If the US were to lift its travel restrictions to Cuba in 2008, nearly 1.8 million Americans would visit the country by 2010, estimates the American Society of Travel Agents.
This could impact the US gross domestic product by as much as $1.6 billion, the society says.
Cuba’s ailing dictator has been in failing health in recent years, spawning speculation of a return to normal relations with the US.
The US International Trade Commission (ITC) is currently investigating the effects on American producers of US travel and agricultural export restrictions with Cuba.
Several bills have already been introduced in the House to ease the US embargo, which has been in place since 1962.
“No one is expecting a normalization of relations, at least while President Bush is in the White House, but the stage appears to be getting set for his successor,” said wire services.
Various US businesses including tourism are eager to invest in a new Cuba.
The ITC has not given any indication what it will say in its final report to the Senate Finance Committee later this summer but a growing body of evidence suggests that keeping the current restrictions in place limits the profit potential of US businesses.
Under US law, trade relations with Havana are limited to certain food exports and medical supplies, and at least regarding agricultural products, all payments must be made in cash.
“Forty years ago, the US provided 60% of Cuba’s food imports,” said North Dakota Agriculture Commissioner Roger Johnson in his testimony before the ITC. “Our goal should be to regain and exceed that market share.”
Cuba’s tourism potential will depend on its 11 million people being able to handle a new crowd of visitors, leaving some observers highly skeptical that the country has the infrastructure to meet their potential.
John Kavulich, senior policy advisor to the US-Cuba Trade and Economic Council, says it is unlikely Cuba would be able to handle an onslaught of American tourists.
“They’ve let their tourism infrastructure crumble,” he said.
Report by David Wilkening
David
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