Why Does Sheraton Continue To Have The Most Restrictive Reservation Policy Of Any Hotel In Cuba?

On 27 June 2016, Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (a subsidiary of Bethesda, Maryland-based Marriott International) commenced management of the Hotel Quinta Avenida Habana, which was re-branded as Four Points Sheraton Havana.

Four Points by Sheraton Havana (SPG Category 6)
Avenida 5ta A 76 - 80,
Miramar District
Havana, Cuba

Despite substantive operational issues, the property continues to have the most restrictive payment and cancellation policy of any hotel located in the Republic of Cuba, whether managed by a Republic of Cuba government-operated company or a non-Republic of Cuba-based company.   
 
"Payment And Cancellations

Reservations for this hotel are prepaid and there are NO REFUNDS for changes or cancellation for any guests, including SPG members. Additional charges at the Hotel must be paid in CASH or credit cards authorized for usage in Cuba (Please note-most US Based Credit Cards are NOT accepted in Cuba—check with your individual financial institution)"

http://www.cubatrade.org/blog/2016/6/30/why-did-starwood-initiate-a-reservations-policy-more-restrictive-than-french-spanish-competitors-in-cuba?rq=Starwood

Given that the property was not subject to a "hard opening" when all renovations were completed and staff had completed training, and as a result has endured customer satisfaction issues, there would be value in management having the property implement the least restrictive payment and cancellation policy.  

Without a change, guests are hostage to a potentially uncertain experience which is not consistent with a SPG Category 6 property.  This inconsistency harms all properties located in the Republic of Cuba.

https://www.tripadvisor.com/Hotel_Review-g147271-d1651122-Reviews-Four_Points_by_Sheraton_Havana-Havana_Ciudad_de_la_Habana_Province_Cuba.html

Important for the Four Points Sheraton Havana to be an example of operational flexibility rather than operational rigidity.

Cuba's Government-Operated News Service, Prensa Latina, Is Not Prevented From Re-Opening Office In Washington, DC

Republic of Cuba government-operated Prensa Latina, the official news agency of the Republic of Cuba, re-opened its Washington, DC bureau on Friday, 28 April 2017.  In attendance was Mr. Luis Enrique Gonzalez, president of Prensa Latina.

The Trump Administration did not prevent the re-opening of the bureau, which was authorized by the Obama Administration.

Google Global Cache Operational In Cuba... Despite No Details From The Company

Hanover, New Hampshire-based Dyn Research reported that Mountain View, California-based Google has commenced operation of its rack of servers installed in the Republic of Cuba, based upon an agreement announced by the company with Republic of Cuba government-operated Empresa Nacional de Telecomunicaciones de Cuba S.A. (ETEC S.A.).

Google has not disclosed whether ETEC SA paid for the (rack of) servers, with an estimated value of approximately US$100,000.00 and has not disclosed whether the equipment was manufactured in the United States, assembled in the United States, or delivered from the United States to the Republic of Cuba.

Generally, Google provides the equipment at no cost when an entity achieves certain operational thresholds; for example, number of customers accessing, or seeking to access, Google products. 

The Republic of Cuba was reportedly one of approximately four countries that did not have direct access to a Google Global Cache server(s).

14 December 2016

http://www.cubatrade.org/blog/2016/12/14/googles-lack-of-transparency-harms-us-cuba-commercial-relationship?rq=google

12 December 2016

http://www.cubatrade.org/blog/2016/12/12/google-expands-presence-in-cuba-no-payment-by-cuba?rq=google

5 April 2016

http://www.cubatrade.org/blog/2016/3/21/njhpnlptgxnffjb44hfi74z42x9g6v?rq=google

Courtesy Of Dyn Research

Southwest Airlines Seeks Routes Abandoned By Other Airlines

APPLICATION OF SOUTHWEST AIRLINES CO. FOR AN ADDITIONAL DAILY FREQUENCY

SouthwestAirlinesCo.  (Southwest)  hereby applies for one ofthe three daily U.S. - Havana (HAV) frequencies that will become available when Spirit and Frontier terminate their South Florida - HAV service on May 31, 2017 and June 4, 2017, respectively. With this frequency, Southwest will provide one additional daily flight between Fort Lauderdale (FLL) and HAV, for a total of three daily FLL - HAV flights. Southwest proposes to begin this service no later than November 5, 2017, using either 143-seat 737-700 or 175-seat 737-800 aircraft. Southwest’s large-jet, low-fare service will provide significant public benefits by offering consumers in South Florida and across the United States more travel options to HAV and an enhanced service pattern throughout the day.

Currently Southwest provides two daily FLL - HAV flights and one daily TPA - HAV flight. Southwest also provides twice daily FLL - Varadero (VRA) and once daily FLL - Santa Clara (SNU) service, all with mainline, large aircraft. As such, Southwest provides more frequencies and seats to Cuba from FLL than any other airline. In its initial application to the DOT Southwest applied for a total of six (6) daily FLL – HAV frequencies, illustrating its strong desire to provide convenient service and a robust schedule for consumers in the South Florida market. Consistent with its strong commitment to U.S. - Cuba air service, Southwest is one of the few airlines that has neither abandoned frequencies nor downgraded service on its awarded routes following the Department’s allocation of frequencies on August 31, 2016.

In its Final Decision in this proceeding, the Department found that the high concentration of Cuban Americans living in South Florida justifies allocating a majorityof available frequencies to that region. With Spirit’s termination of two FLL - HAV flights and Frontier’s cessation of its one MIA - HAV flight, South Florida will no longer receive the level of service intended by the Department, particularly from low cost carriers. Granting Southwest an additional daily FLL - HAV frequency to build on its success and investment in the market is the most effective way to address this deficit and ensure that the limited available HAV frequencies benefit consumers to the maximum extent possible.

As the preeminent U.S. low cost carrier, Southwest has demonstrated throughout this proceeding that its FLL - HAV flights serve the large Cuban American population in Southwest Florida effectively by offering a convenient, accessible and lower-fare alternative   to   service   at   MIA.  As   such,  Southwest’s   service   notonlyprovides convenient flight options to South Florida travelers but disciplines fares at MIA, thereby ensuring a competitive U.S. - HAV marketplace. 

As with Southwest’s existing service, the additional daily FLL - HAV frequency requested herein will produce significant consumer benefits viayear-round, daily nonstopserviceonlargeaircraft aswellas convenient one-stop flights to Cuba from numerous interior domestic U.S. cities over Southwest’s extensive network at its FLL gateway.  For the reasons stated above and in its earlier pleadings, Southwest respectfully requests that the Department grant it one daily frequency to provide an additional FLL – HAV flight. This additional service will maximize public benefits by enhancing competition and providing low-cost travel options for U.S. - Cuba passengers.

LINK TO COMPETE DOCUMENT

American Airlines Seeking Additional MIA-HAV Routes For October 2017

American Airlines Asks USDOT For Additional MIA-HAV Route For October 2017
April 24, 2017

“American respectfully requests an allocation of seven weekly U.S.-Havana frequencies, so that it may operate an additional daily year-round service between Miami International Airport (MIA) and Havana’s José Martí International Airport (HAV).  American proposes to launch this service no later than October 5, 2017, with 160-seat Boeing 737-800 aircraft.  This service will build on American’s existing MIA-HAV service to strengthen further the ties between Miami and the people of Cuba, and will maximize public benefits for several reasons.

As American explained throughout the initial proceeding, the largest share of the U.S.- Havana frequencies should be allocated for American’s MIA-HAV flights.  Only American can best meet the needs of local and connecting traffic through its MIA hub, while drawing upon its 25 years of experience in operating flights to Cuba to ensure the success of its scheduled service.

Meeting Local Demand: The Department correctly found that “Cuban Americans travelling to visit relatives will generate the majority of U.S.-Cuba travel demand.” Because half the nation’s Cuban Americans reside in Miami-Dade County, Florida, demand for U.S.-Cuba travel is by far the greatest in this region. MIA, which is significantly closer to the Miami-Dade Cuban-American communities than Fort Lauderdale-Hollywood International Airport (FLL), is therefore the best gateway to link Miami with Cuba.

Superior Connectivity: Because MIA is one of American’s hubs, American’s MIA- HAV service not only best serves local demand, but also creates widespread connectivity across the entire United States.  No other carrier’s service to HAV from MIA or FLL creates anywhere near the same level of connectivity.

Undisputed Leadership in Serving Cuba: American’s experience in continuously operating service to Cuba since 1991 has given American unmatched familiarity with Cuban ground operations and other local conditions, and deep relationships with Cuban aviation authorities. Because existing sanctions make Cuba one of the most difficult destinations for U.S. carriers to serve, American’s history of operating flights to Cuba helps ensure that its scheduled service thrives.

Because of American’s numerous advantages in operating U.S.-Cuba scheduled service, particularly from its MIA hub, American’s service provides the maximum benefits for the traveling public.

Given the demand for Havana service and American’s unique ability to serve that demand most efficiently, American’s current level of MIA-HAV service is far from optimal. At the outset of this proceeding, American applied for the frequencies necessary to support ten daily MIA-HAV flights, and American hopes to offer that level of service if and when U.S.-Havana frequencies are available to do so. Although the Department agreed that Miami “deserve[d] a substantial allocation of Havana frequencies to address the service needs of the large local traffic base,” the Department’s 2016 allocation left American with less than half the frequencies that it sought, while awarding frequencies to several inexperienced carriers. The quick exit by some of these carriers from U.S.-Havana service again creates the opportunity for the Department to allocate the U.S.- Havana frequencies where they will best meet the needs of the traveling public: To American’s service between MIA and HAV.

American’s preference is to grow its MIA-HAV service by more than one daily flight, while also potentially adding service to Havana from other U.S. gateways. The forthcoming termination of Frontier’s and Spirit’s services to Havana will make available enough U.S.-Havana frequencies to support three additional daily flights to Havana by U.S. carriers. Although American is interested in launching additional services to Havana, American acknowledges that Delta and JetBlue have each applied for an additional seven weekly U.S.-Havana frequencies. To avoid a lengthy and resource-consuming contested frequency allocation proceeding, and to expedite the ability of all carriers to bring additional service to U.S.-Havana routes, American is limiting its request to seven weekly U.S.-Havana frequencies at this time. Should the need for a frequency allocation proceeding arise, however, the Department should be aware that American will revise its request upward, to encompass the frequencies necessary to support additional Havana service by American that will create even greater public benefits.

American respectfully requests that the Department act quickly to award these frequencies to American, so that American can soon expand the benefits created by its service to Cuba by launching an additional daily MIA-HAV flight.”

COMPLETE APPLICATION IN PDF FORMAT

Delta Air Lines Asks USDOT For Additional MIA-HAV Route For December 2017

21 April 2017

"Delta plans to expand its service between Miami and Havana, Cuba, offering an additional daily nonstop flight between the cities. Pending regulatory approval from the U.S. Department of Transportation [USDOT], Delta would begin operating this additional frequency by Dec. 15, 2017

“Delta has established a strong framework for sustainable success in the Cuban market,” said Jose “Pepe” Zapata, Delta’s General Manager-Central America and the Caribbean. “The proposed flight would provide additional service and competition for South Florida, which has the largest Cuban-American population in the United States.”

Delta returned to Cuba on Dec. 1, 2016, after a 55-year hiatus with the launch of a nonstop daily flight to Havana from New York’s JFK International Airport, Miami International Airport and the airline’s hometown airport, Hartsfield-Jackson Atlanta International.

Pending governmental approvals, the additional MIA-HAV flight will be available for booking through www.delta.com." 

LINK TO USDOT APPLICATION IN PDF FORMAT

Senator Rubio On "Meet The Press" Shares About Conversation With NSC Staff- Was Cuba On The Agenda?

During an interview on NBC's "Meet The Press" on 23 April 2017, The Honorable Marco Rubio (R- Florida), a member of the United States Senate, shared:

"The National Security Council is going back to its appropriate role, which is like an internal think tank that designs big strategic objectives."

"Just Friday alone I had a conversation with folks at the National Security Council about the Western Hemisphere and their strategy towards it."

There is increasing evidence that Senator Rubio is the most influential Member of the United States Congress with respect to Republic of Cuba-related issues and that while he may not obtain all of the policy changes and regulatory changes for which he advocates, he will probably be the last name on the telephone call list of The Honorable Donald J. Trump, President of the United States, prior to the announcement by the Trump Administration of final decisions relating to the Republic of Cuba.

Links To Posts Relating To Senator Rubio, The Trump Administration and the Republic of Cuba:

http://www.cubatrade.org/blog/2017/2/27/president-trump-mentions-cuba-at-press-conference?rq=Marco%20Rubio

http://www.cubatrade.org/blog/2017/4/1/senator-marco-rubio-r-of-florida-discusses-his-three-discussions-about-cuba-with-president-trump?rq=Marco%20Rubio

http://www.cubatrade.org/blog/2017/3/12/6rhpts5hb63h4xirou3am6ycrexpbk?rq=Marco%20Rubio

What Does JetBlue Know... Or Doesn't Know? Seeking Additional Routes To Cuba

United States Department of Transportation
Washington, DC
20 April 2017

APPLICATION OF JETBLUE AIRWAYS CORPORATION FOR AN EXEMPTION AND ALLOCATION OF FREQUENCIES (DOT-OST-2016-0021)

"In light of Spirit and Frontier terminating service to Havana,  Cuba,  onMay31, 2017, and June 4, 2017, respectively, JetBlue hereby applies for seven weekly frequencies in order to provide additional non-stop service between Fort Lauderdale, Florida and Havana, Cuba, and to inaugurate the first ever non-stop service between Boston, Massachusetts and Havana, Cuba.

JetBlue proposes to begin the additional services on November 1, 2017, in order to capitalize on the success of JetBlue’s initial entry into Cuba, which has provided customers in both countries with access to JetBlue’s low airfares and award-winning service.

JetBlue currently provides daily non-stop service from New York to Havana, daily non-stop service from Orlando to Havana, and 13 times weekly service from Fort Lauderdale to Havana. 

JetBlue wishes to provide additional service from Fort Lauderdale to Havana and requests six weekly frequencies in order to increase its service levels on that route. JetBlue also proposes to begin the first-ever non-stop service between Boston and Havana with Saturday service and requests one weekly frequency in order to inaugurate this service.  JetBlue will use 162-seat Airbus A320 aircraft from its existing fleet with the following schedule:

As such, pursuant to 49 U.S.C. § 40109 and Subpart C of the Department’s Rules of Practice, JetBlue requests an exemption from 49 U.S.C. § 41101 authorizing it to engage in scheduled foreign air transportation service of persons, property and mail between Boston, Massachusetts and Havana, Cuba, and an allocation of seven weekly frequencies to serve Boston and Fort Lauderdale.  JetBlue requests that its exemption authority be granted for a period of at least two (2) years and that the seven weekly frequencies be granted for an indefinite basis."

LINK TO FILING IN PDF FORMAT

LINK TO WWW.REGULATIONS.GOV FOR CUBA PLEADINGS

Analysis

Three (3) United States airlines will cease their United States-Republic of Cuba routes; and they each report the same reasons: fewer passengers than expected, higher operating costs than expected, and unsustainable downward pricing competition.

Miramar, Florida-based Spirit Airlines, Inc. (2016 revenues exceeding US$2.3 billion) will be ending its United States-Republic of Cuba operations effective 1 June 2017.

Fort Lauderdale, Florida-based Silver Airways (2016 revenues exceeding US$100 million) will be ending its United States-Republic of Cuba operations effective 22 April 2017.

Denver, Colorado-based Frontier Airlines (2016 revenues exceeding US$1.6 billion) will be ending its United States-Republic of Cuba operations effective 4 June 2017.

Fort Worth, Texas-based American Airlines (2016 revenues exceeding US$40 billion) has reduced flight frequencies and size of aircraft on routes.

Long Island City, New York-based JetBlue Airways (2016 revenues exceeding US$6 billion) has reduced size of aircraft on routes.

However, the three largest United States cruise lines have substantially increased the number of itineraries that include the Republic of Cuba scheduled for 2017 and 2018- at capacity transporting more than 185,000 passengers on more than 100 sailings.

Now, JetBlue Airways seeks additional routes.... Do they know something about what the Trump Administration is planning with respect to how its forthcoming policy review may be implemented?

The cruise lines did not require additional authorizations from the United States Department of State, United States Department of the Treasury or United States Department of Commerce to change their schedules.

The airlines require additional authorization(s) from the United States Department of Transportation (DOT) to service new routes. 

Insightful will be the public comments, including from its competitors, Members of the United States Congress, and Governors relating to the filing by JetBlue Airways... and how the DOT responds. 

LINK TO WWW.REGULATIONS.GOV FOR CUBA PLEADINGS

Governor Of Mississippi Visiting Cuba; Secrecy Similar To Visiting A....

The Honorable Drew Phillip “Phil” Bryant (R), Governor of the State of Mississippi, is visiting the Republic from 19 April to 21 April 2017.  He is the twentieth (20) governor to visit the Republic of Cuba since 1999.  

There was no information about the visit on the Internet site for the governor or the social media platforms used by the governor as of the morning of 20 April 2017.  Updates: No information published through morning of 22 April 2017.  On 23 April 2017, the governor posted two images to his Facebook page along with the following statement:

"I traveled to Cuba last week on a trade mission and was joined by the leadership of Mississippi Farm Bureau. Mississippi has sold poultry and other agriculture products to Cuba since 2001. There is potential to expand trade and free market opportunities in this island nation. I was also pleased to meet with Ambassador Jeffrey DeLaurentis at the U.S. Embassy during our visit."

However, the Ministry of Foreign Affairs of the Republic of Cuba (MINREX) began posting (including images) about the visit to its social media platforms on 19 April 2017.   

The governor is the Chief Marketing Officer (CMO) of the State of Mississippi.... Why the secrecy?  Commercial opportunities relating to the Republic of Cuba should neither be oversold nor undersold, but they do require selling.  What is not yet known:

Names of companies in the delegation
Names and affiliations of the delegation
Source of funding for the delegation
Cost of the delegation

Governor Bryant now has the distinction of having the second-least transparent planning process of the twenty governors who have visited the Republic of Cuba since 1999.  The visit by West Virginia Governor Earl Ray Tomblin in 2016 was the least transparent; although not too far from that of Governor Bryant.

A troubling pattern has emerged whereby Members of Congress and governors have increased the lack of transparency in advance of any visit to the Republic of Cuba and sometimes after a visit to the Republic of Cuba.  

This belies a level of toxicity relating to the Republic of Cuba.  In part, the issues are political- awaiting the decision(s) by the Trump Administration relating to the Republic of Cuba.  In part, the issues are commercial- the government of the Republic of Cuba has yet to permit many of the Obama Administration initiatives relating to opportunities for United States companies.

Years ago, most governors and members of Congress planning to visit the Republic of Cuba sought as much publicity as possible, now they seem to coordinate itineraries as if they were visiting a brothel.

A delegation from the State of Mississippi did visit the Republic of Cuba in February 2017.  That delegation was led by Ms. Rosario "Rose" Boxx, International Trade Director for the Mississippi Development Authority.  

The Honorable William Thad Cochran (R), United States Senator from the State of Mississippi, visited the Republic of Cuba from 19 February 2017 to 22 February 2017 with a group of four (4) members of the United States Senate and one member of the United States House of Representatives; the itinerary included other countries.    LINK TO: http://www.cubatrade.org/blog/2017/2/10/congressional-delegation-to-visit-cuba-4-senators-1-representative

For the period 2010 through 2016, the Port at Pascagoula, Mississippi, ranked 9th of 35 United States ports that have exported food products, agricultural commodities, healthcare products and other authorized products from the United States to the Republic of Cuba.  The Port at Pascagoula reported 160,579 metric tons of product for the period 2010 through 2016; no product was reported for 2015 and 2016.

The State of Mississippi is a source of frozen poultry products exported to the Republic of Cuba.

LINK TO: What Governors Should Consider For A Visit To The Republic Of Cuba

George Ryan (R- Illinois)-  1999/2002
Jesse Ventura (I- Minnesota)- 2002
John Hoeven (R- Nebraska)- 2002
David Heineman (R- Nebraska)- 2005/2006/2007
Kathleen Blanco (D- Louisiana)- 2005
John Balducci (D- Maine)- 2005
Butch Otter (R- Idaho)- 2007
Mike Beebe (D- Arkansas)- 2009
Bill Richardson (D- New Mexico)- 2009/2010
Sonny Perdue (R- Georgia)- 2010
Jay Nixon (D- Missouri) replaced by wife, Georganne Nixon- 2015
Andrew Cuomo (D- New York)- 2015
Asa Hutchinson (R- Arkansas)- 2015
Greg Abbott (R- Texas)- 2015
Terry McAuliffe (D- Virginia)- 2016
Jay Nixon (D- Missouri)- 2016
Lt. Governor Brad Owen (D-Washington)- 2016
John Bel Edwards (D- Louisiana)- 2016
Earl Ray Tomblin (D- West Virginia)- 2016
John Hickenlooper (D- Colorado)- 2017
Phil Bryant (D- Mississippi)- 2017

2 Years Later: What Did NYS Companies Get From Governor Cuomo's 27-Hour Visit To Havana?

Two Years Later…. What Did New York State Companies Get For Governor Cuomo’s Estimated US$150,000.00+ 27-Hour Visit To Cuba?

Was a US$10,000.000 “Advance” Trip Necessary If A Consultant Was Paid US$25,000.00?

What’s Happened- Where’s The Yogurt And Milk And Healthcare Products?

Why No Representatives From PANYNJ, NYSDAM?

Where's The "Agricultural Exchange"?

Governor Staff To Company Ratio Was More Than 2:1

Why Has He Ignored Financial Institutions?

Two years (730 days) ago, The Honorable Andrew Cuomo (D), Governor of the State of New York, embarked on a twenty-seven (27) hour quixotic journey to the Republic of Cuba with a foundation anchored far more upon his focus to be the “first” governor to visit the archipelago since the 17 December 2014 statements by President Barack Obama and President Raul Castro than by his role as the Chief Marketing Officer (CMO) of the State of New York.  

To date, there have been no published reports of exports of products to the Republic of Cuba from the seven (7) companies participating in the 20 April 2015 to 21 April 2015 visit.

The Governor and his staff have embraced the “planting seeds” analogy… There are few seeds that do not create something within two years.

The planning process and follow-up to the April 2015 visit was the third-least transparent of the twenty (20) governors who have visited the Republic of Cuba since 1999.  The visits by West Virginia Governor Earl Ray Tomblin and Mississippi Governor Phil Bryant were the least transparent.

COMPLETE REPORT IN PDF FORMAT

American Airlines & United Airlines Are Correcting Their Internet Sites About Using Credit Cards In Cuba

Texas-based American Airlines and Illinois-based United Airlines have inaccurate language on their respective Internet sites relating to use in the Republic of Cuba of credit cards and debit cards issued by United States-based financial institutions.  Both airlines have been notified and are addressing the issue.

American Airlines

“Cash- no credit cards or debit cards can be used in Cuba."

United Airlines

"Please note that U.S. credit and debit cards currently do not work in Cuba."

Washington-based Alaska Airlines

“Most US credit and debit cards do not work in Cuba yet.”

Texas-based Southwest Airlines

"With very few exceptions, U.S. Credit and Debit cards do not currently work in Cuba, so remember to bring enough cash with you to last your entire trip. U.S. dollars can be exchanged into Cuban convertible currency at the airport, hotels, or exchange houses."

Georgia-based Delta Air Lines

Link to the Internet page of the United States Embassy in Havana, Republic of Cuba, which has this statement: "With very few exceptions, U.S. credit and debit cards do not currently work in Cuba. Please bring enough cash to last your entire trip. U.S. Dollars can be exchanged into Cuban convertible currency (CUC) at most airports, hotels, and exchange houses."

https://cu.usembassy.gov/u-s-citizen-services/local-resources-of-u-s-citizens/traveling-to-cuba/

New York-based JetBlue Airways

Link to the Internet page of the United States Embassy in Havana, Republic of Cuba, which has this statement: "With very few exceptions, U.S. credit and debit cards do not currently work in Cuba. Please bring enough cash to last your entire trip. U.S. Dollars can be exchanged into Cuban convertible currency (CUC) at most airports, hotels, and exchange houses."

https://cu.usembassy.gov/u-s-citizen-services/local-resources-of-u-s-citizens/traveling-to-cuba/

Background

On 1 March 2015, Purchase, New York-based Mastercard Worldwide removed its restriction (block) on the use of its branded products in the Republic of Cuba.

Currently, Pompano Beach, Florida-based Stonegate Bank and San Juan, Puerto Rico-based Banco Popular of Puerto Rico, and Florida-based Natbank have authorization from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and from the Central Bank of the Republic of Cuba to have their Mastercard-branded credit cards and debit cards valid for use in the Republic of Cuba.

In addition, Visa credit cards and Mastercard credit cards issued by non-United States-based financial institutions are valid for use in the Republic of Cuba; and there are individuals subject to United States jurisdiction who possess such cards and are authorized to use them while within the Republic of Cuba.

In 2016, there was an issue with information on the Internet site of Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (a subsidiary of Bethesda, Maryland-based Marriott International) relating to its Sheraton Four Points Havana property which opened in June 2016.  The company was incorrect in stating on its Internet site that credit cards issued in the United States were not permitted to be used at the property.

The U.S.-Cuba Trade and Economic Council worked with the company to resolve this issue, but it unnecessarily required one-hundred (100) days to resolve.  The following are blog post links about the issue and the process of resolution:

http://www.cubatrade.org/blog/2016/10/20/after-116-days-starwood-finally-changes-its-mastercard-acceptance-policy-for-cuba?rq=credit%20cards

http://www.cubatrade.org/blog/2016/10/28/sjnn09px8h13nagf1hrzkflnqlw5dt?rq=credit%20cards

http://www.cubatrade.org/blog/2016/10/18/natbank-of-florida-confirms-its-mastercard-is-valid-for-use-in-cuba?rq=credit%20cards

US Food/Ag Exports To Cuba Increased (Slightly) In February 2017; Data Issues

ECONOMIC EYE ON CUBA©
April 2017

February 2017 Exports To Cuba Increases .26% Or 2%- 1
Healthcare Product Exports- 2
Humanitarian Donations- 3
Obama Administration Initiatives Product Exports- 3
U.S. Port Export Data- 14

FEBRUARY FOOD/AG EXPORTS INCREASE .26% OR 2%- Exports of food products & agricultural commodities from the United States to the Republic of Cuba in February 2017 were US$18,145,564.00 (or US$17,893,564.00) compared to US$17,847,747.00 in February 2016 and US$13,488,136.00 in February 2015.  

The difference of US$252,000.00 references 157.8 metric tons of rice reported as exported to the Republic of Cuba by the United States Department of Commerce but not reported as exported to the Republic of Cuba in port (Houston, Texas, District) export data.  LINK to Blog Post:   http://www.cubatrade.org/blog/2017/4/4/rice-is-exported-to-cuba-first-in-10-years-and-no-one-said-anything

[Report will be adjusted as new information is available].  

February 2017 exporters included: Wayzata, Minnesota-based Cargill (corn); Atlanta, Georgia-based AJC International (poultry); Atlanta, Georgia-based Intervision Foods (poultry); Bedford, Massachusetts-based Sellari Enterprises (poultry); Chattanooga, Tennessee-based Koch Foods of Chattanooga (poultry); New York, New York-based Globex International (poultry); Wellesley, Massachusetts-based Grove Services (poultry); Salisbury, Maryland-based Perdue Agribusiness (poultry); and Miami, Florida-based Sevino del Bene SpA (unreported; Link to Blog Post: http://www.cubatrade.org/blog/2017/1/18/italys-savino-del-bene-receives-license-from-bis-to-provision-passenger-vessels-in-cuba?rq=savino).

REPORT IN PDF FORMAT

Spirit Airlines Is Third US Carrier To Cease US-Cuba Operations

Three (3) United States airlines will cease their United States-Republic of Cuba routes; and they each report the same reasons: fewer passengers than expected, higher operating costs than expected, and unsustainable downward pricing competition.

Miramar, Florida-based Spirit Airlines, Inc. (2016 revenues exceeding US$2.3 billion) will be ending its United States-Republic of Cuba operations effective 1 June 2017.

Fort Lauderdale, Florida-based Silver Airways (No Revenue Reported) will be ending its United States-Republic of Cuba operations effective 22April 2017.

Denver, Colorado-based Frontier Airlines (2016 revenues exceeding US$1.6 billion) will be ending its United States-Republic of Cuba operations effective 4 June 2017.

Fort Worth, Texas-based American Airlines has reduced flight frequencies and size of aircraft on routes.

Long Island City, New York-based JetBlue Airways has reduced size of aircraft on routes.

Daring Or Enticing The Trump Administration About Cuba- Cruise Lines Take The Lead

Three Largest US Cruise Lines Could Deliver 185,000+ Passengers During 100+ Sailings To Cuba In 2017/2018; More Than US$210 Million In Gross Revenues; US$31+ Million In Cuba Including Port Fees Of US$6+ Million.

US Airlines Gross Revenues From Transporting Passengers To/From Florida In Conjunction With The Cruises Could Exceed US$70 Million; Potential US$3.6 Million To Hotels & Restaurants.

Do The CEO’s Know What Others Don't Know?  Or, Walking A Proverbial Plank?

US$974 Billion & 2,000,000.

There will be something.  There will not be nothing.  

Test-fired.

Perhaps, strength in numbers.

LINK TO 2,680-WORD ANALYSIS IN PDF FORMAT

CEO's Of Companies With US$974 Billion In Revenues Believe Cuba Is Worth The Effort

The forty-seven-plus (47+) United States companies who have a commercial presence in the Republic of Cuba have combined global gross revenues of approximately US$974 billion and employ a combined approximately 2,000,000 men and women throughout the fifty (50) states and other countries.

LINK TO LIST

2,000,000 Employees Of U.S. Companies Have A Connection To Cuba

The forty-seven-plus (47+) United States companies who have a commercial presence in the Republic of Cuba have combined global gross revenues of approximately US$974 billion and employ a combined approximately 2,000,000 men and women throughout the fifty (50) states and other countries.

LINK TO LIST

Restriction On Sale Of Premium Gasoline May Benefit Electric Vehicles & Solar Panels; Embassies Concerned

The government of the Republic of Cuba plans to restrict the sale of premium gasoline at Republic of Cuba government-operated gasoline stations (CUPET-CIMEX) to vehicles rented by non-Republic of Cuba nationals who are visiting the country as tourists- with some reports suggesting that the restriction will become permanent once the supply of premium gasoline is exhausted.

The reasons are a reduction of fuel/gasoline imports from Venezuela and an increasing lack of foreign exchange with which to import premium gasoline from other sources.

Vehicles in the Republic of Cuba are primarily using 91-octane gasoline (1.20 CUC per liter) and diesel fuel; while newer more fuel-efficient, technologically-advanced, and less-polluting model vehicles, primarily those used in the tourism industry, by Republic of Cuba government-operated companies, by non-Republic of Cuba government-operated companies, non-governmental organizations (NGO's), and embassies, operate (sometimes manufacturers require/recommend) more efficiently when using 95-octane gasoline (1.40 CUC per liter).  One liter equals .264172 gallons.

Some embassies in the Republic of Cuba are contemplating reductions in personnel, both official and Republic of Cuba nationals, as the restriction upon the availability of gasoline may be a precursor to expanded, and more sustained, negatively impactful economic and commercial decisions by the government of the Republic of Cuba.  

At least one embassy is contemplating seeking authorization from the government of the Republic of Cuba to directly import premium gasoline; perhaps creating a consortium of embassies and designating one CUPET-CIMEX gasoline station solely for use by embassies.  

The installation and use of solar panels to generate electricity and lessen the impact upon and dependence to the Republic of Cuba government-operated electrical grid has increased; the embassy of Canada has installed solar panels.

On 9 February 2017, Miami, Florida-based Premier Automotive Export (PAE), Ltd., a subsidiary of Grand Cayman-based Cayman Automotive (www.caymanautomotive.com), delivered directly from the United States to the Republic of Cuba the first United States-assembled Nissan Leaf for use by the Embassy of Guyana under a 9 January 2017 license from the Bureau of Industry and Security (BIS) of the States Department of Commerce authorizing the export of electric vehicles and vehicle chargers from the United States to the Republic of Cuba.  One (1) vehicle charger has been delivered and three (3) are awaiting delivery.

Blog Post Link:

http://www.cubatrade.org/blog/2017/1/25/us-company-receives-bis-license-to-export-electric-vehicles-to-cuba-charging-stations-from-new-jersey-based-company?rq=nissan%20leaf

Port Of Mariel Operating At 39.5% Of Current Capacity; 90% Of Container Capacity Departs Empty

The Republic of Cuba has 3,570 miles of coastline.  There are 70 ports, 31 of which have cargo operations.  The ports are generally deep, protected harbors with narrow entrances and generous anchorage.  

The port system can accommodate 150,000-ton oil tankers, accept modern roll-on, roll-off vessels, discharge all types of grain and fertilizers in bulk, handle 40-foot containers in gantry cranes… and dock up to six submarines.

The Port of Havana has three primary harbors; but closed its container terminal and transferred operations to the port of Mariel in 2014.  It remains active in general cargo, dry bulks and liquid bulks, and has increasing cruise ship activity.  It’s heavily polluted; with water entering remaining for eight days.  It has a water depth of 12.8 meters (42 feet) due to a tunnel under the entrance to the port dredging deeper is an unlikely option.   

Since 2013, an increasing number of vessels from the United States and other countries have been calling at the port of Mariel, located approximately forty (road) miles from Havana.  The port of Mariel is managed by Singapore-based PSA International.

The container terminal at the port of Mariel sits within the 180-square-mile Special Development Zone of Mariel (ZEDM).  The facility 2,300 feet of jetty and four quay cranes which can accommodate 13,000 TEU Neo-Panamax vessels.  

Brazil-based Odebrecht was the primary contractor for the port of Mariel and ZEDM.  Approximately US$683 million in primary financing was provided by the National Bank of Economic and Social Development (BNDES) of Brazil.  Institutions in China and Venezuela also provided financing.  

Two new rail-mounted gantry cranes from Shanghai, China, arrived in September 2016.  Currently, the port of Mariel has an average of one train per day.  

The current maximum vessel draft at the port of Mariel is 12.1 meters (39.69 feet).  This depth can accommodate neo-Panamax vessels: Dredging continues in the access channel to deepen it and to widen it to accommodate neo-Panamax vessels; expected to be completed in 2017 for vessels 366 meters long, 50 meters wide and with a draft of 15.5 meters.

Dredging thus far permits vessels of up to 295 meters (967 feet) overall length with a 32.3-meter (105 foot) beam.  Water depth is approximately 15 meters (49.2 feet).

In 2014, its first year of operation, the port of Mariel handled 160,000 twenty-foot equivalent TEU’s; and 330,713 TEU’s in 2015 and 325,319 TEU’s in 2016.  

Total current annual capacity of Mariel is approximately 824,000 TEU’s with future expansion to 3 million TEU’s.  Approximately 90% of container capacity departing the Republic of Cuba is empty.

Infrastructure at Mariel remains a challenge.  Lack of warehousing.  Operational issues- warehouses are open less than sixteen hours per day- they need to be open twenty-four hours a day.  

In 2019, the plan is to add 300 meters (984 feet) of quay (KEY) at the port of Mariel.  Long-term development includes an additional 1,400 meters (4,593 feet) of quay- for a total of 1.5 miles of quay and a total annual potential of 3 million TEU’s.

The government of the Republic of Cuba views the port of Mariel as a future “hub & spoke” for Caribbean Sea-area countries.  

A purpose of the ZEDM is to substitute imports with locally-manufactured products and then export any surplus to regional markets, including to the United States.  The government of Cuba has approved companies from countries including Mexico, Belgium, Spain, and the United Kingdom for operations within the ZEDM focusing upon logistics, food, chemicals, industrial products, and personal care products.  Another goal of the ZEDM and for the Republic of Cuba is to develop a low-cost workforce to add value to products transiting the Panama Canal.   

The 510 Republic of Cuba nationals who are employed within the ZEDM earn on average US$500.00 per month- compared to the US$25.00-US$50.00 per month average for most Republic of Cuba nationals working for the government of the Republic of Cuba and at Republic of Cuba government-operated companies. 

From Politico: USDA Secretary Nominee Confirmation Delayed Due To Cuba

Politico
Cuba the latest holdup for Sonny
By Jason Huffman
04/05/17 10:00 AM EDT
With help from Catherine Boudreau, Sarah Karlin-Smith and Jenny Hopkinson

CUBA THE LATEST HOLDUP FOR SONNY: First it was paperwork from the White House, then it was Cuba. Turns out some of the delay on Sonny Perdue’s confirmation as Agriculture secretary may have been due to his stance on U.S. trade with the island nation, POLITICO has learned. Until Tuesday afternoon, Sen. Robert Menendez had placed a hold on bringing a vote on Perdue to the Senate floor over concerns about the nominee’s views on Cuba. But the former Georgia governor gave Menendez a buzz on Tuesday, and the New Jersey Democrat agreed to stop slowing the vote, according to spokespeople for both Perdue and Menendez.

Perdue also had to allay the concerns of Sen. Marco Rubio. The Florida Republican and Menendez are hardliners when it comes to ending the more than 50-year embargo on Cuba, arguing it would prop up the communist Castro regime that oppresses its citizens.

The senators’ objections are believed to have stemmed, in part, from comments Perdue made during his confirmation hearing in support of removing restrictions on financing U.S. agricultural exports to Cuba. A number of farm-state lawmakers endorse legislation that would allow Cuba to buy U.S. farm goods using credit — instead of cash up front as is currently required — as a step toward lifting the embargo. Whether Perdue has since changed that stance hasn’t been made clear.

With no other apparent obstacles, Senate Agriculture Chairman Pat Roberts said he wants to ask for unanimous consent to move the vote sometime this week. If that doesn’t happen (which may be the case given Senate Democrats’ efforts to block the nomination of Neil Gorsuch to the Supreme Court), it could be May before an Agriculture secretary is in place. The Senate recesses on Friday for two weeks.

Politico
By Megan Cassella
04/05/17 10:00 AM EDT
With help from Doug Palmer and Adam Behsudi

PERDUE VOTE HELD UP OVER CUBA TRADE CONCERNS: Sen. Bob Menendez (D-N.J.), an outspoken hardliner on Cuba, has been holding up the final Senate vote on Agriculture secretary nominee Sonny Perdue over concerns regarding the former Georgia governor’s stance toward trade with Cuba, Pro Agriculture’s Catherine Boudreau reports. Menendez’s concern stemmed in part from Perdue’s statement during his confirmation hearing that he supports lifting restrictions on financing for U.S. exports to Cuba to allow for increased trade between the two nations.

Perdue called the New Jersey Democrat on Tuesday to discuss the concern, and Menendez is expected to lift the hold, Senate Agriculture Chairman Pat Roberts and a spokesperson for Perdue told Boudreau.

"If there aren't any more objections, it is conceivable that we can ask for unanimous consent to move the vote," Roberts said Tuesday. "That's what I'd like to do." Roberts added that unless a final vote is held by Friday, Perdue's nomination will be delayed at least a few more weeks because of the two-week recess, which starts at the end of this week.