Exchange Rates Unchanged-1
EXCHANGE RATES UNCHANGED- Republic of Cuba government-operated
Cajas de Cambio S.A. (CADECA) sold the Convertible Peso, equal to one U.S.
Dollar, for 21 Pesos and purchased the U.S. Dollar for 21 Pesos, as it
has since 15 July 1998. CADECA purchased the U.S. Dollar for 19 Pesos
and sold the U.S. Dollar for 21 Pesos from 1 April 1998 to 14 July 1998.
CADECA purchased the U.S. Dollar for 20 Pesos and sold the U.S. Dollar
for 22 Pesos from 12 March 1998 to 31 March 1998. CADECA purchased
the U.S. Dollar for 21 Pesos and sold the U.S. Dollar for 23 Pesos from
11 February 1998 to 11 March 1998. CADECA purchased and sold the
U.S. Dollar for 23 Pesos from August 1997 through 10 February 1998.
CADECA purchased the U.S. Dollar for 24 Pesos and sold the U.S. Dollar
for 24 Pesos in August 1996. The official international exchange
rate of one Peso to one U.S. Dollar, in effect for more than thirty years,
remained unchanged. The government maintains a fixed exchange rate
for its international dealings and a more flexible exchange rate for domestic
use. The government does not fluctuate the value of the Peso for
commercial transactions regardless of any fluctuation with the value of
the U.S. Dollar or other currencies on the international market.
The Peso and the U.S. Dollar circulate freely in the Republic of Cuba.
ALL HOTELS TO EVENTUALLY BE MANAGED BY GLOBAL BRAND NAME COMPANIES-
Acknowledging that the Republic of Cuba will not be able to attract higher-end
demographic tourists without having well-known global hotel brand names
attached to hotels within the country, Republic of Cuba government-operated
tourism companies (Gran Caribe, Cubanacan, Gaviota, and Horizontes) have
begun an aggressive management transition program. Once completed,
the management transition program will result in Republic of Cuba government-operated
tourism companies becoming relatively-nameless real estate holding companies
that may either own or have direct or indirect investments in properties,
while well-know global hotel brand name management companies operate the
properties. Some of the well-known global hotel brand name management
companies currently operating properties within the Republic of Cuba include:
Spain-based Grupo Sol Melia, France-based Accor, France-based Club Med,
The Netherlands-based Golden Tulip, Spain-based Hoteles Tryp, Canada-based
Delta Hotels, Jamaica-based Sandals, Germany-based LTI, and Jamaica-based
SuperClubs.
NEW ORTHOPEDIC FIXATOR TO BE MARKETED- Dr. Rodrigo Alvarez
Cambra, the creator of the external fixator (Ralca), credited with revolutionizing
orthopedics, announced that a new mini fixator, designed for small children
and others with frail bones, would be ready for export in 1999. A
fixator is applied externally to treat various bone-related problems, for
example, the unequal length of limbs.
ARGENTINA SIGNS SEAFOOD INSPECTION AGREEMENT- The Ministry of
Agriculture of Argentina and the Ministry of Fishing of the Republic of
Cuba have signed an agreement which will seek to guarantee the quality
of seafood exports between the two countries.
AUSTRALIAN FRESH WATER LOBSTER BEING HARVESTED- The Ministry
of Fishing of the Republic of Cuba is selling a breed of domestically-raised
Australian fresh water lobsters.
CUBAN WINES MAKES INTERNATIONAL DEBUT-
Wines produced within the Republic of Cuba made their international debut
at the Grand Hotel in Stockholm, Sweden, on 18 September 1998.
At a gala dinner, representatives of Fanatel S.A., a joint venture between
Italy-based Mario Fantinel International and Republic of Cuba
government operated CORALSA , introduced Soroa brand wine, San Cristobal
brand wine and Castilla del Moro brand wine, all of which are available
in Sweden at prices beginning at US$7.50 per bottle. Fanatel S.A.
began producing the Republic of the wines in December 1997, using
imported ingredients. The first series of the bottles of the wines
were presented to the U.S.-Cuba Trade and Economic Council. Fanatel
S.A plans to use Republic of Cuba-produced grapes within 18 months.
The production facilities of Fanatel S.A. can produce six million bottles
per year, of which 600,000 bottles will be made available on the international
market.
ANOTHER CIGAR GALA- Mr. Francisco Linares, President of Republic
of Cuba government operated Habanos S.A., the exclusive marketer of Republic
of Cuba produced cigars, announced a gala dinner and other activities from
16 February 1999 to 20 February 1999. Among the events: an auction
of a humidor containing 2,000 cigars, the presentation of the rum reserve
of the millennium, a trade fair, workshops, and the Habanos Dinner
of the Century.
COMMUNIST PARTY CRITICIZES BUREAUCRACY- Granma, the daily
newspaper published by the Communist Party of the Republic of Cuba, reported
that the Republic of Cuba’s bureaucracy has not been responding to the
population as required by the Constitution of the Republic of Cuba.
According to Granma, although Republic of Cuba nationals have the
right to receive answers to complaints within sixty days, although many
receive no answer, partial answers, or answers that arrive too late to
solve a particular problem.
CUBA REPORTS 300,000 HEALTH CARE SECTOR EMPLOYEES- H.E. Dr. Carlos
Dotres, Minister of Public Health of the Republic of Cuba, reported that
approximately 300,000 Republic of Cuba nationals are employed within the
Republic of Cuba government-operated health care sector. The Republic
of Cuba has a total workforce of approximately 4,500,000.
GOVERNMENT FINES SUGAR MILL FOR POLLUTION- The government of
the Republic of Cuba has imposed a fine of 287,000 Pesos (approximately
US$14,000.00) on the Republic of Cuba government-operated Melanio Hernandez
sugar mill in Sancti Spiritus, 350 kilometers east of the city of Havana.
According to the government of the Republic of Cuba, the Melanio Hernandez
sugar mill discharged pollutants into the Tuinicu River which, in turn,
entered the Zaza Dam reservoir and caused the death of 1,000 tons of fish
and other unspecified ecological damage.
FOREIGN INVESTMENT MINISTER EVALUATES IMPACT OF GLOBAL FINANCIAL
CRISIS- H.E. Ibrahim Ferradaz, Minister of Foreign Investment
and Economic Cooperation of the Republic of Cuba, believes that the international
financial crisis will have less impact upon the Republic of Cuba than on
other countries in The Americas. “If there is a country that
can withstand the crisis better than others it's Cuba. We don't have a
stock market, convertible currency, etc. The biggest damage is from
International prices,” he said. Minister Ferradaz said that to date
financing and investment had not been effected, but that “we'll have to
see what happens in the future, there could be an impact, or it could increase
as investors look for a more secure place to invest.” Sources within
the government of the Republic of Cuba report that continuing low nickel
prices and continuing low raw sugar prices have resulted in more than US$300
million in overall lower export revenues thus far in 1998, while continuing
low oil prices have only partially compensated for the lower export earnings.
INVESTMENT GUIDE PUBLISHED- The Center for the Promotion
of Investments (CPI) of the Ministry of Foreign Investment and Economic
Cooperation of the Republic of Cuba, has published a 210-page
investment guide featuring more 200 possible projects. The proposals
include tourism, real estate, pharmaceuticals, textiles, and communications
among others. The publication details investment regulations
for Free Trade Zones within the Republic of Cuba. Ms. Elvira
Castro, Director of the CPI, said that feasibility studies were available
for all of the projects. The CPI also unveiled a video of opportunities
in the tourism sector, and announced a more generalized investment video
was being produced.
FIRST COMPUTER CRIMES REPORTED- Republic of Cuba
law enforcement officials have created a special police division
to focus upon computer crime. In one reported case, a Republic of
Cuba government-operated company employee decoded a computerized taxi meter
system and then sold the codes to drivers so that they could adjust mileage
and adjust fares registered on their meters, thus depriving the company
of revenue. In this case, all of the drivers participated in the
decoding, resulting in losses estimated at US$2,000.00 per day during several
years. Other crimes reported include Republic of Cuba national hotel
employees charging long distance telephone calls to guests and then erasing
the calls from hotel computer memory banks.
SUPERCLUBS ADDS THREE HOTELS- Revolutionary Armed Forces
of the Republic of Cuba -operated Gaviota and Jamaica-based SuperClubs
have signed an agreement by which SuperClubs will manage a total of three
hotels under construction in the resort area of Varadero, in the resort
area of Cayo Coco, and in Holguin Province. The hotels will open
at the end of 1999 or at the beginning of 2000. Once the new hotels
are in operation, SuperClubs will manage the second-largest number of hotels
operating within the Republic of Cuba, after Spain-based Grupo Sol Melia.
SuperClubs already has a total of six hotel management agreements with
Republic of Cuba government-operated Cubanacan and Republic of Cuba government-operated
Gran Caribe. Reportedly, SuperClubs has an equity interest in some
of the properties. Gaviota manages 1,900 rooms within the Republic
of Cuba and plans to have 7,000 hotel rooms by the year 2001. Gaviota
has management agreements with Spain-based Sol Melia, Germany-based LTI,
France-based Club Med, and France-based Accor.
GOLDEN TULIP TO OPEN NEW HOTEL IN NOVEMBER- Beginning on 1 November
1998, The Netherlands-based Golden Tulip will begin managing the Parque
Central Hotel in Old Havana. The 280-room, five-star Parque Central
Hotel is owned by Republic of Cuba government-operated Cubanacan S.A.
ASISTUR REPORTS- Republic of Cuba government operated Empresa
de la Assistencia al Turista S.A. (ASISTUR), which specializes in helping
tourists with travel-related difficulties, reported 7,023 clients in 1997
producing gross revenues of US$4.247 million. Mr. Juan Abreau, General
Manager of ASISTUR, said that 78% of revenues were from services provided,
mainly medical, and that the remainder of the revenues were from the sale
of traveler insurance and other forms of short term insurance policies.
Mr. Abreau said that ASISTUR maintained relations with more than forty similar businesses worldwide, thus insuring quality
service and prompt payment.
SUGAR UPDATE- H.E. General Ulises Rosales de Toro, Minister
of Sugar of the Republic of Cuba, said that the industry had begun
a recovery that would result in more raw sugar production in 1998 1999,
compared to 1997 1998. The 1997 1998 harvest (November to June) was
approximately 3.2 million tons. Some media reports have
speculated that the 1997-1998 raw sugar harvest may actually be 3.0 million
tons- or less.
VICE PRESIDENT VISITS FRANCE AND ITALY- H.E.
Dr. Carlos Lage, a Vice President of the Council of State of
the Republic of Cuba, arrived in France for a 21 September 1998 to 25 September
1998. Vice President Lage is scheduled to visit Italy from 26 September
1998 to 1 October 1998. France and Italy are among the Republic of
Cuba’s five largest sources of trade, investment, financing, and tourism.
Vice President Lage is expected to discuss bilateral economic
issues, including debt (perhaps announcing an agreement to settle its foreign
debt with France), and European Union (EU)- Republic of Cuba relations.
SPANISH FOREIGN MINISTER TO VISIT- H.E. Abel Matutes,
Foreign Minister of Spain, will visit the Republic of Cuba
in November 1998. The visit is viewed as significant toward
healing the political breach in relations that developed after the election
of current President, H.E. Jose Maria Azner, two years ago. H.E.
Dr. Fidel Castro, President of the Republic of Cuba, met during the
last two weeks with the President of Spain’s Basque Region and with the
President of Spain’s Catalan Region.
PRESIDENT OF GHANA TO VISIT- The Honorable Jerry Rawlings, President
of the Republic of Ghana, will visit the Republic of Cuba from 27 September
1998 to 30 September 1998.
UPDATED SPEAKING SCHEDULE From 29 October 1998 to 31 October 1998, Mr. John S. Kavulich II, President
of the U.S.-Cuba Trade and Economic Council, will be a guest of The Stanley
Foundation (headquartered in Muscatine, Iowa) at its “Cuba and the United
States: Approaches to Engagement” at the 39th Strategy for Peace Conference
at the Airlie Center near Warrington, Virginia. The conference will
bring together approximately fifty experts from the public and private
sectors from the United States and from the Republic of Cuba.
On 11 November 1998, Mr. John S. Kavulich II, President of the U.S.-Cuba
Trade and Economic Council, will appear at the annual College Music
Journal (CMJ) Music Marathon-Musicfest & Filmfest at the Millennium
Hotel in New York City as a panelist for a discussion entitled “Whirled
Music: The Cuban Experience.” The CMJ Music Marathon- Musicfest &
Filmfest is the world’s largest and longest running new music convention
and festival featuring panels, workshops, and 1,000 musicians performing
at more than 60 venues in and around New York City. The projected
attendance is 8,000.
ANNUAL MEMBER LUNCHEON UPDATE The annual member luncheon of the U.S.-Cuba Trade and Economic Council
is being tentatively-scheduled for October 1998 in New York City.
The principal guest speaker will be the chairman of a non-United States-based
healthcare company which has operations within the Republic of Cuba.
Information about the company is being mailed to members of the U.S.-Cuba
Trade and Economic Council.
“OUT OF DATE” FOOD BEING SOLD- The Ministry of Finances and
Prices of the Republic of Cuba reported that a total of 107,746 Republic
of Cuba nationals had been fined for increasing food product prices above
Republic of Cuba government-approved levels, failing to reduce the price
of food products which are “out of date,” and for not displaying price
stickers as required.
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