PESO GAINS AGAINST THE U.S. DOLLAR- Republic of Cuba government-operated Cajas de Cambio S.A. (CADECA) sold the Convertible Peso, equal to US$1.00, for 21 Pesos and purchased the U.S. Dollar for 20 Pesos. CADECA sold the Convertible Peso, equal to US$1.00, for 21 Pesos and purchased the U.S. Dollar for 21 Pesos from 19 February 1999 through 3 March 1999. CADECA had sold the Convertible Peso, equal to US$1.00, for 21 Pesos and purchased the U.S. Dollar for 20 Pesos from 13 January 1999 to 18 February 1999. CADECA purchased the U.S. Dollar for 21 Pesos and sold the Convertible Peso for 22 Pesos from 26 November 1998 to 12 January 1999. CADECA purchased the U.S. Dollar for 21 Pesos and sold the U.S. Dollar for 21 Pesos from 15 July 1998 through 25 November 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. 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.
NATIONAL BANK OF CUBA EXCHANGE RATES- The following are the biweekly
official exchange rates between the Republic of Cuba Convertible Peso,
equal to one U.S. Dollar, and selected international currencies as of 5
March 1999. The National Bank of the Republic of Cuba cautions that
these rates do not necessarily reflect the exchange rates at all Republic
of Cuba government-operated banks as each bank is authorized to establish
its own exchange rates:
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BALTIMORE ORIOLES TO PLAY IN HAVANA ON 28 MARCH 1999- The Baltimore, Maryland-based Baltimore Orioles Major League Baseball Team is scheduled to play one exhibition game against the Republic of Cuba government-operated National Team on 28 March 1999 at the 50,000-seat Estadio Latinamericanos Stadium in the city of Havana. Proceeds from the game are to primarily be used to support athletic programs in the Republic of Cuba and in the United States.
OFAC HIRES ADDITIONAL STAFF- The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., has added an additional staff member in its licensing division. This individual is assisting with the routing of inquiries as a part of an effort by the OFAC to improve response time.
UNITED STATES POSTAL SERVICE AGREEMENT COULD STRENGTHEN DHL POSITION IN CUBA- The United States Postal Service in Washington, D.C., has announced an agreement with Redwood City, California-based DHL Worldwide Express, Inc., for the delivery of packages between New York City, New York; Boston, Massachusetts; Philadelphia, Pennsylvania; Charlotte, North Carolina; Phoenix, Arizona; San Francisco, California; Houston, Texas; Miami, Florida; Minneapolis, Minnesota; Chicago, Illinois; Washington, D.C., and eighteen countries in Europe. Brussels, Belgium-based DHL International Limited owns a minority share in DHL Worldwide Express. Government of Germany-operated Deutsche Post AG owns 25% of DHL International Limited. DHL Worldwide Express has authorization from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., to provide delivery services between the United States and the Republic of Cuba. The delivery services are limited to documents, brochures, videotapes, compact discs, etc. DHL Worldwide Express sends packages from the United States to the Republic of Cuba through Mexico City, Mexico, where the packages are transferred from the operational control of DHL Worldwide Express to the operational control of DHL International Limited. The packages are then sent by commercial aircraft (Aeromexico and Mexicana de Aviacion SA de CV) to the Jose Marti International Airport in the city of Havana for delivery. The cost of sending a one pound package from the United States to the Republic of Cuba is approximately US$81.00. The cost of sending a one pound package from the Republic of Cuba to the United States is approximately US$39.00. The delivery time for packages sent from the United States to Havana, Republic of Cuba, is four days. The delivery time for packages sent from Havana, Republic of Cuba, to the United States is three days. DHL International Limited commenced operations within the Republic of Cuba in September 1990 through an agreement with Panama City, Panama-based UTISA, which is controlled by the Ministry of Communications of the Republic of Cuba. In 1998, DHL International Limited delivered from various countries approximately 80,000 packages to the Republic of Cuba. In 1998, DHL International Limited sent approximately 32,000 packages from the Republic of Cuba to various countries. DHL Worldwide Express, which is controlled by individuals subject to United States law, receives revenues from DHL International Limited for package delivery services to the Republic of Cuba. In January 1999, The Honorable William J. Clinton, President of the United States, announced that the United States was prepared to resume direct mail delivery between the United States and the Republic of Cuba. The government of the Republic of Cuba is prepared to accept the resumption of direct mail delivery, if assurances can be provided with respect to the transportation of dangerous articles and hazardous articles. One issue to be reconciled concerns international agreements which traditionally mandate the existence of commercial flight agreements between countries, in this case, authorization for Republic of Cuba government-operated Cubana de Aviacion aircraft to land in the United States and authorization for United States-based airlines to operate regularly-scheduled services to the Republic of Cuba. Neither Atlanta, Georgia-based United Parcel Service of America, Inc. (1998 revenues exceeding US$22 billion) nor Memphis, Tennessee-based FDX Corp. (1998 revenues exceeding US$15 billion) currently operate direct delivery services or indirect delivery services between the United States and the Republic of Cuba.
NEW YEAR’S 2000 GALA PLANNED FOR HAVANA- London, United Kingdom-based Club Cuba XXI is organizing a New Year’s gala at the Hotel Nacional de Cuba in the city of Havana from 27 December 1999 to 2 January 2000. Club Cuba XXI is a group of entrepreneurs who have investment interests throughout The Americas, Europe, and in Asia. Three hundred guests from throughout the world have been invited to participate in the event, which will, in part, raise funds for Arriba los Carozones (Lift Your Hearts), a charity which “aims to promote welfare to all Cuban children.” Day One (27 December 1999) begins with a Welcome Reception in the Presidential Suite of the Hotel Nacional de Cuba featuring beverages such as the Mojito, Daiquiri, Havana Libre, and Havana Special served on a seaside terrace. That same evening, a “festive traditional dinner” on the rooftop of the Hotel Nacional de Cuba. Day Two (28 December 1999) includes a “cultural exploration” into “Old World Havana” with guests chauffeured by a fleet of 1957 Chevrolet vehicles. During the afternoon, a visit to El Floridita, the restaurant and bar made famous by the writer, Mr. Ernest Hemingway. A torch-lit dinner “infused” with the sounds of Cuban musicians, will be held on the 450-year-old Plaza de la Catedral, located in Old Havana, an area of the city declared a “Patrimony of Humanity” by the United Nations Educational, Scientific, and Cultural Organization (UNESCO). Day Three (29 December 1999) begins with a visit to the resort area of Varadero, 140 kilometers east of the city of Havana. Guests will relax at the former estate of the State of Delaware-based du Pont family, which has been converted to a club with an 18-hole golf course. Sailing, snorkeling, scuba diving, volleyball, and other activities are available. Lunch includes fresh lobster (langosta mariposa) and champagne. “Glamour a la Casablanca,” a theme dinner with guests attired in “Hollywood Nostalgia circa 1940’s,” will be served at the Habana Club. Day Four (30 December 1999) is spent with the Republic of Cuba’s principal literary, musical, cinematic, and artistic protagonists. In the morning, the Nobel Prize for Literature winner, Mr. Gabriel Garcia-Marquez, has been invited to give a private reading. Then a visit to the restaurant Bodequita del Medio, which has hundreds of signatures of the famous, infamous, and not so famous on its walls. Luncheon will be served at El Capitolio, the former seat of the Congress of the Republic of Cuba (the architecture of which was modeled on the United States Capitol building in Washington, D.C.), while listening to members of the National Philharmonic of the Republic of Cuba. In the afternoon, guests will enjoy a performance of the School of National Ballet of the Republic of Cuba at the Lorca Theatre. In the evening, dinner at the world famous Tropicana outdoor nightclub. Day Five (31 December 1999) in the morning, view a private exhibition by the prominent painter, Fabelo; take a stroll; visit the Partagas cigar factory; or go deep sea fishing on private yachts reserved for guests of Club Cuba XXI. In the evening, The Twenty-First Century Ball in the gardens of the Hotel Nacional de Cuba, with the sounds of “Los Van Van,” one of the most popular bands in the Republic of Cuba. Members of the Cabaret Parisian will perform a “fabulous spectacle.” Day Six (1 January 2000) begins with a choral mass celebrated at the Grand Cathedral in Old Havana, with the offering directed to Arriba los Corazones (Lift Your Hearts). In the evening, an elegant banquet at the Morro Castle, which has guarded the entrance to the Port of Havana since the 17th century. Members of the Buena Vista Social Club, a band comprised of some of the finest Cuban musicians, will perform. Day Seven (2 January 2000) begins and ends with a Farewell brunch at the Hotel National de Cuba, after which guests return “from where they came to begin the 21st century.” For information, contact Club Cluba XXI c/o Loewenstein Associates, 39 Thurloe Place, London SW7, United Kingdom; telephone: 011 44 171 838 1200; facsimile: 011 44 171 581 2053; E-mail: contact@cuba21.com; Internet: http://www.cuba21.com
MERIDIEN ANNOUNCES MANAGEMENT AGREEMENT- North Vancouver, British Colombia, Canada-based Leisure Canada and Paris, France-based Meridien Gestion SA (a subsidiary of London, United Kingdom-based Forte Hotels which itself is a subsidiary of London, United Kingdom-based Granada Group Plc) which manages Le Meridien Hotels & Resorts have announced an agreement to develop the Le Meriden Village in Jibacoa, 40 kilometers east of the city of Havana. The new development will be similar to the Forte Village located in Sardinia, Italy, reportedly the company’s most profitable property. Forte Hotels manages more than 400 properties with a combined 54,000 rooms worldwide. Le Meridien Hotels & Resorts manages more than 90 properties with a combined 24,000 rooms worldwide. Le Meridien Hotels & Resorts will assist in the “design, development, and management” of three properties in Jibacoa. In November 1998, Meridien Gestion S.A. signed a Letter of Intent with Leisure Canada whereby Meridien Hotels & Resorts would manage and, perhaps, have an equity interest in, five hotels with a combined 1,000 rooms. The Letter of Intent stated that the initially-agreed three hotels would be in operation within 30 months of a final signed agreement between Meridien Gestion S.A. and Leisure Canada, which was expected to be signed by 31 December 1998. In February 1999, Leisure Canada Inc., announced the appointment of Mr. Simon F. Cooper as a member of the Board of Directors. Mr. Cooper is President of Toronto, Canada-based Marriott Lodging Canada and is Senior Vice President- Lodging, Canada Region for Washington, D.C.-based Marriott International, Inc. (1998 global revenues exceeding US$9 billion). According to a media release from Leisure Canada, “Mr. Cooper's appointment to the Board will greatly enhance an already dynamic management group that is committed to developing world class resorts in Cuba…. Leisure Canada is honored to have an individual of Mr. Cooper's internationally recognized stature agreeing to join our team and aid us in achieving the opportunities we are afforded in Cuba.” Undisclosed is whether Mr. Cooper and/or Marriott International, Inc., has now or plans to have a financial interest in Leisure Canada. Mr. Cooper previously served as President and Chief Operating Officer of Toronto, Canada-based Delta Hotels and Resorts (a subsidiary of Calgary, Alberta, Canada-based Canadian Pacific Limited), which had managed properties within the Republic of Cuba, but in 1998 ceased all activity within the Republic of Cuba. Leisure Canada, through its Wilton Properties subsidiary, plans to invest approximately US$400 million to develop within the Republic of Cuba hotels, marinas, golf courses, equestrian riding centers, cruise ship facilities, tennis courts, convention centers, health spas, retail facilities, and eco-tourism facilities in conjunction with Republic of Cuba government-operated Gran Caribe S.A., one of the three largest Republic of Cuba government-operated tourism companies. Other investors in Leisure Canada include Paris, France-based Societe General and Paris, France-based LCF Rothschild. Leisure Canada reports no current revenues from operations within the Republic of Cuba, but expects that within the next two years more than 51% of its revenues will be from operations within the Republic of Cuba. Leisure Canada also has a 20% interest in Saskatchewan, Canada-based Points North Digital Technologies, which, in turn, owns Mississauga, Canada-based TravelPlus, one of the three largest travel agencies (more than 200 locations) within Canada, and Dallas, Texas-based International Tours, with 1,100 locations throughout the United States. In 1997, San Francisco, California-based BancAmerica ROBERTSON STEPHENS Investment Management, an investment banking company with assets of US$2 billion specializing in emerging growth companies, purchased a 26.2% (fully diluted) investment in Leisure Canada. ROBERTSON STEPHENS Investment Management announced in November 1998 that it was being purchased by a group of investors, which included the company’s original founders. BancAmerica ROBERTSON STEPHENS is a subsidiary San Francisco, California-based BankAmerica Corporation (which recently merged with Charlotte, North Carolina-based NationsBank Corporation, the new entity having combined assets of US$572 billion). The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C. authorizes companies subject to United States law to have non-controlling investments in third country companies that have commercial activities within the Republic of Cuba provided that the investments do not result in control in fact of the third country company and provided that a majority of the revenues of the third country company are not produced from commercial activities within the Republic of Cuba. [OFAC 4 March 1994]. Leisure Canada has spoken with at least one United States-based financial public relations company about representation to increase in the visibility of Leisure Canada within the United States financial community.
CUBACEL CELLULAR UPDATE- Mr. Rafael Galindo Mier, Chief Executive Officer of La Empresa de Telefonos Celulares de Cuba (Cubacel S.A.) reported that the company earned profits (not specified whether gross profit or net profit) of US$6 million in 1998. Cubacel was established in February 1993. Productivity in 1998 was reported to be US$200,000.00 per employee, profits (not specified whether gross profit or net profit) were US$.36 per U.S. Dollar earned, and gross revenue had increased an average of 15% annually. Mr. Galindo reported that cellular telephone services was now available in the a) city of Havana b) city of Villa Clara, 270 kilometers east of Havana c) city of Cienfuegos, 250 kilometers southwest of Havana d) resort area of Varadero, 140 kilometers east of Havana e) on the highway between Havana and Varadero f) city of Matanzas, 100 kilometers east of Havana g) city of Santiago de Cuba, 750 kilometers east of Havana and h) city of Moa, 900 kilometers east of Havana, the location of substantial nickel plus cobalt mining operated by Toronto, Canada-based Sherritt International Corporation. Cubacel, which is the exclusive provider of cellular telephone service throughout the Republic of Cuba, currently has 94 employees and 4,000 users. In February 1998, Cubacel reported approximately 1,800 subscribers who had signed one-year contracts. The monthly fee is US$40.00 and per minute local usage is US$.40 peak and is US$.30 off-peak. Long distance rates range from approximately US$2.45 per minute to US$6.00 per minute, in addition to local per minute usage charges. Cubacel reports that the average monthly customer invoice is US$500.00. Cubacel reported in November 1998 that the company planned to invest US$10 million toward expanding service and expected to increase its subscriber base by 1,500 annually. In 1999, Cubacel plans to expand service to portions of Havana not yet covered, to the resort areas of Cayo Coco and Cayo Guillermo, and to the city of Holguin. Cubacel is a joint venture between Mexico-based Telecommunications Internacionales de Mexico (TIMSA) and Panama City, Panama-based UTISA, which is controlled by the Ministry of Communications of the Republic of Cuba. In February 1998, a wholly-owned subsidiary of Sherritt International Corporation, Sherritt International Communications, Inc., purchased 75% of the shares of TIMSA for US$38.250 million, thereby giving Sherritt International Communications, Inc., a 37.5% share of Cubacel. Cubacel has a twenty-year exclusive contract to provide both analog cellular service within the 800 MHz band and digital cellular service within the 800 MHz band throughout the Republic of Cuba. UTISA is also 1) the Republic of Cuba-based representative of DHL International Limited, the air courier service and 2) markets two-way radios and pagers (voice and tone) and provides two-way radio and pager (voice and tone) services within the Republic of Cuba.
SWEDEN COMPANIES PRODUCING ELECTRICAL RESISTORS- La Empresa de Instrumentacion y Control Industrial (Midas), affiliated with the Ministry of Steel, Mechanical, and Electronics Industry (SIME) of the Republic of Cuba, is producing electrical resistors in cooperation with Hallstahammer, Sweden-based Kanthal AB (a manufacturer of resistance alloys, heating elements, and bimetals; which is providing technology for the Republic of Cuba-based production) and Sweden-based Bat International. Kanthal AB and Bat International are both supplying raw materials and technical assistance. Production is expected to be a least 53,000 units annually. The United States representative of Kanthal AB is Bethel, Connecticut-based The Kanthal Corporation.
ADDITIONAL AEROSPATIALE AIRCRAFT PURCHASES- Republic of Cuba government-operated Aerocaribbean announced it would purchase two previously owned 42-passenger ATR 42-300 aircraft and three 72-passenger ATR 72S aircraft this year. The ATR is built by Paris, France-based Aerospatiale. The Republic of Cuba’s three government-operated airlines: Cubana de Aviacion, Aerocaribbean, and Aerogaviota (operated by the Revolutionary Armed Forces of the Republic of Cuba) reported in 1998 that all U.S.S.R.-built aircraft would be replaced. Four previously-owned ATR 43-300 aircraft were purchased in 1998 for approximately US$30 million. Two Blagnac, France-based Airbus Industrie-produced Airbus-320 aircraft are being leased from Dublin, Ireland-based TransAer International Airlines, an airline charter company operating 17 Airbus aircraft. The Airbus-320 aircraft will be used on routes between the Republic of Cuba and Canada, Mexico, Venezuela, Costa Rica, Honduras, the Bahamas, and other countries. The Airbus-320 aircraft will be flown by Europe-based crews until Republic of Cuba nationals who work for Cubana Airlines complete training.
CUBA EXPECTED TO NAME NEW AMBASSADOR TO CANADA- A son is expected to named to the same post previously held by his father. Mr. Carlos Fernandez de Cossio, Director of the North American Department of the Ministry of Foreign Affairs of the Republic of Cuba, is expected to become the new Ambassador of the Republic of Cuba to Canada. Mr. Fernandez will replace H.E. Bienvenido Garcia Negrin, Ambassador of the Republic of Cuba to Canada, who has been in that post for four years, a normal diplomatic assignment duration. Mr. Fernandez’s father, Jose, was a Vice Minister of Foreign Affairs of the Republic of Cuba, and served as Ambassador of the Republic of Cuba to Canada and then as Ambassador of the Republic of Cuba to Mexico. He is currently the president of Republic of Cuba government-operated Hoteles Horizontes S.A., which owns 49 properties (mostly one-star and two-star compared with similar properties located within the United States) with a combined 6,800 hotel rooms. The North American Department of the Ministry of Foreign Affairs is responsible for official bilateral relations (government to government) between the Republic of Cuba and the United States and between the Republic of Cuba and Canada. The Ministry of Foreign Affairs of the Republic of Cuba also has a United States Department, which while located within the Ministry of Foreign Affairs of the Republic of Cuba, interacts with the office of H.E. Dr. Fidel Castro Ruz, President of the Republic of Cuba. The United States Department is responsible for non-official bilateral relations between the United States and the Republic of Cuba, including media, business, athletic, culture, and academic. Mr. Jose Barrios is the Director of the United States Department of the Ministry of Foreign Affairs.
JAMAICA’S SANDALS OPENS RESORT- Montego Bay, Jamaica-based Sandals Resorts International has opened the 350-room, five-star Beaches Varadero Hotel, in resort area of Varadero, 140 kilometers east of the city of Havana. The property is owned by Republic of Cuba government-operated Cubanacan S.A. The Chairman and Chief Executive Officer of Sandals Resorts International, Mr. Gordon “Butch” Stewart, also has controlling interest in Kingston, Jamaica-based Air Jamaica, which has service to the Republic of Cuba from Montego Bay, Jamaica.
TOURISM UPDATE- The Ministry of Tourism of the Republic of Cuba reported that direct (hotels, restaurants, ground transportation, extra-hotel entertainment, etc.) tourism revenues were US$1.041 billion in 1998, an increase of 20.9% from 1997. Gross profits in 1998 were estimated to be US$300 million, before being shared with non-Republic of Cuba-based companies. Direct tourism and indirect (airlines, airport revenues, revenues from Republic of Cuba government-operated companies and Republic of Cuba-based joint ventures selling products to the tourism industry) tourism revenues in 1998 were reported to be US$1.8 billion, compared to US$1.5 billion in 1997. Republic of Cuba government-operated companies and Republic of Cuba-based joint ventures sales to the tourism industry were US$169 million, an increase of 6.5% from 1997. In 1998, 56% of the 1,416,000 tourists visiting the Republic of Cuba were from Canada, Italy, Germany, and Spain. The Republic of Cuba reported receiving 9% of all tourists traveling to the Caribbean in 1998, compared to 4% in 1989. Hotel occupancy rates were 62%, an increase of 9.2% from 1997. The Republic of Cuba reported 10.1 million tourist days in 1998, an increase of 28% from 1997. The tourism industry directly employed 81,000 Republic of Cuba nationals in 1998, an increase of 6,000 from 1997; and 31% of workers in the tourism industry were 35 years of age, or younger, and 56% were university graduates. H.E. Osmany Cienfuegos, Minister of Tourism of the Republic of Cuba, reported that tourism (gross revenues and number of visitors) increased at an annual rate of 19.8% from 1990 to 1998, compared to an annual increase of 4% for countries in the Caribbean Sea-area. He said that direct revenues and indirect revenues increased nine-fold from 1990 to 1998. H.E. Dr. Carlos Lage, a Vice President of the Council of State of the Republic of Cuba, reported that earnings from tourism could have been greater if not for poor management, labor inefficiencies, poor accounting practices, and theft.
1999 TOURISM PLAN- The Ministry of Tourism of the Republic of Cuba reported that 1.7 million tourists will visit the Republic of Cuba in 1999, an increase of 284,000 from 1998. Tourism days are expected to increase 22%, to 12 million, and hotel occupancy is expected to be 66%, an increase of 4% from 1998. Gross direct (hotels, restaurants, ground transportation, extra-hotel entertainment, etc.) revenues and indirect (airlines, airport revenues, revenues from Republic of Cuba government-operated companies and Republic of Cuba-based joint ventures selling products to the tourism industry) revenues from tourism are expected to exceed US$2 billion, of which more than US$1.2 billion is expected to come from direct tourism revenue sources. Gross direct tourism revenues and indirect tourism revenues were initially projected to be US$2 billion in 1998. Costs are expected to decline US$.02 per U.S. Dollar earned. Republic of Cuba government-operated tourism company “contributions” to the government of the Republic of Cuba are expected to be US$282 million, an increase of 26% from 1998. A total of 5,000 new hotel rooms and remodeled hotel rooms are expected to become operational in 1999. Approximately 2,000 new hotel rooms will be managed by joint ventures in 1999.
8.34 HOTEL ROOMS REPORTEDLY CONSTRUCTED EVERY DAY IN 1998- The Ministry of Construction of the Republic of Cuba reported that a record of 3,045 new hotel rooms were constructed in 1998, compared with less then 2,000 hotel rooms constructed in 1997. An additional 1,260 hotel rooms were remodeled in 1998. The reported total investment in the tourism industry in 1998 was a combined 430 million Pesos and U.S. Dollars, of which 260 million of the combined Pesos and U.S. Dollars were used for construction. In 1998, hotel rooms were being constructed at a rate of one per 2.58 days, and hotels were being completed at a rate of one every 12 months to 19 months, compared to one every 24 months in 1997. H.E. Dr. Carlos Lage, a Vice President of the Council of State of the Republic of Cuba, said that construction delays, cost over-runs, poor accounting practices, and theft of materials, remained a problem. In November 1998, H.E. Juan Mario Junco, Minister of Construction of the Republic of Cuba, said that 4,000 new hotel rooms would be constructed within the Republic of Cuba on an annual basis during the next five years, 1,000 less new hotel rooms on an annual basis than anticipated when forecasts were announced in 1995. Minister Junco reported that 4,300 hotel rooms of varying quality (mostly one-star and two-star compared with similar properties located within the United States) would be constructed and/or remodeled in 1998, compared to less than 2,000 in 1997. The Ministry of Tourism reported that in 1998 there were 190 hotels with a combined 30,900 rooms of varying quality (mostly one-star and two-star compared with similar properties located within the United States). 34,000 hotel rooms are to be operational by 2000, 39,000 hotel rooms by 2001, and 40,000 hotel rooms to 45,000 hotel rooms by 2010.
NON-REPUBLIC OF CUBA-BASED COMPANY PARTICIPATION IN TOURISM INDUSTRY- The Ministry of Tourism of the Republic of Cuba reported twenty-one joint ventures within the tourism industry: 20% of the Republic of Cuba’s 190 hotels and 38% of the Republic of Cuba’s 30,900 hotel rooms are marketed and managed by 18 non-Republic of Cuba-based companies. Seven companies from Spain operate twenty properties; Two companies from France operate three properties; Four companies from Italy operat 5 properties; Two companies from Jamaica operate five properties. Other companies are from Canada, Mexico, and the Netherlands.
SUGAR PRICE AT 12-YEAR LOW, NICKEL PRICE RECOVERS- Republic of Cuba efforts to increase raw sugar production is unlikely to result in increased revenue this year due to decreasing international prices, which have ranged from as low as US$.0545 per pound last week, a 12-year low and 35% below their January 1999 level. The Republic of Cuba may produce approximately 3.6 million tons of raw sugar in 1998-1999, of which approximately 3 million tons will be exported. In 1997-1998, 3.2 million tons of raw sugar was produced and 2.6 million tons of raw sugar was exported. International nickel prices, US$2.25 per pound last week, and may have begun to recover from a 10-year low of approximately US$1.75 per pound in 1998. The Republic of Cuba plans to produce 73,000 tons of nickel in 1999.
15 March 1999- Mr. John S. Kavulich II, President of the U.S-Cuba Trade and Economic Council, will give a presentation at The Cuba Conference with Updates On The Reconstruction Of Central America, the Caribbean, and Colombia at the Center for Strategic and International Studies in Washington, D.C., on 15 March 1999. The conference is being sponsored by Washington, D.C.-based The Center For Reconstruction & Development, a division of Washington, D.C.-based Equity International, Inc. For additional information about the conference, contact telephone (202) 429-2024, facsimile telephone (202) 775-5921, and Internet: http://www.rec-dev.com
18 March 1999- Mr. John S. Kavulich II, President of the U.S.-Cuba Trade and Economic Council, will give a luncheon presentation at “Cuba Sommet ‘99” at the Chateau Frontenac Hotel in Quebec City, Quebec, Canada, on 18 March 1999 and 19 March 1999. The conference is being sponsored by the Chamber of Commerce and Industry of Metropolitan Quebec and the International Trade Center of Eastern Quebec. For additional information about the conference, contact telephone (418) 694-0226, facsimile telephone (418) 694-2286, and Internet: http://simnet.gmc.ulaval.ca/cuba99
23 June 1999- Mr. John S. Kavulich II, President of the U.S.-Cuba Trade and Economic Council, will give a presentation at the Cuba Roundtable sponsored by London, United Kingdom-based The Economist Conferences at the Four Seasons Hotel in Toronto, Ontario, Canada. For additional information about the conference, contact telephone: (212) 554-0659 or facsimile telephone (212) 698-9732.
On 5 March 1999, we received an E-mail from Mr. Joel Sanz Hernandez, Manager of the United States and Puerto Rico Division of Republic of Cuba government-operated Havanatur, a division of Republic of Cuba government-operated Cimex S.A., the largest conglomerate within the Republic of Cuba. Havanatur is the largest tour operator within the Republic of Cuba. Mr. Sanz questioned the accuracy of information contained in the HAVANATUR UPDATE item in the 15 February 1999 issue of the ECONOMIC EYE ON CUBA©: “[Havanatur] executives reported that increasingly integrated competition (travel reservation-transportation-hotel), poor packaging, poor marketing, the lack of technology, and the lack of training were the primary reasons for the less than expected performance.” While the information was accurately reported as provided, there was no intention to convey that the services provided by Havanatur are of poor quality. Since 1994, Havanatur has been the company of choice for members of the U.S.-Cuba Trade and Economic Council, the company of choice for representatives of the United States media, and the company of choice for most individuals subject to United States law traveling to the Republic of Cuba. With Havanatur, the U.S.-Cuba Trade and Economic Council coordinated the first familiarization (FAM) visits to the Republic of Cuba in 1995 and in 1996 for senior-level executives of United States-based travel and leisure companies. At the request of the U.S.-Cuba Trade and Economic Council, Havanatur coordinated the transportation of United States-based and other country Cardinals during the visit of His Holiness John Paul II to the Republic of Cuba in January 1998. Our apologies to Havanatur for receiving a message that was not intended to be delivered.