Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
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- By: Elisa Adriano and Terryann Bodden-Bravo
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Introduction
Cuba is a Spanish speaking Caribbean island. It is the largest island in the Caribbean and
is within close geographic proximity to the United States (See Appendix 3, Map of Caribbean).
There has been a lot of recent talk and commotion surrounding the opening up of Cuba and the
lifting of the US Embargo. Many people are saying that once Cuba fully opens its doors that this
will be bad news for the rest of the Caribbean and it will adversely affect tourism and economies
throughout the region. However, in order to quantify what implications the lifting of the US
Embargo will have on Cuba and the rest of the Caribbean region (specifically the Cayman
Islands) we need to visit the history of Cuba and what caused the Embargo. Everything changed
with the Cuban Revolution. In 1958 the United States imposed an arms embargo in support of
Fidel Castro to over throw the President who was in place at the time, Fulgencio Batista. The
Batista government was successfully overthrown by On Jannuary 1, 1959 by Fidel Castro and his
group of guerillas (Renwick, 2016). Fidel Castro became President on February 16, 1959
(History.com).
Even though they had reservations about Fidel Castros political ideologies, the United
States still recognized his government. The Castro government started to increase its trade with
the Soviet Union, raise taxes on U.S. imports and they nationalized American owned businesses
without pay. As a result of these reforms, the United States responded with intense economic
diplomatic relations with Havana were cut off and a trade embargo was imposed on exports to
Cuba on October 19, 1960 (Fabry, 2015). President John F. Kennedy took office in 1961. That
same year the CIA sponsored Cuban exiles planned an attack at the Bay of Pigs on the south
coast of Cuba, but failed in their attempts of a successful invasion. In order to get rid of
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communist ideologies, the goal was to overthrow the Castro regime and establish a government
that would be friendly to the United States (Renwick, 2016). Following the Bay of Pigs was
Operation Mongoose, another of many failed attempts to take Castro's life (Suddath, 2009). On
February 7, 1962 a complete economic embargo on Cuba was declared under the administration
of U.S. President Kennedy (Fabry, 2015). The restrictions on travel and trade set out in the
policy were detrimental to the Cuban economy, which had relied on products made in the United
States. The country became a shell of what it used to be. The consumption of food declined and
telephones and televisions became scarcities as they were not as readily available as before
(Suddath, 2009).
Over the years various strides have been made toward making peace between the Cuba
and the United States with an ultimate goal to lift the embargo and open trade between them.
The Castro government permitted Cubans who wanted to emigrate to the U.S. to board boats at
the port of Mariel in 1980. In the days that followed, this catapulted the mass emigration of
125,000 people and it became known as the Mariel Boatlift (Suddath, 2009). Despite this many
Americans were still against the Castro regime and certain laws were passed to penalize foreign
investors doing business with Cuba. In 1992, the embargo was strengthened with Cuba
Democracy Act and the Helms-Burton Act (1996). The laws stated that the embargo could only
be lifted under certain conditions, mainly being the removal of the Castro government and their
In January 1998, the United States temporarily agreed to lighten its travel ban and
embargo on Cuba during the visit of Pope John Paul II. In that same year, President Bill
Clinton eased the controls specifically on shipments of food and medicine as these were viewed
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as humanitarian aids (Renwick, 2016). He also allowed Cuban-Americans to send up to
US$1,200 a year to their family back in Cuba. In July 2006, after undergoing intestinal surgery
Castro temporarily gave power to his brother Raul. Since he continued to battle with illness,
Fidel Castro officially stepped down from power in February 2008 (History.com). In 2009, U.S.
President Barack Obama came into office with an agenda that requested greater engagement with
Cuba. In May 2009 the Obama administration lifted restrictions on Americans with ties to Cuba
who wanted to travel the island and send remittances. Additionally, the easing of restrictions
permitted U.S. based telecommunications firms to seek out business ventures in Cuba (Renwick,
2016).
On December 17, 2014, for the first time in more than fifty years, President Barack
Obama and President Ral Castro of Cuba declared that they would restore full diplomatic
relations between the two countries (Renwick, 2016). On March 21, 2016, President Obama
called again on Congress to lift the Embargo on Cuba. This whole topic has had a lot of debate
and has gotten a considerable amount of attention in recent months. To find out the impact that
the lifting of the US Embargo will have on the Caribbean and the Cayman Islands we will
discuss the strengths and opportunities of each economy (Cuba and the Cayman Islands). We
will be comparing the Cuban economy and environment with that of the Cayman Islands. We
have deliberately done this because we want to bring disparities closer to home, as we the people
Cuba Strengths
Cuba has beautiful beaches and vast coastlines with stunning natural features (Thomas,
Kitterlin-Lynch, and Lorenzo Del Valle, 2015). They have historic architecture and buildings
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and a lot of tourists are drawn to this type of scenery. Costs are relatively low in Cuba, which
mean people who visit will spend less for their vacations. Cuba is famous for cigars, rum and the
paintings and art pieces made by their talented people. Its Geographic location and proximity to
a high income nation like United States is considered a benefit and can help to improve its
The Cayman Islands are a British Dependent Territory and a predominant democratic
society. As a result they are more economically and politically stable than Cuba. They are a tax
free nation and thrive from being one of the highest ranked financial centers in the world. The
Cayman Islands has more companies registered than its population of people (BBC, 2016). They
are also home to more hedge funds than any other country in the world. As of March 2016 they
held $265 billion worth of Treasuries (Wong, 2016). The crime rate in Cayman as it pertains to
offences against tourists is relatively low (Fox News, 2015) .There are not as much stringent
regulations to invest or start a new business in the Cayman Islands as is compared to Cuba. Like
Cuba, the Cayman Islands also have beautiful and pristine beaches. They have popular tourist
attractions and established diving and water sports operations. The Stingray City and Turtle
Farm have been featured as good attractions to visit in the Caribbean (Bateman, 2016).
In 2016 The Cayman Islands is ranked in the top ten Caribbean destinations and Cuba is
not included in this number (Tripadvisor, 2016). Equally notable for the same year, is that
another Company has ranked the Cayman Islands number eight out of the twenty five best
Caribbean Islands. Again, Cuba was not listed as any of these twenty five islands (Avakian and
Kiersz, 2016). The Cayman Islands are also geographically close to the United States which
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allows them to be more accessible to tourists from that market (See Appendix 3, Map of
Caribbean). There is no language barrier to the majority of tourists they attract as they are an
English speaking nation. They have more advanced technology in regards to the internet and
telecommunications networks. WIFI and access to the internet is more readily available than in
Cuba (CaymanIslands.ky). This is important to the ever growing world of technology and it lets
anyone who visits the Cayman Islands feel that they are never out of touch with their family,
friends or work. Cayman has good infrastructure such as five star hotels and varied types of
accommodations to suite different budgets. They have convenience and access to basic
necessities such as supermarkets and hospitals. There is a good transportation system in the
Cayman Islands with a daily bus service that runs from six o clock in the morning until
midnight, but availability depends on the route and the day of travel (CaymanIslands.ky).
Cuba Weaknesses
There is a language barrier for English people who visit Cuba as the majority of the
native speak Spanish (The Sacramento Bee, 2016). Cuba is still considered a communist
country. Due to this fact there are a lot of limitations placed on locals and visitors due to
interference from the government. Despite the fact that laws in the United States have been
relaxed, Americans are still restricted on what they can do when they travel to Cuba. As a result,
travel to Cuba is not planned so easily. (The Sacramento Bee, 2016). U.S. dollars aren't
accepted at all in Cuba; therefore tourists have to change their money at the airport for the
official Cuban peso and are charged a ten percent penalty for the exchange. Furthermore, credit
and debit cards from the United States are still not functional in Cuba. A as a consequence,
tourists must ensure they bring sufficient cash to cover their expenses (Davenport, 2016).
Despite economic reforms, the state of Cuba still dominates the country by controlling
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businesses and the production of goods and services. According to local person who was
interviewed who frequently visits Cuba, goods are not easily available at the grocery stores. Food
is more expensive as compared to other tourist destinations due to scarcity of supply in the
market (See Appendix 1). Although there are no reliable crime statistics provided by the
government in Cuba, the crime rate appears to be relatively high. The main categories of crimes
that are carried out are considered non-violent offences against tourists such as theft of personal
property and from vacant cars and hotel rooms or accommodations. The majority of offenses
appear to take place in areas frequented by foreigners such as beaches, hotels, restaurants, and
In Cuba, the domestic information technology (IT) such as the internet and
telecommunications network is inadequate. This has been confirmed via interview with the same
local person who frequently visits Cuba. He has said, communication is not easily available as
compared to other tourist destinations in other countries; youll have to pay for internet WIFI
most of the time (Appendix 1). Cuba has limited accommodations such as hotels for stay over
tourists (Davenport 2016). This is due to their limited and aged infrastructure. The same local
person has said Cuba needs to improve their infrastructure; they have to build more hotels and
improve their communication system. He said, imagine even with television they only have
four channels there (See Appendix 2). They also have limited transportation. The financing of
development in Cuba will continue to be a challenge due to the insecurity and future of the
political and economic landscape on the island (Thomas, Kitterlin-Lynch, and Lorenzo Del
Valle, 2015).
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Cayman Islands Weaknesses
The Cayman Islands has deficiencies in its systems that are designed to counteract money
laundering. The counter-money laundering mechanism suffers from serious systemic problems.
This framework falls under the legal, supervisory, and regulatory systems of the Cayman Islands.
Certain regulations such as their bank secrecy laws are in direct contravention of money
laundering requirements. This is mainly due to the fact that most banks in the Cayman Islands
are not required to identify their customers. In the absence of a court order, the supervisory and
regulatory authority usually has issues obtaining information from financial institutions
pertaining to their clients' identification (FATF, 2012). The Cayman Islands has been viewed
negatively by bodies such as the Financial Action Task Force (the 'FATF') as a result of
deficiencies in its money laundering systems. This type of negativity and being in the lime light,
so to speak will be an impediment for potential investors or other banks who may be considering
setting up shop in the Cayman Islands. If the Cayman Islands does not tighten up its laws and
regulations surrounding anti-money laundering this could become a topic of controversy and a
threat to them in the long run. The cost of goods and services including accommodation is high
in Cayman. This is partly due to import duties when bringing goods to the islands. Then it is no
surprise that the Cayman is said to be one of the most expensive tourist destinations in the
Cuba Opportunities
As Cubas diplomatic relations grows with United States and other Western nations, the
tourism industry and economy is expected to grow (Thomas, Kitterlin-Lynch, and Lorenzo Del
Valle, 2015). More investors will want to come in which intern will increase infrastructure, open
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new businesses and inject thousands of dollars in capital. As of March of 2014 , foreign direct
investment (FDI) already started to flow more heavily because Cuba passed tax cut measures
with the intention to promote FDI (Sato, 2016 ). If Cuba was to fully open its doors, there will be
more prosperity for the people and a better quality of life. The poor IT infrastructure should
provide growth and opportunities for improvement in relation to wireless technologies such as
the internet and telecommunication networks. Last year IDT Corp. became the first US telecom
company to sign a deal with Cuba and capitalize on the US governments efforts to reopen
relations with its former cold war rival. Further deals are in negotiations with Google, AT&T and
others all looking keenly at Cuba (Walsh, 2016). For the first time in fifty years, JetBlue is
planning to commence daily service to Cuba from Fort Lauderdale International Airport for
people traveling between the United States and Cuba. This can prove to be very advantageous to
Cuba and other airlines will want to follow suite and by also offering flights to Cuba. JetBlue's
flights to Cuba will boost its existence in the Caribbean and Latin American Markets (Airline
The Cayman Islands has been working on the development of a cruise berthing facility in
Grand Cayman which will increase the number and size of cruise ships that will be
accommodated in port. Grand Cayman is one of the few islands in the Caribbean where cruise
ships still have to use tender boats to bring their passengers to shore. Therefore, this project
proposes to enable berthing of the large ships in the port (World Maritime News, 2015). There
are also numerous construction projects taking place in the hotel industry such as the
introduction of another five star hotel on Seven Mile Beach. The Kimpton Seafire Resort and
Spa and The Residences at Seafire are due to open in November 2016. These hotel
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developments mean that infrastructure will increase and therefore it is the expectation that more
tourists will be able to stay in the Cayman Islands. As stated by Mr. Mark VanDevelde, CEO of
Dart Realty Cayman "it is also demonstration of Dart's commitment to assist with the growth of
the local economy and produce new opportunities that will advance the island's sturdy tourism
sector" (GlobeNewsWire, 2015). These projects and expansions around the island will create
more jobs to locals and positively stimulate the Cayman Islands economy (GlobeNewsWire,
2015).
The Cayman Islands government also unveiled a new concept to expand the Owen
Roberts International Airport and broke ground on the redevelopment project that started in
2015. This expansion is due to be completed sometime in 2018 (Duncan, 2016). This modern
airport will include a larger terminal that will allow more room for passengers in the immigration
and customs areas, accommodating the projected growth in air arrivals (The New Resident,
2016). The airport expansion will alleviate the issue with overcrowding and means that more
flights will be able to come in thus more tourists will enter the Cayman Islands (The New
Resident, 2016).
Cuba Threats
As the economy in Cuba is stimulated and allowed to grow, you would expect the cost of
goods and services to also increase. The command process imposed by the government may
negatively affect tourists and visitors and deter them from returning in the future. Limited
technology such as the internet and communication infrastructure may also reduce the number of
potential visitors to the island. Cuba faces threats when it comes to prospective investors. The
Cuban government has to be a partner in every foreign business. Cubas Foreign Investment Law
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No. 77 does not put limitations on the contributions of foreign capital; however there are
stipulations that state the Cuban side has to hold more than half of the investment or business
The Cuban government also controls the availability of labor and skilled personnel. All
Cuban employees must be recruited through government owned employment agencies. The
finance and banking industries are weak and these are viewed as the backbone in any country.
According to Moodys rating agency, Cubas economy suffers from chronic underinvestment in
general (Klein, 2016). Foreign businesses transactions must be made using the CUC, the fact
that US dollars cannot be spent in Cuba is actually doing more harm than good and hindering
prospects of growth in the future. Additionally foreign investment businesses must open
accounts in CUC using the National Banking System. Last but not least, the island does not have
adequate court systems to settle disputes in case any issue should arise and an investor needs to
seek remedy or protection. At present, there is no law allowing court judgments from the United
Cuba is the inability to resolve disputes in court. All of these underlying issues may hamper
international investors from coming into the island (Thomas, Kitterlin-Lynch, and Lorenzo Del
Valle, 2015).
The Cayman Islands is too reliant on its financial services industry as a source of income
and sustainability for the islands (Lee, 2015). If this industry should experience some
catastrophic failure there is not much else for the Cayman Islands to fall back on besides its
tourism. The Cayman Islands has outdated anti-money laundering, terrorism and financing laws
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that need to be revised as soon as possible. This has been stated by Francis Arana, Head of the
Anti-Money Laundering Unit in the Attorney Generals Chambers. Such laws include legislation
that would cover charities and other business risk areas outside of the offshore division including
the real estate sector and diamond business owners as well as the supervision by the regulator
and adequate sanctions (Cayman News Service, 2015). These are the laws that protect and
facilitate business transactions and ensure transparency. If the Cayman Islands does not develop
adequate laws and regulations to deter money laundering and even terrorism they could risk
being blacklisted by bodies such as the Financial Action Task Force. This may create a domino
effect and cause companies to pull out their investments and it may also stagnate future growth
in the Financial Services Industry. A possible threat to the Cayman Islands in the coming years is
that more tourists may want to go to Cuba and in turn their tourist numbers will drop. The high
price of doing business in the Cayman Islands may also drive away potential investors.
Increasing costs of goods, services and food could make the islands unattractive to visitors. On
average you can expect to pay between US$16.00-US$32.00 for lunch or dinner in the Cayman
Islands. (CaymanIslands.ky).
Although a mass amount of foreign money is passed through and kept in the Cayman
Islands, they are no longer a top tax free haven. The United States has criticized other countries
for years that helped rich Americans to hide money in tax free jurisdictions overseas. Contrary to
this, the U.S. is now leading at the forefront as a tax and secrecy haven for rich foreigners. The
United States has been able to bypass new global disclosure standards in terms of secrecy. This
has pushed them to become a hot new market place to stash foreign wealth., Dozens of accounts
were moved out of Switzerland, Grand Cayman, and other offshore jurisdictions by Trident Trust
Co., one of the worlds largest providers of offshore trusts. Banks in the United States can also
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help their clients move money into accounts that are tax free and concealed from their local
governments. If this trend continues, the Cayman Islands stands to lose more and more of its
Stakeholders in the tourist industry in the Cayman Islands are still of the opinion that it is
too early to tell what impact the opening up of Cuba will have on the Cayman Islands economy.
It is not clear whether Cubas tourism revival will lift tourism coming into the region generally
speaking or whether it will attract visitors from other Caribbean destinations (Klein 2016). For
the purpose of this paper the group chose to interview an official in the tourism industry.
According to Gregory Wray, Managing Director, Holiday Inn Cayman, once the US Embargo on
Cuba is fully lifted there will be some spin off. The impact on Caribbean tourism will not be felt
yet; it might take at least ten years due to their government. Cuba needs to repair a lot. Mr.
Wray also said that Cuba and Cayman are two different markets. Cuba is still a third world
country with the same level as Haiti and Dominican Republic, people go there mostly because it
is a cheap destination, while Caymans tourism are in the same rank as to that of Puerto Rico,
Aruba, people come here because it is a safe, high class destination (See Appendix 1).
Mr. Fabian Whorms, Chief Executive Officer of Cayman Airways does not anticipate the
introduction of planned flights between the United States and Cuba as the first attempt in over
fifty years will have a negative impact on the local airline. Not much has actually changed. The
capacity has fallen and the demand is now on the increase. We continue to observe what is taking
place, however it might not necessarily mean that there will be any extensive reduction in
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demand which could negatively affect us. Mr. Whorms has said that Cayman Airways is
Despite what is being said by people locally, the lifting of the U.S. Embargo is bound to
have an adverse effect on the Cayman Islands and the rest of the Caribbean. According to the
Caribbean Hotel and Tourism Association (CCHTA), more American travelers will start going to
Cuba and the rest of the Caribbean will have to deal with this movement and find methods to
compensate for the loss. CHTA embraces the lifting of U.S. embargo on Cuba and its travel and
trade restrictions. But at the same time, the association has written a policy paper on Cuba and
cautions that this should bring many Caribbean destinations and hotel operators back to reality
and prompt them to revamp ideas and become more competitive (Hospitalitynet, 2016). Since
President Barack Obama announced that the U.S. would recommence a diplomatic relationship
with Cuba, tourism figures for the Cayman Islands have decreased. The amount of stay-over
tourists has dropped. Cayman had about 0.76 percent growth in tourist air arrivals in 2015 which
is basically the lowest growth rate since the financial crisis in 2009 (Klein, 2016). Cuba hit 2
million stop-over arrivals in mid-June 2016. This is actually a month earlier than when the
number was seen last year. This 11.7 percent increase was the fastest rate of growth for stop-over
The Cayman Islands and the rest of the Caribbean have cause to worry, even though the
intensity and economic ramifications may not be noticeable in the short run. The Cayman
Islands has already started to see the effects of Cubas opening its doors on their tourist numbers
in terms of visitor arrivals. Mr. Whorms of Cayman Airways has also said, the introductory
pricing on the new scheduled flights from the U.S. to Cuba could have an impact on the market,
affecting Cayman Airways profits. He has said the situation is more complex and liquid than
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people know about, and the airline needs to be flexible over the coming years to respond to
changes in supply and demand (Whittaker, 2016). If there was no fear of the potential impact of
more flights entering Cuba, then there would be no need to plan and be flexible in the future.
However, no one can actually predict the exact time in which the fall out of these changes will be
What islands must do is plan ahead. As mentioned by the Caribbean Hotel Tourism
Association, they should not wait until their situation gets so adverse that they have to scramble
to find solutions. They need to find what niche market prefers their shores and advertise in those
respective countries. Furthermore, Caribbean islands should promote activities or resources that
are unique to them in order to attract tourists. By doing this they will put themselves out in the
open and promote tourism. In addition, depending on the location they can also find ways to
appeal to foreign investors and businesses in order to get more money flowing into their
respective economies. This is what will help preserve regional economies in the long run and say
the next ten years from now. The Cayman Islands is no different from the rest of the Caribbean
in terms of the threats that most of the other islands face. Therefore, if they wish to sustain
themselves in the long run, the Cayman Islands should also take heed and follow the same
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References:
1) Renwick, D. (2016, March 24) U.S.-Cuba Relations. Retrieved August 2, 2016 from
http://www.cfr.org/cuba/us-cuba-relations/p11113
2) This Day in History, 1959 Castro sworn in. Retrieved September 9, 2016 from
http://www.history.com/this-day-in-history/castro-sworn-in
3) Fabry, M. (2015, October 19) The U.S. Trade Embargo on Cuba Just Hit 55 Years.
Retrieved August 2, 2016 from http://time.com/4076438/us-cuba-embargo-1960/
4) Suddath, C. (2009, April, 15) A Brief History Of U.S.-Cuba Relations. Retrieved August
2, 2016 from http://content.time.com/time/nation/article/0,8599,1891359,00.html
5) Thomas, J., Kitterlin-Lynch, M., and Lorenzo Del Valle, D. (2015, August ) Cornell
Hospitality Report, Cubas Future Hospitality and Tourism Business Opportunities and
Obstacles. Retrieved July 21, 2016 from http://scholarship.sha.cornell.edu/chrpubs/202/
(need to click download to view article)
7) Wong, A. (2016, May 17 ) The Tiny Cayman Island Holding $265 Billion in Treasuries
Retrieved on September 5, 2016 from http://www.bloomberg.com/news/articles/2016-05-
17/resort-island-of-60-000-emerges-as-265-billion-treasuries-haven
8) Fox News (2015, December). Is the Caribbean more dangerous than you realize?
Retrieved August 27, 2016 from http://www.foxnews.com/travel/2015/12/01/is-
caribbean-more-dangerous-than-realize.html
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11) Avakian, T. and Kiersz, A. (2016, February 26 ) The 25 best Caribbean islands, ranked.
Retrieved August 14, 2016 from http://www.businessinsider.com/the-25-best-caribbean-
islands-ranked-2016-2/#25-st-vincent-and-the-grenadines-1
12) Cayman Islands Official Tourism Website. Retrieved August 14, 2016 from
http://www.caymanislands.ky/askalocal/faq.aspx
13) Author Unknown, (2016, August 19) The Sacramento Bee, In Cuba, as an uncertain
future inches closer, its still a step back in time
http://www.sacbee.com/entertainment/arts-culture/article96441102.html
14) United Stated States Department of State, Bureau of Diplomatic Security. Cuba 2016
Crime & Safety Report. Retrieved August 27, 2016 from
https://www.osac.gov/pages/ContentReportDetails.aspx?cid=19184
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=w&asid=d8e148481766d519083c4d9de04cef2b
16) (2012, May 11) Financial Action Task Force on Money Laundering (the 'FATF')
https://www.cfatf-gafic.org/index.php/documents/cfatf-mutual-evaluation-
reports/cayman-islands-1
18) Sato, E. (2016, June 7) Cubas Tourism, the Embargo, and the Environment. Retrieved
July 21, 2016 from http://www.coha.org/cubas-tourism-the-embargo-and-the-
environment/
19) Walsh, M. (2016, March 23) US telecom businesses struggling to make connections as
Cuba opens up. Retrieved September 10, 2016 from
https://www.theguardian.com/world/2016/mar/23/us-telecom-businesses-cuba-relations-
etecsa
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20) JetBlue to fly to Cuba with first commercial flights in 50 years. (2016, June 20). Airline
Industry Information. Retrieved from http://go.galegroup.com.ezp-
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256&asid=dea3464d3a730cb031ad2fa5b8bf31d1
21) World Maritime News, Author unknown (2015, October 29). Cayman Islands Pushes
Ahead with Cruise Facility Plans. Retrieved September 10, 2016 from
http://worldmaritimenews.com/archives/175175/cayman-islands-pushes-ahead-with-
cruise-facility-plans/
22) Globe News Wire. Author unknown (2015, November12) Dart Realty Introduces the
Kimpton Seafire Resort + Spa Residences at Seafire. Retrieved September 10, 2016 from
https://globenewswire.com/news-release/2015/11/12/786763/10156171/en/Dart-Realty-
Introduces-the-Kimpton-Seafire-Resort-Spa-Residences-at-Seafire.html
24) The New Resident, Author Unknown (2016, June 9). Cayman's Outlook
http://www.caymannewresident.com/Caymans-outlook
25) Lee, C. (2015, September 1) The Cayman Islands: Tourism Paradise Or Economic Hell.
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paradise-economic-hell/
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27) Drucker, J. (2016, January 27) The Worlds Favorite New Tax Haven Is the United
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28) Klein, M. (2016, July 5) Easing of US-Cuba relations could hit Caribbean tourism.
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29) Author unknown, Hospitalitynet (2016, August 23) Caribbean Tourism Businesses Must
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Appendix 1
Interview questions, Gregory Wray - Managing Director, Holiday Inn Cayman (July 2016):
1. Does the lifting of the US Embargo on Cuba affect the Hotel industry (Holiday Inn) here
in Cayman? How?
Answer:
- Once the US Embargo on Cuba is fully lifted there will be some spin off.
- The impact on Caribbean tourism will not be felt yet, it might take at least 10yrs due
- Although Cuba has a lot to offer to tourist ( more variety, rich in historical structures,
places, beaches are in great distance, if you go to the South there is the Caribbean
Sea, while if you go North your see mountains and the Atlantic.
- Cuba and Cayman are two different market, Cuba is still a 3rd world country with the
same level as Haiti and Dominican Republic, people go there mostly because it is a
cheap destination, while Caymans tourism are in the same rank as to that of Puerto
Rico, Aruba, people come here because it is a safe, high class destination.
2. What would be the negative or positive effect (if any) of the US Embargo to the Hotel
Answer:
- Cuba is closer to the US, not as expensive, this island is very expensive, but as I said
within the next 10 years, their government needs to make a lot of changes.
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- There could be some positive effect though, Im sure travel agency can come up with
something like travel packages (like 2 day/nights in Cuba then side trip here
(Cayman)
3. What are the plans of the Hotel Industry (Holiday Inn) to do to lessen the negative effect
- This hotel (Holiday Inn) is in a good price position as compared to other hotels here
in Cayman Islands, our rate is as low as 150usd/night, while a room in other hotels
are ranging from 250 and up, therefore we are not worrying much, price conscious
- I had not heard yet of any plans within the Holiday Inn group in regards to any
Holiday Inn hotel to build/operate in Cuba. What I know is, Starbucks plan to operate
in that country for theres a rumor that Cuba will be the next Starbucks capital.
- It is because of their current form of government that pushes back the businesses
away. Imagine in order to set up a business there you need to know someone from the
only be 40%, and 60% will be owned by the government. Cuban government are
known to be corrupt
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Appendix 2
Interview questions with local resident and frequent visitor to Cuba (July 2016)
Background of individual:
- Purchase a piece of land (3acres, at about ky$15K equivalent) in Cuba through his son in-
What is your opinion about Cuba and the effect of lifting of US Embargo on their tourism?
- He agrees with one article that he has once read saying that Cuba is the most expensive
o Since the cars are only few, If you are to travel around with great distance, youll
other countries, youll have to pay for internet wifi in most of the time.
o If you will butcher /kill a cow that you are tending, you will be facing
imprisonment for 6 years ( my son in-law in fact has been jailed for this same
charges)
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- Prostitution is so prevalent, one woman told him said it is only our body that we have
control over with. I sell my body because this is the only way I can get what I need, the
money
- Cuba needs to improve their infrastructure, they have to build more hotels, improve their
communication system (imagine even with television they only have 4 channels there).
- The banking system is also a big issue, you cannot just pay via credit card, you need to
- Cuba and Cayman caters to two different market, Cayman is family oriented while Cuba
is more on matured tourism, not all kids will be interested to see the historical structures,
unlike Cayman we have lots to offer here for the kids, we have turtle farm, stingray city.
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Appendix 3
Map of Caribbean
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