The Arizona Republic

New rules on Cuba: who wins, who loses

- ANDREA RODRIGUEZ AND BETH J. HARPAZ

President Donald Trump’s new policy on Cuba travel has winners and losers: Group tour operators hope to sell more trips, but bed-and-breakfast owners in Cuba say they’re losing business.

Five of 12 private bed-and-breakfast owners in Havana and Cuba’s southern colonial city of Trinidad told the Associated Press that they received cancellati­ons after Trump’s June16 announceme­nt.

“It’s contradict­ory that (Trump) says he wants to help civil society, the Cuban people, but what he’s doing is hurting them, hurting bed-andbreakfa­st owners in this case,” said Tony Lopez, who rents rooms for $30-$50 nightly in a threebedro­om, 16th-floor apartment in Havana’s trendy Vedado neighborho­od. Those canceling included two Americans worried about legal requiremen­ts, including documentin­g their spending.

“We get a lot of Americans. We’re alarmed,” said Eliset Ruiz, manager of a nine-room bed-andbreakfa­st in Trinidad. “We’ve had a lot of cancellati­ons for June and July.”

Boom or confusion?

Tour operators “should be opening Champagne” because of the new policy, said John Caulfield, former chief of mission of the U.S. Interests Section in Havana and co-founder of the nonprofit Innovadore­s Foundation, which seeds innovation in Cuba.

In theory, the new rules should spur “an increase in demand,” said Access Trips CEO Tamar Lowell. But some Americans “will be confused by the new policy,” wrongly assuming that all Cuba travel is now off-limits.

“The travel operators are going to have to do some work to make people aware that if you go with us, it’s OK,” said Caulfield.

“Are we going to see business fall off?” said Classic Journeys President Edward Piegza. “We could. But it could be good for us.”

Military business ban

The new rules also ban Americans from doing business with entities controlled by Cuban mili-

Tour groups may be smiling, but island bed-and-breakfasts are suffering cancellati­ons

tary and intelligen­ce agencies, including some 50 hotels.

Many tour operators say that’s no problem because they already use privately owned villas, casas and eateries, and engage with local guides, entreprene­urs and artists.

Caulfield said the Cubans can also fill up hotels that are off-limits to Americans with tourists from other countries, thereby freeing up rooms elsewhere for U.S. groups.

Meanwhile, small bed-and-breakfast owners plan to create informal associatio­ns of neighborin­g businesses so they can accommodat­e larger American groups.

Piegza said lodging costs increased last year but are coming down, allowing Classic Journeys to drop tour prices from $4,995 for four days in Cuba to $3,995.

Hotels aren’t an issue for cruises because passengers sleep on the ships. But Carnival Corp. says even its activities on the ground in Cuba already comply with the new rules. “Many of our current tours have been designed with small family-run operations to give our guests an authentic Cuban experience,” said Carnival spokesman Roger Frizzell.

Visits to major tourist attraction­s like Ernest Hemingway’s estate and the Tropicana nightclub shouldn’t be affected by the new U.S. rules, since neither falls under military auspices. U.S. Sen. Marco Rubio, R-Florida, a CubanAmeri­can who supports travel restrictio­ns, suggested in tweets that he’d like to ban attraction­s run by other Cuban government agencies, like the ministries of culture and tourism. But it will be months before the U.S. Treasury Department announces details on which sites are off-limits.

Support for the people

Rubio also suggested that independen­t travel might continue. Rubio tweeted that the new rules allow “individual Americans” to “travel to Cuba under Support for the Cuban people category” as long as they use “privately owned lodging.”

That’s heartening to companies like ViaHero, which creates personaliz­ed itinerarie­s connecting individual Americans with artists, entreprene­urs and other Cuban locals. ViaHero CEO Greg Buzulencia thinks ViaHero trips will qualify under the “support for the Cuban people” category of travel permitted by the U.S. because ViaHero’s itinerarie­s “start conversati­ons and promote independen­t businesses and activity” in Cuba outside of government-run spheres.

ViaHero’s model is also affordable, as little as $400 for a week in Havana — plus a $25-a-day trip-planning fee — compared with group tours charging $5,000 for a week.

 ?? RAMON ESPINOSA/AP ?? Tourists ride past the Capitolio in Havana. Five of 12 private bed-and-breakfast owners in Havana and Cuba’s southern colonial city of Trinidad say they received cancellati­ons after President Donald Trump’s announceme­nt of a new policy changing the...
RAMON ESPINOSA/AP Tourists ride past the Capitolio in Havana. Five of 12 private bed-and-breakfast owners in Havana and Cuba’s southern colonial city of Trinidad say they received cancellati­ons after President Donald Trump’s announceme­nt of a new policy changing the...

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