Cruise Lines Ready to Pounce on Cuba
Cruise lines that cater to Americans could be calling on Cuba within months of getting the go-ahead from U.S. lawmakers.
At least, that's the word from industry watchers such as Robin Farley of UBS, who notes that major lines such as Carnival are ready to pounce should the U.S. lift its embargo on the Caribbean nation.
"Havana is a natural deep-water port, and we believe operators could build dockside infrastructure on a much faster time line than it would take to build U.S. branded hotel product," notes Farley. "Itineraries could be sold with just several months advance notice."
Few industry watchers expect the USA to lift its embargo on Cuba anytime soon. But the resignation of longtime leader Fidel Castro has raised the possibility that changes in the country -- and in the USA's relationship with it -- could be coming.
"While reports of Castro having resigned as Cuba’s president do not mean that the US will end its economic embargo in the near future, new leadership could be a positive event for the cruise industry if diplomatic relations resulted in the opening of Cuba to American tourism," says Farley.
Farley says the lack of extensive hotel infrastructure in Cuba would give cruise lines a big advantage in the early years after the U.S. lifts its embargo.
"Cuba would represent a new itinerary with significant pent-up demand from American tourists," she adds. Only 230 miles from Miami, the largest of Caribbean islands "has long been in the cross-hairs of the American cruise lines."
So far the major cruise lines are staying mum on their plans. A spokesperson for Royal Caribbean says that while the line hopes to have its ships visiting Cuba in the future, "it's premature to judge how events will unfold there, and (we) don't have anything to say at this time."
Carnival spokesman Vance Gulliken also deflected questions. "Until there is fundamental change in that government that would lead to a change in the U.S. government's policy, there's really nothing we can discuss at this time," he tells us.
Cruise lines that cater to Americans could be calling on Cuba within months of getting the go-ahead from U.S. lawmakers.
At least, that's the word from industry watchers such as Robin Farley of UBS, who notes that major lines such as Carnival are ready to pounce should the U.S. lift its embargo on the Caribbean nation.
"Havana is a natural deep-water port, and we believe operators could build dockside infrastructure on a much faster time line than it would take to build U.S. branded hotel product," notes Farley. "Itineraries could be sold with just several months advance notice."
Few industry watchers expect the USA to lift its embargo on Cuba anytime soon. But the resignation of longtime leader Fidel Castro has raised the possibility that changes in the country -- and in the USA's relationship with it -- could be coming.
"While reports of Castro having resigned as Cuba’s president do not mean that the US will end its economic embargo in the near future, new leadership could be a positive event for the cruise industry if diplomatic relations resulted in the opening of Cuba to American tourism," says Farley.
Farley says the lack of extensive hotel infrastructure in Cuba would give cruise lines a big advantage in the early years after the U.S. lifts its embargo.
"Cuba would represent a new itinerary with significant pent-up demand from American tourists," she adds. Only 230 miles from Miami, the largest of Caribbean islands "has long been in the cross-hairs of the American cruise lines."
So far the major cruise lines are staying mum on their plans. A spokesperson for Royal Caribbean says that while the line hopes to have its ships visiting Cuba in the future, "it's premature to judge how events will unfold there, and (we) don't have anything to say at this time."
Carnival spokesman Vance Gulliken also deflected questions. "Until there is fundamental change in that government that would lead to a change in the U.S. government's policy, there's really nothing we can discuss at this time," he tells us.
posted by The Cruise Cafe | 7:12 PM
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