Friday, June 16, 2017

Changes to Cuba deals could block Trump's hotel competitors

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Changes to Cuba deals could block Trump's hotel competitors

Changes in Cuba policy could adversely impact Trump's hotel competitors

By Dan Merica, Patrick Oppmann and Jim Acosta, CNN
Updated 10:28 AM ET, Fri June 16, 2017
Local teens play soccer in the city after school. Cubans enjoy free education, as well as free health care. With a vast network of family doctors, they have lower infant mortality than Americans, and, according to some statistics, longer lifespans.
Photos: Scenes from Cuba
Local teens play soccer in the city after school. Cubans enjoy free education, as well as free health care. With a vast network of family doctors, they have lower infant mortality than Americans, and, according to some statistics, longer lifespans.
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It's common to find abandoned construction sites around Havana, some overgrown with vegetation, giving each site a form and character of its own.
Photos: Scenes from Cuba
It's common to find abandoned construction sites around Havana, some overgrown with vegetation, giving each site a form and character of its own.
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7 of 10
Viñales, Cuba, is a UNESCO World Heritage Site and home to some of the world's most fertile soil, perfect for producing the tobacco used to make the country's prized cigars.
Photos: Scenes from Cuba
Viñales, Cuba, is a UNESCO World Heritage Site and home to some of the world's most fertile soil, perfect for producing the tobacco used to make the country's prized cigars.
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8 of 10
A farmer drives his oxen through the small-town streets of Viñales. Visitors to the countryside see another side of Cuba.
Photos: Scenes from Cuba
A farmer drives his oxen through the small-town streets of Viñales. Visitors to the countryside see another side of Cuba.
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9 of 10
The southernmost point in the United States, Key West sits just 90 miles from the Cuban shoreline. Cuba gets 3 million tourists a year; the state of Florida receives 92 million.
Photos: Scenes from Cuba
The southernmost point in the United States, Key West sits just 90 miles from the Cuban shoreline. Cuba gets 3 million tourists a year; the state of Florida receives 92 million.
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A 1955 Chevy Bel Air is one of thousands of old American cars that still fill the streets of Havana. Cubans lucky enough to keep the cars running now ferry tourists around town for about $40 an hour -- twice what the average Cuban earns in a month.
Photos: Scenes from Cuba
A 1955 Chevy Bel Air is one of thousands of old American cars that still fill the streets of Havana. Cubans lucky enough to keep the cars running now ferry tourists around town for about $40 an hour -- twice what the average Cuban earns in a month.
Hide Caption
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The sun sets on the rooftops of the Old City. Eighty percent of the buildings in Havana were constructed between 1900 and 1958, before the American embargo took effect. Many are now in urgent need of repair.
Photos: Scenes from Cuba
The sun sets on the rooftops of the Old City. Eighty percent of the buildings in Havana were constructed between 1900 and 1958, before the American embargo took effect. Many are now in urgent need of repair.
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A city of over 2 million people, Havana may be the world's sexiest ruin. Many Cubans are worried about the social and environmental effects of an influx of tourists.
Photos: Scenes from Cuba
A city of over 2 million people, Havana may be the world's sexiest ruin. Many Cubans are worried about the social and environmental effects of an influx of tourists.
Hide Caption
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A band and a group of stilt dancers whip around the streets of Old Havana, attracting crowds of visitors. Though Americans are finally normalizing relations with Cuba, tourists from South America, Canada and Europe have been visiting for generations.
Photos: Scenes from Cuba
A band and a group of stilt dancers whip around the streets of Old Havana, attracting crowds of visitors. Though Americans are finally normalizing relations with Cuba, tourists from South America, Canada and Europe have been visiting for generations.
Hide Caption
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The streets of Old Havana are full of texture and color, and Cubans are fiercely proud of their island's soul. "Freedom, for me, goes beyond material things," said one translator.
Photos: Scenes from Cuba
The streets of Old Havana are full of texture and color, and Cubans are fiercely proud of their island's soul. "Freedom, for me, goes beyond material things," said one translator.
Hide Caption
5 of 10
Local teens play soccer in the city after school. Cubans enjoy free education, as well as free health care. With a vast network of family doctors, they have lower infant mortality than Americans, and, according to some statistics, longer lifespans.
Photos: Scenes from Cuba
Local teens play soccer in the city after school. Cubans enjoy free education, as well as free health care. With a vast network of family doctors, they have lower infant mortality than Americans, and, according to some statistics, longer lifespans.
Hide Caption
6 of 10
It's common to find abandoned construction sites around Havana, some overgrown with vegetation, giving each site a form and character of its own.
Photos: Scenes from Cuba
It's common to find abandoned construction sites around Havana, some overgrown with vegetation, giving each site a form and character of its own.
Hide Caption
7 of 10
Viñales, Cuba, is a UNESCO World Heritage Site and home to some of the world's most fertile soil, perfect for producing the tobacco used to make the country's prized cigars.
Photos: Scenes from Cuba
Viñales, Cuba, is a UNESCO World Heritage Site and home to some of the world's most fertile soil, perfect for producing the tobacco used to make the country's prized cigars.
Hide Caption
8 of 10
A farmer drives his oxen through the small-town streets of Viñales. Visitors to the countryside see another side of Cuba.
Photos: Scenes from Cuba
A farmer drives his oxen through the small-town streets of Viñales. Visitors to the countryside see another side of Cuba.
Hide Caption
9 of 10
The southernmost point in the United States, Key West sits just 90 miles from the Cuban shoreline. Cuba gets 3 million tourists a year; the state of Florida receives 92 million.
Photos: Scenes from Cuba
The southernmost point in the United States, Key West sits just 90 miles from the Cuban shoreline. Cuba gets 3 million tourists a year; the state of Florida receives 92 million.
Hide Caption
10 of 10
A 1955 Chevy Bel Air is one of thousands of old American cars that still fill the streets of Havana. Cubans lucky enough to keep the cars running now ferry tourists around town for about $40 an hour -- twice what the average Cuban earns in a month.
Photos: Scenes from Cuba
A 1955 Chevy Bel Air is one of thousands of old American cars that still fill the streets of Havana. Cubans lucky enough to keep the cars running now ferry tourists around town for about $40 an hour -- twice what the average Cuban earns in a month.
Hide Caption
1 of 10
The sun sets on the rooftops of the Old City. Eighty percent of the buildings in Havana were constructed between 1900 and 1958, before the American embargo took effect. Many are now in urgent need of repair.
Photos: Scenes from Cuba
The sun sets on the rooftops of the Old City. Eighty percent of the buildings in Havana were constructed between 1900 and 1958, before the American embargo took effect. Many are now in urgent need of repair.
Hide Caption
2 of 10
A city of over 2 million people, Havana may be the world's sexiest ruin. Many Cubans are worried about the social and environmental effects of an influx of tourists.
Photos: Scenes from Cuba
A city of over 2 million people, Havana may be the world's sexiest ruin. Many Cubans are worried about the social and environmental effects of an influx of tourists.
Hide Caption
3 of 10
A band and a group of stilt dancers whip around the streets of Old Havana, attracting crowds of visitors. Though Americans are finally normalizing relations with Cuba, tourists from South America, Canada and Europe have been visiting for generations.
Photos: Scenes from Cuba
A band and a group of stilt dancers whip around the streets of Old Havana, attracting crowds of visitors. Though Americans are finally normalizing relations with Cuba, tourists from South America, Canada and Europe have been visiting for generations.
Hide Caption
4 of 10
The streets of Old Havana are full of texture and color, and Cubans are fiercely proud of their island's soul. "Freedom, for me, goes beyond material things," said one translator.
Photos: Scenes from Cuba
The streets of Old Havana are full of texture and color, and Cubans are fiercely proud of their island's soul. "Freedom, for me, goes beyond material things," said one translator.
Hide Caption
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01 wonder list cuba
02 wonder list cuba
05 wonder list cuba
06 wonder list cuba
07 wonder list cuba
08 wonder list cuba
09 wonder list cuba
11 wonder list cuba
04 wonder list cuba
10 wonder list cuba

Story highlights

  • Trump's company pledged before his presidency that they would not pursue any foreign deals
  • But the decision is an example of Trump's ability to impact his business' competitors while President
Miami (CNN)The proposed changes in US-Cuba relations that President Donald Trump will unveil Friday in Miami could adversely impact hotel brands that directly compete with Trump's business empire, making it more difficult for them expand their foothold in Cuba.
Trump's changes in Cuba policy include prohibiting "financial transactions, including transactions incidental to travel with GAESA and its affiliates, subsidiaries, and successors," according to documents reviewed by CNN. Gaviota, the tourism arm of the government-run GAESA, currently operates the Four Points by Sheraton Havana, a hotel that, when it opened, was the first US hotel to open in Cuba in nearly 60 years.
GAESA, the company directly targeted by Trump's plan, controls large swathes of the Cuban economy and is run by Gen. Luis Alberto Rodríguez López-Callejas, Raul Castro's son-in-law.
Even Americans traveling legally to Cuba, according to the new Trump policy, would not be able to stay in any hotel connected to the Cuban military, including the Four Points by Sheraton in Havana.
Cuba-US relations: 6 key things you need to know
Cuba-US relations: 6 key things you need to know
The Trump proposal would include exemptions to this policy, but none appear to include hotels like the Sheraton or future projects.
Trump told CNN in 2016 that he was interested in opening a hotel in Cuba "when we're allowed to do it." But Trump's company pledged before his presidency that they would not pursue any foreign deals while he was in the White House, putting off any possible entry into the Cuban market.
But the decision to prohibit business with GAESA to direct tourists to private companies and AirBnB is an example of Trump's ability to impact his business' competitors while in the White House. Trump's prohibition, in effect, puts other hotel companies on equal footing with his personal company -- not allowed to pursue future business in Cuba.
Cuba to Trump: We are ready to deal
Cuba to Trump: We are ready to deal
Starwood, which merged with Marriott last year, manages the Sheraton Hotel brand. Marriott President Arne Sorenson told reporters that the Trump administration should "recognize and utilize travel as a strategic tool in its efforts to improve relations with Cuba, allowing us to be part of a promising future, as opposed to reverting to the policies of the past."
He noted that the hotel company has "invested significant resources establishing a presence in Cuba, and with one hotel open and another in the pipeline, we have just begun our work creating opportunity and a more vibrant tourism sector on the island."
Sorenson added that it would be "exceedingly disappointing to see the progress that has been made in the last two years halted and reversed by the administration."
Tightening Cuba restrictions, Trump again chips away at Obama's legacy
Tightening Cuba restrictions, Trump again chips away at Obama's legacy
White House officials told reporters on Thursday that the new regulations would not affect current licenses for hotels and was not meant to "disrupt existing transactions that have (already) occurred." The detailed regulations are slated to rewritten by the Treasury Department.
The goal of this policy proposal, according to a fact sheet on the plan, is to push the "Cuban government to expand the development and availability of more lodging, transportation and entertainment options for US travelers by allowing the Cuban private sector space to grow and flourish."
The policy has been embraced by anti-Castro Republicans, including Sen. Marco Rubio, who has long pushed for tougher relations with Cuba and decried former President Barack Obama's 2014 thawing of relations with the Castro regime.
Tillerson: Diplomatic thaw with Cuba supports Castro regime
Tillerson: Diplomatic thaw with Cuba supports Castro regime
"(Trump's) objective is to support the Cuban people by driving US visitors to small business they own so they can become independent of regime," the Florida Republican tweeted Friday. "That is why no direct transactions will be allowed with the businesses owned & operated by the military monopoly or its affiliates."
He added, "Individual Americans can travel to #Cuba under Support for the Cuban people category but must use privately owned lodging like AirBnB."
Rubio will attend Friday's speech by Trump on Cuba.

 

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