SANDALS boss Gordon "Butch" Stewart on Wednesday said he expected the removal of the US embargo on Cuba to be good for Jamaica and the rest of the Caribbean.
Contrary to the popular belief that Cuba could sound the death knell for the local tourism industry, Mr. Stewart was stating what he thought would happen if the US were to end its 38-year-old trade embargo with Cuba.
"Our initial insecurities that maybe it (opening up a hotel in Cuba) would take away from our existing business could not be further from the truth," said Mr. Stewart.
SuperClubs, the island's other all-inclusive giant agreed with Mr. Stewart's prognosis to a large extent. SuperClubs, which opens a property in Brazil this weekend already has three up and running in Cuba and two more set for early next year.
SuperClubs vice-president of marketing and environmental affairs Zein Issa Nakash said: "It will be good for us all. Jamaica may see some initial impact but I think we'd benefit. She pointed to the possibility for dual destination marketing as a result of the close proximity between the two islands.
While Cuba's infrastructure is still in the development stages, it takes pride in having several of the region's best beaches and being environmentally conscious. Its well educated population, a wide variety of entertainment and reasonably good health facilities are also said to be positives.
Mr. Stewart said: "We've all had our theories on this. When we opened Beaches in Varadero, the rates are so much less than our rates here I was certain that in countries like the UK and Canada where we are very strong, I was certain it was going to siphon away some of our business. It seems to have had almost the opposite affect. A lot of Canadians have gone there and so (have persons) from the UK but our business to Sandals/Beaches from Canada is up 37 per cent and out of the UK we are up about 22 per cent."
He added: "It would seem it just gives you more market reach and market clout".
On the national and regional front, Mr. Stewart said: "I've always felt that Cuba is going to have its strengths, just like the Dominican Republic, just like Mexico, just like St. Lucia. They are different markets and everybody stands up and paints a picture for their own product.....I think Cuba opening up would probably help the Caribbean because there's no doubt you are going to have waves of people from the US going to Cuba. But let's face facts, they don't have the accommodation to accommodate so much and by putting the focus on Cuba you are putting the focus on the Caribbean and I think it will help us more than hurt us."
Refurbishment
The hotelier was speaking on Wednesday as he detailed a huge US$66 million refurbishment programme currently underway in his Jamaican hotel operations.
He focused primarily on a US$10 million renovation of the former Plantation Inn, a property his chain purchased from FINSAC last December, which would become an upscale, 74 suite, all-inclusive called Beaches Royal Plantation. And the former Ciboney Ocho Rios, which he hopes to buy and has a management contract to run, is undergoing a US$11 to 12 million refurbishment to become a wellness mecca and will be renamed as Beaches Grande Sport. Both are scheduled to open mid-December for the Winter season.
A recent US government study on how the US embargo on Cuba has affected both nations' economies was the spark for a renewed dispute over the sanctions.
The International Trade Commission study, due Feb. 15, won't make recommendations about whether to continue the sanctions. But both supporters and opponents of the embargo stated their cases at a hearing in the US recently that's part of the study process.
Thirty-six witnesses have asked to testify -- so many that commissioners had to have a second day of hearings. It was one of the biggest fora ever held in Washington on the sanctions.
You could almost say this is going to be the Woodstock of the Cuba issue, John Kavulich, president of the US-Cuba Trade and Economic Council said of the large anticipated crowd. But in Woodstock, there were mostly people of like minds.
Among those participating: Cuban exile groups that favour sanctions to pressure Fidel Castro's government, humanitarian groups who say the sanctions hurt innocent people, businesses and agricultural groups that believe they would benefit from trade with Cuba and others that believe they would be hurt.
