HOW DIFFERENT WILL IT BE Will US run hotels change the Cuban experience

Posted on 03/21/2016 | About Cuba

Starwood signed a deal on Saturday to renovate and run three Cuban hotels, returning US chains to the island more than 50 years after American hotels were taken over by Fidel Castro's socialist revolution.

All Cuban hotels are state-owned so the deal puts a major US corporation directly in business with the Communist government under a special US license that pushes Washington's legal dismantling of the Cuban trade embargo further than ever before. In a once-unimaginable arrangement, a hotel owned by the tourism arm of the Cuban military will become a Sheraton Four Points.The deal came on the eve of President Barack Obama's historic visit to Cuba, which will open a new era between the former Cold War foes that has American travellers and businesses eagerly eyeing opportunities on the island nation 90 miles (145 kilometres) south of Florida.Starwood's chief of Latin America operations, Jorge Giannattasio, said the company will invest millions to renovate and rebrand the Quinta Avenida, Santa Isabel and Inglaterra hotels, train and hire new staff and reopen the hotels by the end of the year. The Quinta Avenida is owned by Gaviota, a military-run tourism conglomerate. The Santa Isabel and Inglaterra, which are run by other state agencies, will be operated as part of Starwood's Luxury Collection brand.It's unclear, however, how long Starwood can be called an American company. On Friday, Starwood called off a $12.2 billion buyout agreement with Marriott in favour of an offer from a group of investors led by the Chinese insurance company Anbang.Decrepit tourism infrastructureThe American media has consistently described Cuban hotels as dilapidated, decrepit and “notorious for their ramshackle furnishings and poor service.”Giannattasio said the Cuban Starwood hotels would be refitted with everything from new mattress to improved kitchen equipment and safety measures and managed by teams of expatriate Starwood employees.Giannattasio said he was confident that Starwood would have enough flexibility and control to maintain the company's standards in Cuba, although he declined to comment on details of the firm's arrangement with the Cuban government. Starwood will receive a fee for its branding and management services.The number of visitors to Cuba surged nearly 20 percent last year, with nearly 80 percent more Americans flying to the island. The surge says the US media has overwhelmed Cuba's decrepit tourism infrastructure and left hotels above capacity.

A Canadian viewpointCanadians make up by far the largest percentage of foreign tourists to Cuba and we asked Sunwing Travel Group’s COO for his opinion on what is being said in the US regarding the standards and quality of Cuban hotels.“It’s fair to say that overall standards probably are a little lower than in other countries, but the quote is quite insulting.” Dawson told Travel Industry Today.“Canadians, who have been supporting Cuba in record numbers in recent years, recognise the unique personality of the island and its people, and the value for money it represents. “In most cases they have adjusted their expectations and travelled with an open mind, understanding that access to resources has been affected by the US embargo.” Regardless, the recent descriptions by the US media, he said, are, “definitely not accurate, and in fact there are many hotels in Cuba that have a great reputation, are certainly not “ramshackle” and do provide exceptional service (oh, and a great beach too). “Royalton Cayo Santa Maria (pictured) has been on TripAdvisor’s “Top 25 All Inclusives in the World” every year since it opened, and was in first place worldwide in each of 2013 and 2014. “Fellow five star resorts Paradisus Rio de Oro in Holguin, and Royalton Hicacos in Varadero have frequently  featured on many awards lists and each have exceptional Sunwing CSQs.”  (Sunwing’s CSQs are unbiased internal reviews completed by over half a million of the tour operator’s passengers each year). “While maybe not easily measurable by Starwood, many tourists return to Cuba for the warmth and friendliness of the people.”  Said Dawson.“They don’t seek five star luxuries, but do want to be greeted with a huge smile by the same staff as they got to know on previous visits, who remember their name and treat them like family in their Cuban home away from home. It never ceases to amaze us how highly rated a modest hotel such as Marea del Portillo near Manzanillo can be for example. “Guests return year after year, in fact some three times a year and it even has its own Canadian forum! My own next-door neighbours have travelled to Sol Cayo Guillermo for their last 13 vacations. They’re on first name terms with half the staff, and many of their fellow repeat guests. They’d never dream of going elsewhere, and their only fear is that the character and price of “their piece of paradise” may change for the worse when the US tourism embargo ultimately ends.” Dawson noted that the US impact is already being felt.  “The only worrying undertone we’re conscious of is that the new US influence has already been noticed this past winter. “With the advent of hotels pricing in US Dollars for Canadian companies, selling prices increased markedly year on year and demand has naturally suffered. Importantly, for those who did travel to Cuba higher prices bring higher expectations. How the Cuban hoteliers manage these expectations will be very telling. We’re assured they will never forget their Canadian friends, and we certainly know many of the staff won’t.Expect an increase in tourism numbersTourism numbers are expected to rise sharply this year with the start of as many as 110 commercial flights a day from the US, one of dozens of moves the Obama administration has made to punch holes in the trade embargo as part of a broader normalization of relations with Cuba since Obama and Raul Castro declared detente on Dec. 17, 2014.On Tuesday, the Obama administration removed the last meaningful restrictions on travel to Cuba, announcing that it would allow individuals to visit the island for “people to people” educational trips. While the ban on US tourism technically remains in place, it becomes an honour system that is essentially unenforceable.Americans will have to keep records for five years about what they did in Cuba, but won't have to submit them unless asked. The Obama administration previously loosened requirements by allowing organized trips without advance US permission and independent travel for specific purposes like religious activities or sports events.