Trump introduces new Cuban Travel Restrictions

havana

At a speech in Miami today, President Trump introduced new Cuban travel restrictions. Although Trump stated that he was “cancelling” Obama’s agreement with Cuba, the new restrictions are only minor changes, but they will no doubt reduce the amount of US travel to Cuba.

 

What will be changing (in 60-90 days)

  • Enforcement of the ban on tourist travel 
  • Travel to Cuba will be subject to a Treasury Department audit (for up to 5 years)
    • You will be required to keep records of all transactions made in Cuba
  • Educational people-to-people trips can no longer be made solo (must be in a group)
  • Limits on commerce with GAESA, the Cuban military’s business and commerce branch
    • The Four Points Sheraton Havana (Marriott) is partially owned by GAESA (Cuban government)
    • New US hotels won’t be allowed to be partially owned by the Cuban government
    • This new rule will only impact future agreements with American companies

 

Tourist travel has always been banned by the US Embargo on Cuba, but in the last couple years, it was basically a free-for-all and US Customs did not care why you traveled to Cuba. I visited Cuba in 2015, and I ran into several US tourists who were in Havana for no other reason than to check out the city and nearby beaches.

While Trump talks about enforcing the new rules immediately, that is not how our government works. It will take awhile for the US government to draft new restrictions and provide guidance to US Federal agencies. If you are planning to travel to Cuba, I think you’ll be fine for the next 30-45 days. Outside of that, I would recommend contacting your airline to see if they are offering waivers for free cancellations.

The new rules will also adversely impact US airlines. Several US airlines picked up new routes to several Cuban cities last year, and we’ve already seen airlines reducing their routes to Cuba (due to less travel than anticipated). I imagine there will be significantly less air travel to Cuba after the new rules are implemented.

 

Bottom Line 

The new rules will confuse most US tourists, which will result in less American travel to Cuba. While I understand the Trump administration’s goal of limiting funds going to the Cuban government, the new regulations will no doubt impact the Cuban people. When I visited Havana, I stayed at an Airbnb which was owned by a locals, and I only ate at privately owned restaurants. These Cuban entrepreneurs will be seeing less tourists dollars with the new rules.

 

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4 Responses

  1. Frefre Valdez says:

    I had a feeling this was coming. The last time TT put out a fare Sale to Cuba (last month) I booked. Going July 18, so essential 30 days from now. I am so grateful I jumped on then. Lets pray that all the restrictions are imposed well after I come back home!

  2. Rhonda Guitroz says:

    Supporting Trump in restricting trade and travel to Cuba is hypocritical if you agree with his dealings in Saudi Arabia, Russia, and China. This ban is about seizing an opportunity to craft a deal that will benefit his family’s hotel and resort business.

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