The Lifting of the US Embargo on Cuba

and Its Impact on the Caribbean

Economy

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-
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- By: Elisa Adriano and Terryann Bodden-Bravo

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Introduction

Cuba is a Spanish speaking Caribbean island. It is the largest island in the Caribbean and

is within close geographic proximity to the United States (See Appendix 3, Map of Caribbean).

There has been a lot of recent talk and commotion surrounding the opening up of Cuba and the

lifting of the US Embargo. Many people are saying that once Cuba fully opens its doors that this

will be bad news for the rest of the Caribbean and it will adversely affect tourism and economies

throughout the region. However, in order to quantify what implications the lifting of the US

Embargo will have on Cuba and the rest of the Caribbean region (specifically the Cayman

Islands) we need to visit the history of Cuba and what caused the Embargo. Everything changed

with the Cuban Revolution. In 1958 the United States imposed an arms embargo in support of

Fidel Castro to over throw the President who was in place at the time, Fulgencio Batista. The

Batista government was successfully overthrown by On Jannuary 1, 1959 by Fidel Castro and his

group of guerillas (Renwick, 2016). Fidel Castro became President on February 16, 1959

(History.com).

Even though they had reservations about Fidel Castros political ideologies, the United

States still recognized his government. The Castro government started to increase its trade with

the Soviet Union, raise taxes on U.S. imports and they nationalized American owned businesses

without pay. As a result of these reforms, the United States responded with intense economic

retaliation (Renwick, 2016). Under the administration of President Dwight D. Eisenhower,

diplomatic relations with Havana were cut off and a trade embargo was imposed on exports to

Cuba on October 19, 1960 (Fabry, 2015). President John F. Kennedy took office in 1961. That

same year the CIA sponsored Cuban exiles planned an attack at the Bay of Pigs on the south

coast of Cuba, but failed in their attempts of a successful invasion. In order to get rid of

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communist ideologies, the goal was to overthrow the Castro regime and establish a government

that would be friendly to the United States (Renwick, 2016). Following the Bay of Pigs was

Operation Mongoose, another of many failed attempts to take Castro's life (Suddath, 2009). On

February 7, 1962 a complete economic embargo on Cuba was declared under the administration

of U.S. President Kennedy (Fabry, 2015). The restrictions on travel and trade set out in the

policy were detrimental to the Cuban economy, which had relied on products made in the United

States. The country became a shell of what it used to be. The consumption of food declined and

telephones and televisions became scarcities as they were not as readily available as before

(Suddath, 2009).

Over the years various strides have been made toward making peace between the Cuba

and the United States with an ultimate goal to lift the embargo and open trade between them.

The Castro government permitted Cubans who wanted to emigrate to the U.S. to board boats at

the port of Mariel in 1980. In the days that followed, this catapulted the mass emigration of

125,000 people and it became known as the Mariel Boatlift (Suddath, 2009). Despite this many

Americans were still against the Castro regime and certain laws were passed to penalize foreign

investors doing business with Cuba. In 1992, the embargo was strengthened with Cuba

Democracy Act and the Helms-Burton Act (1996). The laws stated that the embargo could only

be lifted under certain conditions, mainly being the removal of the Castro government and their

communist beliefs (Renwick, 2016).

In January 1998, the United States temporarily agreed to lighten its travel ban and

embargo on Cuba during the visit of Pope John Paul II. In that same year, President Bill

Clinton eased the controls specifically on shipments of food and medicine as these were viewed

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as humanitarian aids (Renwick, 2016). He also allowed Cuban-Americans to send up to

US$1,200 a year to their family back in Cuba. In July 2006, after undergoing intestinal surgery

Castro temporarily gave power to his brother Raul. Since he continued to battle with illness,

Fidel Castro officially stepped down from power in February 2008 (History.com). In 2009, U.S.

President Barack Obama came into office with an agenda that requested greater engagement with

Cuba. In May 2009 the Obama administration lifted restrictions on Americans with ties to Cuba

who wanted to travel the island and send remittances. Additionally, the easing of restrictions

permitted U.S. based telecommunications firms to seek out business ventures in Cuba (Renwick,

2016).

On December 17, 2014, for the first time in more than fifty years, President Barack

Obama and President Ral Castro of Cuba declared that they would restore full diplomatic

relations between the two countries (Renwick, 2016). On March 21, 2016, President Obama

called again on Congress to lift the Embargo on Cuba. This whole topic has had a lot of debate

and has gotten a considerable amount of attention in recent months. To find out the impact that

the lifting of the US Embargo will have on the Caribbean and the Cayman Islands we will

discuss the strengths and opportunities of each economy (Cuba and the Cayman Islands). We

will be comparing the Cuban economy and environment with that of the Cayman Islands. We

have deliberately done this because we want to bring disparities closer to home, as we the people

of the Cayman Islands will also be affected by this.

Cuba Strengths

Cuba has beautiful beaches and vast coastlines with stunning natural features (Thomas,

Kitterlin-Lynch, and Lorenzo Del Valle, 2015). They have historic architecture and buildings

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and a lot of tourists are drawn to this type of scenery. Costs are relatively low in Cuba, which

mean people who visit will spend less for their vacations. Cuba is famous for cigars, rum and the

paintings and art pieces made by their talented people. Its Geographic location and proximity to

a high income nation like United States is considered a benefit and can help to improve its

foreign tourist arrival numbers (See Appendix 3, Map of Caribbean).

Cayman Islands Strengths

The Cayman Islands are a British Dependent Territory and a predominant democratic

society. As a result they are more economically and politically stable than Cuba. They are a tax

free nation and thrive from being one of the highest ranked financial centers in the world. The

Cayman Islands has more companies registered than its population of people (BBC, 2016). They

are also home to more hedge funds than any other country in the world. As of March 2016 they

held $265 billion worth of Treasuries (Wong, 2016). The crime rate in Cayman as it pertains to

offences against tourists is relatively low (Fox News, 2015) .There are not as much stringent

regulations to invest or start a new business in the Cayman Islands as is compared to Cuba. Like

Cuba, the Cayman Islands also have beautiful and pristine beaches. They have popular tourist

attractions and established diving and water sports operations. The Stingray City and Turtle

Farm have been featured as good attractions to visit in the Caribbean (Bateman, 2016).

In 2016 The Cayman Islands is ranked in the top ten Caribbean destinations and Cuba is

not included in this number (Tripadvisor, 2016). Equally notable for the same year, is that

another Company has ranked the Cayman Islands number eight out of the twenty five best

Caribbean Islands. Again, Cuba was not listed as any of these twenty five islands (Avakian and

Kiersz, 2016). The Cayman Islands are also geographically close to the United States which

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allows them to be more accessible to tourists from that market (See Appendix 3, Map of

Caribbean). There is no language barrier to the majority of tourists they attract as they are an

English speaking nation. They have more advanced technology in regards to the internet and

telecommunications networks. WIFI and access to the internet is more readily available than in

Cuba (CaymanIslands.ky). This is important to the ever growing world of technology and it lets

anyone who visits the Cayman Islands feel that they are never out of touch with their family,

friends or work. Cayman has good infrastructure such as five star hotels and varied types of

accommodations to suite different budgets. They have convenience and access to basic

necessities such as supermarkets and hospitals. There is a good transportation system in the

Cayman Islands with a daily bus service that runs from six o clock in the morning until

midnight, but availability depends on the route and the day of travel (CaymanIslands.ky).

Cuba Weaknesses

There is a language barrier for English people who visit Cuba as the majority of the

native speak Spanish (The Sacramento Bee, 2016). Cuba is still considered a communist

country. Due to this fact there are a lot of limitations placed on locals and visitors due to

interference from the government. Despite the fact that laws in the United States have been

relaxed, Americans are still restricted on what they can do when they travel to Cuba. As a result,

travel to Cuba is not planned so easily. (The Sacramento Bee, 2016). U.S. dollars aren't

accepted at all in Cuba; therefore tourists have to change their money at the airport for the

official Cuban peso and are charged a ten percent penalty for the exchange. Furthermore, credit

and debit cards from the United States are still not functional in Cuba. A as a consequence,

tourists must ensure they bring sufficient cash to cover their expenses (Davenport, 2016).

Despite economic reforms, the state of Cuba still dominates the country by controlling

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businesses and the production of goods and services. According to local person who was

interviewed who frequently visits Cuba, goods are not easily available at the grocery stores. Food

is more expensive as compared to other tourist destinations due to scarcity of supply in the

market (See Appendix 1). Although there are no reliable crime statistics provided by the

government in Cuba, the crime rate appears to be relatively high. The main categories of crimes

that are carried out are considered non-violent offences against tourists such as theft of personal

property and from vacant cars and hotel rooms or accommodations. The majority of offenses

appear to take place in areas frequented by foreigners such as beaches, hotels, restaurants, and

shops (United States Dept. of State, 2016).

In Cuba, the domestic information technology (IT) such as the internet and

telecommunications network is inadequate. This has been confirmed via interview with the same

local person who frequently visits Cuba. He has said, communication is not easily available as

compared to other tourist destinations in other countries; youll have to pay for internet WIFI

most of the time (Appendix 1). Cuba has limited accommodations such as hotels for stay over

tourists (Davenport 2016). This is due to their limited and aged infrastructure. The same local

person has said Cuba needs to improve their infrastructure; they have to build more hotels and

improve their communication system. He said, imagine even with television they only have

four channels there (See Appendix 2). They also have limited transportation. The financing of

development in Cuba will continue to be a challenge due to the insecurity and future of the

political and economic landscape on the island (Thomas, Kitterlin-Lynch, and Lorenzo Del

Valle, 2015).

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Cayman Islands Weaknesses

The Cayman Islands has deficiencies in its systems that are designed to counteract money

laundering. The counter-money laundering mechanism suffers from serious systemic problems.

This framework falls under the legal, supervisory, and regulatory systems of the Cayman Islands.

Certain regulations such as their bank secrecy laws are in direct contravention of money

laundering requirements. This is mainly due to the fact that most banks in the Cayman Islands

are not required to identify their customers. In the absence of a court order, the supervisory and

regulatory authority usually has issues obtaining information from financial institutions

pertaining to their clients' identification (FATF, 2012). The Cayman Islands has been viewed

negatively by bodies such as the Financial Action Task Force (the 'FATF') as a result of

deficiencies in its money laundering systems. This type of negativity and being in the lime light,

so to speak will be an impediment for potential investors or other banks who may be considering

setting up shop in the Cayman Islands. If the Cayman Islands does not tighten up its laws and

regulations surrounding anti-money laundering this could become a topic of controversy and a

threat to them in the long run. The cost of goods and services including accommodation is high

in Cayman. This is partly due to import duties when bringing goods to the islands. Then it is no

surprise that the Cayman is said to be one of the most expensive tourist destinations in the

Caribbean (Tripadvisor, 2014).

Cuba Opportunities

As Cubas diplomatic relations grows with United States and other Western nations, the

tourism industry and economy is expected to grow (Thomas, Kitterlin-Lynch, and Lorenzo Del

Valle, 2015). More investors will want to come in which intern will increase infrastructure, open

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new businesses and inject thousands of dollars in capital. As of March of 2014 , foreign direct

investment (FDI) already started to flow more heavily because Cuba passed tax cut measures

with the intention to promote FDI (Sato, 2016 ). If Cuba was to fully open its doors, there will be

more prosperity for the people and a better quality of life. The poor IT infrastructure should

provide growth and opportunities for improvement in relation to wireless technologies such as

the internet and telecommunication networks. Last year IDT Corp. became the first US telecom

company to sign a deal with Cuba and capitalize on the US governments efforts to reopen

relations with its former cold war rival. Further deals are in negotiations with Google, AT&T and

others all looking keenly at Cuba (Walsh, 2016). For the first time in fifty years, JetBlue is

planning to commence daily service to Cuba from Fort Lauderdale International Airport for

people traveling between the United States and Cuba. This can prove to be very advantageous to

Cuba and other airlines will want to follow suite and by also offering flights to Cuba. JetBlue's

flights to Cuba will boost its existence in the Caribbean and Latin American Markets (Airline

Industry Information, 2016)

Cayman Islands Opportunities

The Cayman Islands has been working on the development of a cruise berthing facility in

Grand Cayman which will increase the number and size of cruise ships that will be

accommodated in port. Grand Cayman is one of the few islands in the Caribbean where cruise

ships still have to use tender boats to bring their passengers to shore. Therefore, this project

proposes to enable berthing of the large ships in the port (World Maritime News, 2015). There

are also numerous construction projects taking place in the hotel industry such as the

introduction of another five star hotel on Seven Mile Beach. The Kimpton Seafire Resort and

Spa and The Residences at Seafire are due to open in November 2016. These hotel

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developments mean that infrastructure will increase and therefore it is the expectation that more

tourists will be able to stay in the Cayman Islands. As stated by Mr. Mark VanDevelde, CEO of

Dart Realty Cayman "it is also demonstration of Dart's commitment to assist with the growth of

the local economy and produce new opportunities that will advance the island's sturdy tourism

sector" (GlobeNewsWire, 2015). These projects and expansions around the island will create

more jobs to locals and positively stimulate the Cayman Islands economy (GlobeNewsWire,

2015).

The Cayman Islands government also unveiled a new concept to expand the Owen

Roberts International Airport and broke ground on the redevelopment project that started in

2015. This expansion is due to be completed sometime in 2018 (Duncan, 2016). This modern

airport will include a larger terminal that will allow more room for passengers in the immigration

and customs areas, accommodating the projected growth in air arrivals (The New Resident,

2016). The airport expansion will alleviate the issue with overcrowding and means that more

flights will be able to come in thus more tourists will enter the Cayman Islands (The New

Resident, 2016).

Cuba Threats

As the economy in Cuba is stimulated and allowed to grow, you would expect the cost of

goods and services to also increase. The command process imposed by the government may

negatively affect tourists and visitors and deter them from returning in the future. Limited

technology such as the internet and communication infrastructure may also reduce the number of

potential visitors to the island. Cuba faces threats when it comes to prospective investors. The

Cuban government has to be a partner in every foreign business. Cubas Foreign Investment Law

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No. 77 does not put limitations on the contributions of foreign capital; however there are

stipulations that state the Cuban side has to hold more than half of the investment or business

(Thomas, Kitterlin-Lynch, and Lorenzo Del Valle, 2015).

The Cuban government also controls the availability of labor and skilled personnel. All

Cuban employees must be recruited through government owned employment agencies. The

finance and banking industries are weak and these are viewed as the backbone in any country.

According to Moodys rating agency, Cubas economy suffers from chronic underinvestment in

general (Klein, 2016). Foreign businesses transactions must be made using the CUC, the fact

that US dollars cannot be spent in Cuba is actually doing more harm than good and hindering

prospects of growth in the future. Additionally foreign investment businesses must open

accounts in CUC using the National Banking System. Last but not least, the island does not have

adequate court systems to settle disputes in case any issue should arise and an investor needs to

seek remedy or protection. At present, there is no law allowing court judgments from the United

States to be recognized in Cuba. Another obstruction to commercial business relationships in

Cuba is the inability to resolve disputes in court. All of these underlying issues may hamper

international investors from coming into the island (Thomas, Kitterlin-Lynch, and Lorenzo Del

Valle, 2015).

Cayman Islands Threats

The Cayman Islands is too reliant on its financial services industry as a source of income

and sustainability for the islands (Lee, 2015). If this industry should experience some

catastrophic failure there is not much else for the Cayman Islands to fall back on besides its

tourism. The Cayman Islands has outdated anti-money laundering, terrorism and financing laws

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that need to be revised as soon as possible. This has been stated by Francis Arana, Head of the

Anti-Money Laundering Unit in the Attorney Generals Chambers. Such laws include legislation

that would cover charities and other business risk areas outside of the offshore division including

the real estate sector and diamond business owners as well as the supervision by the regulator

and adequate sanctions (Cayman News Service, 2015). These are the laws that protect and

facilitate business transactions and ensure transparency. If the Cayman Islands does not develop

adequate laws and regulations to deter money laundering and even terrorism they could risk

being blacklisted by bodies such as the Financial Action Task Force. This may create a domino

effect and cause companies to pull out their investments and it may also stagnate future growth

in the Financial Services Industry. A possible threat to the Cayman Islands in the coming years is

that more tourists may want to go to Cuba and in turn their tourist numbers will drop. The high

price of doing business in the Cayman Islands may also drive away potential investors.

Increasing costs of goods, services and food could make the islands unattractive to visitors. On

average you can expect to pay between US$16.00-US$32.00 for lunch or dinner in the Cayman

Islands. (CaymanIslands.ky).

Although a mass amount of foreign money is passed through and kept in the Cayman

Islands, they are no longer a top tax free haven. The United States has criticized other countries

for years that helped rich Americans to hide money in tax free jurisdictions overseas. Contrary to

this, the U.S. is now leading at the forefront as a tax and secrecy haven for rich foreigners. The

United States has been able to bypass new global disclosure standards in terms of secrecy. This

has pushed them to become a hot new market place to stash foreign wealth., Dozens of accounts

were moved out of Switzerland, Grand Cayman, and other offshore jurisdictions by Trident Trust

Co., one of the worlds largest providers of offshore trusts. Banks in the United States can also

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help their clients move money into accounts that are tax free and concealed from their local

governments. If this trend continues, the Cayman Islands stands to lose more and more of its

capital to the competing United States (Drucker, 2016).

Findings and Conclusion

Stakeholders in the tourist industry in the Cayman Islands are still of the opinion that it is

too early to tell what impact the opening up of Cuba will have on the Cayman Islands economy.

It is not clear whether Cubas tourism revival will lift tourism coming into the region generally

speaking or whether it will attract visitors from other Caribbean destinations (Klein 2016). For

the purpose of this paper the group chose to interview an official in the tourism industry.

According to Gregory Wray, Managing Director, Holiday Inn Cayman, once the US Embargo on

Cuba is fully lifted there will be some spin off. The impact on Caribbean tourism will not be felt

yet; it might take at least ten years due to their government. Cuba needs to repair a lot. Mr.

Wray also said that Cuba and Cayman are two different markets. Cuba is still a third world

country with the same level as Haiti and Dominican Republic, people go there mostly because it

is a cheap destination, while Caymans tourism are in the same rank as to that of Puerto Rico,

Aruba, people come here because it is a safe, high class destination (See Appendix 1).

Mr. Fabian Whorms, Chief Executive Officer of Cayman Airways does not anticipate the

introduction of planned flights between the United States and Cuba as the first attempt in over

fifty years will have a negative impact on the local airline. Not much has actually changed. The

capacity has fallen and the demand is now on the increase. We continue to observe what is taking

place, however it might not necessarily mean that there will be any extensive reduction in

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demand which could negatively affect us. Mr. Whorms has said that Cayman Airways is

monitoring the situation very carefully (Whittaker, 2016).

Despite what is being said by people locally, the lifting of the U.S. Embargo is bound to

have an adverse effect on the Cayman Islands and the rest of the Caribbean. According to the

Caribbean Hotel and Tourism Association (CCHTA), more American travelers will start going to

Cuba and the rest of the Caribbean will have to deal with this movement and find methods to

compensate for the loss. CHTA embraces the lifting of U.S. embargo on Cuba and its travel and

trade restrictions. But at the same time, the association has written a policy paper on Cuba and

cautions that this should bring many Caribbean destinations and hotel operators back to reality

and prompt them to revamp ideas and become more competitive (Hospitalitynet, 2016). Since

President Barack Obama announced that the U.S. would recommence a diplomatic relationship

with Cuba, tourism figures for the Cayman Islands have decreased. The amount of stay-over

tourists has dropped. Cayman had about 0.76 percent growth in tourist air arrivals in 2015 which

is basically the lowest growth rate since the financial crisis in 2009 (Klein, 2016). Cuba hit 2

million stop-over arrivals in mid-June 2016. This is actually a month earlier than when the

number was seen last year. This 11.7 percent increase was the fastest rate of growth for stop-over

arrivals for the whole Caribbean (Hospitalitynet, 2016).

The Cayman Islands and the rest of the Caribbean have cause to worry, even though the

intensity and economic ramifications may not be noticeable in the short run. The Cayman

Islands has already started to see the effects of Cubas opening its doors on their tourist numbers

in terms of visitor arrivals. Mr. Whorms of Cayman Airways has also said, the introductory

pricing on the new scheduled flights from the U.S. to Cuba could have an impact on the market,

affecting Cayman Airways profits. He has said the situation is more complex and liquid than

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people know about, and the airline needs to be flexible over the coming years to respond to

changes in supply and demand (Whittaker, 2016). If there was no fear of the potential impact of

more flights entering Cuba, then there would be no need to plan and be flexible in the future.

However, no one can actually predict the exact time in which the fall out of these changes will be

seen at an even greater degree (Whittaker, 2016)..

What islands must do is plan ahead. As mentioned by the Caribbean Hotel Tourism

Association, they should not wait until their situation gets so adverse that they have to scramble

to find solutions. They need to find what niche market prefers their shores and advertise in those

respective countries. Furthermore, Caribbean islands should promote activities or resources that

are unique to them in order to attract tourists. By doing this they will put themselves out in the

open and promote tourism. In addition, depending on the location they can also find ways to

appeal to foreign investors and businesses in order to get more money flowing into their

respective economies. This is what will help preserve regional economies in the long run and say

the next ten years from now. The Cayman Islands is no different from the rest of the Caribbean

in terms of the threats that most of the other islands face. Therefore, if they wish to sustain

themselves in the long run, the Cayman Islands should also take heed and follow the same

approach (Hospitalitynet, 2016).

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relations-could-hit-caribbean-tourism/

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29) Author unknown, Hospitalitynet (2016, August 23) Caribbean Tourism Businesses Must
Adapt to Succeed Says Karolin Troubetzkoy of CHTA
http://www.hospitalitynet.org/news/4077863.html

30) Whittaker, J. (2016, September 6) Cayman Airways unconcerned by Cuba competition.

Retrieved September 10, 2016 from
https://www.caymancompass.com/2016/09/06/cayman-airways-unconcerned-by-cuba-
competition/

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Appendix 1

Interview questions, Gregory Wray - Managing Director, Holiday Inn Cayman (July 2016):

1. Does the lifting of the US Embargo on Cuba affect the Hotel industry (Holiday Inn) here

in Cayman? How?

Answer:

- Once the US Embargo on Cuba is fully lifted there will be some spin off.

- The impact on Caribbean tourism will not be felt yet, it might take at least 10yrs due

to their government, they need to repair a lot.

- Although Cuba has a lot to offer to tourist ( more variety, rich in historical structures,

places, beaches are in great distance, if you go to the South there is the Caribbean

Sea, while if you go North your see mountains and the Atlantic.

- Cuba and Cayman are two different market, Cuba is still a 3rd world country with the

same level as Haiti and Dominican Republic, people go there mostly because it is a

cheap destination, while Caymans tourism are in the same rank as to that of Puerto

Rico, Aruba, people come here because it is a safe, high class destination.

2. What would be the negative or positive effect (if any) of the US Embargo to the Hotel

industry (Holiday Inn) here in Cayman?

Answer:

- Cuba is closer to the US, not as expensive, this island is very expensive, but as I said

if there will be a negative effect on Cayman/Caribbean tourism it will not be felt

within the next 10 years, their government needs to make a lot of changes.

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 - There could be some positive effect though, Im sure travel agency can come up with

something like travel packages (like 2 day/nights in Cuba then side trip here

(Cayman)

3. What are the plans of the Hotel Industry (Holiday Inn) to do to lessen the negative effect

in their business (if any) of this US Embargo lifting on Cuba?

- This hotel (Holiday Inn) is in a good price position as compared to other hotels here

in Cayman Islands, our rate is as low as 150usd/night, while a room in other hotels

are ranging from 250 and up, therefore we are not worrying much, price conscious

travelers will still prefer to stay with us.

- I had not heard yet of any plans within the Holiday Inn group in regards to any

Holiday Inn hotel to build/operate in Cuba. What I know is, Starbucks plan to operate

in that country for theres a rumor that Cuba will be the next Starbucks capital.

- It is because of their current form of government that pushes back the businesses

away. Imagine in order to set up a business there you need to know someone from the

government or somebody influential, the ownership allowed for companies would

only be 40%, and 60% will be owned by the government. Cuban government are

known to be corrupt

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Appendix 2

Interview questions with local resident and frequent visitor to Cuba (July 2016)

U.S. Lifting of Embargo to Cuba from a locals point of view

Background of individual:

- Airport security supervisor

- Regular visitor to Cuba

- Purchase a piece of land (3acres, at about ky$15K equivalent) in Cuba through his son in-

law (a Cuban national), title is in the name of son in-law

What is your opinion about Cuba and the effect of lifting of US Embargo on their tourism?

- He agrees with one article that he has once read saying that Cuba is the most expensive

Developing Country in the Planet reasons why are as follows:

o Since the cars are only few, If you are to travel around with great distance, youll

have to pay a great amount.

o Communication are not easily available as compared to other tourist destination in

other countries, youll have to pay for internet wifi in most of the time.

o Goods are not easily available at the grocery stores.

o Food is more expensive as compared to other tourist destinations (due to scarcity

of supply in the market)

o If you will butcher /kill a cow that you are tending, you will be facing

imprisonment for 6 years ( my son in-law in fact has been jailed for this same

charges)

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 - Prostitution is so prevalent, one woman told him said it is only our body that we have

control over with. I sell my body because this is the only way I can get what I need, the

money

- Cuba needs to improve their infrastructure, they have to build more hotels, improve their

communication system (imagine even with television they only have 4 channels there).

- The banking system is also a big issue, you cannot just pay via credit card, you need to

bring with you cash all the time.

- Cuba and Cayman caters to two different market, Cayman is family oriented while Cuba

is more on matured tourism, not all kids will be interested to see the historical structures,

unlike Cayman we have lots to offer here for the kids, we have turtle farm, stingray city.

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 Appendix 3

Map of Caribbean

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