Thinking About a Trip to Cuba? 5 Things You Should Know

Thinking About a Trip to Cuba? 5 Things You Should Know
Kristen Bellstrom @kayelbee Dec. 18, 2014

Yesterday's announcement that the U.S. will loosen restrictions on
visiting Cuba has some travelers in tizzy. By all means, pack your
bags—but read this first.

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Did you hear that noise yesterday afternoon? It was the collective
squeal of travelers around the country, upon learning that President
Obama had announced the resumption of U.S diplomatic relations with
Cuba. For many American vacationers, Cuba—with its classic cars,
mojitos, and fine cigars—is a dream destination, but one that rigid
travel restrictions have made difficult to visit. Yesterday's
announcement didn't remove those strictures, but it did promise to relax
them.

1. Don't expect anything to change overnight

While the new policy won't allow unrestricted tourism to Cuba (which
would require an act of Congress), it will loosen restrictions on
certain types of trips, according to a White House statement. So what
exactly does that mean? There's plenty of speculation, but no one really
knows the details just yet. On Wednesday afternoon, the Office of
Foreign Assets Control (OFAC), part of the Department of the Treasury,
announced that it expects to issue its revised travel rules in "the
coming weeks." No changes will take effect until those new rules are
released.

Currently, U.S. citizens who want to visit Cuba have a few options.
Cuban-Americans with close family in the country can visit as often as
they like, while other people may be permitted to go for professional,
religious, or educational purposes. However, for the typical traveler,
the most viable option is a "people-to-people" trip. These are
super-regulated group tours, which must focus on educational and
cultural interactions with Cubans. Many industry experts expect that the
new rules will focus on loosening the restrictions around these existing
forms of travel.

2. Some prices may fall…

According to Collin Laverty, president of trip provider Cuba Educational
Travel, the typical cost of a group tour to Cuba is around $4,000 to
$5,000. One reason prices are so steep, he explains, is that
people-to-people trips must be highly scheduled, meaning they include
all meals, guides, transportation, activities, and more. Plus, tour
providers must stay on top of their permits and licensing, which
requires manpower and lawyers' fees. (Katharine Bonner, who oversees
travel to Cuba for Tauck, says it took six months for the company to get
its paperwork renewed.) Tom Popper, president of operator insightCuba,
adds that Cuban travel suppliers tend to charge American firms a
premium, which drives up the price of the tour.

If the new rules allow less rigorously structured tours, prices are
expected to come down. And, should they allow for independent travel to
the country, vacationers will likely be able to choose their lodging and
itinerary, giving them more control over what they pay.

3. …but demand is likely to pick up quickly.

Travel to Cuba is already pretty popular. According to the Associated
Press, 170,000 Americans visited the country legally last year, while
Quartz reports that the island was the second most popular Caribbean
destination for international travelers during the first nine months of
2014. As U.S. travel restrictions ease, trip providers say they expect
demand to surge. For people who've always wanted to go but never managed
to pull the trigger, the idea that massive cruise lines could soon be
adding Cuba to their itineraries may be what it takes to get them to
book. "People want to go before it changes," says Popper. "The
collective travel consciousness says this isn't going to last forever."

4. The infrastructure isn't there yet.

For Canadians and other international travelers, Cuba is often seen as a
sun-and-sand getaway rather than a cultural destination, says Laverty.
As a result, "there are a sufficient amount of hotels by the beaches,
but once you get into Havana, there aren't enough rooms," he says. Until
the country's tourism infrastructure has a chance to catch up, Americans
looking to stay in the cities or countryside may have a tough time
finding accommodations. Flights are also tricky. Right now, the only
domestic commercial options are charters, all of which fly out of Florida.

5. New options are coming.

Under the current system, travel companies that are licensed to take
Americans to Cuba have something of a monopoly, says Laverty. While the
new rules are unlikely to completely erode that advantage, they should
make the industry more competitive and fuel new options for travelers.
In the case of Cuba Educational Travel, that may mean adding some more
independent, less full-service options. Says Laverty: "We're ready to
help people navigate these uncharted waters."

Source: Thinking About a Trip to Cuba? 5 Things You Should Know |
Money.com - http://time.com/money/3637911/cuba-travel-new-policy/