Insight Cuba: The Sky Is the Limit

After President Obama’s speech announcing relaxed regulations on travel, someone told Tom Popper, president of Insight Cuba, “If people can travel to Cuba on their own, you’re done.”

It was a reasonable prediction. Insight Cuba is one of the major operators of people to people tours to Cuba. It started operating trips to Cuba in 2000, suspended them in 2003 when the Bush administration cut off the trips, then jumped back in when Obama opened the door again in January 2011.

The restrictions required by the U.S. embargo of Cuba were so onerous that at first only a few tour operators tried to do it. But in recent years demand has grown so intensely that many other tour operators dived into the market in spite of the difficulty.

Now that U.S. government restrictions have been relaxed, individuals can travel to Cuba. They are no longer required to go with groups and are freed of much of the administrative hang-ups previously required. So what is left for a tour operator to do?

Plenty. It turns out. Insight Cuba’s bookings have tripled over this time last year.

“It’s kind of a new world,” said Popper. “Activity is robust. We’re breaking booking records. I’ve never seen numbers like this. People are quick to book. They are booking close in, booking further out. We’re already booking for Nov. 2016, almost two years out.”

Other operators are having similar experiences.

“The popularity of Cuba is booming,” said Popper. “Some people were saying our phones would stop ringing. That was not my sense. But it’s actually had the opposite effect.”

Even though the regulations have been relaxed, the market is still regulated.

“It’s definitely easier and less burdensome,” said Popper. “But you still have to comply and do the right thing. The intent of the administration was clear: to lift the embargo and eliminate the travel restriction.” Instead of reducing Insight Cuba’s business, the relaxation of restrictions has had the opposite effect.

“It’s incredible, but it has swung the pendulum the other way,” said Popper. “We’re fielding phone calls from agricultural associations and business associations wanting to figure out ways to get to Cuba and have meetings. There are new channels opening up, new opportunities.” 

A Confluence of Factors

It appears that several factors are at work:

First, the President’s speech was some of the best promotion any business could hope to have. After the speech the news was picked up, broadcast through the media, amplifying the message and setting off a wild chain reaction of interest. It created a gigantic promotional push.

It intensified some of the other factors at work in the marketplace, such as the desire to go to Cuba before it changes. Whatever changes will occur, the process of evolution just accelerated.

At the same time, although individuals can go without tour operators, most will want to make the most of their money, their time and their trips to Cuba by having good guidance on where to go, how to go, what to do. It’s not yet quite a situation in which people are comfortable to wander over on their own. And they are still required to comply with government regulations, with heavy penalties for failing to do so.

In addition there is always the chance that the doors could close again. Relations between the two countries are still sensitive. Prickly remarks are heard between the two nearly every day and the American media is quick to pick up on any controversy and exploit it sensationalistically for whatever interest it may generate.

A speech this week in Costa Rica by Raul Castro set off a mini firestorm in the media and the Cuban Interests Section released a statement expressing regret that Castro’s words were misrepresented in the American media.

Cuba’s own translation of the remarks was, however, an indication that all problems between the two countries have not been wiped out and forgotten forever.

“The re-establishment of diplomatic relations is the beginning of a process toward the normalization of bilateral relations,” said Castro, “but this [normalization] will not be possible while the blockade remains in effect; the territory illegally occupied by the Guantánamo Naval Base is not returned; the radio and television broadcasts breaching international rules and regulations do not cease; and adequate compensation is not paid to our people for the human and economic damages sustained.”

It is always possible that things could go the other way and the doors to Cuba could close again.

However, nearly every one of the factors at play currently tends to heighten demand for tour operators offering trips to Cuba.

Predictions that tour operators would be out of business after President Obama’s December speech have not played out. Insight Cuba and people to people travel are far from done.

“Why would we be done?” said Popper. “Perillo Tours made a fortune providing travel to Italy, and anyone can go to Italy any way they want. There is a huge unknown aspect and having somebody experienced helping you navigate it is of great value.”

Although the Obama administration intends to open up regulations to allow commercial airlines to provide air access to Cuba, it will probably be six to 12 months before that becomes a reality, according to Popper’s sources in the airline industry.

“There are a lot of questions on how it will work out with the negotiations between the two governments,” said Popper. “Much has to be ironed out.”

Meanwhile, Insight Cuba’s business is growing every day, with no signs of waning.

“We found our niche,” said Popper. “People to people travel is a category of OFAC [Office of Foreign Assets Control] regulations, but it’s a type of experience we seek to provide. It would be the same if there were no regulations. Would we get into beach travel? I don’t think so. This is what we’re all passionate about, providing that access and those experiences that move you. That’s exciting. That’s a product the American market loves and wants. It’s a growing segment of people who want to travel differently. It’s our strength, our core. It’s who we are.”

Meanwhile new opportunities to expand on that model keep opening for Insight Cuba.

“I think it defines us,” said Popper. “So if we stay true to that, success will find us in that way. Cuba such an amazing country to do this in. We’ll best serve ourselves and our guests by staying that route.”

How Will Changes in in Cuba Play Out?

A commonly heard concern is that as Cuba opens up, it will rapidly become commercialized and lose its distinctiveness. Popper believes Cuba will be wary of over-commercialization. It will more likely follow the lead of other developing countries that are developing their tourism products in a sustainable way, avoiding overcommercialization that will degrade the resources that make them attractive in the first place. 

“I think Cuba is very keen on that,” said Popper. “Cuba is a great student of the world. Being involved in tourism so long I have asked the question myself. What happens when embargo does come down and all these companies want to come in with all this investment?”

In 2004 Popper had a rare opportunity: to put the question to Cuba’s minister of tourism at a conference that took place in Cancun.

“I was talking to the minister of tourism on the beach in Cancun and I asked him the question. The minister pointed at the hotels up and down the beach.

“This was a quaint fishing village,” said the minister. “Now it’s just one hotel to the next as far as I can see. This is not what I envision for our country. We have such amazing resources. We want to preserve them and share them in the best way possible.”

Popper believes Cuba will cautiously avoid over-commercialization.

“Businesses that want to invest in Cuba will do well by moving slowly getting to know their Cuban counterparts and their philosophy moving forward. That would be a great thing for many to do.”

Source: Travel Pulse