Norwegian Cruise Line, Royal Caribbean Win Approval to Sail to Cuba--Update
December 07 2016 - 4:38PM
Dow Jones News
By Felicia Schwartz
WASHINGTON -- Two American cruise lines said Wednesday that they
have received permission from the Cuban government to begin trips
to Cuba next year, expanding the scope of business ties between the
U.S. and its longtime adversary.
The announcements by Royal Caribbean Cruises Ltd. and Norwegian
Cruise Line Holdings Ltd. come as the Obama administration is
pushing for completion of a number of business deals in Cuba before
President-elect Donald Trump takes office . The Obama
administration sees such deals as key to making the diplomatic and
commercial opening to the island permanent.
General Electric Co. and Alphabet Inc.'s Google unit, among
other companies, are expected to make announcements in the coming
weeks, officials have said. A third cruise line, Pearl Seas Cruises
also is expected to obtain approval. Carnival Cruise Line began
trips to the island earlier this year.
Royal Caribbean and Norwegian said the Cuba stops would comply
with regulations enforced by the Treasury Department's Office of
Foreign Assets Control and that the trips would involve activities
that fall under the U.S. government's "people-to-people" exchange
license.
"Our guests have expressed real interest in having the
opportunity to experience Cuba, and we look forward to bringing
them there," said Richard Fain, chairman and chief executive of
Royal Caribbean. Royal Caribbean said it would announce additional
details about the trips in the coming days.
Norwegian said all three of its cruise brands -- Norwegian
Cruise Line, Oceania Cruises and Regent Seven Seas Cruises -- will
offer service to Cuba next year. Its first trip to Cuba will be in
March.
Frank Del Rio, president and CEO of Norwegian, said that as a
Cuban-American he was especially excited to start service to the
island.
"This is truly a dream come true for me and I cannot wait for
our loyal guests to experience the sights and sounds of my hometown
of Havana," he said.
Regular tourist travel to Cuba remains prohibited in the U.S.
and Congress must act to fully lift the trade and travel bans.
Since announcing in 2014 that the U.S. would move to normalize
ties, President Barack Obama has taken steps to loosen trade and
allow for certain types of travel, prompting a flood of American
travel to the island as well as a flurry of initial business deals.
Commercial flights to the island began in September to smaller
cities, and the first airline flights to Havana began last
week.
Mr. Trump sent mixed signals during his presidential campaign
about Mr. Obama's Cuba policy, more recently taking a harder line.
After former Cuban dictator Fidel Castro died last month, Mr. Trump
threatened to end the U.S. thaw with Cuba if Havana refuses to make
"a better deal" for Americans and for the Cuban people.
On Wednesday, more than 100 restaurateurs, bed-and-breakfast
operators and other entrepreneurs in Cuba sent a letter to Mr.
Trump urging him to push to lift the embargo and advance Mr.
Obama's policies. They said in the letter that they had benefited
from changes in Cuba that have allowed more space for
private-sector businesses to operate as well as better internet and
phone service and increased contacts with American travelers and
businesses.
"Reforms made by the U.S. government to allow for increased
travel, telecom services and banking have helped substantially as
we attempt to grow our businesses," they said. "As a successful
businessman, we're confident that you understand the importance of
economic engagement between nations. Small businesses in Cuba have
the potential to be drivers of economic growth in Cuba and
important partners of the U.S. business community."
The letter was spearheaded by U.S.-based pro-normalization
advocates. Four Cuban women who signed the letter were in
Washington this week for meetings at the White House, with
lawmakers and others.
One of them, Marta Elisa Deus Rodriguez, the founder of a
company that provides accounting services for private businesses in
Cuba as well as a delivery company and a business magazine, said
she saw the U.S. opening as important for growing her
companies.
"That's why I hope the new administration does not change this
policy. I fear that if we turn the clock back, my business will
suffer," she said.
U.S. and Cuban officials are meeting in Havana on Wednesday to
take stock of efforts to engage with one another since the thaw
began, including in human rights, civil aviation, law enforcement,
claims and environmental issues, among others.
Write to Felicia Schwartz at Felicia.Schwartz@wsj.com
(END) Dow Jones Newswires
December 07, 2016 16:23 ET (21:23 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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