Cigars, old cars, the Buena Vista Social Club, and world class eye care. Cuba is unique in so many ways. But it may be about to become a lot less so.
At the end of July a bill to end the 55-year-old US embargo on Cuba showed its face in Congress. The process could still take years, but US companies, particularly hotels and airlines, have waited decades for this. Right now, with so much change afoot, they can almost taste the fresh, new business. It was back in April that US President Barack Obama met with his Cuban counterpart Raul Castro, the first time the two nations’ top leaders have sat down for anything remotely resembling substantive talks in more than five decades.
The meeting, which took place in a modest room on the sidelines of the Summit of the Americas lasted just an hour; but repercussions of the short encounter have been reverberating across the Straits of Florida ever since.
The body language of the two leaders may have been a little ambiguous, but the statement of intent was clear. Castro, who earlier in the day had announced that he trusted Obama, acknowledged that the path ahead would not necessarily be a smooth one. But he was also clear in his belief that any differences could be overcome. Obama, too, was positive.
“It was time for us to try something new,” the president told reporters after the meeting. “We are now in a position to move on a path toward the future.”
New is not a familiar concept in Cuba. Earlier this year I visited the island for the first time. So much about it is resolutely old world. Impoverished at home and isolated abroad since 1962, the blockade — as they call it in Cuba — has created a kind of time warp. The question is whether development will suddenly hit warp speed. Just how far and how fast will Cuba open up?
I drove around Havana’s dusty, shabby, achingly beautiful streets with Cuban-American businessman and property developer Hugo Cancio, president of the Fuego Media Group. From the back seat of a cherry red 1949 Chevrolet convertible he told me that developers from the US have been flying to Cuba on the quiet for a while now, sizing it up.
In the crosshairs of the big hotel groups are the hulking government-run hotels dotted along Havana’s seafront.
Desperate for renovation, they symbolise the island’s latent potential. But this is a story that has played out in resorts all over the world. The dilemma for those in charge is clear: preserve history, or cave in to the developers’ dollars?
Following that April meeting, the thaw in this most lingering of frosty relationships has been rapid. Cancio, however, reckons Cubans want to take things slowly. “They may want to see a Wal-mart, or an Apple Store, or a Nike store, but nothing excessive,” he insists.
Even without the anticipated influx of American investment, the green shoots of regeneration are already peeping through. Stunning old buildings on the seafront are being elegantly restored, and a considered approach to polishing up the island’s assets is evident. At least, for now.
Restoring property
“Cuba could have allowed foreign investors to come in and transform the city many years ago,” Cancio says.
“What’s going to change now?” Pointing to a gorgeous seafront building he underlines this point: “They could have torn this building down, but instead they’re getting ready to restore the property. It tells you that we’re not going to see high rise condos here anytime soon.”
Before we say our farewells, the developer takes me to a patch of scrubland with a sea view. He’s ready to build right there; he has the money and the backers. When he says he doesn’t have the building in mind, I tell him I don’t believe him. He laughs.Since my visit change has gathered pace. The US embassy has re-opened, and travel companies are reporting huge interest in the island from US tourists. Airbnb, which launched in Cuba in April, already has 2,000 properties listed on the island, 40 per cent of which are in Havana. The company says that Cuba has become one of the most searched destinations in Latin America among Americans, ahead of Buenos Aires, Mexico City and Rio de Janeiro.
American low-cost carrier JetBlue is now offering weekly charter flights from New York City to Havana, while other US airlines are no doubt also licking their lips, waiting to gorge on new routes.
If you want to come to this utterly unique island, here’s my advice: don’t wait — enjoy this beautifully peculiar time capsule before it changes forever.
Richard Quest is CNN’s foremost international business correspondent and host of Quest Means Business.
