The Miami Herald.
Oct. 26, 2001.
Twenty more charter flights start to Cuba Nov. 1
HAVANA -- (AP) -- Continental Airlines is dedicating an aircraft that will
provide 20 additional weekly charter flights to Cuba, the president of
Continental Connection said.
The flights aboard the Boeing 737 are to begin Nov. 1. Most will originate
from Miami, one of the U.S.-approved gateway cities, said Thomas L. Cooper,
president of Continental Connection, operated by Gulfstream International
Airlines Inc.
Only people with permission from the U.S. government can take the charter
flights. American journalists, humanitarian workers, academic researchers and
some Cuban-Americans are usually granted permission, which allows them passage
on the charter flights.
Those without permission can fly to another country like Mexico or Jamaica
to reach Cuba, but risk the chance of a U.S. fine.
Cuba's tourism income skids amid fears following Sept. 11
By Nancy San Martin . nsanmartin@herald.com
Just as it was starting to pull out of a "special period'' of austerity
that has lasted some 10 years, Cuba is facing an economic setback that officials
attribute to the Sept. 11 terrorist attacks in the United States.
The Cuban peso is at its lowest level in relation to the U.S. dollar in five
years, the tourism industry is lagging and fewer Cuban Americans are visiting or
sending money to relatives on the island.
The net result: An already ailing economy is further at risk.
President Fidel Castro, pointing specifically to the terrorist attacks,
already is warning of hard times ahead. "We must be prepared,'' Castro said
during a speech this week in Santiago de Cuba. "Logically, some sacrifices
will come.''
Tourism has taken a hit worldwide, but Cuba is particularly vulnerable
because it has relied on the industry as an important source of foreign
exchange, said Evaldo A. Cabarrouy, an economist at the University of Puerto
Rico in Rio Piedras with an expertise in Cuba.
"There was already a slowdown in the world economy,'' Cabarrouy said. "The
terrorist attacks accelerated the slowdown.''
For those on the island, the economic decline would most affect those with
no access to U.S. dollars.
Over the past five years, the exchange rate has remained relatively stable
and Cubans have been able to trade pesos for dollars legally at
government-operated currency houses. But this week the peso dropped from 23 to
26 to $1 and Cubans learned they could no longer buy dollars with their pesos at
the exchange offices known by the acronym CADECA.
"It's not a big deal percentage-wise,'' said María Dolores
Espino, an economist at St. Thomas University, referring to the decline of the
peso. "But there is a problem. It's an indication that there's already an
economic impact being felt. There are fewer dollars coming in.''
At least 20 of 225 hotels on the island have closed, according to Tourism
Minister Ibrahim Ferradaz. Also, he has announced, a third of the 36,000 hotel
rooms are vacant.
Other signs of economic woes can be seen at stores that sell products for
U.S. dollars, which have reported a decrease in sales. Fewer people also are
treating themselves to relatively inexpensive meals at privately-owned
restaurants known as paladares, according to reports by the Washington-based
U.S.-Cuba Trade and Economic Council, Inc.
The fact that Cubans are spending less money is the strongest indicator that
less is available. An estimated 60 percent of the population relies on
remittances from relatives in the United States.
While the setback is painful, the economy is still far from having to
contend with a crisis of the same magnitude as the one it faced following the
collapse of the Soviet Union that brought an end to subsidized commodities. At
the height of the era, known as the 'special period,' the exchange rate was 60
pesos to $1.
Nor is Cuba alone in facing economic decline. Elsewhere in the Caribbean,
many islands also earn most of their foreign currency from tourism.
Once tourists stopped traveling following the Sept. 11 attacks, hotels,
restaurants and other businesses began laying off maids, bartenders and other
workers. Taxi drivers saw their earnings plummet.
In Jamaica, for example, the national carrier Air Jamaica reported losses of
$4 million the week after air routes to the United States were cut off.
One possible source of relief for Cuba was suddenly cut off Thursday when
the U.S. Congress scuttled a plan by a small group of legislators to lift the
federal government's travel ban to Cuba.
Sidestepping a fight with the White House, negotiators from the House and
the Senate agreed to omit language from a spending bill that would have blocked
the Treasury Department from spending to enforce restrictions on U.S. citizens
wanting to travel to Cuba.
In July, the House voted 240-186 to stop enforcement of the travel
restrictions.
But the White House notified key legislators earlier this month that
President Bush might veto the entire spending bill if the amendment on Cuba
travel was not stricken from the final version.
Continental Airlines, however, offered a glimmer of hope for a rebound with
its announcement Thursday that it is dedicating an aircraft to provide 20
additional weekly charter flights to Cuba.
The flights aboard the Boeing 737 that are to begin Nov. 1 will originate
primarily from Miami. The flights are limited to those who can legally travel to
Cuba, including journalists, academics and relatives of Cubans on the island.
"Right now the market is pretty flat because of the terrorist attacks
but we're expecting it will come back,'' said said Thomas L. Cooper, president
of Continental Connection, operated by Gulfstream International Airlines Inc.
Staff writers Yves Colon and Tim Johnson contributed to this report, which
was supplemented with information from the Associated Press.
Guyana president to visit Cuba today
GEORGETOWN, Guyana -- (AP) -- Guyana's president will arrive in Cuba
Thursday on a three-day state visit to ask the Cuban government for more
assistance in training Guyanese doctors and engineers.
Bharrat Jagdeo, 36, will be the first Guyanese head of state in 15 years to
meet with Cuban President Fidel Castro, presidential spokesman Robert Persaud
said at a news conference Wednesday.
Jagdeo's main objective will be to adjust a treaty, signed in the 1970s,
under which a certain number of Guyanese -- including scientists, doctors,
engineers, pilots and teachers -- are given scholarships to study at Cuban
universities, said Persaud.
This is because the need in some sectors such as pilot training is no longer
so vital, while engineering and medical expertise is still a priority, Persaud
said.
Trade issues could also come up.
Jagdeo's trip comes as a bilateral trade commission the countries have
established prepares to meet in Havana to review trade ties. The meeting is due
to happen before the end of the year.
Copyright 2001 Miami Herald | 
