Money Between Friends: St. Kitts, Cuba and the U.S. Trade Embargo
By Ryan Haas
Reporter-SKNVibes.com
BASSETERRE, St. Kitts-ECONOMISTS have speculated that an increase in Cuban tourism due to a repealing of the nearly 50-year-old American embargo could affect St. Kitts/Nevis more dramatically than other Caribbean Community (CARICOM) countries due to similarities in the way the two countries are marketed.
One speculation being made is that United Nations Educational, Scientific and Culture Organization (UNESCO) Heritage sites, such as Brimstone Hill Fortress in St. Kitts, would be in direct competition for American tourist dollars with the several other Heritage sites located throughout Cuba.
Until now, citizens of the United States have been almost entirely forbidden from spending U.S. currency in Cuba due a trade embargo enacted in 1962 against the communist nation, but some experts say that the future of that law could be changing very soon.
Democratic frontrunner in the U.S., Barack Obama, said in a Texas debate held on February 21st that he plans to lessen travel restrictions for Cuban expatriates residing in the U.S. as a sign of “good faith” between the countries. Despite saying he was not in favor of completely lifting the embargo on Cuba, some analysts have taken Obama’s policies as an indicator of future bilateral talks between the historically ideological enemies.
According to an article in The Washington Post, the newly named leader of Cuba, Raul Castro, also seems to be interested in expanding his country’s economic ties with the world. “[His] public record, which has emerged over his 19 months as interim president, suggests he might pursue reforms to allow more political and economic latitude on the island,” the article asserted.
“On taking office on February 24, Raul Castro pledged to start lifting ‘excessive regulations and prohibitions’ within weeks,” reported Marc Frank, analyst for Reuters.com, leading some to worry that privatization of business in Cuba, especially in the sector of tourism, could mean a lot less foreign currency coming into smaller CARICOM nations like St. Kitts & Nevis. ~~Adz:Right~~
Nearly 2.2 million persons, mostly Canadian and European citizens, visited Cuba in 2006. If each visitor spent only US$50 during their entire stay, that would be US$110 M that Cuba made in 2006 without U.S. citizens being allowed to visit.
One of Cuba’s allies, Venezuelan President Hugo Chavez, has publically said that “nothing will change at all” in Cuban economic policies under Raul’s leadership, but CARICOM has raised concerns in the past about Cuban tourism becoming a dominant force in the Caribbean.
According to an Association of Caribbean States report, during a conference between Cuba and CARICOM held in Havana on December 8th, 2002, “there was an open discussion of concerns that the eventual lifting of the U.S. travel embargo would be to the detriment of CARICOM tourism.”
When contacted for comment, Kaye Bass, Senior Foreign Service Officer for the St. Kitts Ministry of Foreign Affairs, would only say that “the Ministry is currently engaged in discussion” regarding this issue. Carnival and Princess Cruise Lines were also contacted by SKNVibes so as to ascertain whether the opening of Cuban ports would divert vessels from smaller islands, but no comment was received from either of their public relations departments.
The Prime Minister Hon. Dr. Denzil Douglas recently demonstrated the current good relations that the Federation shares with Cuba by thanking them for “help in the areas of education and health, especially the Miracle Care Mission, [which has] contributed quite substantially to the improvement and wellbeing of thousands of our people.”
The PM further assured the newly named leader of Cuba that “you can count on my firm support.”
St. Kitts is scheduled to meet with Cuban leaders in Havana on December 8th of this year as part of CARICOM-CUBA Day, which is held tri-annually on the exact date that CARICOM/Cuba relations began in 1972.
