Cuba hopes for good tourism season amid problems

Cuba hopes for good tourism season amid problems
Mon Oct 6, 2008 1:41pm EDT
By Marc Frank

HAVANA, Oct 6 (Reuters) - The two hurricanes that ravaged Cuba at
summer's end won't keep tourists from the Caribbean island during the
high season but global economic woes might, industry watchers said on
Monday.

They said there have been no cancellations of tours booked for the
December-March peak season and that an expected increase in Canadian
visitors should help offset any reduction in Europeans put off by rising
air fares and other economic problems.

That was good news for the country still recovering from Hurricanes
Gustav and Ike, which struck within 10 days of each other starting on
Aug. 30, causing extensive damage, including to hotels and infrastructure.

The government said tourism increased 13 percent through August and will
be Cuba's second most important foreign exchange earner after the export
of medical and other technical services, at around $2.5 billion this year.

"There will be some decline in tourism from Europe as air fares are up
30 percent, but we expect another big jump from Canada to make up at
least part the difference, along with new markets like Russia," the
representative of a European hotel chain told Reuters on condition his
name not be used.

Immediately after the storms, some tours to hard-hit areas were
canceled, but not for the months ahead, he said. The hurricane season
ends in November.

"The hotels are completely taken by tour operators starting in late
December and to date there have been no cancellations of flights or rooms."

The bigger uncertainty now, he said, was the financial crisis roiling
markets around the world.

"We will have to see what happens with the global economy over the next
months, but so far we see a good season despite it all."

The number of tourists from Canada, already the top tourism country for
Cuba, could rise as much as 20 percent to 30 percent because of the
weakness of the U.S. dollar and increased marketing, the sources said.

Cuba's currency is pegged to the dollar, which makes the country an
inexpensive destination for Canadians seeking warm tropical beaches
during their country's long winter.

Few citizens from the nearby United States travel to Cuba because of
their country's sanctions on the Communist nation.

While the hurricanes inflicted $5 billion in damage on the island, key
tourist areas like Havana and the Varadero beach resort were largely spared.

Spanish firm Sol Melia (SOL.MC: Quote, Profile, Research, Stock Buzz),
which has 24 hotels in Cuba and is the largest foreign tourism company
in the country, said it was back up to full speed after the hurricanes.

"Sol Melia's hotels and resorts are open and operating normally after
complete recovery from minor damage," said Gabriel Garcia, the company's
marketing director in Cuba. (Editing by Jeff Franks)

http://www.reuters.com/article/marketsNews/idUSN0432889720081006?sp=true