• Submitted by: manso
• Travel and Tourism
• 05 / 06 / 2011

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by Nick Verrastro. May 05, 2011. The U.S. travel industry has new opportunities to sell educational and religious travel to Cuba under guidelines issued by the Treasury Department’s Office of Foreign Assets Control in late April.

The new guidelines have “opened important windows for purposeful travel” to Cuba, said John McAuliff, executive director of the Fund for Reconciliation and Development, which works with ASTA in advocating freedom of travel to Cuba. “Virtually anyone who has a serious reason to visit Cuba should be able to find a legal way to do so.”

The guidelines cover licensing requirements and provide details about the types of U.S.-Cuba travel that are allowed as the result of a relatively unnoticed Executive Order issued by the Obama administration in January. That order lifted Cuba travel restrictions that were put in place under President George W. Bush. It was considered a victory for the travel industry, particularly after the previous Congress failed to pass legislation supported by ASTA, NTA and USTOA to open travel to Cuba.

While the Obama administration’s guidelines are not a carte blanche for those who want to travel to Cuba, “they are a heck of a lot better” than restrictions under the Bush administration, said Steve Richer, the NTA’s public affairs advocate.

New markets

U.S. students, journalists, and members of religious organizations are now permitted to travel to Cuba without obtaining permission from the Treasury Department’s Office of Foreign Assets Control. Educational and religious groups have a general license to travel to Cuba, which means they do not have to apply for a permit provided that the trip includes a course of instruction or religious activities.

Opening Cuba travel to religious organizations has significant potential to expand the market, since 84% of Americans are affiliated with a religious organization, McAuliff said.

The new guidelines also set criteria for “people-to-people” programs in Cuba, which could be a significant area of growth for the U.S. travel industry, Richer said.

Restrictions still apply

Trips to Cuba in which travelers engage in individually selected and/or self-directed activities are still prohibited under current policy. “Authorized trips are expected to be led by the licensed organization and to have a fulltime schedule of activities in which the travelers will participate,” the guidelines state.

Travel agents and tour operators can now get directly involved in selling travel to Cuba by registering with the Office of Foreign Assets Control to secure a general or specific license as an authorized Travel Service Provider (TSP) to Cuba.

McAuliff said that once specific licenses are granted to not-for-profits and qualified businesses, those organizations can offer open enrollment, directly or indirectly, for general interest and specialized trips.

Cuba trips not commissionable

Travel agents should be aware that Cuba travel providers are not permitted to pay commissions to agents in a normal business fashion, but they can pay referral fees to agents and tour operators, McAuliff said.

Agents and tour operators are permitted to work with local colleges to promote and coordinate a trip and then escort the trip “as a special staff person or adjunct teacher.”

The contract and payments, however, can only be handled by an authorized travel provider.

People-to-people programs need OK

The new guidelines provide crucial information on what types of people-to-people programs qualify for travel to Cuba. The gist of the rules is that they must actually involve contact between Americans and Cubans.

An example of a “potentially licensable” people-to-people trip is one where travelers would learn side-by-side with Cuban individuals in areas such as environmental protection or the arts, according to the Office of Foreign Assets Control.

People-to-people programs must apply for specific approval, or they can organize a tour with a Provider of Licensed Travel (PLT), whose programs are already approved.
 
More gateways

The Executive Order also authorized nine additional airports as gateways for travel to Cuba.

Currently about three-quarters of licensed travel service providers are in Florida, according to an article by McAuliff on Huffington Post. That’s because the authorized charter flight operators were mostly in Florida.

But Obama’s order expands authority to operate charters to airports across the country, including Chicago, New Orleans, Houston, DFW, Baltimore/Washington, Pittsburgh and San Juan, in addition to Miami, New York JFK, and Los Angeles.

Richer said he expects the number of authorized travel service providers will grow nationwide as a result of this new authority.

Please see related story, Presidential Order Opens Options for U.S. Travel to Cuba, Jan. 20, 2011.

RESOURCES

U.S. Department of Treasury website. Contains details about travel restrictions and travel service providers and license applications.

Authorized travel service providers for Cuba. Updated list.

Source: www.travelmarketreport.com/leisure?articleID=5690&LP=1