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01/06/14 - Bradenton Herald - Cuba charter business consolidates in Florida

Miami has long been travel central when it comes to trips to Cuba. In
December   the peak of holiday travel to the island   394 charter flights
departed from Miami International Airport.

Not only are charters flying to more Cuban cities than ever before, but the
charter industry has consolidated in Florida with flights from Tampa and
Fort Lauderdale as well.

I wouldn t be surprised if there are 20 flights leaving from Florida on New
Year s Day alone,  Michael Zuccato, general manager of Cuba Travel
Services, said on New Year s Eve. It actually turned out to be 16 flights,
including two from Tampa.

Seven charter companies compete for passengers in Florida   now the only
place in the nation where travelers can catch regular charter flights to

Travel to the island has evolved in other ways, with new travel rules
issued by Cuba in 2013 and record numbers of travelers heading to Cuba from
the United States in the past year.

When the Obama administration reauthorized people-to-people trips to Cuba
in 2011, it also expanded to 15 from three the number of cities authorized
to serve as U.S. gateways to Cuba. Charter companies enthusiastically began
making plans to serve new markets, and a boom in Cuba travel was expected.

But efforts to start charter service from cities including Chicago,
Atlanta, Baltimore and San Juan, Puerto Rico, have fallen by the wayside.
Currently there aren t even flights from the traditional gateway of New

Although some charter companies say they are still interested in offering
flights from cities outside Florida, they say they will do it only if they
can make the finances work. The reality is that Cuba charters are
economically feasible only from U.S. cities near communities with large
Cuban-American populations.

Even though 98,050 Americans traveled to Cuba in 2012 on people-to-people
tours designed to increase links with the Cuban people, and almost as many
took the tours through Nov. 15, 2013, Cuban-Americans visiting family
members, and increasingly to do business in Cuba, account for the majority
of the trips.

During 2012, 475,936 Cuban-Americans traveled to the island; through Nov.
15, 2013, the figure was 471,994, making it likely the 2012 number was
surpassed by the end of the year.

Miami-based The Havana Consulting Group estimates that combined number of
Cuban-American and people-to-people travelers will probably exceed 600,000
in 2013   a boost for Cuba, which experienced a slowdown in European travel
last year.

After a disappointing October when the number of international visitors to
Cuba fell to 167,977, Cuba s National Office of Statistics and Information
recently reported that travel had rebounded in November with 234,266
foreign tourists. Canada accounted for 38.9 percent of November s visitors.

With the November increase, Cuban tourism officials said they expected Cuba
would end the year with numbers similar to 2012, when it had 2.8 million
international visitors.

But when it comes to travel from the United States to the communist island,
Miami remains the linchpin. Although three charter companies compete on
Cuba routes from Tampa, currently only one, Xael Charters, offers
twice-weekly flights from Fort Lauderdale to Havana.

In contrast, there were 293 departures to Cuba from MIA in November,
compared to 231 in November 2012. During the December rush, the number of
Cuba departures from MIA exceeded December 2012 s by more than 100 flights.

The charter companies also have spread their wings beyond the Cuban capital
and now offer direct flights from Miami to Santiago de Cuba, Camagüey,
Cienfuegos, Holguín and Santa Clara.

In late November, however, it appeared the holiday travel season was in
jeopardy. The Cuban Interests Section announced on Nov. 26 that it was
suspending consular services until further notice because its U.S. bank,
M&T, was getting out of the business of handling financial services for
diplomatic missions and it had been unable to find another bank.

Less than two weeks later, the Interests Section said M&T had extended its
deadline and would accept deposits of Cuban fees for visas and passports
until Feb. 17 before finally closing Cuba s accounts on March 1.

But there was plenty of angst among potential travelers for a few weeks,
said charter operators.

There was acute awareness on the part of the Cubans that the busiest season
of the year was coming up. Cuba knew it had to solve the problem, and they
did, and we re confident they will come up with a more permanent solution,
said Bill Hauf, president of Island Travel & Tours.

Island Travel recently moved its headquarters from Tampa to Miami.  You
really can t be in the business without being in Miami,  Hauf said.

The charter company now offers six flights a week from Miami to Havana and
three weekly flights from Tampa to the Cuban capital.

Island Travel had hoped to begin service from Baltimore/Washington
International Airport in 2012, but the flights never got off the ground.

We are committed to do that flight, but because it s not a Cuban-American
market, it s going to take a good deal of promotion and education to let
people know they are eligible to travel to Cuba,  Hauf said.

Cuban-Americans are allowed to travel freely to Cuba, but going to Cuba and
spending money is prohibited for most Americans unless they fall into
certain categories such as those on humanitarian and religious missions,
journalists and people on professional research and academic trips.

People-to-people visits, which are supposed to be  purposeful  trips
designed to promote the free flow of information with everyday Cubans
rather than vacations on the beach   also are allowed.

Opening Cuba travel to all Americans would help make travel from the other
U.S. gateways feasible, Hauf said.

Cuba Travel Services received landing permission from Cuba for charter
service from Fort Lauderdale, Houston and San Juan, Puerto Rico, in 2011.
But today it isn t flying any of those routes.

CTS, which has offices in Miami and California, has expanded in Florida,
however. It started service to Havana and Santa Clara from Tampa in
December, and also serves Santa Clara, Havana, Camagüey, Cienfuegos and
Santiago from MIA.

The finances didn t make sense from the other gateways,  said CTS Zuccato.
In early 2013, CTS tried service from Los Angeles to Havana. It is still
interested in the route, and would like to  reinstate it again when the
time is right.

One of the issues that make service difficult from other authorized
gateways is the intricacies of leasing planes, said Zuccato.

Although there is no regularly scheduled commercial air service to Cuba,
airlines such as American, Delta and JetBlue are permitted to lease their
aircraft to the Cuba charter companies.

To find an aircraft that is available for a few hours a day to make a trip
from Miami to Havana is a lot easier than trying to find an aircraft that
is available for 12 hours a day for a trip from California to Cuba, Zuccato

With so many discount airlines serving Florida airports, charter operators
trying to operate from other gateways also find it difficult to compete on
price for travelers who could get a cheap flight to Miami or Fort
Lauderdale and then board a charter to Cuba.

CTS also is interested in the New York metropolitan market, but said its
preference would be to fly out of Newark, N.J.   closer to New Jersey s
large Cuban-American population. But so far, the U.S. has not authorized
Newark as a gateway for Cuba charters.

Zuccato said CTS plans to begin seeking authorization for Newark this year.

The other big travel development in 2013 was Cuba s overhaul of its
migration and travel rules. On Jan. 14, Cuba removed almost all
restrictions on travel by its citizens.

Although the number of Cubans making foreign trips has increased, it has
not been much of a boon for U.S. charter companies, said Hauf.  The tickets
are sold in Cuba and we get just a modest fee for carrying passengers from
Havana,  he said.

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