Commercial flights and cruises between the US and Cuba are set to continue under an exemption, as US President Donald J. Trump yesterday hardened diplomatic stances between the countries.

In an announcement given in Miami, Florida, Trump put forward a new policy that confirmed previous speculation that he would rollback ‘thawed’ relations with the island.

In his address, Trump said he was “cancelling” the Obama administration’s “completely one-sided deal with Cuba”.

However, the new directive appears to stop short of a full reversal of key diplomatic measures concerning commercial trade.

‘PERMISSIBLE TRAVEL’ CLAUSE

A presidential memorandum on the policy changes confirms the exemption of ‘air and sea operations that support permissible travel, cargo or trade’.

Crucially, this decision will calm fears among US-based airlines and cruise lines that a potential reversal of Obama’s relaxation on travel and trade rules could cost the sector $3.5bn.

According to a White House statement, the new rules will prohibit individual travel to Cuba and look to limit payment flows to state-owned companies operated by Cuban military organisation Grupo de Administración Empresarial (GAESA). Travel for non-academic purposes will also be limited to group travel.

US tourists are still entitled to visit Cuba under the 12 designated categories of travel authorised by the US Department of Treasury, Office of Foreign Assets Control.

Despite the curb on individual travel, Cuban-Americans will be able to continue visiting their families in Cuba and send them remittances

The new policy will be carried out by departments of the US Treasury and Commerce within the next 30 days.

HUMAN RIGHTS FOCUS

The White House expects to achieve four objectives as a result of the new rules, including strengthening compliance with US law surrounding the embargo conditions, and furthering the national security and foreign policy interests of both countries.

In his speech, Trump was quick to single out Cuba’s human rights record under the “brutal” Castro regime of “oppressive” communism.

“The previous administration’s easing of restrictions on travel and trade does not help the Cuban people – they only enrich the Cuban regime,” Trump said in his address.

“The outcome of the last administration’s executive action has only been more repression and a move to crush the peaceful, democratic movement.”

‘UNWELCOME REVERSAL’

International media had already speculated on a potential tightening – and in some instances a full u-turn – of the more relaxed diplomatic stance between the two countries began by former US President Barack Obama in 2014.

Reacting to the news, the World Travel & Tourism Council (WTTC) voiced its “dissapointment” on the decision to enforce stricter rules on US tourists visiting Cuba, including the move towards group travel arrangements.

“There is latent demand from the US for people to visit Cuba to explore its history and

culture, and it would be a retrograde step to revert once again to Americans travelling in groups,” commented WTTC President and CEO David Scowsill.

“Over the last months, the uptake in travel from the US to Cuba has not been as high as expected, primarily as hotel capacity has not kept up with the demand, leading to some of the US airlines cutting back capacity to the island.

“President Trump’s announcement will put further pressure on the airlines.”

The WTTC adds that foreign expenditure in the country totalled $2.8bn in 2016, accounting for 19.2% of total exports – above the global average of 6.6%.

Meanwhile, it says travel and tourism contributed $9bn to the Cuban economy last year, accounting for just shy of 10% of the country’s GDP.

As a result, Cubans have been benefitting directly from heightened business and leisure travel to the country’s capital, says Scowsill.

“Travel brings income to the people who work in our industry; President Trump’s statements indicate that the Cuban people, rather than the government will be hit by this policy change,” he added.