The restoration of diplomatic relations between the USA and Cuba in December 2014 opened a frenetic year regarding cruises in Cuba.
After a few initial months filled with hopes, rather than plans, the first realities arrived: weekly stops of the Thomson Dream, the Fanthom project of humanitarian cruises, and above all, the arrival of MSC Cruises this winter with the MSC Opera, which has already allocated a second ship for the winter of 2016-2017.
However, alongside the perception that Cuba is a great opportunity for the cruise industry, doubts remain about the existing port infrastructure and about the financing of those that will necessarily have to be built in the future.
Cuba's Opening to Cruise Ships:
Cruises from Cuba reappeared in the early 1990s, at a time when tourism was being promoted as an economic alternative after the fall of the Iron Curtain. However, in 1992, its northern neighbors enacted the Torricelli Act, which prohibits a ship from docking in a U.S. port six months after calling at Cuba. Consequently, this measure kept most of the Caribbean cruise ships based in Florida away from Cuba.
In 1993, the Cubanacán group, along with other businesspeople, chartered the ship Santiago de Cuba to offer tours to various destinations in the country and the Caribbean.
A year later, in 1994, it was the turn of the Italian company Costa Cruises. After acquiring Pearl Cruises in 1995, it decided to dedicate the Pearl, with 250 cabins and a capacity of around 500 passengers, to Cuba, renaming it Costa Playa. On November 12, 1995, it conducted a repositioning cruise between Genoa and Puerto Plata, and in December it began sailing from Havana. The Costa Playa's itinerary was seven nights and included stops in Santiago de Cuba, Montego Bay, Havana, and Baja Nipe (Costa's private island in the Dominican Republic). Later, it also began calling at Calica. In the first eight months, the ship carried 18,000 passengers, and in the first year, 25,000.
Subsequently, the itinerary was changed. The Costa Playa departed Havana on Tuesdays for Isla de Juventud, Montego Bay, Grand Cayman, and Calica, before returning to the Cuban capital. These cruises, including airfare, were sold starting at 187,000 pesetas.
But on December 19, 1996, Carnival Corp. and Airtours acquired 58.9% of Costa Crociere's shares. On May 13, 1997, both multinational corporations launched a takeover bid for the remaining shares of Costa Crociere. After the purchase was finalized, the U.S. government applied the Helms-Burton Act to Carnival Corp., even issuing an ultimatum that expired on November 24, 1997. Before that date, the Costa Playa was sold to a Far Eastern shipowner, ending Costa's venture in Cuba. This situation resulted in the loss of 120 jobs, along with the weekly port calls in Cuba, which amounted to a financial loss of $500,000.
Spanish shipowners were the main drivers of cruises in Cuba in the last decade.
Meliá Don Juan, First Cruises from Cuba.
The next cruise initiative in Cuba had a Spanish flavor. After signing a time-charter agreement with Sol Meliá and Cubacán hotels in 1996, the Don Juan began its only season outside European waters, offering cruises from Cuba. Based in Cienfuegos, the ship offered three-, four-, and seven-day itineraries, departing every Monday and Friday from that Cuban port, and was marketed under the name Meliá Don Juan. The weekday cruise included stops in Cayman Brac, Santiago de Cuba, and Montego Bay, while the weekend cruise visited Grand Cayman and Cayo Largo. Both cruises could be combined into a seven-day cruise, and naturally, Sol Meliá offered combined stays at its hotels in Varadero, Playa Esmeralda, and Havana.
When the results were beginning to show promise, although they were never as brilliant as anticipated, the D.Juan returned to the Mediterranean in early March 1997, never again making its winter migration to the Caribbean. There was even talk of the ship being based year-round in Cuba, but changes in the presidency of Trasmediterránea thwarted this possibility.
Cuba wasn't yet a destination that could accommodate two ships, and the competition from the Costa Playa was fierce.
In the final stage of its career, the D.Juan, now renamed Riviera 1, was based in the Mexican port of Cancún, from which it began offering cruises to Cuba in July 2000. Two itineraries were offered: one departing Cancún every Friday, arriving in Havana on Saturday, and returning to Cancún on Sunday; and another between Monday and Thursday, with the ship remaining docked in port on Tuesday and Wednesday. Both were a resounding failure.
Foreign Investment in Terminals:
Although no cruise ships were based in Cuba during 1998, that year marked the beginning of foreign investment in Cuba's land-based cruise infrastructure.
A joint venture was established in 1998 between the Cuban company Cubanco, SA, and the Italian company Silares Terminales del Caribe, with the objective of managing the cruise terminals in the ports of Havana, Santiago de Cuba, and Isla de la Juventud.
This operation led to a significant development of the cruise industry in Cuba. Between 1998 and 2005, approximately fourteen British, Spanish, Italian, German, and French cruise lines operated in Cuba.
Silares expanded the Sierra Maestra terminal in Havana, increasing its draft, in addition to other projects such as the construction of a shopping center at the terminal.
The Cubanco company was founded in March 1995 and received a nine-year concession to operate the Sierra Maestra 1 and 2 piers for international cruise ships, as well as to lease the piers covered by the contract.
In October 1998, the Cuban government approved the lease of administrative concessions for several Cuban ports to Silares SA for 20 years, with the possibility of a 20-year extension. The leased piers were Sierra Maestra 1, 2, and 3; the Osvaldo Padrón pier in Mariel; the Rolando Roca Pacheco pier in Santiago de Cuba; Punta Francés; and Matanzas.
This and other initiatives by the Cuban regime resulted in an increase in the number of port calls and passengers. In 1999, Airtours (Sun Cruises) arrived with the Sundream, which carried mostly Canadian passengers. And in 2002, around 45,000 cruise passengers visited Cuba on 60 ship calls, mainly from British and German shipowners. The largest was the German Panamax Arosa Blu. In 2003, the number of calls exceeded one hundred.
In
The departure of the Costa Playa meant that the Cuba destination was unserved, so several cruise lines tried to fill the gap left by Costa Crociere. Only one of them, Club Valtur, actually began marketing cruises from the island.
December 1998, the Italia Prima arrived in Cuba, offering an itinerary from Havana, where the ship stayed for three days, from Sunday to Tuesday. On Wednesdays, it arrived in Calica; on Thursdays, it stopped at the Isle of Youth; on Fridays, it arrived in Montego Bay; and on Saturday, the ship stopped in Grand Cayman. These cruises were marketed in Spain by Marina e Mercantile Consulting, with prices starting at 188,700 pesetas, including airfare.
Later, the Italia Prima slightly modified its itinerary, departing from Havana on Mondays at midnight and arriving in Calica on Tuesdays, where it remained until 6:00 p.m. on Wednesdays.
In August 1999, the ship was chartered for five years by Club Valtur, which began marketing it as the Valtur Prima. These cruises, although primarily aimed at Europeans, were also marketed in the United States, since, as an organized tour, American citizens did not have to spend any money in Cuba. Thus, between May 2000 and January 2001, approximately six hundred Americans visited Cuba thanks to the Valtur Prima.
In October 2001, the September 11 attacks in New York caused a decline in transatlantic tourism, leading Club Valtur to cancel its cruises and the Valtur Prima to be decommissioned in Havana. Another cruise line affected by the September 11 attacks was Spanish Cruise Line. In the winter of 2001-2002, the Bolero was scheduled to offer week-long cruises between Havana, Cancún (Mexico), Isla de la Juventud and Cienfuegos (Cuba), Montego Bay (Jamaica), Grand Cayman, and back to Havana. The first of these cruises was scheduled for December 8, and the last departure was to take place on March 2, 2002. At the end of September 2001, Spanish Cruise Line announced the cancellation of the Bolero's entire winter schedule from Cuba.
Canadian cruise ship passengers were the most numerous in Cuba in 2014.
Festival Cruises' Cuban Experience:
The next cruise line to try its luck in Cuba was Festival Cruises. In January 2002, it announced its "Latin Caribbean" cruise offering from Cuba, featuring the Mistral, which was based in Havana during the winter of 2001-2002. Its itinerary was very similar to that of the Valtur Prima: a two-day stop in Havana, plus stops in Puerto Progreso, Cozumel, Grand Cayman, and Isla de la Juventud. Passengers could also embark in Cozumel. This venture was severely impacted by the September 11 attacks, with a sharp decline in European bookings on the Mistral, which were partly replaced by Mexican passengers.
Festival Cruises' product was seven-night cruises departing from Havana every Friday, with an attractive itinerary that included a day at sea, Progreso, Cozumel, Grand Cayman, Isla de la Juventud, and a return to Havana on Thursday, where the Mistral would remain docked for a full day to facilitate visits to the city's historic center. The first cruise departed on December 21, and the last departure was scheduled for April 26. In February, Cuban leader Fidel Castro visited the Mistral in Havana in support of the cruises, but that winter was the first after the September 11 attacks, and Festival did not achieve the desired results.
To continue operating in this destination, Festival decided to charter the Valtur Prima and renamed it Caribe. The first cruise was supposed to depart from Havana in July 2002, but subsequently, the entire summer season was canceled due to a lack of bookings. The Caribbean's peak season, winter, fared no better, as it was canceled on November 20th by Festival Cruises.
Finally, the first Caribbean cruise departed in December 2013 from Santo Domingo. Festival's bankruptcy in 2004 led to the suspension of cruises. The offered itinerary consisted of a seven-night cruise departing every Monday from Havana, arriving in Calica on Wednesday after a day at sea; Thursday's stop was Grand Cayman; Friday's visit was to Montego Bay. The return to Cuba on Saturday included a stop at the Isle of Youth, and on Sunday, the cruise arrived in Havana, allowing passengers to enjoy the Cuban capital until Monday.
Pullmantur: Cruises with the Holiday Dream.
In 2004, approximately 94,000 cruise tourists arrived in Cuba, with 123 port calls in Havana, Santiago de Cuba, and Punta Francés Beach on the Isle of Youth, in southwestern Cuba.
In November 2004, the Spanish cruise line Pullmantur took over from Festival and began offering the "Caribbean Dreams" itinerary, departing from Havana, with stops in Cancún, Grand Cayman, Montego Bay (a full day at sea on Thursdays), and Isla Paraíso (Paradise Island) on Fridays. Pullmantur Cruises initially planned a Caribbean season extending until April 25, 2005, in collaboration with the Cuban company Cubatur, which, in addition to a week-long cruise, offered the option of an extra stay in Cuba. The season was later extended until the end of the year, maintaining the itinerary, with prices starting at €799, including flights and transfers.
Embarkation was possible in Havana or Cozumel.
However, the hurricanes that struck the Caribbean islands in the fall of 2004 led to the Grand Cayman stop being replaced on the first cruises with the Cuban port of Cienfuegos.
In February 2005, Pullmantur Cruises announced that the new Holiday Dream itinerary had been a resounding success, with more than 18,000 berths sold for 2005.
For its "Caribbean Dreams" cruises, Pullmantur also offered a seven-night stay in a five-star hotel on the Riviera Maya for only €1,099 for an inside cabin, or €1,299 for an outside cabin.
Following the restoration of diplomatic relations between the USA and Cuba, cruises from Florida to Cuban ports are only a matter of time.
Fidel Castro Rejects Cruise Ships.
In early August 2005, the Cuban government denounced the concession for cruise ship port operations held by the Italian/Cuban joint venture Silares Terminales del Caribe, publishing a resolution in the Cuban Official Gazette canceling Silares' monopoly. The resolution stated that Silares would no longer manage port operations and that ownership of the infrastructure and equipment would revert to the Cuban state. The publication did not specify any implementation timeframe, nor whether cruise ships would be allowed to call at Cuba again. This resolution followed statements made in May 2005 by Cuban leader Fidel Castro, who indicated that the island did not need cruise ships, accusing them of "dumping their garbage in our waters for a few miserable cents." It appears that the Cuban state's true intention was to directly exploit the cruise ship business, rather than through a joint venture.
At the end of August, Alfonso Lavarello, president of Silares Terminales Caribe and a former Costa Cruises executive, declared that cruise ship calls in Cuba would continue. He cited two documents, dated 1998 and 2002, guaranteeing that Cubanco would retain the concession for cruise operations until August 6, 2022. Unilaterally revoking these documents could constitute a violation of agreements signed by the Cuban State regarding the protection of foreign investments, with potential consequences for its economy.
This news initially generated understandable concern at Pullmantur. However, the Cuban government's decision did not affect Pullmantur, which had signed a three-year contract, valid from November 2004 to November 2007, with the Cuban Ministries of Tourism and Transportation, as well as with the Cuban Civil Aviation Authority, to offer cruises from the Caribbean island.
Pullmantur's product was more than just a cruise: the Holiday Dream was based and provisioned in Havana, where it remained docked for almost two days (not just a few hours, as Castro claimed). In addition to offering another Cuban stop on Isla de la Juventud, passengers used Havana's airport, arriving on charter flights operated by Pullmantur Air. Most importantly, nearly 80% of Pullmantur passengers opted for the "cruise + stay" package, spending an extra week in Cuba, this time in a hotel. The resulting revenue for Cuba—from port and airport taxes, consumption, direct spending by cruise passengers, and additional hotel stays—was considerable, making this package highly attractive from the recipient's perspective. The average occupancy rate during the Holiday Dream's first year was 85%. Later, Pullmantur Cruises decided to introduce the all-inclusive concept to the Holiday Dream cruises, further improving these figures.
Pullmantur's Departure from Cuba.
But finally, on August 31, Pullmantur Cruises announced that it had accepted an offer from Royal Caribbean Cruise Lines for 700 million euros, of which 430 million were paid in cash and the remainder in assuming Pullmantur Cruises' 270 million euro debt. For the Holiday Dream, this transaction had an immediate consequence, identical to that suffered by the Costa Playa. Due to the Helms-Burton Act, Royal Caribbean could not have any commercial relationship with the Cuban regime, so it had to leave Havana, modifying its Caribbean cruise itineraries to avoid any stops in Cuba from mid-October onward. Furthermore, the Cuban crew members, who were the majority in the ship's dining room and kitchen, began to be replaced.
The departure of the Holiday Dream represented a serious blow to the Cuban economy. In October 2007, the official newspaper Granma estimated that the implementation of the Helms-Burton Act since the fall of 2006 resulted in losses of $11.8 million and 230 jobs. Some 12,000 cruise passengers stopped visiting the largest island in the Caribbean.
Finally, on October 14, the Holiday Dream set sail for the last time from Havana, bound for La Romana, its new home port. The consequence: cruise tourism in Cuba plummeted by 89% between 2005 and 2007, dropping from over 100,000 passengers to 11,000.
Havana's current Cruise Terminal is located in the heart of the historic center.
Happy Cruises, A Single Season from Havana.
In July 2010, Happy Cruises announced its intention to offer cruises from Havana to the Caribbean, becoming the third Spanish cruise line to attempt this venture, between November 2010 and May 2011. A total of twenty-six cruises were offered, all departing on Saturdays.
The main attraction was, once again, the three days the Gemini spent docked in the Cuban capital, from Friday to Sunday. It also called at Cozumel on Mondays (where passengers could also embark), Grand Cayman on Wednesdays, and Paradise Island on Thursdays, along with a full day at sea on Tuesdays.
Prices were offered from €899, all-inclusive, including airfare and transfers from Madrid.
The Gemini's arrival in Havana with 220 passengers of eleven nationalities was a major event in the Cuban capital. The president of Cubatur, Lester Felipe Oliva, stated that “cruise operations have been extremely limited by the American embargo, and the country had practically not been able to operate regular services for three years.”
During the December holiday weekend, a wildcat strike by air traffic controllers in Spain prevented the Saturday departure flight to Havana from leaving, but passengers were able to depart on Monday for Cozumel.
Despite acceptable occupancy, the bankruptcy of Happy Cruises in 2011 dashed any hopes of repeating this initiative. That year, another ship operated from Cuba, the small Adriana, with a capacity of 300 passengers and intended for the Russian market, but it also failed to take off. On one of its voyages, it carried only 62 passengers, making its time in Cuba quite brief.
Cuba Cruise: Havana Returns as Homeport
. Canada is the largest source market for tourists to Cuba. This year, for example, more than 1,071,000 Canadians have visited Cuba, according to data accumulated through October, representing a 13.4% increase over 2014 figures.
With these numbers, it is not surprising that the operator that took over from the Spanish was Canadian. In January 2013, Cuba Cruise, a Canadian company based in Calgary, announced that it had chartered the 960-passenger Louis Crystal from Louis Cruises to offer fifteen cruises from Cuba between December 16, 2013, and March 31, 2014. Cuba Cruise marketed a seven-night itinerary, departing from Havana on Mondays and stopping in Antilla, Santiago de Cuba, Montego Bay, Cienfuegos, and Punta del Francés on the Isle of Youth. The onboard entertainment was 100% Cuban, and success was immediate, thanks to sales in Canada and Europe. The size of the Louis Crystal (160 meters long and 5 meters deep) allowed it access to Cuban ports inaccessible to larger vessels.
Following the success of its first season, Cuba Cruise returned for the winter of 2014/15, again chartering the Louis Crystal, which offered cruises every Monday from Havana and every Friday from Montego Bay, between December 22 and March 30. The president of Cuba Cruise declared that “Cuba welcomed us with open arms, and we won't be saying goodbye anytime soon.” The Canadian operator repeated the itinerary, with stops in Holguín (Antilla), Santiago de Cuba, Cienfuegos, and a longer stop in Punta Francés. After this season, Louis Cruises acquired Cuba Cruise from its Canadian owners.
In its third season, the Louis Cristal, now renamed Celestyal Cristal, arrived in Havana on December 18th after extensive refurbishment that included an increased number of balcony cabins and launched a new itinerary. The voyage includes two days in Havana and a stop at María la Gorda beach in Pinar del Río, on the west coast of the island. It also maintains its stops in Cienfuegos, Montego Bay, and Santiago de Cuba. This winter, the season runs from December 18th to March 21st, 2016. Cuba Cruise is the only cruise product aimed at the mass market that offers a complete tour of Cuba, with a single stop in Montego Bay, Jamaica, taking advantage of its air connections, particularly with the English-speaking world.
Havana's current docks can barely accommodate ships up to 70,000 GT.
December 2014: Obama Makes History.
On December 16, 2014, President Barack Obama and Raúl Castro announced the restoration of diplomatic relations between Cuba and the United States. One of the first consequences was a widespread rise in the stock prices of cruise lines listed on Wall Street: Royal Caribbean gained 6.62% the following day; Norwegian Cruise Line Holdings rose 4.5%; and Carnival climbed almost 3.5%.
The mere 92 miles separating Havana from Key West, the 255 miles between the Cuban capital and Fort Lauderdale, and the 238 miles between it and Miami, open up a vast array of possibilities for Caribbean itineraries, the world's largest cruise destination. If the current process culminates in the complete opening of Cuba to American tourism, it will represent a great opportunity for cruise line operators, and even more so for ferry operators.
Despite this optimism, there is unanimous agreement that no short-term benefits will be seen for major American cruise lines. Firstly, because economic sanctions against the Cuban regime remain in place and must be lifted by the US Congress; and secondly, because several events still need to occur before US-based cruise operators can access Cuban ports. Havana and other ports in the Greater Antilles have been receiving cruise ships for years, but always small vessels from non-US owners. Cuba has a number of deep-water ports that could accommodate mega-cruise ships, but an infrastructure of terminals, berths, fenders, coaches, guides, etc., currently insufficient, needs to be developed. However, if the sanctions are lifted, the necessary port infrastructure will be built faster than the hotel infrastructure, which will facilitate the arrival of cruise ships in the medium term.
Another effect to consider is the revitalization of the Caribbean as a tourist destination. Many American cruise passengers, tired of the Caribbean, may return to sailing those waters just to enjoy ports that have been off-limits to Americans for decades.
For cruise lines, Cuba's proximity to Florida means short distances and, therefore, fuel savings. Calling in Cuba, instead of circumnavigating it as is currently done—given its nearly 1,000-kilometer east-west length—could result in significant savings.
MSC Cruises has demonstrated that a ship can be deployed in Cuba in just six months, so it seems reasonable that they could begin offering calls at several Cuban ports (up to ten) using ship tenders within six to twelve months of sanctions being lifted, while constructing a berth or terminal could take at least two years after obtaining permission from the Cuban government. The brands that would benefit most are those with the strongest presence in the US market in general, and in the Caribbean in particular, especially Carnival Cruise Lines and Royal Caribbean.
The CEO of Carnival Corp & PLC. Arnold Donald declared during the presentation of the 2015 financial results that Cuba represented a "tremendous opportunity," given the "great pent-up demand to visit the island." In fact, his company sought a legal loophole to offer cruises to Cuba from American ports, despite the existing embargo, and found it in the humanitarian voyages that the Phantom brand will offer starting in 2016. These solidarity cruises have allowed Carnival Corp. to be the first to call at Cuba departing from a US port without violating the embargo.
On December 18, 2015, Cuba and the United States decided to reinstate direct commercial flights, suspended decades ago… although tourist travel remains suspended. More than 110 round-trip flights are expected to be authorized daily, so perhaps the true significance of this measure lies in incorporating the airlines into the lobby that seeks to eliminate all restrictions on travel to Cuba, because without tourists, filling all those flights seems unlikely. Until now, itineraries from Cuba have gone south (Jamaica, Grand Cayman) or west (Mexico, Belize), but never north (Florida) or east (Puerto Rico, US Virgin Islands). Therefore, there is considerable room for improvement in the range of itineraries offered.
What seems clear is that the investments in ports, airports, hotels, etc., needed to meet this potential demand cannot come from Cuba, whose economy is roughly the size of the Basque Country's using the most favorable exchange rate indicators. In 2014, Cuba recorded a trade deficit of €7,117.1 million, 9.66% of its GDP, higher than the €5,722.5 million deficit recorded in 2013, or 10.58% of GDP. This situation is due to an increase in imports coupled with a decrease in Cuban exports. With this deficit, it is not surprising that major investments in Cuban commercial ports come from abroad, primarily from China and Brazil.
The number of passengers on the MSC Opera in 2016 will exceed that of all other ships that called at Cuba in 2015.
MSC Cruises' bold move:
On July 3, 2015, MSC Cruises announced it would base a ship in Cuba the following winter. The MSC Opera, initially slated to be based in the Canary Islands, switched from Las Palmas to Havana as its home port and became the first MSC Cruises ship to dock in the Cuban capital on December 18, 2015.
The Opera will offer a total of sixteen Caribbean cruises, with stops in Montego Bay, Georgetown, and Cozumel, although its main attraction is the two and a half days the ship will spend docked in Havana. This itinerary is very typical for cruise lines that can call at Cuba: it is practically the same as the one offered by Thomson with the Thomson Dream, although its passengers, mostly British, embark in the Jamaican port of Montego Bay.
Although discussions between the Cuban government and MSC have been ongoing for some time, it's worth noting that only six months have passed since the announcement of cruises to Cuba and the first port call. In that time, MSC has announced the addition of a second ship, demonstrating the strength of demand for this destination. For Cuban authorities, MSC's arrival in their ports is excellent news: in 2015, they received approximately 20,000 cruise passengers. Assuming the MSC Opera sails at full capacity, its sixteen voyages will bring more than 30,000 people. In other words, the number of cruise passengers in 2016 will easily double that of 2015 thanks to the Opera. During the MSC Opera's first port of call, Cubanacan's director, Oscar Mederos, announced that approximately 600 optional excursions had been sold. These included tours of Havana in the classic American cars still so popular in Cuba, as well as visits to the Tropicana cabaret.
These cruises are sold with flights included and are primarily aimed at the European market (Spain, Italy, France, and Germany), as well as Canada, Brazil, and Argentina. The optional excursions will be offered in conjunction with Cubanacan. The first cruise departed Havana on December 22nd, following a transatlantic cruise to Cuba from Genoa, which sailed on December 2nd. This cruise included a first stop in Havana on December 18th. The MSC Opera will return to Europe after another transatlantic cruise departing on April 12th for the German port of Warnemünde. This same itinerary will be repeated in the winter of 2016/2017.
At the beginning of last December, MSC Cruises announced that it would be dedicating a second ship to Cuba for the 2016/2017 winter season: the MSC Armonia. The ship will offer two different seven-night itineraries, which can be combined into a two-week cruise. The first itinerary, after an overnight stay in Havana, will visit the beaches of Roatán Island in Honduras, Belize City, Costa Maya, and Isla de la Juventud, before returning to Havana. The second itinerary also offers two nights in Havana, plus Montego Bay, Georgetown, and Cozumel. The MSC Armonia was initially scheduled to offer cruises in South America. The contraction of that market may be one of the reasons for the change of destination. Its addition will bring approximately 65,000 MSC cruise passengers to Havana in 2017, bringing the record of 102,000 passengers set in 2005 ever closer.
Both the MSC Armonia and the MSC Opera have recently been lengthened with a new 24-meter section, increasing their total length to 275 meters and their passenger capacity to 2,700. Currently, both ships have the maximum dimensions (the docks even seem a bit small) to berth in Havana at the Sierra Maestra Terminal, so they could be called "Havana max." This represents a significant advantage for MSC Cruises, given that none of the four major cruise lines have ships of this size, and port infrastructure for megaships will take several more years to materialize in Cuba. Royal Caribbean took more than four years to build the port of Falmouth, Jamaica; and Carnival began designing Amber Cove, in the Dominican Republic, in 2012 to ensure its delivery last October. This raises another big question: in the Caribbean, shipping companies are generally the promoters and managers of ports of call. Will that be possible in Cuba in the future?
Arnold Donald, CEO of Carnival Corp&PLC, has stated that Cuba is a great opportunity.
Other International Shipowners in Cuba:
One of the British shipowners most closely associated with Cuba is Fred Olsen Cruise Lines, whose ports it began calling in 2002 with the Black Watch and the Black Prince. The Braemar's 2005-2006 Caribbean program already offered multiple stops in Cuba, both in Santiago and Havana. A year later, in February 2006, the Black Prince made a two-night stop in Havana. A similar program took place in the winter of 2006-2007, including a stop in Havana for the Boudicca. In the winter season of 2007-2008, the Braemar offered several fifteen-night cruises that included stops in Cuba. And that particular ship has maintained an almost constant presence every winter since then. This season, the Braemar is calling in Havana again.
Another British shipowner with a strong presence in Cuba is Thomson Cruises. In the previous decade, its ships were frequent visitors to Cuban ports. For example, in 2009, the Thomson Dream called at Havana twice. However, this presence then disappeared until the winter of 2014-2015, when it again offered, aboard the Thomson Dream, a seven-night circumnavigation of Cuba from Montego Bay called “Cuban Revolution,” which included overnight stays in Havana, Santiago de Cuba, and Holguín. It also offered the “Cuban Fusion” itinerary, also from Montego Bay, with stops in Playa del Carmen, Havana, and Georgetown. This season, Thomson has opted to maintain the “Cuban Fusion” itinerary with its two-day stop in Havana.
Another European cruise line, Star Clippers, deployed its sailing ship Star Flyer to Cuba for a short season of six- and seven-night cruises between February and March 2014. It returned in 2015, and this season offers thirteen week-long cruises from Cienfuegos, with an attractive itinerary including stops at Cayo Largo, Punta Francés (Isla de la Juventud), María la Gorda, George Town, and Cayo Rico, departing on Sundays. Star Clippers has already announced its return in 2017, but then with round-trip cruises between Havana and Cienfuegos. The Greek company Variety Cruises also offers seven-night cruises on its sailing ships Panorama I and Panorama II from Havana, with stops at Cabo San Antonio, Cayo Largo, Playa Girón, Cienfuegos, and Casilda/Trinidad. Another cruise ship owner, Sea Cloud Kreuz, also regularly calls in Cuba during the winter with its famous sailing ships Sea Cloud and Sea Cloud II.
The Port of Havana:
Havana, like San Juan, Puerto Rico, is a city inextricably linked to its bay, which was the center of its economic, political, and social life during the colonial period.
However, Havana Bay is a mix of industrial activities (refineries, shipyards, etc.), monuments (El Morro Castle, or La Punta Castle), and service sector activities, whose boundaries and role are being redefined as it recovers as one of its most important centers of life, based on new recreational, cultural, and commercial functions, generating a significant economic contribution in the process. The Mambisas Terminals Company of Havana is the entity that owns and manages the Port of Havana for the Cuban government.
With an approximate area of 5.2 square kilometers and an average draft of nine meters, Havana Bay stood for centuries as the main gateway for Cuba's trade with the outside world. The entrance to the port is through a 1.5-kilometer-long channel, between 220 and 330 meters wide, with a draft of 12.8 meters. The port is divided into three main zones: Marimelena, Atares, and Guanabacoa.
Marimelena Inlet, in the municipality of Regla, is the most commercial and industrial part of the Port of Havana, including shipyards (such as Galainela, the ENA dry dock, which until recently operated as a joint venture with Curaçao Dry Dock, and the Navy shipyard), the Havana Container Terminal, the Ñico López refinery, and more.
Atares Inlet is the Old Port of Havana, and it houses the cruise terminal, along with several commercial docks. One of the first restoration projects in its facilities was the partial renovation of the Sierra Maestra cruise terminal at the San Francisco dock, during Silares' administration. Originally built between 1910 and 1914, this building reflects the eclectic style of the historic center and is designated a cultural heritage site for its architectural value. The Sierra Maestra terminal features three large piers, only two of which are currently used for cruise ships, allowing four vessels to dock simultaneously. The sheds on the central and southern piers, currently abandoned, will be repurposed for commercial use, with a 400-car parking garage on the ground floor and a shopping center above.
The main building, facing Avenida del Puerto, houses the offices of the Port Authority and Customs, although the construction of a hotel was once considered. The ground floor serves as a promenade connecting it to Plaza de San Francisco, providing continuous access to the waterfront.
The Sierra Maestra Terminal offers drafts of 9.75 meters and has three berths of 201.8 meters, one of 183.5 meters, another of 190.5 meters, and a final one of 171.3 meters. These Havana berths are capable of receiving cruise ships of up to 70,000 tons, with some restrictions. The MSC Opera, for example, is 275 meters long, 75 meters longer than Havana's largest berth, so it will have to drop anchor until urgent work such as dolphins can be installed to increase the berth's length. The Opera docked at Terminal No. 1 in Havana amidst great anticipation from Havana residents, perhaps impressed by the unusual nature of its presence.
Another attraction in this harbor, on the old, disused Wood and Tobacco Pier, is a large brewery, complete with shops and other services, which opened in 2015.
Finally, Guanabaco Cove has seen the least port development.
Plans for the next phase include building marinas facing the Alameda de Paula or a megayacht berth at the Juan Manuel Díaz Pier breakwater, along with a hotel and shopping arcade.
The buffer zone around the bay was not included in the 1982 declaration of Old Havana as a World Heritage Site. However, as a UNESCO requirement for the Old Havana to maintain its status, the dossier is being updated to include all areas bordering the bay, such as Atarés, Regla, Morro, etc. The boundaries have already been defined, and discussions are now underway among all the relevant agencies to ensure compatibility of land use.
Havana will forever be linked to its bay, but perhaps it will be a new bay for a new city, where history, tourism, and the sea will intertwine. In that future, the plans to invest fifteen million dollars in Casablanca, across Havana Bay next to El Morro Castle, might find a place; these plans are currently on hold.
Interview with Emiliano González, MSC Cruises:
Why did MSC decide to enter the Cuba destination?
Without a doubt, Cuba has a unique character in the international tourism market; a hallmark of “authenticity” difficult to find in any other destination. Therefore, and as a demonstration of our firm commitment to offering our clients the best and most sought-after destinations as they become accessible, we have embarked on this project to further enhance our overall offering, while providing travelers with first-class experiences and services.
How has the market received this product? Which source market has performed best in terms of bookings?
The reception so far has been fantastic, and although we are just beginning the first embarkations, we can confirm the strong demand for the product, given the perfect combination of Cuba's appeal as an excellent cultural destination, coupled with the fact that it is offered through MSC Cruises' extensive experience. This new product has been so successful that we recently announced the reinforcement of our presence in Cuba by adding a second ship based in Havana for the 2016-2017 winter season, thus satisfying the growing demand for Caribbean itineraries. MSC Armonia will join MSC Opera in Havana from November 2016 for the entire winter season, allowing us to double our capacity.
Regarding bookings from the different source markets, we can say that, in general, the entire distribution has performed as expected.
What air operations does this product require from Europe?
For the volume of passengers we need to transport to Havana throughout the season, we rely on both special flights from several European cities and seats on other airlines. For Spain, we have direct flights from Madrid with connections from most other cities in the country.
What has been the collaboration of the Cuban authorities? Did they facilitate your disembarkation in Cuba?
Obviously, our success would not have been possible without the full cooperation of the Cuban authorities. Both the Minister of Transport and Tourism of the Cuban Government and his representatives have contributed professionally and consistently.
Furthermore, to offer shore services and excursions, MSC Cruises has partnered with Cubanacan, a group based in Cuba, established more than 20 years ago and known for both its professional expertise and high-quality services.
