Dec. 18–An easing of trade with Cuba more than 50 years since the start of the United States’ cold war with the small island nation would undoubtedly benefit Florida — and especially South Florida, home of the nation’s largest community of Cuban refugees.
That’s the assessment of economists and private companies in the hours after President Obama’s announcement ending the country’s decades-long policy of isolating the communist country.
In South Florida especially, “It looks like it could be a significant economic boon down there. No one is better poised,” said University of Central Florida economist Sean Snaith.
But no one should break out the champagne just yet. “This is not the end of the story,” said Jorge Salazar-Carrillo, a professor of economics in Florida International University’s School of International and Public Affairs. “It’s going to be a tough go with Congress. I see it playing out slowly in coming months.”
Structural and political changes will have to take place in both nations before large-scale trade and investment can happen, he said. They include changes in Cuban laws governing property ownership, banking and imports, as well as a change to U.S. laws prohibiting imports of Cuban goods, he said.
Tourism between the two nations stands to grow rapidly, but only Congress can lift the ban on ordinary Americans traveling to Cuba for pleasure. Changes announced by Obama on Wednesday would immediately allow travel licenses for family visits, journalists, professional research and professional meetings, educational and religious activities, performances and athletic competitions, humanitarian projects and certain trade-related activities.
In a statement, leading online travel company Orbitz Worldwide — a proponent of liberalizing travel between the two nations — said it looked forward to the day “when all Americans have the opportunity to travel to Cuba.”
“There are numerous economic, social and cultural benefits that will flow from free and open access, and our customers are eager to visit Cuba,” the company said.
Florida shouldn’t expect an immediate flood of tourists, but the lack of tourism facilities in Cuba could lead to South Florida serving as “a hub” for travel to and from the nation, said Nicki Grossman, president of the Greater Fort Lauderdale Convention & Visitors Bureau, Broward County’s tourism marketing arm. “The first effect would likely be felt in our airport and seaport,” she said. “Our doors are open, and we would be delighted to welcome new visitors from all over the world.”
Jorge Pesquera, president & CEO of Discover The Palm Beaches, the official tourism marketing organization for Palm Beach County, said it’s too early to gauge the full effect on tourism. Still, “Florida and Cuba enjoyed mutually beneficial trade and economic relations in the middle part of the 20th century, and this is welcome news that those relations may soon be re-established.”
Obama’s action authorizes trade with Cuban private companies in building materials for private homes, goods for entrepreneurs and farm equipment for small farmers.
Further easing of relations could bolster opportunities to shore up the island’s long-neglected infrastructure, Snaith said. “It’s a developing country,” he said. “There are a lot of needs in terms of capital-intensive goods they can’t produce themselves.”
Long-term investors might look at real estate and home construction, Salazar-Carillo said. “There are many derelict homes that need all kinds of refurbishment.”
Cuba’s recent experiment allowing foreign real estate investment might be expanded, but waiting in the wings are titleholders of all the property seized in the 1959 revolution, he said.,
Cuba’s decrepit automobile stock would be in line for a major upgrade that the U.S. is positioned to fill. The nation legalized ownership of automobiles again by Cuban citizens in 2011, but foreign imports available so far have been prohibitively expensive, Salazar-Carillo said.
The nation’s health and education systems are also “becoming derelict,” he said.
Local economic development leaders said they needed time to analyze President Obama’s actions before they would be qualified to predict what the announcement could mean for the local economy.
“We just found out the news today like everyone else,” said Ron Drew, senior vice president of marketing and communication for the Greater Fort Lauderdale Alliance, “but until we see how its going to be structured, we don’t have enough details to know what the economic impact will be in Broward County.”
Staff writers Arlene Satchell and Miriam Valverde contributed to this report.
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