US Banks a Problem

Banks must step up U.S.-Cuban financial services: business group 

Reuters   Jul 1, 2016 07:30 IST


HAVANA U.S. banks are failing to take advantage of looser U.S. restrictions on trade with Cuba and the lack of financial services is hampering U.S. travel and business opportunities, former Secretary of Commerce Carlos Gutierrez said on Thursday.



U.S. President Barack Obama loosened rules on financial services earlier this year, shortly before his historic visit to Cuba, as part of the normalization of relations between the former Cold War foes. But banks have been slow on the uptake, burnt by past sanctions for breaking the embargo.



Only one bank, Stonegate, (SGBK.O) has so far issued U.S. credit cards that can be used in Cuba, so most American travelers have to rely on wads of cash. Companies meanwhile complain they cannot get credit to do business with Cuba.



"Where we have the biggest room to move is on the financial side," said Gutierrez, a Cuban-American and chair of the U.S.-Cuba Business Council, in a phone interview.



"We are at the stage where we can (theoretically) invest, we can use credit cards but we are just not doing it because the banks are not cooperating. They are not getting into the game, they are not getting into Cuba."





Since announcing a historic detente in December 2014, Democrat President Obama has used his executive powers to hollow out a half-century-old U.S. trade embargo on Cuba that only the Republican-controlled Congress can lift.



Washington has, for example, given special permission to U.S. airlines to start scheduled flights to the island later this year and to an Alabama company to build tractors there.



The lack of financial services, however, poses big hurdles to business endeavors like these, said Gutierrez, who is also co-chair of consulting firm Albright Stonebridge Group.





Airlines will have to find alternative ways to collect excess baggage fees as virtually no U.S. credit cards are accepted in Cuba. Meanwhile, the Alabama company is self-financing a $5 million to $10 million plant.



"Financing is important for manufacturing and also if we want to sell Cubans major infrastructure projects," said Gutierrez.



Cuba's long-term trading partners have recently stepped up financing offers in a bid to win investment opportunities on the island before U.S. firms turn up.





"U.S. companies are concerned that a European or Asian company will get in first," said Gutierrez.



Gutierrez said the process of normalization of relations with Cuba was "irreversible" now.



"This is the only election I can remember when both candidates are open to normalizing relations with Cuba," he said. "Maybe they will do it differently but that general direction will continue."

Starwood Manages Its First Hotel in Cuba

Starwood begins managing hotel in Cuba


Wednesday, June 29, 2016
By: Michael Weissenstein
Source: The Associated Press

HAVANA — American hospitality giant Starwood began managing a hotel owned by the Cuban military on Tuesday, opening one of the biggest holes in the U.S. trade embargo on Cuba since Presidents Barack Obama and Raul Castro declared detente in Dec. 2014.

The facade of the 186-room Quinta Avenida hotel in Havana’s upscale Miramar neighbourhood has been emblazoned with the logo of Starwood’s Four Points by Sheraton business travel brand and travellers can now book rooms through Starwood’s website.

The Obama administration permitted the deal with a special Treasury Department license and Starwood announced it on the eve of President Obama’s March visit to Cuba. The stated intention of Obama’s normalization of relations with Cuba is creating more freedom for ordinary Cubans to operate independently of their single-party government, which maintains control of the most aspects of the centrally planned economy.

Allowing a high-profile U.S. corporation to work hand-in-hand with the Cuban military shows both the Obama and Castro governments’ eagerness to build as many economic ties as possible before the president leaves office, said Robert Muse, a Washington-based expert on U.S. law on Cuba.

“It certainly goes further and faster than anyone contemplated,” Muse said. “The Cuban government proved that it can quickly and decisively deal with the U.S. hospitality sector. No reason they can’t do it again and again and again.”

The hotel is being gradually refurbished and equipped with new beds, linens and other amenities. The 180-member Cuban staff has been re-trained by a team of 15-20 Starwood managers from other countries over the last few weeks and will be permanently supervised by about five Starwood managers under the terms of the contract.

Starwood officials said they were investing millions in the rehabilitation of the hotel. They declined to provide a more specific figure.

Visitors to Cuba frequently and bitterly complain about the poor quality of the infrastructure and service in government-run hotels, and online reviews of the pre-Starwood Quinta Avenida offered a sampling of the challenges the company faces.

Though interspersed with some praise, comments ranged from “hallways with dirty carpets full of dust and a wet smell” to “crickets and cockroaches in some parts of the hotels show that they weren’t cleaning much.”

A Gaviota representative declined to comment Tuesday but Pablo Casal, the hotel’s general manager, said he was pleased with the quality of the hotel staff.

“What we’re finding is a willingness to understand what we expect and apply it,” he said. “We’re working very hard, above all, to provide the service that our guests expect.”

In the midst of a boom in tourism to Cuba, the hotel is running at about 80 per cent occupancy. Casal said he hoped to complete the renovation by the end of the year. In the meantime, reservations will come with a disclaimer that the hotel is undergoing rehabilitation.

http://www.travelweek.ca/news/starwood-begins-managing-hotel-run-military-cuba/

Silver Airways Aspires to Serve All Cuba Routes

Silver Airways sees potential gold mine in Cuba

By Robert Silk / June 30, 2016 

Of the 12 U.S. airlines that are awaiting word from the DOT this summer on whether they will be able to fly commercially to Havana, it's possible that none has more at stake than Silver Airways.

The Florida-based regional carrier is gambling that it can score big with opportunities offered by Cuba flights. So much so, in fact, that Silver is the only carrier that applied for service to all 10 of the Cuba markets that will be opened up under the air agreement the U.S. and the island nation entered into early this year.

Silver has already been approved to fly to nine of those locales. Indeed, the carrier's first flight, from Fort Lauderdale to Santa Clara, takes to the sky on Sept. 1. Flights to Camaguey, Cayo Coco, Cayo Largo, Cienfuegos, Manzanillo, Matanzas and Santiago de Cuba are all scheduled to take to the air by Dec. 16. And in the Cayo Coco, Cayo Largo and Manzanillo markets, Silver will be alone along among U.S. airlines, as none of it competitors applied to service those airports.

Historically, Silver has made its income primarily through intra-Florida flights as well as flights from Fort Lauderdale to eight Bahamas locales, mostly from Fort Lauderdale.

At present, of the carrier's approximately 60 roundtrips per day, a bit more than half are within Florida, while Bahamian flights make up about a fifth. Silver also has a mid-Atlantic network based out of Washington Dulles.

That route makeup is about to be rebalanced, however.The DOT has already approved Silver for the equivalent of 5.5 roundtrip to Cuba per day. (That figure includes routes that would travel less than daily, therefore accounting for only a fraction of a roundtrip per day when averaged over a weekly period.)

To prepare for the start of that service, Silver has decided to pull out of Panama City's Northwest Florida Beaches Airport effective Aug. 15, said the carrier's CFO Jason Bewley. Silver currently services Panama City from Tampa and Orlando.

"It's something we thought we should look at going into the off-season as we start Cuba," he said, explaining that the move will enable Silver to shift two of its 34-seat Saab 340B twin-propeller aircraft onto Cuba routes.

Bewley said that Silver doesn't plan to pull out of any other of its 10 Florida destinations, nor does it plan to cut frequencies to them.

But he also said that to the extent that Silver is hinging its broader strategy on Cuba, much depends on being awarded at least one Havana route.

"In order for all nine of the outer cities to work, we really believe Havana has to be part of the mix," Bewley said.

He explained that it's important to the company's strategy that business travelers, expats and even leisure travelers know that Silver is the airline they can turn to for booking to any Cuban destination.

Silver has applied for five daily frequencies to Havana; one each from Jacksonville, West Palm Beach, Key West, Fort Myers and Fort Lauderdale. Getting all those awards is a long shot. The DOT will only award 20 daily flights to Havana, and U.S. carriers have made nearly 60 applications.

Still, Bewley is confident that the DOT will look kindly on the Florida regional carrier, even as it competes against giants like American, Delta, Southwest and United. After all, he said, U.S. authorities worked hard to open up air access to 10 Cuban markets. But only Silver has walked through all of those doors.

"We've made the case to DOT that we're going to serve all 10, but in order to do that, you've got to give us Havana," Bewley said. 

http://www.travelweekly.com/North-America-Travel/Insights/Silver-Airways-sees-potential-gold-mine-in-Cuba

Credit and Debit Cards for Cuba

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Florida Bank Issues First US Credit Card for Use in Cuba



By michael weissenstein, associated press

 ·
HAVANA — Jun 14, 2016, 12:16 PM ET


A small Florida bank will issue the first U.S. credit card intended for use in Cuba and make it easier for Americans to travel and work on an island largely cut off from the U.S. financial system, the bank announced Tuesday.

Pompano Beach-based Stonegate Bank said its Mastercard, available Wednesday, will let U.S. travelers charge purchases at state-run businesses and a handful of private ones, mostly high-end private restaurants equipped with point-of-sale devices. Until now, Americans have generally had to bring cash to Cuba and change it either at state institutions that impose a 10 percent penalty on the dollar or in informal exchanges with locals.

"This is going to be huge for American companies trying to do business down here," Stonegate president David Seleski said.

The card's utility will be limited for the moment, however. Cuba is preventing cardholders from using them for cash advances. And while the bank says there are 10,000 point-of-sale devices across the island, cashiers in state-owned stores often say they are out of service.

The 54-year-old U.S. trade embargo has barred nearly all U.S. financial transactions with Cuba, including direct bank transfers and the use of American debit and credit cards on the island.

A series of exemptions carved out by President Barack Obama after the declaration of detente with Cuba in Dec. 2014 allows American companies to unblock debit and credit card use and open direct links to Cuban banks that permit financial transfers between the two countries.

Stonegate opened an account for the Cuban government and last year became the first institution to issue a U.S. debit card for use in Cuba. The bank says the debit card allows point-of-sale purchases and was briefly authorized for ATM withdrawals before Cuba shut down that capability in order to implement new security measures.

About 100 American individuals and businesses have opened Stonegate accounts with debit cards approved for Cuba, nearly half of them education institutions and travel companies that organize hundreds of trips a year to the island.

The Cuban government is exempting the cards from the 10 percent government penalty on dollar transactions, making them the cheapest legal way for travelers to move dollars to the island.

Cubans receive hundreds of millions of dollars a year in remittances from relatives living in the United States and other countries.

Havana has said it will eliminate the 10 percent penalty altogether once international banks allow the country to carry out international transactions in dollars. The Obama administration has lifted a block on Cuban government dollar transactions, but banks are still declining to process them due to liability fears generated by the trade embargo, which can only be lifted by Congress. Similar fears have stopped other banks from authorizing the use of their credit cards in Cuba.

Cubans can open Stonegate accounts in the United States but are barred from accessing them from Cuba.

Despite the thicket of regulations, Seleski said he is heartened by the fact that his bank is now issuing both credit and debit cards authorized for Cuba.

"It puts pressure on other financial institutions to come to the table," he said. "If you really look at the last 14 months, a lot has happened."

—————

Michael Weissenstein on Twitter: https://twitter.com/mweissenstein

Commercial Flights to Cuba (except Havana)

FACT SHEET – DOT ISSUES ORDER APPROVING U.S.-CUBA SERVICE  TO CITIES OTHER THAN HAVANA

OVERVIEW
On June 10, 2016, DOT issued an order authorizing six U.S. airlines to provide scheduled passenger flights between various U.S. cities and cities in Cuba other than Havana.  DOT’s order grants the applications of American, Frontier, JetBlue, Silver Airways, Southwest, and Sun Country.  These carriers are now authorized to provide various services to Cuban cities other than Havana, from Miami, Chicago, Ft. Lauderdale, Philadelphia, and Minneapolis.  A list of the carriers and routes approved can be found in the Q&A below.
These U.S.-Cuba opportunities are made available by an arrangement between the United States and Cuba that provides for the restoration of scheduled air services between the two countries.  Under the terms of the non-legally-binding arrangement, DOT may allocate up to 20 daily round-trip frequencies for U.S. carrier scheduled passenger or all-cargo services between the United States and Havana.  For scheduled passenger or all-cargo services to and from each of the other nine international airports in Cuba, DOT may allocate up to 10 daily round-trip frequencies at each airport, for a total of 90 daily non-Havana U.S.-Cuba round-trip frequencies.
The requests to serve non-Havana cities were all under the daily cap of 10 flights, and the applications approved by DOT were uncontested on the record.
The Department expects to reach a final decision in the Havana carrier selection proceeding sometime this summer.
DOT did not approve the application of Eastern Airlines.  Eastern’s current operating authority limits it to providing charter flights only.  Furthermore, since Eastern’s eligibility to provide scheduled services is at issue in the larger Havana comparative selection proceeding, this order defers action on Eastern’s request until a decision is reached in the Havana context.
Interested parties may view DOT’s decision and other publicly available documents filed in the case by accessing the Federal Docket Management System at www.regulations.gov and searching for Order 2016-6-5, in Docket DOT-OST-2016-0021.
Q & A
Q.  Why did DOT issue this order, and what does it do?
A.  On February 16, 2016, DOT invited U.S. carriers interested in providing scheduled U.S.-Cuba services to apply for the necessary authority and an allocation of the frequencies available for U.S. carrier scheduled services.  13 carriers filed applications for U.S.-Cuba authority, and seven of those 13 applied for authority to serve cities other than Havana.  The requests to serve the non-Havana cities are all under the daily cap of 10 flights at each of the nine airports, and the applications approved by DOT were uncontested on the record.
Q.  Which airlines will be flying from which U.S. cities to which Cuban cities, and how often?
A.  The authorized airlines, routes, proposed frequency, and aircraft types are summarized in the tables below:

See in chart version here https://www.transportation.gov/sites/dot.gov/files/docs/CubanonHavanaFactSheet.pdf

American Airlines
Routing Frequency Aircraft & Capacity Miami-Santa Clara 2 times daily B737-800 / 160 Seats Miami-Holguin 2 times daily B737-800 / 160 Seats Miami-Matanzas 2 times daily A319 / 144 Seats Miami-Camagüey 1 time daily A319 / 144 Seats Miami-Cienfuegos 1 time daily A319 / 144 Seats
Frontier Airlines
Routing Frequency Aircraft & Capacity Chicago (O’Hare)-Santiago de Cuba 1 time daily A320 / 180-186 Seats Chicago (O’Hare)-Matanzas 1x per week (Sat) A320 / 180-186 Seats Philadelphia-Camagüey 4x per week (Mon, Wed, Fri, Sat) A320 / 180-186 Seats Philadelphia-Santa Clara 3x per week (Tue, Thu, Sun) A320 / 180-186 Seats Philadelphia-Matanzas 1x per week (Sat) A320 / 180-186 Seats
JetBlue Airways
Routing Frequency Aircraft & Capacity Fort Lauderdale-Camagüey 1 time daily A320 / 162 Seats Fort Lauderdale-Holguin 1 time daily A320 / 162 Seats Fort Lauderdale-Santa Clara 1 time daily A320 / 162 Seats
Silver Airways
Routing Frequency Aircraft & Capacity Fort Lauderdale-Camagüey 5x per week (not on Mon & Fri) Saab 340B Plus / 34 Seats Fort Lauderdale-Cayo Coco 3x per week (Tue, Thu, Sat) Saab 340B Plus / 34 Seats Fort Lauderdale-Cayo Largo del Sur 1x per week (Sat) Saab 340B Plus / 34 Seats Fort Lauderdale-Cienfuegos 2x per week (Mon & Fri) Saab 340B Plus / 34 Seats Fort Lauderdale-Holguin 1 time daily Saab 340B Plus / 34 Seats Fort Lauderdale-Manzanillo 3x per week (Tue, Wed, Fri) Saab 340B Plus / 34 Seats Fort Lauderdale-Santa Clara 1 time daily Saab 340B Plus / 34 Seats Fort Lauderdale-Santiago de Cuba 1 time daily Saab 340B Plus / 34 Seats Fort Lauderdale-Matanzas 4x per week (Mon, Wed, Fri, Sun) Saab 340B Plus / 34 Seats
Southwest Airlines
Routing Frequency Aircraft & Capacity Fort Lauderdale-Matanzas 2 times daily B737-700 / 143 Seats Fort Lauderdale-Santa Clara 1 time daily B737-700 / 143 Seats
Sun Country Airlines
Routing Frequency Aircraft & Capacity Minneapolis-Santa Clara 1x per week (Sun) B737 / 126-162 Seats Minneapolis-Matanzas 1x per week (Sat) B737 / 126-162 Seats

Q.  Why these cities and why these carriers?
A.  Seven U.S. airlines applied to provide service to cities in Cuba other than Havana.  With the exception of Eastern Airlines, DOT approved all of the route proposals in full.  Eastern has not completed the licensing steps necessary to conduct scheduled passenger services, and DOT deferred action on its request at this time.
Q.  Can airlines still apply?
A.  Several opportunities remain available at each of the nine international airports in Cuba other than Havana.  Airlines can apply to DOT for an allocation of the available rights at any time.
Under the terms of the U.S.-Cuba arrangement, the DOT may allocate up to 10 daily round-trip frequencies for U.S. carrier scheduled passenger or all-cargo services between the United States and each of the nine international airports in Cuba, other than Havana, for a total of 90 daily non-Havana U.S.-Cuba round-trip frequencies.
Q.  Why did DOT defer action on Eastern’s application?
A.  Eastern Airlines has applied for both Havana and non-Havana scheduled authority, but it has not completed the licensing steps necessary to conduct scheduled passenger services.  Eastern’s existing DOT authority limits it to providing charter flights only.
Several carriers have questioned whether Eastern should be eligible to receive any scheduled Cuba authority at this time.  DOT said that in these circumstances, it believes the best approach is to defer for now action on Eastern’s request for non-Havana authority and consider the matter of Eastern’s eligibility for scheduled service in the context of the Havana proceeding.  In the meantime, Eastern can continue to provide charter service to Cuba as it does now.
Q.  When can I buy a ticket for a scheduled flight to Cuba?
A.  The airlines authorized by DOT are now positioned to seek Cuban government authority and begin making the local arrangements necessary to launch their services.  Most of the airlines propose to begin their services in the fall and winter of 2016/2017, and will likely begin selling tickets well in advance of their planned startup dates.
Q.  How can I buy a ticket?
A.  Most of the airlines propose to begin their services in the fall and winter of 2016/2017 and will likely begin selling tickets well in advance of their planned startup dates.  Airlines will need to market and sell tickets consistent with the laws, regulations, and requirements that remain in affect concerning travel to Cuba.  Travelers should check directly with the airlines for details.
Q.  When will flights start?
A.  The airlines have proposed varying startup dates for their services, but most are planned for fall and winter 2016/2017.  DOT’s order contains requirements that the carriers begin their services within 90 days of the dates the airlines proposed in their applications.

Q.  What opportunities are available under the U.S.-Cuba arrangement?
A.  Under the terms of the U.S.-Cuba arrangement, the DOT may allocate up to 20 daily round-trip frequencies for U.S. carrier scheduled passenger or all-cargo services between the United States and Havana.  For scheduled passenger or all-cargo services to and from each of the other nine international airports in Cuba, DOT may allocate up to 10 daily round-trip frequencies at each airport, for a total of 90 daily non-Havana U.S.-Cuba round-trip frequencies.
Q.  Where can I find the text of the U.S.-Cuba arrangement?
A.  The text of the arrangement can be found on the Department of State’s website at http://www.state.gov/e/eb/rls/othr/ata/c/cu/252525.htm.
Q. When will the Department reach a decision in the Havana carrier selection case?
A.  U.S. carriers have collectively applied for nearly 60 flights per day to Havana, exceeding the 20 daily flights made available by the U.S.-Cuba arrangement.  DOT is reviewing and analyzing the competing applications and will need to select from among them.  We expect to reach a final decision sometime this summer on which carriers, and the markets they propose to serve, will be awarded the authority to conduct scheduled air service to Havana.
Q.  What will happen to the current charter services between the U.S. and Cuba?
A.  The arrangement allows for unlimited charter services to and from any point in Cuba, and the proceeding accordingly is not addressing charter services, which will continue as before.  DOT’s sole focus in this proceeding is on the allocation of scheduled service frequencies.
Q.  What are the nine non-Havana international airports in Cuba available for schedule services?
A.  The nine airports, other than Havana’s José Marti International Airport, that are authorized for international services are:  the Ignacio Agramonte International Airport in Camagüey; the Jardines del Rey Airport in Cayo Coco; the Vilo Acuña Airport in Cayo Largo; the Jaime González Airport in Cienfuegos; the Frank País Airport in Holguín; the Sierra Maestra Airport in Manzanillo; the Juan Gualberto Gómez Airport in Matanzas; the Abel Santamaría Airport in Santa Clara; and the Antonio Maceo Airport in Santiago de Cuba.
Q.  How will these new services be impacted by the remaining laws and regulations pertaining to Cuba travel?
A.  While the new arrangement reflects a major step forward in President Obama’s policy of engagement with Cuba, the Department recognizes that significant limitations and requirements remain in place concerning air transportation between Cuba and the United States.  For example, travel for tourist activities remains prohibited by statute.  Any award of authority in this proceeding will not relieve parties from complying with the applicable requirements and regulations of other U.S. agencies, and with all applicable laws of the United States.  

Q.  Does this order mean that I can travel to Cuba as a tourist?
A.  No. While the new arrangement reflects a major step forward in President Obama’s policy of engagement with Cuba, the Department recognizes that significant limitations and requirements remain in place concerning air transportation between Cuba and the United States.  For example, travel for tourist activities remains prohibited by statute.  Any award of authority in this proceeding will not relieve parties from complying with the applicable requirements and regulations of other U.S. agencies, and with all applicable laws of the United States.  This new arrangement will facilitate visits for travelers that fall under one of 12 categories authorized by the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC).  Prospective travelers should also review OFAC’s Frequently Asked Questions Related to Cuba.
Q.  How do I certify that I fall under one of the 12 approved categories for travel to Cuba?
A.  Travelers are encouraged to check with the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC), and can find valuable information on their website at the link below:
https://www.treasury.gov/about/organizational-structure/offices/Pages/Office-of-Foreign-AssetsControl.aspx
The U.S. airlines authorized to serve Cuba may also have information on their websites to help prospective ticket buyers determine whether they are eligible for travel.
Q.  Do I need a visa to travel to Cuba?
A.  Travelers are encouraged to check with the U.S. Department of State, and can find valuable information on their website at http://www.travel.state.gov
Q.  What are the rules about importing items from Cuba, including cigars?
A.  Significant limitations and requirements remain in place concerning air transportation and travel between the United States and Cuba.  Travelers are encouraged to check with applicable U.S. Government agencies to ensure their travel plans comply with regulations and requirements of those agencies, and with applicable laws of the United States.  Such agencies include, but are necessarily limited to, the Departments of Commerce, Homeland Security, State, and Treasury.  Information on U.S. Government and Cuban Government requirements can be found at the Department of State’s website at the link below.
https://travel.state.gov/content/passports/en/country/cuba.html
Q.  Is there anything I’m not allowed to bring into Cuba?
A.  Significant limitations and requirements remain in place concerning air transportation and travel between the United States and Cuba.  Travelers are encouraged to check with applicable U.S. Government agencies to ensure their travel plans comply with regulations and requirements of those agencies, and with applicable laws of the United States.  Such agencies include, but are necessarily limited to, the Departments of Commerce, Homeland Security, State, and Treasury.
Travelers should also ensure that they comply with Cuban Government requirements.  Travelers to Cuba can find additional information from the Cuban Embassy in Washington, DC.

Information on U.S. Government and Cuban Government requirements can be found at the Department of State’s website at the link below.
https://travel.state.gov/content/passports/en/country/cuba.html


https://www.transportation.gov/sites/dot.gov/files/docs/CubanonHavanaFactSheet.pdf

Iowa Students to Volunteer in Ciego de Avila

UI students to volunteer in Cuba


By: Mikael Mulugeta  |  2016.06.09  |  03:32 pm





As diplomatic relations between the United States and Cuba continue to improve, so does access to the country for United States citizens—including two University of Iowa students.

On June 18, Amira Nash and Benjamin Hyland will travel to Cuba for a two-week service trip as part of the Dr. Ken Magid Child Advocacy Service Scholarship program's annual service trip experience.

"Our trip to Cuba comes at a pivotal time in Cuban-American relations," says Hyland, a second- year economics and international relations major from Vinton, Iowa. "I am truly grateful for the opportunity to travel to a country that has been off-limits to American travelers for so long."

The U.S. has gradually eased travel and trade restrictions on Cuba over the past decade, including three amendments to these restrictions since January 2015.

The Magid scholarship was founded in 2005 by UI alumna Linda Baker after she traveled to Romania as part of the UI Alumni Association's first service-oriented trip. While there, she volunteered at an orphanage, which inspired her to create a scholarship to enable UI students to engage in similar experiences. The scholarship is named for her former mentor, author and child behaviorist Dr. Kenneth Magid.

In its first year, the scholarship could only fund service trips for only two students, and Romania was its only destination. Eleven years later, the Magid scholarship funds trips for six students and has added additional destinations—Ecuador in 2013 and Cuba in 2016. Plans are in the works to add a location in the continental U.S.

The scholarship covers round-trip airfare from Chicago, hotel accommodations, program materials, on-site training, and most meals.

Once in Cuba, Hyland and Nash will travel to Ciego de Ávila to teach conversational English to secondary students and work in a community garden that provides produce to a local food bank.

"They will also be doing other repair and construction projects with community centers and schools," says Diane Baker, director of Alumni Travel. "The intent is still child advocacy, although it's not taking the form of direct child care."

Baker says the service trips can help students gain experience applicable to their fields, build confidence, and help determine if their chosen major is a good fit.

"The program provides a unique combination of many of my interests, including community development, international study, and experiential service," says Hyland.

President Barack Obama's March 2016 visit to Cuba marked the first by a sitting president in 85 years. About 150,000 U.S. citizens traveled to Cuba in 2015, up from 91,000 in 2014, according to the U.S. Council on Foreign Relations.

The program also alleviates the financial burden for students who want to travel and broaden their cultural horizons.

"What you read in a book about a country does not paint a complete picture of that nation and its people," says Nash, a third-year psychology and secondary education major from North Liberty, Iowa.

Baker says it is common for returning students to express a desire to go on more volunteer trips.

"This experience can open up a whole world of possibility to them," says Baker. "Some say they couldn't imagine traveling in the future simply as tourists. They would have to be doing volunteer work of some kind."

Service trips to Ecuador and Romania center on providing direct care to children by playing and socializing with them, feeding them, and providing other related services.

In Romania, UI students volunteer in a hospital where the children range in age from infants to 10-year-olds. Many of the children in this facility have developmental or physical disabilities, and the UI students who participate tend to have health care-related majors, including nursing, physical therapy, and child health.

In Ecuador, UI students work at a conventional daycare where most of the children come from impoverished families; the daycare services allow their parents to go to work. UI students who choose Ecuador as a destination tend to major in social work and elementary education.

In 2011, UI alumna Caroline Halfwassen made twenty quilts for UI students to give to children in Romania and, later,  Ecuador. The quilts are decorated with farm animals, natural landscapes, and medieval castles. Each is embroidered with the words, "From someone who cares in the U.S.A."

Micah Augusma, a student from this year's Ecuador trip, says some of the tasks he performed included helping children learn English, sanding and repainting tables, and renovating high chairs for toddlers.

"This trip was absolutely surreal; it was very humbling," says Augusma, a first-year medical anthropology major from Grimes, Iowa. "I saw that people interpret being poor and rich in different ways. People find ways to be happy with what they have, and it's the little, simple things in life that matter."

The Dr. Ken Magid Child Advocacy Service Scholarship is funded by the UI Alumni Association, and the UI is the only school in the Big Ten Conference to administer service trips through its alumni association.

In 2017, the service trips will open up to alumni as paying travelers who will volunteer at the same destinations.

"We're looking forward to alumni working alongside current students in future trips," says Baker. "It will be a great bonding opportunity for the alumni and current students to learn from each other."

http://now.uiowa.edu/2016/06/ui-students-volunteer-cuba

Cuba Cruise Legal Parameters

P2P Cuba Cruise

http://yourcubacruise.com

Havana – Maria la Gorda - Cienfuegos – Santiago de Cuba -Montego Bay 

Celestyal's Cuba Cruise is without equal for a reasonable cost low stress educational and cultural introduction to all four compass points of the Caribbean's globally significant and largest country.   Since December 2014, there has been steady progress toward a more normal relationship between too long divided neighbors.  Traveling with Cuba Cruise is an enjoyable way to contribute to a historic process of fostering mutual understanding.  (See below for attributes of Cuba Cruise.)

One Easy Steps to Come Aboard

!) Book your cabin and program with a travel agent or on-line here    http://yourcubacruise.com

[FFRD is no longer providing the P2P general license for passengers on Celestyal's Cuba Cruise.  Celestyal believes it can provide legal coverage internally through an affiliated company.]

New regulations were announced on March 16. 2016:

"In the case of an individual traveling under the auspices of an organization that is a person subject to U.S. jurisdiction and that sponsors such exchanges to promote people-to-people contact, the individual may rely on the entity sponsoring the travel to satisfy his or her record keeping requirements ... "*

A general license is not a document.  It is a concept, in effect an entitlement because of who one is or what one is doing.  FFRD is the qualifying organization to sponsor people to people programs in Cuba in partnership with Cuba Cruise. The letter we issue is a courtesy to confirm affiliated participation in the group trip authorized under our general license but the essential requirement is that each passenger is entered in our data base.

An agent of FFRD will be on board to assist you with our program, as required by OFAC.

For your legal protection and ours, we are very serious about making your trip with Cuba Cruise appropriately people to people and thus legitimate under our general license. Participants in Cuba Cruise just like travelers on more conventional (and more expensive) ground tours are purchasing a "full-time schedule of educational exchange activities".  (OFAC's current interpretation of legal requirements is here   http://tinyurl.com/P2Pnew )

On board, please introduce yourself to some of the eighty Cuban staff.  Most speak English and welcome a chance to exchange experiences and personal stories.  They will be part of your life for a very pleasant and meaningful week.  Plan on attending daily talks about Cuban history and culture.

Regulations do not allow us to structure independent excursions into the cruise schedule except on Monday evening in Havana but free time is provided in every port:

"An organization that sponsors and organizes trips to Cuba in which travelers engage in individually selected and/or self-directed activities would not qualify for the general license."*

If you receive a customs form to complete or are asked by US immigration or customs officials what countries you have visited, do not hesitate to say Cuba.  This is a completely legal trip.

Specialized Excursions with Cuba Cruise and FFRD

With at least six weeks notice, encounters can be arranged for special interest groups large enough for a designated bus, e.g. teachers, medical practitioners, lawyers, students, artists, social workers,  dancers, musicians; African Americans, Irish Americans, Chinese Americans, Hispanic Americans; Jewish, Protestant and Catholic faith communities, etc. Supplemental charges will apply.

On request with at least one month notice FFRD will try to arrange an opportunity for you to invite a Cuban professional counterpart to a private lunch in Havana, Santiago or Cienfuegos.

Combine the Cruise with self-directed travel

Americans are welcome to embark in Montego Bay, Jamaica, or in Havana.   New commercial flights offer convenient access to the cruise through international airports in Havana, Santa Clara and Varadero/Matanzas.  This creates an opportunity to organize your own people to people program under an individual general license before or after the cruise.  According to the regulations:

"(1) Travel-related transactions pursuant to this authorization must be for the purpose of engaging, while in Cuba, in a full-time schedule of activities intended to enhance contact with the Cuban people, support civil society in Cuba, or promote the Cuban people's independence from Cuban authorities;
(2) Each traveler has a full-time schedule of educational exchange activities that will result in meaningful interaction between the traveler and individuals in Cuba;

(5) persons relying on the authorization in paragraph (b) of this section must retain records sufficient to demonstrate that each individual traveler has engaged in a full-time schedule of activities that satisfy the requirements of paragraphs (b)(1) through (3) of this section. "*

 For guidelines on use of the individual general license, click here  http://tinyurl.com/P2Pindiv

Insurance

Under regulations announced in January 2015 it became possible for US companies to sell travel insurance for Americans going to Cuba.  Your provider may ask you to complete a Cuba Travel Compliance Certification form which can be sent to you on line or by mail.

No documentation is required from FfRD or Cuba Cruise.  The form doesn't even ask how and when you are going to Cuba.  The completed form is sent to the insurance agent, not to FFRD.

Their coverage for Cuba is by reimbursement which means Cuba will still require you to have local insurance from Asistur.   You can obtain it through Cuba Cruise.

John McAuliff
Executive Director, Fund for Reconciliation and Development
Coordinator, Cuba/US People to People Partnership

Riverhead, NY
director@ffrd.org

917-859-9025                                                                                                                 5/23/16

                 * https://www.federalregister.gov/articles/2016/03/16/2016-06018/cuban-assets-
                   control-regulations#h-16

We encourage travelers to urge their Senators and Representative to support legislation to end all travel restrictions so the above becomes unnecessary.  For list of House members who support and oppose the President's opening of travel, go here  http://cubapeopletopeople.blogspot.com/2015/07/vote-tally-and-debate-in-house-on.html

*******************************************************

OFAC Language to Stop Bank and Paypal Account Freezes

There have been numerous instances of Paypal and bank transfers, checks etc. frozen because "Cuba" was mentioned in a memo line.  The following language should end that problem but it is safer to avoid all Cuba references.

UPDATED NOVEMBER 25, 2015 BY THE OFFICE OF FOREIGN ASSETS CONTROL

52. Is a financial institution required to independently verify that an individual’s travel is authorized when processing Cuba travel-related transactions? No.  A financial institution may rely on U.S. travelers to provide their certifications of authorized travel directly to the person providing travel or carrier services when processing Cuba travelrelated transactions, unless the financial institution knows or has reason to know that the travel is not authorized by a general or specific license.

The CACR requires persons subject to U.S. jurisdiction providing travel or carrier services to retain for at least five years from the date of the transaction a certification from each customer indicating the section of the CACR that authorizes the person to travel to Cuba.  See § 515.572(b).  U.S. travelers utilizing a general or specific license are also required to retain for five years records associated with their travel to Cuba.

53. May a person subject to U.S. jurisdiction utilize online payment platforms to facilitate or process authorized transactions involving Cuba or a Cuban entity?  Yes.  Subject to certain exceptions, transactions that are ordinarily incident to an authorized transaction are authorized.  Such transactions may include use of online payment platforms to facilitate authorized transactions.  Please see the interpretive guidance in 31 CFR § 515.421.

https://www.treasury.gov/resource-center/sanctions/Programs/Documents/cuba_faqs_new.pdf

   

Distinguishing characteristics of Celestyal's Cuba Cruise 

1) Three years of experience; hosted 6,000 very diverse Americans in 2015-2016 season 
2) One more port, Isla de la Juventud
3) Longer time on the ground in Cuba (5 vs. 3 1/2 days) 
4) Interact for full week with eighty Cuban staff and crew including lectures by two University of Havana professor, animators, musicians, singers, dancers, chefs, waiters and cabom stewards. Most speak English.
5) High level Cuban guest experts speak about current issues 
6) Opportunity to fly on scheduled commercial flights to Havana, Varadero/Matanzas or Santa Clara on Friday or Saturday; self-directed casa particular weekend under individual general license or group program through tour operator or travel agent under FFRD general license; then join full cruise program on Monday 
7) Opportunity to disembark in Santiago, enjoy its night life and fly home on Sunday on a commercial flight 
8) Extensive live Cuban entertainment on board, including professionally produced nightly shows, classical and Cuban music, and a performance of Afro Cuban religious music and dance by N'Sila che che. 
9) Opportunity to choose for Havana night-life a reasonably priced performance by Opera de la Calle ("Music of the Street"), the first large scale private cultural production 
10) Significantly lower all inclusive cost (with all but top shelf drinks provided)
11) Montego Bay, Jamaica, interlude; excursion or beach time for passengers boarding in Havana