Cuba Policy Foundation

   

FOR IMMEDIATE RELEASE – Tuesday, June 25, 2002   

Contact: Brian Alexander   (202) 321-CUBA (2822)

  

CONGRESS MOVES TO END CUBA TRAVEL BAN;

BILL TIMED WITH NEW TRAVEL STUDY

      

TRAVEL-RELATED GAINS OF UP TO $1.9 BILLION AND OVER 12,000 JOBS FOR U.S. ECONOMY FOLLOWING LIFTING OF EMBARGO

    

Tuesday, June 25, 2002, Washington, D.C. – At a press conference today, Representatives Jeff Flake (R-AZ) and Bill Delahunt (D-MA) announced a bill that would end the ban on U.S. citizens from travel to Cuba.  The bill, which it is anticipated will be co-sponsored by the entire forty-four member, bipartisan House Cuba Working Group, would allow unrestricted American travel to Cuba. 

  

The announcement of the bill was timed with the release of a new study that reveals the benefits to the American economy of travel to Cuba.  The study, commissioned by the Cuba Policy Foundation, reveals that in travel-related gains alone, a total lifting of the embargo would produce $545.6 million and 3,797 American jobs after one year; the fifth year out, the U.S. economy would gain over $1.9 billion dollars in income and 12,180 jobs.  Simply allowing U.S. carriers (airlines and cruise ships) tour operators to operate in Cuba would yield for the American economy $522.6 million the first year, and $1.6 billion with 10,749 jobs in the fifth year from travel-related gains.  SEE TABLE 1.  The full study is available at: http://www.cubafoundation.org/CPF Cuba Travel Study.htm. 

     

“The ban on travel to Cuba is hurting the U.S. economy.  Ending restrictions on travel to Cuba and allowing U.S. carriers and tour operators to provide services to American travelers would provide a much-needed source of growth to the U.S. travel sector, particularly the troubled airline industry,” according to Ambassador Sally Grooms Cowal of the Cuba Policy Foundation.  SEE TABLE 2.

  

“Americans want to travel to Cuba, and a growing bipartisan coalition in Congress supports them.  It is time U.S. policy reflects the sentiment in Congress and the will of the American people,” said Ambassador Cowal.  According to an April 2001 poll by the Cuba Policy Foundation, 66.8 percent of Americans think Americans should be allowed to travel to Cuba.  In July 2001, the House of Representatives voted 240-186 in support of a provision that would end enforcement of the travel ban and another similar vote is expected this year.  The newly formed House Cuba Working Group, a bipartisan coalition of 22 Republicans and 22 Democrats, includes ending the travel ban as one of its legislative priorities.  “This new bill is another reflection of the majority will of the Congress,” said Ambassador Cowal.

  

If the Cuba Working Group travel bill is enacted into law, there would be a positive effect on the U.S. travel industry.  “The Cuba Working Group bill would produce gains somewhere between the first and second scenario benefits, leading to potentially hundreds of millions of dollars of gains for the U.S. economy,” according to Ed Sanders, co-author of the Cuba Policy Foundation travel study. 

   

 

TABLE 1.  Summary of Total Economic Benefits

  

                                                                  Year One                                    Year Five

     Scenario                    Total Income     Total Jobs         Total Income     Total Jobs

1.  End Travel Ban             $8.5 million             86                 $23.9mil.             239

2.  Allow U.S. Carriers       $522.6 mil.         3,224             $1,695.6 mil.       10,749

3.  Lift Embargo                 $545.6 mil.         3,797            $1,972.4 mil.       12,180

__________

  

  

TABLE 2.  Fifth Year Economic Benefits from Lifting the Embargo by Travel Sector
  
                                         Income                        Jobs
Direct Benefits

-  Airlines                              $595,000,000            2,975

-  Cruise ships/ferries               247,000,000            1,907

-  Tour operators                        63,000,000              630

-  Travel agents                          21,000,000              210

-  U.S. hotels                           102,000,000              652

-  U.S. other                               10,000,000               56

    

Indirect/Induced Benefits       934,000,000             5,769

    

Total                                   $1,972,000,000          12,180

__________

 

Source: “Economic Benefits to the United States from Lifting the Ban on Travel to Cuba,” prepared by Ed Sanders and Patrick Long, University of Colorado at Boulder, for the Cuba Policy Foundation, Washington, DC, June 2002.

  

For more information, please contact Cuba Policy Foundation.

  

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