Exploring Business Opportunities in Cuba

We’ve launched a new thought leadership series with our IPREX partners called Global Perspectives. Each month we will look at a global issue and share our perspective on the business implications and communications challenges involved with the selected topic.

Our first Global Perspectives tackles the changes in Cuba.

Read below for thoughts on doing business into Cuba from IPREX partners around the world.

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BEIJING  “Closer economic ties between Cuba and the U.S. are to be welcomed, especially as global trading patterns are evolving and becoming much more multilateral. Chinese trade with Latin America has grown rapidly in recent years, surpassing US $258 billion in 2014.

“China is the second-largest trading partner of many countries including Argentina and Cuba, and a primary source of credit. That is a massive change from 1990s, when China ranked just 17th on the list of Latin American export destinations.”  Maggie Chan, Director, Greater China, Newell PR

 

BERLIN – “Cuba is a country in transition – that is the impression of two ORCA executives who travelled the country in October and December 2015. A number of small but profound changes are transforming everyday life on the Caribbean island. Small business is gaining ground, Cubans are becoming private employers, and tourism is booming; new resorts are popping up on wonderful beaches. The run on the Cuban market has already begun.

“The German Vice Chancellor recently visited the island, accompanied by a business delegation 60-strong, with the aim to boost economic cooperation. He emphasized that “German firms can offer Cuba very good solutions, particularly in the fields of energy, health, machinery and plant engineering.” As specialists in public diplomacy, we can assist with these development opportunities.  Michael T. Schröder, Managing Director, ORCA Affairs

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DALLAS  “While U.S. restrictions have eased for certain industries, it is only the first step on a much longer road to normalized U.S.-Cuba relations. There are still strict regulations regarding how U.S. businesses must operate in Cuba.

“It is important that businesses beginning to serve the Cuban marketplace choose a partner that understands the complexities of a market that has been off-limits to Americans for 50 years.” Jody Venturoni, Partner, LDWWgroup

 

FORT LAUDERDALE  “How to do business with Cuba is a major topic of interest in South Florida, where conversations are happening between Cuban and American entrepreneurs.  While the Castro dictatorship understandably remains a source of outrage for Cuban-Americans and others, President Obama’s reopening of diplomatic relations between the United States and Cuba and allowing certain types of trade has generated tremendous interest in the business community.

“Cuba’s potential for airlines, cruise lines, hotels and other travel-related companies is obvious, but will not be realized until the embargo is lifted. Meanwhile, companies of all sizes should focus on cultural exchange and philanthropic work to build the relationships and brand recognition they will need when trade barriers are removed.” Jane Grant, President, Pierson Grant Public Relations

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MADRID – “Cuba is still a very special economy with two currencies. A gigantic state apparatus controls the commercial activity with a bureaucracy typical of a country that is not democratic. Therefore, any company that wants to invest there must keep in mind some peculiarities.

“Cuba is a country where market prices are imposed, free competition does not exist and tariffs are not the same for everything, even if the imported product is the same. Additionally, the only source of news is the government. Cuba will be a good country in which to invest, but not yet.” Mayte González-­Gil, CEO, poweraxle and IPREX EMEA President

 

MEXICO CITY  “The relaunch of relations between Mexico and Cuba is related to the deepening project of updating the economic and social model driven by President Raul Castro in his country. During May 2014, a Mexican business mission formed by 68 Mexican businessmen representing 48 companies took place. This is a clear sign that opportunities are coming.”Horacio Loyo Gris, Co-Founder, Dextera Comunicación

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NEW YORK  “The richness and worldwide popularity of Cuban music begs interesting business opportunities that may be had by activating and empowering the island’s wide array of talent and intellectual property in the field.

“Exploring partnerships with U.S. brands and makers of musical instruments and pro audio equipment, U.S. agencies may be able to enter Cuban markets and in turn capitalize on the opportunities to produce, promote and help develop Cuban artists in a worldwide stage, also using them for marketing, PR campaigns and content, much like Win Wenders and co. did with the Buena Vista Social Club, minus all the trade restriction headaches he endured at the time!”  Raul Gonzalez, Director, RGAA PR, a partially-owned subsidiary of French/West/Vaughan

 

SAN FRANCISCO  “Cuba is a long way from becoming a priority consumer market for U.S. companies. Most Cubans make an average of $20 per month. Other emerging markets with an established middle class offer opportunities to U.S. companies without as much uncertainty. However, one of the biggest opportunities for U.S. companies is in the Cuban travel sector. European and Canadian hotels have been doing business in Cuba for years.

“Given its geographic location, U.S. travel would benefit from entering the Cuban market. U.S. companies entering the Cuban market will have a need in Cuba for public affairs, employee recruitment and employee communications. These U.S. companies will also have a need for issues management here in the U.S., as some opposition remains (among Cuban-Americans) toward U.S. companies doing business in Cuba.”  Juan F. Lezama, Director, Mosaico, the Latino Division of Fineman PR

Read more perspectives in IPREX Voices: http://www.iprex.com/iprexvoices/

Mark O'Toole

About Mark O'Toole

Although Mark regularly creates meaningful, sustained relationships for clients, secures media coverage that builds no matter how long a client engages with HB, and consumes every type of media every single day, he knows PR is not about traditional media anymore. For Mark, PR has never been about media, but rather about helping clients meet business goals. By constantly applying his marketing mentality to solving business challenges, Mark created a platform that catapults client campaigns to new levels.

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