Cuba has opened a free trade and manufacturing zone at a port on its northwest coast, the third such, zone created by the island this year as part of a strategy to attract more foreign investment. The zone occupies a former military base at the port of Mariel, 37 miles west of Havana. All the Cuban zones are modeled on existing free trade zones in the Caribbean, and Central and South America. They offer total exemption from import duties and varying exemptions from corporate and labor taxes depending on whether manufacturing or services are involved. MORE ECONOMIC DEVELOPMENTS IN CUBA
by
Marc M Harris
The installation covers more than 500 hectares (1,235 acres) and includes a small airport with a 1.5-mile runway and cargo ship docking facilities. The site has existing warehouses and space for additional construction. Cuban officials say the location and infrastructure of the Mariel zone make it the most attractive of the three free trade zones. The other two zones were started in May, both near Havana. A fourth zone is planned in a south coast port. Cuba hopes the free trade zones will bring in more foreign investors, especially in export manufacturing.
In the tourism sector, SuperClubs, the Jamaican hotel chain that pioneered the all-inclusive resort concept in the Caribbean, has become a major player in Cuba. Chairman John Issa said that SuperClubs is adding five hotel properties to the one that it now operates in Varadero Beach. The expansion will bring the number of SuperClubs rooms in Cuba to 1,250 and should move the chain into the No. 2 spot among foreign hotel operators in Cuba. Sol Melia, a Spanish group with more than 2,000 hotel rooms on the island, occupies the top spot. SuperClubs has operated the 270-suite all-inclusive Club Varadero in Cuba since 1990. The new Cuban SuperClubs also will be all-inclusive resorts where room, all meals, snacks, entertainment and drinks are included in a single tab.
According to Issa the SuperClubs expansion is a result of seizing the moment before the big US chains have a chance to move into Cuba. It is Mr. Issa's opinion that it is just a matter of time before Cuba and the United States resume relations.
The international community has awakened to the many opportunities that are to be found in Cuba.
About the Author Marc M. Harris is the President of The Harris Organisation, a financial planning and investment management firm with a staff of 150 people in Panama. One of their affiliate companies is Havana Holdings Investment Trust.
Copyright © 1997 by Marc M. Harris
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