President Obama touched down in Cuba last week, making him the first sitting president to visit the nation in eighty-eight years. As the President and the First Family toured the historic center of Havana, they likely witnessed the stunning old city filled with the vintage cars and delicious cuisine that make Cuba unique. As a result of the embargo, Cuba sometimes seems like a land forgotten by time. However, the Cuba that the Obamas are witnessing this week  is very different than the Cuba the average tourist may experience in the next ten years.  As more opportunities for investment and travel open up in Cuba, foreign investors are making moves–especially within the hospitality sector. Consider that Marriott CEO Arne Sorenson is accompanying President Obama on his visit to Cuba–Marriott may be interested in investing on the island. Read on to see which companies are investing in Cuba and why.

Hotels and Hospitality

Starwood Hotels, the company which owns Westin, Sheraton, and W Hotels (just to name a few), made headlines by announcing that it will open three hotels in Cuba.  At the moment, all Cuban hotels are state-owned but Starwood has the financial and organizational power to build hotels that meet the state’s standards. The location of the third hotel has not been made public but the company has stated that the Hotel Inglaterra, which is owned by a Cuban state tourism company, will become one of Starwood’s Luxury Collection hotels and the Quinta Avenida, which is run by a Cuban military-run tourism group, will become a Four Points by Sheraton hotel.

The potential Starwood-Marriott merger that is currently on the table could have a major impact on how these new hotels will be built and run.  On the heels of the Starwood commitment, AirBnB has announced it will open listings on the island by April 2. AirBnB has in fact been planning for the opening of the country for some time now–last year, the company claimed the right to represent all private residences in Cuba. AirBnB’s chief executive Brian Chesky referred to Cuba as the fastest-growing country that AirBnB has ever launched in. Physical accommodation is not the only segment of the tourism sector that is expanding into Cuba: online booking website Priceline, Western Union, and Carnival cruises have all thrown their hats into the ring (Carnival will begin sailing cruises to the island in May). Multiple U.S. airlines have filed for permission to fly commercial flights into Cuba. At the moment, American citizens cannot travel to Cuba on a tourist visa but visas falling under the following twelve categories have been opened:

Family visits, official business of the U.S. government, foreign governments, and certain intergovernmental organizations, journalism, professional research, educational activities, religious activities, public performances, clinics, workshops, athletic and other competitions, and exhibition, support for the Cuban people, humanitarian project, activities of private foundations or research or educational institutes, exportation, importation, or transmission of information or information materials and certain export transactions that may be considered for authorization under existing regulations and guidelines.

Travelers must provide itineraries that justify their visa, but they no longer have to apply for a formal travel license from the government. Ease of travel is drawing a steadily increasing number of Americans to the island. According to  Jose Luis Perello Cabrera, an economist at the University of Havana, there was a 36 percent increase in the number of Americans visiting Cuba between January and May of 2015 alone.

American investors for the most part are flocking to the hospitality industry but there are a handful of cases of more specific investments. Consider Alabama-based Cleber LLC, a tractor company which was the first company to receive joint approval from the Cuban government and the U.S. Department of the Treasury. Cleber LLC is looking to produce tractors in the newly built port of Mariel just outside of Havana, claiming that these tractors will deliver both a financial profit and an ethical good–improving the quality of life of Cuban farmers. Tractors are just one element of machinery that Cuban farms and factories are clamoring for and as the market continues to open, an increasing number of small businesses like Cleber LLC will be given the opportunity to sell their specialized products on the island.

Chinese Investment in Cuba

American companies are not the only investors chomping at the bit to launch projects in Cuba. Venezuela has historically been Cuba’s largest trade partner but in recent years, China has been vying for that position. Cuba has long been reliant on Venezuela for oil but the regime has now turned to China for its technology and infrastructure needs.

American companies such as AT&T have projects in Cuba waiting in their pipelines but Cuban authorities have resisted American telecommunications investment. Instead, they have turned to Chinese operators such as Huawei Technology Co. Ltd., which was tasked with installing fiber-optic connections in Old Havana. Professor William M. LeoGrande of American University has said that “partly that’s a result of the fact that historically we’ve tried to use telecommunications as an avenue to undermine their government, and so consequently they really don’t trust our hardware.”  Silicon Valley tech companies are getting left behind as Huawei installs dozens of Wi-Fi hot spots around the island. Huawei has also partnered with the Cuban telecom company Etecsa to distribute smartphones, further anchoring its brand with the Cuban public.

The economic exchange between the countries has also led to Cuban efforts to break into Asian trade: Cuba’s Havana Club rum has launched major marketing campaigns targeting the Chinese market, hoping that it will be a gateway to Asia as a whole. In 2015, airlines began operating direct flights between Beijing and Havana as both Chinese investment and tourism in Cuba soared. Although Chinese investors have not paid as much attention to the hospitality sector as American companies, China’s Suntine International-Economic Trading Company has partnered with Cuba’s Cubanacan hotel group to launch a new “Hemingway Hotel”–a luxury hotel with a price tag of at least $150 million. If the Hemingway Hotel project succeeds, then Chinese corporations may commit to more hospitality projects–putting them in direct competition with companies like Starwood and AirBnB.

Conclusion

Although foreign investment appears to open up new opportunities for the Cuban people, it has been argued that foreign companies will only further entrench the power of Raul Castro rather than aiding the general Cuban populace. American (and other foreign) companies hiring Cuban workers will not necessarily be allowed to hire employees directly. Instead, they may only be permitted to hire people through state agencies, effectively blacklisting anybody the regime has deemed unacceptable. Foreign investors will pour their money into the regime itself rather than into the individual bank accounts of Cubans who they hire at their enterprises. Cuba is a nation with a rich cultural heritage that travelers have been drawn to for centuries but many Americans are unfamiliar with the island’s government and its approach towards controlling the population. As diplomatic relations between the U.S. and Cuba expand, American investors are trickling into the country, hoping to prepare it for a potential flood of tourists in the coming years.

While Americans seem to have gained the upper hand regarding early investment in hospitality services, Chinese and Venezuelan companies have been positioning themselves to win the contracts on Cuba’s largest infrastructure projects. Tech investment could be a battleground, as Cisco has already committed to a training institute and Google is interested in working on Cuban connectivity but Chinese investment in Cuba’s internet has already put them at a significant advantage. The swell of foreign investment in Cuba may not provide the stability and equality that optimists hope for, but it should not be dismissed outright. Allowing open commerce and investment in Cuba will allow the nation to engage in the global economy in a way that it has never before–but it is, at least at the moment, unclear who will truly benefit from this expansion.

Resources

VOX: Airbnb and American Hotels Aren’t Wasting Any Time Ppening up in Cuba

USA Today: Starwood: 1st U.S. Company to Run Cuba Hotels in Decades

New York Times: American Firm, Starwood, Signs Deal to Manage Hotels in Cuba

CNBC: Marriott, Starwood Team up to Take on Airbnb in New Merger

New York Magazine: Discovering Cuba, One Airbnb at a Time

Financial Times: No Flood of Investment Despite US-Cuba Thaw

ATTN: 12 Ways You Can Legally Visit Cuba

NPR: U.S.-Cuba Ties Are Restored, But Most American Tourists Will Have To Wait

AP News: Stunning 36 Percent Rise in US Visits to Cuba since January

Worker’s World: U.S. Investment in Cuba: How a Little Red Tractor Jumped to Front of the Line

American Enterprise Institute: Why US Investment Won’t Bring Change to Cuba

Wall Street Journal: U.S. Competes With China for Influence in Cuba

Jillian Sequeira

Jillian Sequeira was a member of the College of William and Mary Class of 2016, with a double major in Government and Italian. When she’s not blogging, she’s photographing graffiti around the world and worshiping at the altar of Elon Musk and all things Tesla. Contact Jillian at Staff@LawStreetMedia.com

The post The New Cuba: Who is Investing in the Island? appeared first on Law Street.

Mahana, the latest development in the race to serve millions of diners, will be the most tech-friendly way to do fine dining. Beautifully designed and easy to use, the app offers an array of convenient options to users, including reviews and wait times. The Austin-based company founded last summer just finished its private beta testing phase. The company expects to officially launch the app this summer once public testing closes. With all of its wonderful features, I wanted to know the inspiration behind the app’s creation. Luckily Mahana Co-Founder Richard Bagdonas was kind enough to speak with me about the company’s purpose and plans for future growth.

Mr. Bagdonas, who has been involved in hospitality app development for the last four years, decided to create Mahana in order to fill a need in this huge market.

“Companies wanted it.  I was hearing from restaurant owners that filling orders for pick-up wasn’t the biggest problem.  The problem restaurants are having is that they need more guests inside of the restaurant.  More guests means more need for wait staff and servers and helps owners identify repeat customers.”

The restaurants on Mahana are considered upper casual and fine dining, so a meal for two could range from $100-$120 — locations that most people are unlikely to visit more than once a week. As a result, the ability for participating restaurants to follow who is coming in, what they’re ordering, and how often they frequent the location is an incredibly valuable tool. So far Mahana has been received very well in Austin, and according to Mr. Bagdonas there are “two dozen restaurants on the waiting list.”

When you download the Mahana app, you’re asked to sign in via Facebook. I thought this was interesting but also wondered why the app requires this particular access method. According to Mr. Bagdonas,

“Facebook is very good at identifying if a person is who they say they are.  Years ago, Facebook stopped allowing users to create fake pages so instead of reinventing a verification system, we decided to use one that is already established.  Also, Facebook is good for tracking important dates like birthdays and anniversaries.  Having this information allows restaurants to provide special deals and promotions to its customers based on that information.”

I’ll be honest, I was a little skeptical about this required Facebook integration, but after everything was explained, it makes perfect sense. So now I’m waiting to see what kind of deals my impending birthday may bring my way. Thank you Mahana!

If the idea of finding a charming fine dining restaurant wrapped in a sleek and user-friendly app doesn’t interest you, maybe the other features will. All the information you need from an establishment’s opening and closing times, to the address and telephone number are all provided with a picture of  the restaurant’s interior set as the background. For me, getting a glimpse inside the restaurant is something small, but it’s one of my favorite things about Mahana. It’s hard enough to pick out something to wear when I actually know where I’m going, so imagine what I put everyone through when I’m not sure what the place looks like. This app will save so many significant others from the irritation that goes along with having picky “I don’t know what to wear” partners.

Users have the option of choosing the map view to find a restaurant based on location or they can choose the list view to search the name of a specific establishment. Once you choose a restaurant, make sure your phone’s Bluetooth is on so that the restaurant knows exactly where you are and the app can alert them of your arrival time. Also, for customers with food allergies, you can record this information into the app and trust that this vital information is communicated to the wait staff on your behalf.

Mahana will definitely change how upper casual and fine dining is done. The company does have plans for the app to work nationally, but they’re looking for feedback from users to let them know what areas they should come to next. To learn more about Mahana and persuade them to come to your city, visit their Facebook, mention them on Twitter @getmahana, or visit their website.

Teerah Goodrum

Teerah Goodrum is a Graduate of Howard University with a Masters degree in Public Administration and Public Policy. Her time on Capitol Hill as a Science and Technology Legislative Assistant has given her insight into the tech community. In her spare time she enjoys visiting her favorite city, Seattle, and playing fantasy football. Contact Teerah at staff@LawStreetMedia.com.

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Imagine you’re sitting in a restaurant. It’s not just any restaurant, it’s a very nice, very swanky restaurant. Maybe you’re on a date, or at a celebratory dinner with friends. You order some delectable creation, lean back in your chair, take a bite and…

We’ve all been there. Someone brings a baby to a restaurant and for whatever reason, the baby cannot be calmed. Most people feel bad for the parents, the entire restaurant feels slightly uncomfortable and annoyed, and for the most part, it’s a thoroughly uncomfortable situation. What does the restaurant do?

This weekend, a Chicago-based chef named Grant Achatz took to Twitter to ask that question. He tweeted:

Tbl brings 8mo.Old. It cries. Diners mad. Tell ppl no kids? Subject diners 2crying? Ppl take infants 2 plays? Concerts? Hate saying no,but..

— Grant Achatz (@Gachatz) January 12, 2014

Some background: Achatz has a Michelin three-star rated restaurant called Alinea, the highest ranking possible. It’s well known for very high-end gourmet food that involves a lot of experimentation and deconstruction of flavors.

This weekend, a couple brought in an eight-month old infant who cried for the duration of the parents’ meal. It’s definitely not a family friendly restaurant — it doesn’t have any sort of children’s menu, high chairs, or any other baby accommodations. Also, the way that the restaurant works is sort of unorthodox: you purchase a ticket ahead of time that usually costs somewhere between $210 and $265, and that doesn’t even include tax, drinks, or gratuity.

Achatz doesn’t really think his restaurant is aimed at little ones, either. He also tweeted out this picture as an example of the food that Alinea serves.

Definitely not baby food… @AlineaBaby pic.twitter.com/jQBrp5DwGU

— Grant Achatz (@Gachatz) January 13, 2014

The tweet sparked a debate over whether babies, or children at all, should be allowed in restaurants of such caliber.

It’s definitely legal. A restaurant can restrict the age of its patrons. In fact, many restaurants that turn into bars in the evening don’t allow any guests under 21. And banning children from a restaurant has certainly happened before. In 2011, a relatively casual restaurant located in Pennsylvania banned children under six. And very expensive restaurants have rules that could seem even more asinine — many places institute a dress code. Obviously a child is different than clothing, but a restaurant is private property, and can, within reason, create restrictions to entry.

But because of Achatz’s very public proposal, this whole debate has gone much more viral than past decisions to ban kids. A lot of people supported Achatz’s idea. They pointed out that the experience of all of the other patrons in the restaurant surely outweighs the one couple who brought in their baby. Others pointed out that if you want to bring your baby out to eat, there are plenty of other options, like family-friendly neighborhood joints with great food and a chill vibe. The overall argument seemed to be that the couple just shouldn’t have taken their child into a place like Alinea, which they ostensibly knew was extremely fancy.

Others did rush to the couple’s rescue. The $210-$265 tickets that I mentioned earlier? Yeah, those are non-refundable. They can be sold or given away, but you can’t get your money back. So some of Achatz’ Twitter followers pointed out that the couple may have had a babysitter cancel on them and didn’t want to lose such a hefty sum.

My favorite response? One twitter user, a baker named Robert Alexander asked:

That is a wonderful idea. I don’t go to fancy restaurants very often, but I’m ok with banning babies. I just hope that we also ban, for example, the very drunk lady at the next table over.

So how about a new restaurant rule? Only enter if you are (or are going to act like) an adult.

Also, if you’re interested, check out the Twitter handle someone made for the “Alinea Baby.” It’s pretty funny.

—

Anneliese Mahoney (@AMahoney8672) is Lead Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

Featured image courtesy of [Bridget Coila via Flickr]

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

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