Bermuda warned of Cuban threat
onslaught on its business that will come with the opening up of Cuba.
That is the view of Mr. Bob Dilenschneider, a former CEO of the world's largest public relations firm, New York-based Hill & Knowlton, which used to represent Bermuda overseas.
Let there be no mistake that foreign currency-starved Cuba and Bermuda will be in the same market for visitors, said Mr. Dilenschneider, who holidayed in Bermuda last week.
"There's going to be a tremendous explosion of activity in Cuba once it opens up,'' he said.
"It could even get back to the pre-revolution days when it was considered to be the chic place to visit, full of charm and excitement.'' He forecast that hundreds of millions of American investment dollars will pour into the poor Caribbean island to build hotels, casinos and a modern tourism infrastructure.
Americans would be falling over themselves to be among the first visitors, including many of the high-spending travellers -- those who think nothing of spending $500 a day -- who might normally consider coming to Bermuda.
"I have to believe that virtually every airline worth its salt -- American Airlines, Delta, USAir -- will put on big time promotions,'' he said.
"New, modern hotels, with all the latest facilities, will be built and they will run packages considerably below the prices of Bermuda and even places like the Bahamas, Jamaica and Puerto Rico.'' He added: "There's no doubt that the opening of Cuba will cause Bermuda numerous challenges, particularly since it's so close to the US, only some 90 miles off the southern tip of Florida.'' Bermuda needed to re-train its tourism staff, modernise and re-equip its hotels, he warned.
Tax advantages could be introduced to encourage hotels to spruce up their Bermuda operations, he said.
For example, there could be the implementation of a one or two year moratorium on customs duties for items such as hotel furniture and air conditioners.
"Although Cuba's in an ideal position to go into tourism in a big way, Bermuda has an opportunity to prepare itself for the occasion,'' said Mr.
Dilenschneider. "It might have two years to prepare before Cuba opens up, although on the other hand, it might only have a few months.
"Now is the time for Bermuda to sort out exactly where it wants to go in tourism and figure out how to make this place the destination of choice for the 21st century.'' Mr. Dilenschneider left Hill & Knowlton to form his own group of public relations companies, representing blue-chip clients such as Chase Manhattan Bank, First Boston, and Pepsico.
During his career, he has been in charge of promoting the interests of many countries, including France, Morocco and Hong Kong, and American cities like Dallas.
He has also written three books -- "A Handbook of Public Relations'', "Power and Influence'', which was a US bestseller and "A Briefing for Leaders'' -- and plans a third, called "On Power'', due out next spring.
He has visited Bermuda some 40 times either on holiday or business and knows the Island well.
"Bermuda has one of the finest franchises in the world, there is no doubt about that,'' he added.
"In theory, it might not have to do much at all to stay as a blue-chip destination, but it could also use the threat of Cuba as a weapon to call the Island to attention and determine policy changes, such as the introduction of casinos.
"Bermuda has had it pretty good for the last 30 or 40 years: why not use this period of uncertainty as an opportunity to make it as good if not better for the next 30 or 40 years?'' Mr. Bob Dilenschneider.
