There is a long way to go before Starbucks, Dunkin Donuts and Walmarts start popping up all over Cuba, but it’s safe to say the entrepreneurial wheels are already turning. With President Barack Obama’s surprise announcement Wednesday, it is never too early for US merchants to start thinking about the opportunities resulting from the eased Cuba embargo on the communist island. There are a host of industries that will be looking to cash in.
4 Industries That Will Benefit from the Eased Cuba Embargo
A provider of merchant accounts to e-commerce, POS and MOTO businesses worldwide, Instabill serves more than 60 industry types, including four that could be impacted by the Cuba embargo lift.
- Travel and Tourism: Pundits believe the travel and tourism industry will see the initial benefits from the eased Cuba embargo, contingent upon eased travel restrictions. Cuba is not very high on anyone’s list of dream getaways, but mere curiosity could draw US tourists. Before too long, it could become a popular one day stop for cruise ships. In 15-20 years, however, it could rival Caribbean resorts as a vacation spot.
- Hospitality: It goes hand in hand with travel. It will take a few years, perhaps, but resorts, inns and motels make sense for Cuba’s pristine beaches.
- Cigars and Tobacco: Cuban cigars are known to be the highest quality in the world. The impact it may have on the US tobacco industry remains to be seen. Could e-cigarette exports be far behind?
- Import/Export: Along with cigars and tobacco, Cuba is known for its farming – particularly its sugar and coffee industries. Within a few years, consumers could be seeing K-cups imported from Cuba on store shelves.
The One Thing That Needs to Happen
One of the few communist countries left on the globe, trade with Cuba would be a whole lot more interesting (and profitable) if it moved toward a democracy. The wealthy make up a very small percentage – government officials, their families and military leaders. Using the US as a reference point, the remainder of the Cuban population is largely in poverty. There is virtually no middle class.
The news of improved relations between the US and Cuba is merely days old, but by all accounts it seems the government will attempt to maintain control while trying to capitalize on opportunities with American businesses. As long as the Cuban government continues to control its major industries, trade between the two nations will not nearly reach its potential. In 15-20 years — should it embrace capitalism — Cuba could be the nation it was in the 1950s with burgeoning tourism, hospitality and imports. In the meantime, merchants should proceed with caution.
High Risk Merchant Accounts With Instabill
Instabill has provided merchant accounts to high risk businesses since 2001. The lifted economic sanctions against Cuba, in time, could present a whole new market for e-commerce and point of sale (POS) businesses. To find out more about Instabill’s high risk options, select the live chat button below or speak with a live merchant account manager at 1-800-318-2713.