Amid thawing U.S.-Cuban relations, Carnival Corp. plans to start cultural cruises to the island nation next year, a move that would give it early access to the communist country.
Carnival said it won U.S. Treasury Department approval for the trips under its new fathom brand, which targets travelers who want to combine volunteering with vacations.
The company plans to use a 710-passenger ship for the seven-day cruises, targeting “cultural, artistic, faith-based and humanitarian” experiences between Americans and Cubans. Carnival is still in talks with Cuban authorities to gain their approval.
“This will be the first time in well over 50 years that a cruise line can take passengers to Cuba and return,” Carnival Chief Executive Arnold Donald said Tuesday. Cruise lines from other countries already stop at the island.
Since the U.S. and Cuba announced their détente in December, U.S. companies from banks to phone companies have been evaluating business opportunities on the island despite decades-old laws that still ban most U.S. business and travel.
Last week, the U.S. and Cuba announced they will formally restore diplomatic ties and reopen their embassies. Most trade with Cuba remains illegal, and Congress will have to approve legislation to change that.
But the country is slowly starting to open up. Airbnb Inc. added Cuba to its home-rental site earlier this year. And this past spring the Treasury Department granted licenses to four U.S. firms to operate ferry service to Cuba for the first time in more than half a century.
Tourism to Cuba isn’t yet permitted, and there are currentlyonly a dozen approved categories for visits, including family visits and professional meetings. By designing its proposed cruises to Cuba as cultural exchanges, Carnival was able to qualify under the approved categories.
The entire cruise industry is looking forward to an end to the embargo because of pent-up demand from American travelers.By getting in early, Carnival will also have an advantage, even if it must start with a relatively small ship, said Robin Farley, a cruise-line analyst with UBS.
Carnival’s cruisers will have to spend eight hours a day on shore in Cuba because of U.S. rules, executives said on a conference call with journalists. The ship will likely dock in three different locations during the seven days. Carnival is listing the seven-day cruises to Cuba at $2,990 a person excluding taxes and other fees. That’s about double the cost of similar trips to the Dominican Republic, which start at an all-inclusive $1,540.
It is unclear what the actual trip activities will be when the cruises start in May. Carnival executives said it will probably take long discussions with local officials to determine the best activities for travelers. Cultural exchanges in the country have already been established.
“The critical thing is that we go in to do what seems to be important to the people there,” Mr. Donald said. “We’re not coming in with preconceived notions.”
Carnival initiated its socially conscious cruise model as a way to attract younger passengers whose motivation to travel includes engaging in social-impact activities like planting trees for reforestation, helping small businesses get up and running, and practicing English with local students. It started taking bookings in June for its first such cruises to the Dominican Republic next April.
Once cruises to Cuba begin, the company plans to alternate week long cruises on the same ship to the two destinations.
