The capital of Havana, the epicentre of Cuba's coronavirus outbreak, will be off-limits to international visitors. Unsplash
The capital of Havana, the epicentre of Cuba's coronavirus outbreak, will be off-limits to international visitors. Unsplash
The capital of Havana, the epicentre of Cuba's coronavirus outbreak, will be off-limits to international visitors. Unsplash
The capital of Havana, the epicentre of Cuba's coronavirus outbreak, will be off-limits to international visitors. Unsplash

Cuba to open for tourists 'soon' with coronavirus tests and Havana off-limits


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Cuba will test all visitors for coronavirus when it reopens to international tourism, which will be limited at first to the beach resorts at the keys (or cayos) of the Caribbean's largest island, Prime Minister Manuel Marrero Cruz said on Wednesday.

Unveiling cautious plans for lifting Cuba's partial lockdown, Marrero Cruz said specialists would conduct epidemiological monitoring at hotels, where occupation would be limited. Excursions would be restricted to the keys.

Visitors would not be able to visit Havana, the centre of Cuba's outbreak, at first.

Cayo Blanco is a small island of the north of Cuba, near the town of Varadero. Unsplash
Cayo Blanco is a small island of the north of Cuba, near the town of Varadero. Unsplash

In his presentation to the council of ministers, reported by state-run media, Marrero Cruz did not give a time frame for the reopening to tourism, one of the cash-strapped country's top sources of hard currency.

The prime minister said Cuba would open first to domestic tourism and further details would be announced soon.

"There will not be a brusque opening in the first phase," he said, adding that avoiding a new outbreak was a priority.

New cases have dropped to less than 10 per day on average from a peak of around 50, and two-thirds of the island is virus-free, according to official data.

A cluster of other Caribbean islands have already opened to international tourism or will do so this month, with tests mandatory for some and not for others.

Marrero Cruz said public pools can reopen for summer at 30 per cent capacity. Beaches will also reopen, with local authorities ensuring social distancing, but summer carnivals will not take place this year.

Schools will reopen in September to finish the current year with the new one starting in November, while public and private transport will be restored gradually, he said.

Face masks will remain obligatory in all public spaces in a first phase, and then in spaces with a concentration of people.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.