Both governments are seeking ways to work together and attract new tourists
Colombia’s president’s time in office has represented change in the South American country. Juan Manuel Santos managed to sign a peace treaty with the FARC, one of the oldest guerrillas in Latin America that had been instigating a war against the government for the more than 50 years. This action earned Santos a Nobel Peace Prize which has attracted the attention of the international community.
Meanwhile, Colombia suffered from economic distress as the international oil supply shock devaluated the Colombian Peso (COP) by 41.3% in comparison to the dollar from its December 31, 2012’s levels, according to the COP/USD FX chart. This created the perfect condition for travelers to venture into the South American country; anyone that bought pesos with dollars, euros, or yens could have, what seemed, great quantities of money to invest.
In the Caribbean country, Raul Castro has made various efforts to distance himself from the policies of his late brother Fidel Castro. During the last couple of years, this new approach seemed to be beneficial for Cuba as its ties with the United States improved; there was a normalization of diplomatic relations between both nations. As of right now, things don’t seem to be advancing. The current situation that involves Donald Trump, the president of the North American nation, could set the island back a couple of years when it comes to the economical aspect of it.
A Nash equilibrium rises as both nations have the incentives, both economic and political, to cooperate due to their recent experience. Both nations have experienced a rapid shift in their macro-economic trends at a time when it has become vital for both countries to set a strategy for the future. Relying on tourism seems like an adequate approach for Colombia and Cuba; this new strategy is targeting millennials, a newer generation that will constitute 35% of the workforce by 2020, according to ManpowerGroup. Millennials are special for this scenario as their abstract profile favors experiences over possessions.
Colombia and Cuba hold potential for exploration, development, and the creation of experiences that may attract crowds from all over the world; unifying and unveiling immense opportunities for commerce, international investment, and sustainable social development for the years to come.
Latin American Post / David Eduardo Rodriguez Acevedo
Copy edited by Susana Cicchetto