ⓘ Tourism in Cuba

Tourism in Cuba

ⓘ Tourism in Cuba

Tourism in Cuba is an industry that generates over 4.7 million arrivals as of 2018, and is one of the main sources of revenue for the island. With its favorable climate, beaches, colonial architecture and distinct cultural history, Cuba has long been an attractive destination for tourists. "Cuba treasures 253 protected areas, 257 national monuments, 7 UNESCO World Heritage Sites, 7 Natural Biosphere Reserves and 13 Fauna Refuge among other non-tourist zones."

Having been Spains closest colony to the United States until 1898, in the first part of the 20th century Cuba continued to taken advantage of by big investments, creation of industries, and travel to support mostly US interests and corporations. Its proximity and close relation to the United States also helped Cubas market economy prosper fairly quickly. As relations between Cuba and the United States deteriorated rapidly after the Cuban Revolution and the resulting expropriation and nationalisation of businesses, the island became cut off from its traditional market by an embargo and a travel ban was imposed on U.S. citizens visiting Cuba. The tourist industry declined to record low levels within two years of Castros accession to power. Unlike the US, Canada normalised relations with Cuba in the 2010s and Canadians increasingly visited Cuba for vacations. Approximately one third of visitors to Cuba each year in 2014 are Canadians. The Cuban government has moderated its state ownership policies and allowed for localised and small private business since 1980. It also pursues revitalisation programs aimed at boosting tourism. United States reestablished diplomatic relations with Cuba in 2015 and the tourism industry is expected to greatly benefit from normalised relations with US in the near future.


1. Overview

Until 1997, contacts between tourists and Cubans were de facto outlawed by the Communist regime. Following the collapse of Cubas chief trading partner the Soviet Union, and the resulting economic crisis known as the Special Period, Cubas government embarked on a major program to restore old hotels, remaining old pre-communism American cars, and restore several Havana streets to their former glory, as well as build beach resorts to bolster the tourist industry in order to bring in much needed finance to the island. To ensure the isolation of international tourism from the state isolated Cuban society, it was to be promoted in enclave resorts where, as much as possible, tourists would be segregated from Cuban society, known to as "enclave tourism" and "tourism apartheid". By the late 1990s, tourism surpassed Cubas traditional export industry, sugar, as the nations leading source of revenue. Visitors come primarily from Canada and western Europe and tourist areas are highly concentrated around Varadero, Cayo Coco, the beach areas north of Holguin, and Havana. The impact on Cubas socialist society and economy has been significant. However, in recent years Cubas tourism has decreased due to the economic recession, escalating foreign investment conflicts and fears, and internal economic restrictions. Since its reopening to tourism in the mid-1990s Cuba has not met the projected growth, has had relatively little restoration, and slow growth. A lack of foreign investment has also had a negative effect. Since then, the Dominican Republic has surpassed Cuba in tourism, new development, and investment.


2. History

Cuba has long been a popular attraction for tourists. Between 1915 and 1930, Havana hosted more tourists than any other location in the Caribbean. The influx was due in large part to Cubas proximity to the United States, where restrictive prohibition on alcohol and other pastimes stood in stark contrast to the islands traditionally relaxed attitude to leisure pursuits. Such tourism became Cubas third largest source of foreign currency, behind the two dominant industries of sugar and tobacco. Cuban drinks such as the daiquiri and mojito became common in the United States during this time, after Prohibition was repealed.

A combination of the Great Depression of the 1930s, the end of prohibition, and World War II severely dampened Cubas tourist industry, and it wasnt until the 1950s that numbers began to return to the island in any significant force. During this period, American organized crime came to dominate the leisure and tourist industries, a modus operandi outlined at the infamous Havana Conference of 1946. By the mid-1950s Havana became one of the main markets and the favourite route for the narcotics trade to the United States. Despite this, tourist numbers grew steadily at a rate of 8% a year and Havana became known as "the Latin Las Vegas".

Immediately upon becoming President of Cuba after the Cuban revolution of 1959, Manuel Urrutia ordered the closing of many bars and gambling halls associated with prostitution and the drug trade, this effectively ending Cubas image as a hedonistic escape. A new governmental body, the National Institute of the Tourism Industry INTUR, was established to encourage more tourism; taking over hotels, clubs, and beaches making them available to the general public at low rates. Tourist board chief Carlos Almonia announced a program of huge investment in hotels and the creation of a new airport. But fears of Cubas post-revolutionary status amongst Americans, who constituted 8 out of 10 of visitors, meant a rapid decrease in travel to the island.

In January 1961, relations between the nations deteriorated as a result of bank and business expropriations, mass exodus, summary executions, and private property being declared illegal by a now openly communist regime being backed by the USSR. Tourism travel to Cuba was soon declared by the U.S. State Department to be contrary to U.S. foreign policy and against the national interest. Tourism that year dropped to a record low of a mere 4180, forcing a dramatic downsizing of Cubas tourist plans. Visitors to Cuba during the 1960s, 70s and 80s were comparatively rare. The number of tourists to the island did increase slowly, but it wasnt until 1989 that they were to equal pre-Revolutionary numbers.

The collapse of the communist regimes in Eastern Europe in 1989 and the fall of the Soviet Union in 1991 caused a crisis in the Cuban economy. The Soviets were Cubas chief trading partner, and had effectively sheltered Cubas sugar industry with large subsidies for 30 years. The lack of economic diversification during this period, and the sudden loss of key markets sent the country into a deep economic depression known in Cuba as the Special Period. The crisis precipitated the communist regime to find new avenues of income.

Policies were drawn up to satisfy the growing tourist markets of Canada and Europe with an aim to replace Cubas reliance on the sugar industry and gain much needed foreign currency rapidly. A new Ministry of Tourism was created in 1994, and the Cuban state invested heavily in tourist facilities. Between 1990 and 2000, more than $3.5 billion was invested in the tourist industry. The number of rooms available to international tourists grew from 12.000 to 35.000, and the country received a total of 10 million visitors over that period. By 1995 the industry had surpassed sugar as Cubas chief earner.

Today, travelers from around the world visit Cuba, arriving by a mixture of scheduled and charter airlines to one of Cubas ten international airports. By far the largest number come from Canada, where arrivals have been increasing by almost 10% annually since 2007. Europeans follow next, primarily arriving from Great Britain, Spain, Italy, France and Germany. According to the official government agency, it is unknown exactly how many Americans traveled to Cuba each year as tourists, in violation of U.S. trade policy. According to some statistics around 20.000 to 30.000 Americans illegally traveled to Cuba every year, while the Cuban government put it higher at over 60.000. Americans could either fly on the direct charter flights or reach Cuba via flights from Canada or Mexico. In June 2016, the US government authorized six airlines to start direct scheduled flights to Cuba. In January 2015, the US government had changed their legislation to make it easier for travel from the US to Cuba, further amended in March 2016. While parts of these loosened restrictions were later revoked by President Trump in 2017, travel to Cuba remains legal for US citizens who meet certain requirements. As of 2019, Americans are legally allowed to go to Cuba with an OFAC self-reporting General License if they meet the requirements for one of the 12 categories of legal travel. Independent travelers to Cuba can qualify for the "Support for the Cuban People" category by maintaining a full-time schedule of activities that fulfill this requirement.

Until 2015, all visitors paid a $25 exit tax at the airport prior to departure but this is now included in the costs of the flight.


3. Foreign investment

Foreign investment in the Cuban tourism sector has increased steadily since the tourism drive. This has been made possible due to constitutional changes to Cubas socialist command economy, to allow for the recognition of foreign held capital. By the late 1990s, twenty five joint foreign and domestic venture companies were working within Cubas tourist industry. Foreign investors and hoteliers from market based economies have found that Cubas centralized economy and bureaucracy has created particular staffing issues and higher costs than normal. An additional factor cited by foreign investors is the degree of state involvement at the executive level, which is far higher than average.

The influx of foreign capital, and associated capitalist management methods, led outside observers to question whether Cubas socialist system could survive the resulting transformation. Fidel Castro responded in 1991,

"In the conditions of a small country like Cuba. It is very difficult to develop. relying on ones own resources. It is for this reason that we have no alternative but to associate ourselves with those foreign enterprises that can supply capital, technology, and markets."

Castro was also of the belief that despite the undeniable influence of "capitalist ideology", socialism would prevail both in Cuba and the wider "battle of ideas".

One of the most notable developments in recent years has been Chinas investment in Cubas tourism sector. As of 2018, Chinese companies had invested over 700 million U.S. dollars in the construction of hotels other tourism projects.


4. Tourism and the environment

The Cuban government has established safeguards designed to ensure that tourism and other development do not result in significant environmental impacts. The development of new tourist facilities and related infrastructure in Cuba must, among other things, proceed in accordance with Cuban environmental laws and policies. In 1995 the Cuban government established the Ministry of Science, Technology, and Environment CITMA and in 1997 the National Assembly has enacted Law 81 of the Environment, one of the most comprehensive "framework" environmental laws in the region. Pursuant to that Law, the government adopted a number of decree laws and resolutions aimed at ensuring that future development including tourism development is sustainable. Of particular importance to tourism development is Decree Law 212, Coastal Zone Management, which establishes setbacks and other siting requirements for new facilities in coastal areas. CITMA Resolution 77/99 requires a thorough environmental assessment of major new construction projects and requires that project developers obtain an environmental license from CITMA.


5.1. Tourism by sector Health tourism

As well as receiving traditional tourism revenues, Cuba attracts health tourists, generating annual revenues of around $40 million for the Cuban economy. Cuba has been a popular health tourism destination for more than 20 years. In 2005, more than 19.600 foreign patients traveled to Cuba for a wide range of treatments including eye surgery, neurological disorders such as multiple sclerosis and Parkinsons disease, and orthopaedics. Many patients are from Latin America, although medical treatment for retinitis pigmentosa, often known as night blindness, has attracted many patients from Europe and North America.

Some complaints have arisen that foreign "health tourists" paying with dollars receive a higher quality of care than do Cuban citizens. Former leading Cuban neurosurgeon and dissident Dr. Hilda Molina asserts that the central revolutionary objective of free, quality medical care for all has been eroded by Cubas need for foreign currency. Molina says that following the economic collapse known in Cuba as the Special Period, the Cuban government established mechanisms designed to turn the medical system into a profit-making enterprise, thus creating a disparity in the quality of healthcare services between Cubans and foreigners.


5.2. Tourism by sector Mountain tourism

The recent studies shows that Cuba has a huge potential for mountaineering activity, however, it is not utilized properly. The mountaineering in Cuba should be considered to be one of the key contributors to the development, prosperity, and well-being of all stakeholders, and especially for the communities outside the tourism enclaves. Furthermore, mountaineering regions mostly lie outside the enclaves, so no conflict will exist between active and all-inclusive tourism. And what is most important is that tourism product diversification both product and spatial can be achieved. Furthermore, by creating spatial and thematic product links as well as synergies also with all-inclusive tourism, mountaineering, as well as other forms of active tourism often develop in destinations.


5.3. Tourism by sector Sex tourism

Although Fidel Castro sought to eliminate prostitution after taking power, the discrepancy between typical Cuban wages less than one US dollar per day and the spending power of foreign tourists lures some Cubans, including minors, into prostitution. However, allegations of widespread sex tourism have been downplayed by Cuban justice minister Maria Esther Reus. According to the Miami Herald, prostitution is not illegal in Cuba, but procuring a prostitute for others is outlawed. The age of sexual consent on the island is 16. According to a travel advice website by the government of Canada, "Cuba is actively working to prevent child sex tourism, and a number of tourists, including Canadians, have been convicted of offences related to the corruption of minors aged 16 and under. Prison sentences range from 7 to 25 years." It is illegal to import or produce pornography in Cuba.

While the growth of tourism has benefited the city of Havana economically, there have been several negative side effects. One such side effect is the revival of sex tourism in the city. Sex tourism was a central part of the tourism industry before the Revolution. However, after 1960, prostitution was essentially eradicated on the island due to government initiatives and a significant drop in demand as tourism was minimized. With tourism becoming more prevalent in the 1990s, however, so did the practice of prostitution. The demographic profile of tourists the overwhelming majority being men between ages 25–60 is a key indicator of the existence of prostitution. Additionally, websites and magazines, such as Playboy, have outlined the opportunities for both heterosexual and homosexual sex tourism. According to Trumbull, many prostitutes engage in the practice out of economic necessity, but they do not work in oppressive conditions and a large number of prostitutes in contemporary Havana see the work as a way to earn a better living than if they were to work in open jobs throughout the city. Therefore, contemporary prostitution is different than the sex tourism of the 1950s in this regard.


6. Tourism: Economic Reform

Cuba remains one of the few countries with an economy established by a centralized government. Among those countries, only Cuba possesses a large international tourism sector. The fall of the USSR and the U.S embargo imposed in 1961 affected Cuba’s tourism sector. Cuba was dependent on the USSR and after its collapse saw tourism as an option to reduce the effects of the crisis. Cuba’s touring numbers began to decrease during the 1960s through the 1980s due to the U.S embargo during the Cold War. Additionally, almost 62.000 tourists traveled to Cuba in 1960, 4180 tourists in 1961 and then almost zero over the next 20 years. Also, new hotels were built and old hotels were renovated to draw more international visitors. When Raul Castro rose to power in 2008, he implemented infrastructure reform to help reduce the effects of the Cuban revolution. The Cuban government built beach resorts in order to further expand tourism. Castro’s reform policies led to increased tourism and large economic success in Cuba. In fact 2.7 million people visited Cuba in 2011, while only 340.000 people toured Cuba in 1990. The National GDP increased from 30.69 billion in 2002 to 114.10 billion in 2010. While infrastructure reform benefitted Cuba’s GDP and tourism numbers, average spending decreased from $1.310 in 1995 to $876 in 2015. Furthermore, Cuba ranks one of the lowest for returns in the travel industry. Contributing to the low rank: low quality food, poor customer service, and affordability. These issues must be resolved in order to maintain Cuba’s tourism economically in the long-term.


7. Casas particulares

In the context of tourism, a private residence in Cuba which has been converted to allow paid lodging, usually on a short-term basis, akin to bed and breakfast residences elsewhere, is usually referred to as a "casa particular", which simply means "private house". These are typically single-family residences, and are a very popular choice for tourists. Prices can range from 15 to 30 euros per night or less for longer stays. The casas provide an inexpensive option for young or independent tourists. A stay in a private casa allows tourists more opportunity to mix with local Cubans, and engage in Cuban cultural life.


8. Social impacts of tourism

As tourism played an increasing role in the economy, a large percentage of young people migrate to resort towns seeking employment in the tourism industry. Many of them working in menial jobs can earn more through tips than they can employed as professionals. Thus, there is an economic and social divide emerging in Cuba between those employed in the tourist industry and others.


8.1. Social impacts of tourism Tourist vs Cuban hotels

Between 1992 and 2008, in order to gain the much-needed hard currency, some hotels and resorts were opened only to foreign tourists, leading to accusations of "tourism apartheid". The policy was reversed by the Cuban government in 2008.

Cubas tourism policies of the early 1990s, which were driven by the governments pressing need to earn hard currency, had a major impact on the underlying egalitarianism espoused by the Cuban revolution. Two parallel economies and societies quickly emerged, divided by their access to the newly legalized U.S. dollar. Those having access to dollars through contact with the lucrative tourist industry suddenly found themselves at a distinct financial advantage over professional, industrial and agricultural workers.

To ensure the isolation of international tourism from Cuban society, tourism was to be promoted in enclave resorts where, as much as possible, tourists would be segregated from Cuban society. This was not lost on the average Cuban citizen, and the government tourism policy soon began to be referred to as "enclave tourism" and "tourism apartheid".

In 1992, as Cuba entered a period of severe economic austerity, Fidel Castro defended the newly instituted policies in a speech to the Cuban National Assembly. He described the moves as an economic necessity that would need to be maintained for as long as the country had a need for foreign currency. According to Castro, the government was "pondering formulas" that would allow Cubans to use some of the tourist facilities as a reward for outstanding work, but he believed that giving Cubans access to amenities at the expense of paying foreign tourists would ultimately be a counterproductive move for the economy.

Until 1997, contact between tourists and Cubans was de facto outlawed, and Cubans seen in contact with tourists were regarded as potential thieves by police. Global human-rights groups complaints, and the upcoming visit of The Pope, helped cause an about-face, although such contact is still frowned upon. Police often demand identification checks of any Cubans seen in contact with tourists. Tourist identification is usually not checked unless the tourist has dark skin and is mistaken for Cuban. Despite the restrictions, average Cubans thrive on Cubas tourist industry, and many simply see the policy as inevitable.

The policy of restricting certain hotels and services to tourists was ended by the government of Raul Castro in March 2008. As well as officially allowing Cubans to stay in any hotel, the change also opened access to previously restricted areas such as Cayo Coco. However, access remains very limited in practice, as the vast majority of Cubans do not have access to the hard currency needed to stay in such hotels.