
{"id":256906,"date":"2022-08-22T11:54:30","date_gmt":"2022-08-22T15:54:30","guid":{"rendered":"https:\/\/oncubanews.com\/en\/?p=256906"},"modified":"2022-08-22T11:54:30","modified_gmt":"2022-08-22T15:54:30","slug":"construction-of-new-hotels-in-cuba-in-times-of-crisis","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/cuba\/economy\/tourism-in-cuba\/construction-of-new-hotels-in-cuba-in-times-of-crisis\/","title":{"rendered":"Construction of new hotels in Cuba in times of crisis"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In the cafeteria of the luxurious Grand Aston hotel in Havana \u2014 <\/span><a href=\"https:\/\/oncubanews.com\/cuba\/cuba-comienza-a-funcionar-hotel-del-grupo-indonesio-archipielago-international\/\" target=\"_blank\" rel=\"noopener\"><b>inaugurated in March<\/b><\/a><span style=\"font-weight: 400;\"> \u2014 there are more waitresses than guests, to the point that in the middle of a summer afternoon the employees joke: \u201cThere is even time to think.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">From this imposing building, with 600 rooms, which can cost up to 200 dollars a night, you can see the iconic Malec\u00f3n seaside drive of <\/span><a href=\"https:\/\/oncubanews.com\/en\/tag\/havana\" target=\"_blank\" rel=\"noopener\"><b>the Cuban capital<\/b><\/a><span style=\"font-weight: 400;\"> from a row of empty tables and a refrigerator with foreign beers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are hardly no visiting guests. But not only here, but in a great many of island\u2019s hotels, some of them built and opened in recent years, coinciding with the serious crisis that the country has been facing since 2020.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cI became aware (about the lack of tourists) when I looked from my room to the street the next morning and there was no one. It is true that it seemed strange to us,\u201d Valerie, a 20-year-old Frenchwoman together with her friend Shawnee, 19, confesses from the lobby of the Habana Libre Hotel.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although hotel occupancy in Varadero \u2014 the main sun and beach destination in Cuba \u2014 is higher than in Havana and the island is not in high season \u2014 coinciding with winter in the northern hemisphere \u2014 the figures used by experts reaffirm the perception of these two girls.<\/span><\/p>\n<p><b>Tourists and rooms<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The occupancy rate in accommodations in Cuba remained at around 50% between 2016 and 2020, according to official data collated by economist Pedro Monreal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The number of rooms, for its part, has risen by more than 25% since 2016. If at the beginning of that year there were 62,000 rooms, the Ministry of Tourism (MINTUR) currently speaks of 78,862, of which 74% are in 4- and 5-star facilities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Monreal adds that in the last biennium, while the gross domestic product (GDP) fell by more than 7%, the State spent nearly 1.5 dillion dollars on hotels.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The construction of new tourist rooms \u2014 which this economist estimates to be the bulk of the \u201cbusiness services, real estate and rental activities\u201d item \u2014 came close to 50% of the investment between 2020 and 2021.<\/span><\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"Isg7k43bCI\"><p><a href=\"https:\/\/oncubanews.com\/en\/opinion\/columns\/counterbalance\/tourism-much-more-than-buildings-hotels\/\">Tourism: much more than buildings-hotels<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Tourism: much more than buildings-hotels&#8221; &#8212; OnCubaNews English\" src=\"https:\/\/oncubanews.com\/en\/opinion\/columns\/counterbalance\/tourism-much-more-than-buildings-hotels\/embed\/#?secret=Lpf2ikfPgq#?secret=Isg7k43bCI\" data-secret=\"Isg7k43bCI\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p><span style=\"font-weight: 400;\">In the first three months of 2022, the construction of hotels, as well as other aspects related to tourism, accounted for 35% of total investments, according to data from the National Office of Statistics and Information (ONEI).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This means that 20 times more was invested in this area than in public health (1.7%) or education (1.2%), according to official figures.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The increase in the number of rooms contrasts with the ups and downs that the number of tourists has suffered mainly due to political vicissitudes and the pandemic.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the first semester, Cuba received 682,297 international travelers, five times more than in the same period of the previous year, but still far from the more than 2 million that arrived in the first six months of 2019, before the outbreak of the coronavirus.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The country\u2019s authorities expect the arrival of 2.5 million tourists by 2022, a figure that the consulted experts have questioned whether it can be achieved with the current trend.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before the pandemic, in 2018 and 2019, Cuba attracted between 4 and 5 million international travelers a year.<\/span><\/p>\n<p><b>Lack of understanding<\/b><\/p>\n<p><span style=\"font-weight: 400;\">These figures have generated a lack of understanding among certain Cuban sectors, as the government itself has recognized, something in part related to the current adverse economic context.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cuba has been going through a serious crisis since 2020 as a result of the pandemic, the tightening of U.S. sanctions and errors in national management.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cuban President Miguel D\u00edaz-Canel recognized this year during a tourism fair that the country\u2019s investment effort in this sector \u201cis not always understood by part of the population\u201d and emphasized the need to work on the \u201cefficiency\u201d of the sector.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The experts, for their part, do not share the government\u2019s diagnosis.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The construction of new hotels \u201cis not justified,\u201d Cuban economist Mauricio de Miranda told EFE. \u201cAt no time in recent times has there been an occupancy that really indicates that it is necessary to increase the number of rooms,\u201d he said.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Pavel Alejandro Vidal, associate professor at the Javeriana University of Cali (Colombia), agrees with this opinion, although he adds that tourism \u201chas maintained acceptable levels of efficiency\u201d and highlighted that \u201cit is the only sector in which a national recovery can be propped up.\u201d<\/span><\/p>\n<p><b>State bet<\/b><\/p>\n<p><span style=\"font-weight: 400;\">This commitment to increasing the hotel offer has its roots in a 2016 MINTUR plan that contemplates the construction of more than 100,000 rooms by 2030.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The document was woven at a time when the Cuban gaze was focused on the potential of the U.S. market, the largest and wealthiest in the Caribbean region, as a result of the \u201cthaw\u201d process with the United States during the administration of Barack Obama (2009-2017).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Two years later, and with Obama\u2019s roadmap squandered by his successor, Republican Donald Trump, the MINTUR drew up the 2018-2030 Development Plan with a view to opening 216 new hotels.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe cannot wait for the blockade to end to build the hotel plant,\u201d Diaz-Canel justified then, hoping that the sector would become \u201cthe locomotive of the national economy.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">EFE contacted the MINTUR to be able to include its position and arguments, but for the moment it has not received a response.<\/span><\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"Yk0BUH3Xzd\"><p><a href=\"https:\/\/oncubanews.com\/en\/cuba\/cuba-luxury-paseo-del-prado-hotel-changes-its-name-and-reopens-as-of-august\/\">Cuba: luxury Paseo del Prado Hotel changes its name and reopens as of August<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Cuba: luxury Paseo del Prado Hotel changes its name and reopens as of August&#8221; &#8212; OnCubaNews English\" src=\"https:\/\/oncubanews.com\/en\/cuba\/cuba-luxury-paseo-del-prado-hotel-changes-its-name-and-reopens-as-of-august\/embed\/#?secret=MUwaSe9ETM#?secret=Yk0BUH3Xzd\" data-secret=\"Yk0BUH3Xzd\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p><b>Tourist model<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Experts criticize not only the money that the Cuban government allocates to building hotels, but also the model with which the country tries to position itself as a destination abroad.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThey lose the opportunity to create their own tourism product. They have opted for the mass sun and beach model, which is already in decline in many countries,\u201d economist El\u00edas Amor criticized.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Amor also reproves that the budget is hoarded in accommodations and not in \u201croads or other types of infrastructure\u201d that also make up the traveler\u2019s experience: \u201cIn the end, tourists come out of the resort and what they find is a country with many shortages,\u201d he pointed out.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For Vidal, the way in which hotel investment is decided in Cuba is also linked to the weight of the Business Administration Group (GAESA), a multisectoral conglomerate in the hands of the Revolutionary Armed Forces (FAR) with more than fifty enterprises, among them the main ones in the tourism sector.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt is a factor\u2026it has managed a cash flow independent of the rest of the economy. They have facilities that other ministries and industries do not have,\u201d says Vidal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">GAESA, which is not accountable to the MINTUR or to parliament and does not disclose its accounts either, controls a large part of the hotels and the income from the sector.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Its economic influence in Cuba is enormous: some experts consider that it controls more than 50% of the GDP.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Juan Carlos Espinosa\/EFE<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the first three months of 2022, the construction of hotels, as well as other aspects related to tourism, accounted for 35% of total investments, according to data from the National Office of Statistics and Information (ONEI).<\/p>\n","protected":false},"author":3546,"featured_media":256908,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13907],"tags":[21273,481,483,14916],"ppma_author":[17270],"class_list":["post-256906","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tourism-in-cuba","tag-havana-hotels","tag-onei","tag-statistics-of-cuba","tag-tourism-in-cuba"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Construction of new hotels in Cuba in times of crisis | OnCubaNews English<\/title>\n<meta name=\"description\" content=\"In the first three months of 2022, the construction of hotels, as well as other aspects related to tourism, accounted for 35% of total investments, according to data from the National Office of Statistics and Information 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