
{"id":322954,"date":"2025-05-17T16:18:33","date_gmt":"2025-05-17T20:18:33","guid":{"rendered":"https:\/\/oncubanews.com\/en\/?p=322954"},"modified":"2025-05-17T16:18:33","modified_gmt":"2025-05-17T20:18:33","slug":"cuban-tourism-more-than-honor-at-stake","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/cuba\/economy\/cuban-economy\/cuban-tourism-more-than-honor-at-stake\/","title":{"rendered":"Cuban tourism: more than honor at stake"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In January 2025, the Dominican Republic received 1,155,484 tourists \u2015 395,555 of them cruise passengers \u2015 22% more than in 2024. In the first quarter, the country received 3,348,716 visitors (a 4% increase compared to the same period in 2024) and achieved an 81% hotel occupancy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In 2025, the main countries sending tourists to the Dominican Republic were the United States (36%), Canada (25%), Argentina (8%), Colombia (5%) and France (3%).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, in those first three months, 571,772 international visitors arrived in Cuba (71% of the total in 2024). The main source of visitors came from Canada with 272,274 (68.2% in 2024) and a 47.6% participation; Cubans residing abroad with 59,896 (80% in 2024) and a 10.4% participation; the United States with 39,447 (84.4% in 2024) and a 7% participation of total visitors; and Russia with 33,395 (50% in 2024) and a 6% participation of the total.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the Cuban Statistical Yearbook, completed in 2023, there were 86,559 physical rooms in the country across all types of facilities, not including rooms in the private sector. By the way, why aren\u2019t they included? Aren\u2019t they part of the tourism sector?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of these rooms 81.7% were concentrated in 5-, 4-, and 3-star hotels. Considering that some hotels were completed in 2024 and that the new hotel on K and 23 was added in these first four months of the year, the number of rooms must have grown somewhat.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The average annual occupancy rate in 2023 was 31.7%. In 2024, <\/span><a href=\"https:\/\/www.onei.gob.cu\/sites\/default\/files\/publicaciones\/2025-03\/turismo-trimestral-diciembre-2024.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">\u00a0it dropped to 23%<\/span><\/a><span style=\"font-weight: 400;\">. A lower occupancy rate is expected in the first quarter of 2025, given the increase in the number of rooms and the decrease in the number of visitors.<\/span><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/oncubanews.com\/wp-content\/uploads\/2025\/05\/grafica-turismo-triana-2025.png\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The graph above summarizes one of the greatest contradictions facing the sector today: maximizing tourism revenue with a room surplus that has been accumulating idle capacity for more than twenty years and that, even in the peak years of tourist arrivals (2015-2018), has never managed to consistently exceed 60% occupancy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Cuban tourism sector faces multiple challenges, some external to the sector and even to the country, and others definitely internal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although it is obvious, I will emphasize that all strategies and policies adopted will be suboptimal because the blockade and the Trump administration\u2019s policies condition\/limit\/hinder Cuba\u2019s participation in this \u201cbusiness\u201d on equal terms with its competitors. Let\u2019s consider the blockade as a negative parameter and focus our efforts on reducing its effects. The challenges are multiple.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A <\/span><i><span style=\"font-weight: 400;\">first challenge<\/span><\/i><span style=\"font-weight: 400;\"> would be the competition and existing competitors in the region, who today enjoy the same natural advantages and surpass us in almost everything, from advertising campaigns to \u201cnon-hotel amenities.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For the purpose of illustrating this point, some of these amenities, which are external to the sector, are detailed below.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Airport infrastructure and airport services:<\/b><span style=\"font-weight: 400;\"> The lack of investment to modernize our airports and improve services means that the first impression, and also the last, is not the best. The tourist ordeal begins at the airport.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Car rental:<\/b><span style=\"font-weight: 400;\"> In Cuba, car rental for tourism remains a state monopoly, and its prices are at least four times those of other destinations. In destinations that compete with Cuba, rates can be found ranging from 5 USD\/day to 30 USD\/day in places like Canc\u00fan and as of 14 USD\/day in Santo Domingo. There are also dozens of companies that provide the service and compete with each other.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Public transportation:<\/b><span style=\"font-weight: 400;\"> There is an almost total lack of transportation within Cuba\u2019s cities; public train service is poor quality and indeterminate in frequency. Few opportunities to travel from one province to another, high prices, poor quality buses. Limited frequency and destinations for domestic flights. And the deplorable state of the roads turns a road trip into an adventure.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Architectural deterioration and increasing unhealthiness<\/b><span style=\"font-weight: 400;\"> in several cities, including Havana.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The <\/span><i><span style=\"font-weight: 400;\">second major challenge<\/span><\/i><span style=\"font-weight: 400;\"> also does not depend on tourism and is associated with macroeconomic imbalances and exchange rate distortions. Although tourists may \u201cenjoy\u201d the experience of our multiple exchange rates, those who suffer most from exchange rate distortions are hoteliers, forced to submit a food budget sometimes calculated in two different currencies and at an exchange rate that does not benefit them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The devaluation of the Cuban peso (CUP), which should act as an incentive for exports, makes imports more expensive and adds a little more spice to hotel or private restaurant management. Once again, the tourism sector here depends on \u201cexternal factors.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Competition also has an advantage in terms of input costs. Purchasing products in foreign markets costs Cuba more, not only due to the direct effect of the blockade, but also due to the increasing difficulties in servicing debts, which have been consolidated in recent years and which add points to Cuba\u2019s \u201ccountry risk.\u201d It must be said, once again, that the tourism sector is not the ultimate culprit for this.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The country\u2019s weak productive structure; the limited capacity of the majority of domestic enterprises to \u201cproduce for tourism\u201d in the necessary volumes and quantities and at prices that are competitive with imported goods; and the lack of credit or other forms of financing that these enterprises suffer from, all stand in the way of the goal of \u201crecovering tourism.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To truly make tourism one of the driving forces of the national economy, much more than wishful thinking is required.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Without a doubt, \u201cthe recovery of Cuban tourism requires a bold strategy\u201d that will address the challenges outlined above and many others.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Among the measures <\/span><a href=\"http:\/\/www.cubadebate.cu\/noticias\/2025\/04\/30\/abre-sus-puertas-en-la-habana-fitcuba-2025\/#anexo-1931163\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">the government announced<\/span><\/a><span style=\"font-weight: 400;\"> during the recent Tourism Fair are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Updating the regulatory framework to encourage foreign investment;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Allowing new business models, such as leasing tourist facilities, and facilitating operations in foreign currencies (dollars, euros, Canadian dollars);<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Launching new air routes;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Eliminating the health tax at airports, ports, and international marinas;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Creating public-private partnerships with self-employed workers and diversifying the tourism product.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">However, it would be beneficial if this strategy focused on completely freeing hotels from the heavy burden of the employment agencies of the Ministry of Tourism (MINTUR) or Gaviota, to make the service these agencies provide an option for hoteliers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this way, tourism workers could receive the income they deserve for the quality of their work and at the discretion of hoteliers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These measures should be preceded by concrete actions to settle the debts still owed to foreign companies in the sector, or at least begin that process.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These \u201cstructural reforms\u201d should allow hotels and hoteliers to import directly if they so choose. They should also allow direct and effective payment in foreign currency to national producers \u2014 until we resolve our monetary problem \u2014 whether state-owned or private. And that the money earned by these producers be respected and not turned into salt and water via freely convertible currency or Cuban peso.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These reforms should allow hotels and hoteliers to buy where prices and quality are best and not force hotels to buy from national enterprises, sometimes at higher prices and lower quality.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They should also promote budget discussions taking into account the dynamics of international and national inflation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hopefully, the reforms will lead to considering the profitability of the hotel bill as a decisive factor in decision-making, rather than revenue growth.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They should lead to concentrating activity in those hotels\/destinations that can offer a service competitive with the standards of our region.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They could promote productive development policies that can produce competitive goods and services for our tourism sector.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The country\u2019s municipalities, within this strategy, should be able to develop their own strategies for promoting tourism, <\/span><i><span style=\"font-weight: 400;\">their<\/span><\/i><span style=\"font-weight: 400;\"> tourism, and the ministry should allow them to do so.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It wouldn\u2019t be a bad thing if the reforms led to the unification of the management of the tourism sector into a single institution. And at the same time, they would sweep away the centralized management that our tourism sector suffers today, recovering the spirit of that ministry we had thirty years ago and that performed the miracle of placing Cuba on the map of the tourism market in the Americas and the world.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cuba, despite the blockade and our own actions, is and will be a tourist destination, due to its geographical location in the southern part of the northern hemisphere, its territorial dimension in this Caribbean of small islands, the richness of its history and the quality of its beaches, its people&#8230;because there are still many good Cubans.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It would be terrible if the same thing happened with this \u201cstrategy\u201d as happened with the 63 agricultural measures and the 93 designed to recover sugar production. And paradoxically, they have reminded us of the famous phrase of the bus driver: \u201cMove back, comrades.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Tourism is not a watertight compartment, separated from the rest of the Cuban economy and society. Quite the contrary, it depends on the entire economy to function properly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Today, the sector internalizes the weaknesses of our economic functioning and pays for it in profitability, competitiveness, and its ability to drive the country forward.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Undoubtedly, someone is placing their honor at stake in the recovery of tourism, but restoring the dynamics of tourism activity is much more than a matter of honor.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>To ensure that tourism truly becomes one of the driving forces of the national economy, much more than wishful thinking is required.<\/p>\n","protected":false},"author":3304,"featured_media":322962,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13904],"tags":[14816,14917,19256],"ppma_author":[33885],"class_list":["post-322954","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cuban-economy","tag-cuban-economy","tag-cuban-tourism","tag-featured"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Cuban tourism: more than honor at stake | OnCubaNews English<\/title>\n<meta name=\"description\" content=\"To ensure that tourism truly becomes one of the driving forces of the national economy, much more than wishful thinking is required.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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