The Cuban government insists that tourism be its main source of income, but economists point out that it is not going to solve Cuba’s problem, as stated by expert Tamarys Bahamonde.
“At the point where Cuba is, economic policies have to have a comprehensive approach to move the country forward. More than developing tourism, we must develop other industries that complement tourism development,” Bahamonde told DW.
The island received only 2.4 million visitors in 2023, reaching 25% Hotel occupancy and estimated income of about USD 984.5 million, according to ONE data. These results compared to destinations such as the Dominican Republic are far below because in 2023 there will be more than 10 million tourists, with income of more than USD 11,000 million, according to figures from the Dominican government.
The tourism sector is monopolized by the Business Administration Group of the Armed Forces (GAESA), limiting competition and discouraging efficiency, Bahamonde indicated. Which adds to the formal and informal currency exchanges and electricity supply problems, among others, he added.
However, in the first quarter of 2024, 34.5% of investments were for the “hotels and restaurants” and “business services, real estate and rental activities” sectors, according to Pedro Monreal, a Cuban economist, published in X.
As reported REPORTUR.mxCuba is betting on the Russian and Chinese markets, but economists assume that the drop in tourism will not be compensated, since these tourists do not repeat due to the distance and the conditions of the infrastructure on the island. (Cuba surrenders to the tourist power of its Dominican rival).
“Russian tourism does not compensate for the decline in European tourism, absolutely not at all. They are traveling because of the support that Cuba has given to Russia in its genocidal invasion of Ukraine. They make a tremendous effort to Travel to a country 10,000 kilometers away, which offers very little in variety, quality, attention, food and entertainment,” Emilio Morales, president of The Havana Consulting Group, told Diario de Cuba at the time.
