In part I of a STAR Businessweek two-part special on Cuba published earlier this month we detailed the many ups and downs that Cuba experienced in its tourism industry from the end of World War II to the end of the Cold War. We also described how Cuba’s tourism industry is one that’s been deeply impacted by the Cuban government’s relationship with the United States, and its wider participation as a communist state in global affairs.
Today the USSR is history, the Cuban people have built a dynamic tourism industry since the Cold War ended, and no longer does a Castro rule Cuba. But the future of Cuba’s tourism industry continues to be informed by the nation’s complex history.
Here is part II of our STAR Businessweek two-part special, detailing the current state of play for the Cuban tourism industry in 2019, and the path ahead to hit its target of 5 million visitors this year.
Cuba’s Cruise Industry Capsized
Cuban tourism’s elephant in the room will always be the capacity for trade and travel between Cuba and the world’s wealthiest nation of 350 million people. Earlier this month new restrictions on American travel to Cuba were announced out of Washington DC. Especially damaging will be the blanket ban on cruise ships sailing to Cuba from the US.
While the easing of restrictions by the Obama administration in May 2016 saw major providers in the Caribbean, like Royal Caribbean, Carnival, and Norwegian, unveil profitable cruises, the new ban imposed by the Trump administration will end this short-lived route, with a huge loss in the tourism dollar for the nation of 12 million.
The stats show that 257,000 Americans visited Cuba from January to April 2019, with around 142,000 arriving via a cruise ship. Overall, around 639,000 Americans visited during 2018. Given that Cuba’s total number of visitors during that year was 4.7 million, the loss of 639,000 may seem painful but manageable. However, when the purchasing power of US travellers is factored in, the damage could be substantial indeed.
While not a fatal blow to the tourism industry, it does make plans for a renewal and writing of an even stronger chapter in the nation’s tourism industry that much harder. And for all the revolutionary fire and brimstone that Diaz-Canel and his comrades may whirl out now and then expressing disdain for the American government, when it comes to tourism the decisions of DC will have a huge impact on Havana.
Growth and Uncharted Territory
There are some positives within this environment for the Cuban people. Mexican hotel conglomerate Grupo Posadas’ expansion ambitions in the Caribbean will see Cuba (alongside the Dominican Republic) among its first beneficiaries, with two new hotels.
The Fiesta Americana Holguin Costa Verde All-Inclusive will hold 749 guest rooms and the Fiesta Americana Punta Varadero All-Inclusive will hold 633 rooms. They will offer a new show card for the nation in the regional tourism market given the vote of confidence the Mexican giant has signalled in its plans for the two new all-inclusives, and the future of Cuba as a destination market as a whole.
The number of available lodgings has also continued to grow strongly since the initial push during the Special Period, to today standing at over 90,000. But while the Cuban government has successfully grown its tourism industry with all sorts of new innovations (as detailed in part
I of this special), for all the reformist zeal of new Cuban president Miguel Diaz-Canel, the one innovation the Cuba government has yet to entertain is relaxing its restrictions imposed on the nation’s people, and fully opening up its economy.
Writing the Future History of Cuba
While a trip to Cuba does not run the same risks as a flight to its fellow communist state of North Korea, the same factors that keep tourists and the Cuban people generally safe from violent crime pose dangers in other ways. The Committees for the Defense of the Revolution are akin to a Cuban neighbourhood watch group – and this is one that really keeps a close watch, not only serving as a grassroots frontline for police across Cuban communities, but created to promote ‘social harmony’ and prevent what the Cuban government deems dissident activity.
Even nations like Canada, that have had (despite the tensions of Havana and Washington) a long and strong tourism relationship with Cuba, regularly find that no courtesy is extended to their citizens if they’re deemed to have broken the law, leaving many to think a trip to Cuba is too great a risk. The quick solution for the Cuban government is pursuing reforms that diminish this risk. Right now, many tourists who have the choice between a holiday in Cuba or a democratic Caribbean nation will opt for the latter, knowing they can vacation without a constant need to look over their shoulder.
Given that Cuba’s complex history does form part of its current appeal, an overnight dissipation of its history would see it lose a unique selling point regionally. After all, Cuba isn’t the only Caribbean nation with beautiful architecture, stunning beaches and wonderful people, but creating a stronger tourism industry will require, at least in some regard, leaving the past in the past.
A Truly Revolutionary Move
Today the Cuban government faces a fork in the road. With their vibrance, warmth and persistence, despite the tremendous challenges, the Cuban people unquestionably have the talent to drive a new era of growth in the Cuban tourism industry.
With a new president, the time is right for the government to show that Cuba’s greatest asset is its people; and give them a free chance of showcasing it to the world, including how they wish to deal with the revolution in history, and what they aspire for in the future of the nation.
Though many have visited Cuba with a view to its history, a freer Cuba would guarantee its future, ensuring a restoration of normal relations with Washington and a renewed interest in Cuban tourism globally – for the benefit of tourists certainly, but for the Cuban people most of all.
