Cuba’s Tourism Revenues Fell by Over 60% in Five Years
with a hotel occupancy of 25 percent
“Despite an investment of more than 24 billion dollars, the results show an alarming decline,” says Cuba Siglo 21
HAVANA TIMES – The most recent report on tourism in Cuba signed by the consultant Emilio Morales, published by the organization Cuba Siglo 21 this Monday and based on the information published in the independent press, especially 14ymedio, fully summarizes the catastrophic situation of the sector that the regime’s propaganda sells as the main engine of the economy. “Despite an investment of more than 24 billion dollars in the last 15 years,” says the text, without explaining where the Government obtained those funds, “the current results show an alarming decline in key indicators such as the arrival of tourists, hotel occupancy and the sector’s income.”
On this last point, the report says that income has decreased by 61.82% in the last five years, from 3,185 million dollars in 2019 to just 1,216 million in 2023. From January to October of this year, there were 1,718,636 foreign visitors in total, although the official figure, as collected by this newspaper a few days ago, is actually 1,844,917 tourists (128,256 fewer than in the same period of 2023).
The number provided by Cuba Siglo 21 – slightly lower than that offered by the National Office of Statistics and Information until September – 1,719,145 travelers – supposes, in any case, “a drop of 48.23% compared to the same period in 2019 (before the pandemic), when 3,563,494 tourists arrived.”
Another of the sector’s “setbacks” listed in the report is the “infrastructure crisis”
As for the hotel occupancy rate, the report states that it is 25%, “leaving a significant number of underutilized facilities.” The name of Gaesa also turns off the tourism industry. Morales points to the conglomerate of the Armed Forces as the main culprit of the situation. “The Business Administration Group S.A. (Gaesa), with decisive control over finances and economic decisions, has prioritized excessive investments in tourism to the detriment of strategic sectors such as energy, transport and agriculture,” he says.
Another of the sector’s “setbacks” is the “infrastructure crisis,” which, with “constant blackouts, shortages of drinking water and urban deterioration, decreases the attractiveness of the country as a tourist destination.” In addition there are the epidemics such as dengue fever, the accumulation of garbage and the precariousness of the healthcare system.
“Everything indicates that Cuba as a tourist destination is beginning to disappear from the offerings of international tour operators”
Also discouraging travel to Cuba, the list continues, are the “increase in crime,” the “decrease of staff” – more than 10,000 “qualified” workers in the sector have emigrated in the last three years, says Morales – and the “failed foreign policies.” The consultant refers to the “support for Russia in its invasion of Ukraine,” which “has alienated key European markets” – an unconvincing argument in this case – and to the regime’s “alliance with international terrorist actors,” which “keeps it on that short list of countries associated with that scourge.”
In the midst of this dark panorama, tour operators and airlines have left Cuba, as is the case of the German giant TUI, which, as this newspaper published, suspended its flights from Amsterdam to Varadero last May due to lack of passengers. Also – this time without quoting 14ymedio, which first published the report – Canada issued a third travel alert warning tourists about the dengue epidemic, which joined two previous alerts about the increase in violence and the shortage of basic necessities.
“Everything indicates that Cuba as a tourist destination begins to disappear from the offerings of international tour operators,” says Morales, in contrast to other Caribbean destinations – such as the Dominican Republic – “which are registering sustained growth, expanding their infrastructures and improving their services.”
The recovery of the sector, in short, requires “profound structural changes,” which include solving the energy and health crises, improving transport and security, and “offering economic and political freedoms that attract foreign investment and the trust of the Cuban exile.” Without these reforms, the report concludes, “the tourism industry will continue to decline, leaving Cuba lagging behind its regional competitors.”
Translated by Regina Anavy for Translating Cuba.
I’ve come to the conclusion ( actually some time ago) that there is absolutely no logic to anything the Cuban Govt does, or tries to do, the place is doomed.
Dear Readers,
I have been a regular visitor to Cuba, mainly Havana, but i have travelled North & South and East & West. I have also marched in the May 1st celebrations. To me Cuba is a very special place and that’s why it hurts me so much to see the decline of tourism in Cuba.
One of the main reasons i did not feel it was a good idea to build all these modern commercial hotels was because it’s just the same as staying in ANY HOTEL in the modern tourism world.
Cuba, again mainly Havana, has some fantastic buildings including hotels. Hotels with character and great history from the dark days of Cuba. We all agree the pre 1959 day were totally corrupt and something drastic had to happen, well done Fidel and his Comrades.
However we can’t change the past but the past in Cuba can work for the benefit of Cuba. I have stayed several times at Hotel Lincoln, where the racing driver Juan Fangio was kidnapped in 1958. I would pay extra to stay in his hotel room. Hotel Sevilla, where there is a history of Mafia people staying there. It has reopened but the many pictures of the past gangsters that used to be on show are no longer hanging on the walls. There was also information about the hotels past, no longer there. The amount of people that want to be photographed on the steps of the Capitilo but put one foot on the steps a whistle blows with a stern warning from the police NO NO NO. So many more examples i could write about that are similar
The famous Hotel Inglaterra where i still spend many an afternoon sitting with a Daiquiri Frappe people watching. However there are parts of the hotel falling apart. The toilets are a disgrace, the service is slow and half the staff wish there were no tourists so they could spend more time on their phone. I agree some tourists want to stay in the very modern hotels but for me a visit to Cuba is about it’s past, whether you like it or not. The Government promote the past as can be seen with all the murals of Fidel & Che around the country so why not promote the past in the beautiful old hotels. Even many of the closed buildings, mainly banks, are a wonder of past architecture. Instead of spending millions/billions on new hotels convert some of these magnificent buildings into hotels.
On closing i would also add that the reduction of tourists can on some part be the fault of the Cuban people themselves. In the last 2 years begging has become more intense and forceful even to the point of some people feeling intimidated by it. Even walking down Obispo you are intimidated by men trying to get you into the restaurants for their commission. All the way down Obispo you past one man waving his menu then he stops at his boundary line only for another man from another restaurant waving another menu. I can understand the reason for the intense pressure from the Cuban people to extract money from tourists, just to buy food not luxuries, very sad i know.
When i visit Havana now i will stay in an AIRBNB so it’s giving something to the actual people of Havana. I will also eat in local restaurants that are run by Cuban people.
I love Cuba so much and will continue to visit as long as my body and mind will allow. As i wrote at the start it’s very sad to see the direction Cuba is going
What a devastating report for Cuba so why this absolute obsession regarding the building proposals of yet more hotels – KRAZY !!!!
Another problem is that direct flights to La Habana from western Europe are now becoming extremely scarce with the alternative journey requiring TWO changes of flight !!
Travel agencies in Canada are telling people to pick another country because of shortages and higher prices in retail shops when items are available Cuba needs to get away from tourists and send medical personnel to other countries to keep the economy going in my opinion.
Let’s face it the government is just stupid. 24 Billion and they did not invest in infrastructure and manufacturing. Essentially, they were lining their pockets with cash from tourism while the rest of the country toilet bowled. There is sincere sympathy for the Cubans who suffer under this banana republic of governmental monkeys.
When it rains, it pours…as they say. What puzzles me is why the powers that be in Cuba continue to press for MORE socialism and not less. Theses guys know everything we know about how crappy the situation is and then some, probably. Yet, a few days ago the Minister of the Economy said on national TV, that economic progress will come in 2025. He said that but for acts of nature, Cuba would be…. I can’t even finish writing what he said because it is such BS. There is another saying “Pee on me and tell me it’s raining”. Things are really bad in Cuba and it’s only going to get worse.