The Challenge of Cuban Tourism

Abstract

Cuba attracts nearly a half million foreign tourists annually, but that figure represents less than 4 percent of the total arrivals to the Caribbean. Since U.S. citizens can't travel to Cuba, Cuban tourism relies on Europeans, Canadians, and Latin Americans. The number of visitor arrivals has increased by almost 75 percent since 1990, which in turn has generated foreign exchange in excess of $500 million. But Cuba today is a onedimensional destination with a single competitive advantage over any other island destination in the Caribbean except Haiti: namely, Cuba is inexpensive. Most of Cuba's lodging products are basic brick-and-mortar structures built on beaches. They have few amenities, simple F&B options, limited recreational activities and nighttime entertainment, and no shopping opportunities. While money for new hotel projects is extremely tight even for the best of projects, it's unlikely Cuba will attract large-scale development until its tourism infrastructure is expanded.