Tourism in Cuba turns off with the record drop in income of almost 62% in the last five years, revealed Cuba 21st Century in a new published dossier. The ideas laboratory puts numbers on the disaster of tourism on the Island and identifies several factors that explain one of the worst crises in the sector in decades.
In it report “GAESA It also shuts down the tourism industry.”economist Emilio Morales reveals that, despite an investment of more than 24 billion dollars in the last 15 years, the sector has shown an alarming drop in key indicators, details the web portalCuban newspaper.
According to Morales, between January and October 2024, tourist arrivals fell by 48.23% compared to the same period in 2019, before the pandemic. Only 1,718,636 visitors arrived in the country during these months, far from the 3.5 million initially projected by the Government for this year.
In addition, hotel occupancy is at 25% and the sector’s income has decreased by 61.82% in the last five years, going from 3,185 million dollars in 2019 to just 1,216 million in 2023.
The fall generally affects the main issuing markets, the report states. He gives as an example Canadian tourists, who represent 39.41% of the total and decreased by 19.15% compared to 2019.
For their part, Cubans residing abroad registered a reduction of 52.56%, while travelers from the United States fell by 73.93%. Europe also shows a significant decline, with countries such as the United Kingdom, France and Italy leading the declines, exceeding 70% in some cases.
Causes of collapse
The dossier identifies several factors that explain this disaster, among them the control of the Business Administration Group SA (GAESA) over finances and economic decisions and that it has prioritized tourism investments to the detriment of strategic sectors such as energy, transportation and agriculture.
Behind the tourism disaster is also the multi-systemic crisisconsiders Morales. He cites constant blackouts, urban deterioration, epidemics such as dengue and growing crime that have made the country an unattractive destination.
The report also points out that mass emigration has reduced the qualified workforce, affecting the quality of services and Havana’s support for Russia in its invasion of Ukraine has alienated key European markets. The regime’s alliances with international terrorist actors “keep it on that short list of countries associated with this scourge,” he adds.
On the other hand, the distrust of the Cuban exile of those called to invest in the Island has limited the tourism potential of the diaspora that has increasingly been diverted to the Dominican Republic as an alternative point for family gatherings.
For Cuba 21st Century, the Tourism collapse poses serious economic challenges. “To reverse the situation, it would be necessary to address structural problems such as the energy and water supply crisis, improve health security, attract foreign investments and foster confidence in international markets,” he considers.
FOUNTAIN: With information from Diario de Cuba
