Cuba Staring Down Major Economic Crisis As Tourism to Island Drops Nearly Fifty Percent

[El Presidente]

Salient lesson on the risks of a purely service economy.  

 

A recent report from the think tank Cuba Siglo 21 paints a grim picture of a sector in freefall, despite the government pouring over $24 billion into tourism development over the last 15 years.

In the first ten months of 2024, Cuba welcomed just over 1.7 million tourists—a sharp 48% drop from the same period in 2019, before the COVID-19 pandemic. It's a bitter reality for a government that ambitiously projected 3.5 million visitors this year. The numbers don't lie; they tell a story of missed targets and a bruised reputation. From Havana to Varadero, the usual vibrancy has been replaced with quieter streets and the faint echoes of missed opportunity.

 

https://www.latintimes.com/cuba-staring-down-major-economic-crisis-tourism-island-drops-nearly-fifty-percent-566945

[BrightonCorgi]

I wonder if cigars were fantastically priced, if that would draw more tourists?

[SCgarman]

No more cheap cigars, scarce food, unable to keep the power on. Doesn't take a genius to know why people are staying away. Any desire I had to travel there (a pipe dream in reality) is gone. 

[El Presidente]

  On 11/25/2024 at 7:44 PM, BrightonCorgi said:

I wonder if cigars were fantastically priced, if that would draw more tourists?

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More but nowhere near enough. 

Quality, pricing, currency uncertainty + the US visa changes for visitors post January 2021 being excluded from a US ESTA tourism visa. 

Euro families want to take their kids to Disneyworld. Euro businessmen need to conduct business in the USA.  In comparison, visiting Cuba isn't that important. 

 

[BrightonCorgi]

  On 11/25/2024 at 7:55 PM, El Presidente said:

More but nowhere near enough. 

Quality, pricing, currency uncertainty + the US visa changes for visitors post January 2021 being excluded from a US ESTA tourism visa. 

Euro families want to take their kids to Disneyworld. Euro businessmen need to conduct business in the USA.  In comparison, visiting Cuba isn't that important. 

 

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I was being a bit coy with that. What has Cuba done to make tourists want to go there? Has the medical tourism fallen off in Cuba?

[El Presidente]

  On 11/25/2024 at 9:02 PM, BrightonCorgi said:

Has the medical tourism fallen off in Cuba?

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That was a government gaslight if there ever was one. It is just ahead of hamster farming as a solution for protein shortages. 

[helix]

Many Canadians have reported the company of other visitors on the resorts to be somewhat intimidating and unsafe at times.

[Chitmo]

Sunwing, one of Canada’s larger travel companies dropped Cuba as a destination because of the issues. I’m only speculating, but geographically speaking I think Canada makes up a good portion of their tourism and they’re not getting any/many of us at the moment. Government also has it listed as higher risk to travel to.

[Cigar Surgeon]

https://www.reuters.com/world/americas/cuba-decrees-contingency-plan-new-restrictions-energy-crisis-deepens-2024-11-28/

HAVANA, Nov 28 (Reuters) - Cuba this week asked state and private businesses to generate more of their own electricity from renewable resources and to limit their use of air conditioning, among other conservation measures, as the communist-run government navigates its worst energy crisis in decades.

The new regulations, summarized in a 16-page decree published on Tuesday, give top energy consumers in both the public and private sector three years to install renewable energy sources capable of producing at least 50% of the electricity they consume during daylight hours.

If an office building or factory can't accommodate solar panels, businesses will instead be required to contract with the government for a portion of its installed renewable energy capacity.

The decree also establishes an array of new conservation measures, including a rule prohibiting state and private businesses on the Caribbean island from using "climate control units in non-technological offices, at temperatures below 24C (75.2F)."

The increasingly restrictive measures come as Cuba's electrical grid teeters on the edge of collapse.

Multiple, island-wide blackouts in October and November left millions of people in the dark for days. Rolling blackouts continue nationwide as Cuba struggles to source the fuel and spare parts it needs to generate enough electricity to meet demand.

The government blames U.S. sanctions and a festering economic crisis for the increasingly tense situation. 

The decree also establishes protocols for a contingency plan in emergency situations in which it is "necessary to affect electrical service in a planned and sustained manner for more than 72 hours."

In such cases, businesses would be required to disconnect refrigerators, industrial ovens and irrigation pumps during peak demand hours.

The decree dedicates several pages to describing enforcement of the new rules, including shutting off electricity to the businesses that fail to meet the new standards, as well as fines of up to 15,000 pesos ($45.00) or more, depending on the infraction.

[helix]

  On 11/29/2024 at 12:10 PM, Chitmo said:

Sunwing, one of Canada’s larger travel companies dropped Cuba as a destination because of the issues. I’m only speculating, but geographically speaking I think Canada makes up a good portion of their tourism and they’re not getting any/many of us at the moment. Government also has it listed as higher risk to travel to.

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Dropped 26 hotels still many other options to Cuba via Sunwing.

https://www.paxnews.com/news/tour-operator/cuba-damage-control-sunwing-shifts-focus-hidden-gems-26-cuban-hotels-removed

[avitus]

  On 11/29/2024 at 12:10 PM, Chitmo said:

Government also has it listed as higher risk to travel to.

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Well, they have the same high risk advisory for bunch of European countries as well lol ))

[Li Bai]

  On 11/29/2024 at 3:48 PM, avitus said:

Well, they have the same high risk advisory for bunch of European countries as well lol ))

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Well, it makes sense about France tbh 😩

[BoliDan]

  On 11/29/2024 at 3:48 PM, avitus said:

Well, they have the same high risk advisory for bunch of European countries as well lol ))

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Yeah, people don't pay attention to these. If anything their constant blackouts all over the news isn't great publicity.