Tourism and the Cuban Economy
I. Introduction and Background
Worldwide, the tourism industry has always had a sufficient importance for every state’s economy. Still, this influence can reveal less or more weighty depending on how the tourism sector is conducted by a particular country in toto.
Considering the given north Caribbean state, it seems worthwhile saying that the socialist society’s impact on Cuba’s economy has been more than just significant. In the last few decades, Cuba’s tourism has had a tendency to decline. This phenomenon has taken place due to the Cuban economic recession, superfluous internal economic limits, and, without doubt, oversea conflicts concerning investments that were escalating. Most compelling evidence seems to be that since the mid-1990s, the state was again reopened for the wide range of foreigners.
Granting all this, Cuba has lamentably met the economic growth that was forecasted. The growth was comparably lackadaisical, while the perception of restoration was relatively little. In spite of the aforementioned domestic economic circumstances, the country has long remained a captivating destination for tourists from all over the world. For the island, this popularity stands for one of the main influxes of revenue both nowadays and in the past.
The quantity of foreign visitors to Cuba has significantly raised starting from 1990. Until this period, the country remained standing alone amid all the Caribbean economies. It is generally suggested to be a result of poor tourism area and apart from this a belligerent tourism exaltation policy.
II. Literature Review
“Driving the tourist boom is a desire among many foreigners to see Havana - with its colonial and early-20th-century architecture, much of which is in a decrepit state - before what some visitors believe will be its inevitable transformation” (Dube). Apart from this fact, many visitors (which comprise the newly updated tourist influx to the country) leave comments on their trips to Cuba. Markedly, the predominant majority of testimonials left are likely to be negative by their nature.
Basically, such troubles as dirty hotels and roadsides, lack of the Internet connection, United States credit cards that still do not work within the Cuban territory, and many other factors are considered to be of the first priority that should be overcome at short notice.
According to the abovementioned theses, it is fairly clear that Cuba is trying to strive for the most appropriate tourism climate; however, both the local government and ministries could not even expect at least the presumable degree of influx occurring over the last several years. Within the announced timespan, this degree has been outstanding for the area.
One cannot but mention the 2016 March visit to Havana scheduled by the American President for the first time after the eighty-eight-year cold hush. A very significant fact is that the quantity of American tourists has been climbing for the last year. Around a year and a half ago, the President Obama claimed that the United States of America would start both normalizing and enforcing the Cuba-United States relationships. Obviously, such actions had a perfected communication of experience as a consequence.
For the Cuban economy before anything else, the flow of the American residents to the island developing country mainly stands for the huge amount of receipts. Still, “Travel purely for tourism won't be allowed until the U.S. Congress lifts a longstanding embargo, which also restricts most trade with Cuba” (Obama).
III. Analysis
The most considerable part of total revenue that the Cuban tourism brings for the economy is chiefly composed due to the prominent and rare arrivals made by Canadians. The average statistics shows that this tropical island is annually visited by the North American nation exceeding the figure of one million. Nevertheless, the enumeration can be altered significantly (as was said earlier) as a result of the soon frequent influx of Americans. One must undoubtedly confess that it is only a matter of time. Once travel restrictions to Cuba lower or disappear, the aforementioned influx will increase.
“Cuba’s tourism industry generates more than $2.6 billion per year and the country set a record last year with 3 million visitors. And bookings by tourists from around the world have already more than doubled since the U.S. announced plans to ease relations with Cuba last fall” (Stancu). Until these conditions will turn into reality, the visitors from Canada will still stay the rifest ones here.
According to the World Factbook, one can actually see that the 2015 Cuban gross domestic product fluctuates next to $130 billion. For the post-socialistic country, the revenue that is generated by the tourism industry seems low but considerable at the same time.
IV. Recommendations
As for the findings conducted in this research paper, it is obligatory to note that a gradual enhancement of the integral economy’s subdivisions (social packages, quality of services, reputable insurance, close relations with both powerful and adjoining states etc.) will definitely lead to tourism industry development and, as an outcome of action, will positively result in the local economy.
The most trivial thing to remember is that any industry will have a chance to improve, if the policies are duly aimed at the state’s economy in toto. As the country only starts developing its tourism industry, this appears to be a good idea to look for investors off this tropical island. The overall need in the Cuban infrastructure’s rearrangement is more than just obvious. In general, the population of the country is around eleven millions of inhabitants, when the quantity of self-employed people stands for the seven-hundred-thousand figure. Certainly, these residents cannot help the chosen country’s sector financially. For this reason, Cuba can reveal to be a tasty morsel for powerful investors representing already developed countries.
The Cuban government ought to do its best concerning the improvements in economy openness in order to achieve better statistics year by year, thus, earning more profit to the Treasury. Cuba is also very popular amid tourists as a historical land. Cabriolets driving around the Havana’s streets, exceptional sorts of tobacco, and the remains of the socialist foretime – all of these aspects should unavoidably grasp every visitor’s attention.
V. Conclusion
In the final analysis, it is paramount to summarize the facts that were provided earlier. The socialist past seemed to play the most crucial role in the present-day subsistence of Cuba. Distinct policies striving for unnecessary restrictions and limits have resulted in almost invisible improvements in the state’s economy. At the same time, the architecture of that time still draws attention of every average tourist deciding to visit the island.
According to the last updated statistics, the tourism sector comprises the fiftieth part of the gross domestic product only. Still, as the Cuba-United States relations are assumed to stand for a brand-new engine for the Cuban economy, the tourism will be prospering respectively. Cuba is both capable and have a potential in welcoming a great quantity of visitors. To reach this, it is important to work out many economic amendments.
Works Cited
Dube, R. The Wall Street Journal. Cuban Tourism is a Work in Progress. Web. September 16, 2015. http://www.wsj.com/articles/cuban-tourism-is-a-work-in-progress- 1442437838
Obama, B. CNN Politics. Obama announced Cuba visit. Web. February 18, 2016. http://edition.cnn.com/2016/02/17/politics/obama-cuba-visit/
Stancu, H. The Star.com: Travel. Cuba Facts: by the Numbers. Web. June 17, 2015. http://www.thestar.com/life/travel/2015/06/17/cuba-facts-by-the-numbers.html
