Fall in Tourism Impacts Cuba’s Private Sector

A cruise ship at the Port of Havana.

14ymedio bigger14ymedio, Zunilda Mata, 14 May 2018 — The arrival of the enormous cruise ship, which shimmers under the May sun in Havana bay, does not ease the worries of the self-employed of the port, who are increasingly nervous about the decrease in the number of foreign visitors.

“A boat arrives with hundreds of travelers only a few fall to earth,” laments Clotilde Clo Rodríguez, a self-employed tour guide specializing in visitors from Canada and the United States. “Many Americans avoid leaving the ship because of the travel warning put in place by the US government,” she says.

Last January the authorities of the United States issued a change in their Travel Alert for Cuba, recommending their citizens to reconsider traveling to the Island because of the risk of suffering ’acoustic attacks’ such as those that affected 24 diplomats from that country. Although the warning was softened from a category 4 to 3, it makes many people decide not to step on Cuban soil.

The continuous statements by Cuban officials about the security of the “Cuba destination” have not managed to dispel the vistors’ doubts and fears.

“A year ago, by this same date, I had work almost every day with large groups but now I spend most of my time without customers,” laments Clo, who leads trips to places such as the Finca Vigía museum, the house where the writer Ernest Hemingway lived on the outskirts of the city.

US citizens are prohibited from traveling as tourists to the Island and there are 180 hotels, travel companies and stores managed by the Revolutionary Armed Forces that Washington has banned Americans from patronizing. However, some categories of travel are still allowed, such as trips to “support the people” or family visits.

Tourists in Cuba. (14ymedio)

“Cuba’s moment is over, because that enthusiasm that was here during Barack Obama’s term is gone,” says Clo. “Now, many of the clients I had at that time write to tell me that they prefer to go to the Dominican Republic, Cancun or Bermuda.”

The tourist guide attributes that decision to several factors, including “tourism prices in Cuba are still very high and the quality of service they receive is not up to that of other countries,” she says. “The mere fact that they can not access the internet from their mobile phones is already a limitation for business people.”

American tourists are very popular on the island because they give big tips. “In their country they are used to leaving between 10 and 20% of the bill for the waiters or those who attend them in some service,” says Clo. “That’s why people from the United States are fought over here.”

The damage left by Hurricane Irma also created a negative image among many who planned a vacation on the island. “People do not want to go to a country that requires work and although the hotels have been rebuilt, the hurricane has left damages that they feel, for example in the supply of fruits and food,” adds Clo.

A few weeks ago the authorities of the Ministry of Tourism restated the number of tourists arriving in Cuba in the first quarter of the year; they had initially reported an increase of 7%, but instead the number fell by 7%.

However, the Government maintains its commitment to welcome five million visitors in 2018, according to the commercial director of the Ministry of Tourism, Michel Bernal. An assertion that several entrepreneurs working in the sector told 14ymedio they doubted.

A few yards from the Capitanía del Puerto, a private cafe offers typical tapas and a variety of cocktails. “We are looking at hard times because not much tourism is coming to the area and those who come are traveling on all-inclusive packages,” explains Gustavo, a 28-year-old man who works as a waiter at the cafe.

“We had a very good run at the end of 2016 and the beginning of last year when it seemed that tourism was going to increase, but right now many people are facing losses around here,” he says. “Those who are the worst off are the owners of rentals that made investments to serve more customers and have not been able to make back that money.”

On O’Reilly Street, very close to the well-known Bodeguita del Medio, Dinorah is among the most affected by the decrease in visitors. “I’ve had less than 20% occupancy,” laments the owner of a spacious hostel with five rooms that include private bathrooms and air conditioning.

“It is difficult to pay [the taxes] for the licenses and to assume all the expenses that it takes to maintain this house if not enough tourists come,” Dinorah complains. “To make matters worse, I can’t cancel my license for the low season and then get a new one later, because right now they’ve frozen the issuing of licenses for this activity.” Proprietors of rental accommodations pay monthly taxes for each room, even if it is not occupied.

Last August, the Cuban government halted the granting of licenses for self-employment, a decision that has many entrepreneurs in the food service and private accommodation sectors in limbo.

“Between the restrictions that the Government places on us and the fall of tourism, it is becoming a headache to sustain these small businesses,” says the owner of the hostel. The decline has brought a drop in room prices. “Where I used to ask for $30 (USD) or $25 for one night, now I have to settle for $20 or $15 because if I get too demanding I’m empty.”

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