The Debacle of Tourism in Cuba Continues, With a 14 Percent Decrease in July

Foreign tourists in Old Havana / 14ymedio

14ymedio bigger14ymedio/EFE, 20 August 2024 — Far from improving, or even maintaining, as happened with the June figures, tourism in Cuba continues to sink. In July, according to the report published on Tuesday by the National Office of Statistics and Information (ONEI), 153,261 travelers from abroad arrived in the country, a figure similar to that in the same month of 2022, but 13.56% lower than last year, when 177,306 tourists were received.

Between January and July, a total of 1,463,097 international travelers entered, 26,230 fewer – 1.8% – than in the same period of the previous year. Although the largest market is still Canada – with 613,227 people – the North American country registers a fall in its travelers to the Island, and the same happens with other European countries, such as Spain, Italy and France.

In July 2023, the United States measure eliminating Europeans from the ESTA rapid visa eligibility who have been in Cuba since January 12, 2021 – the date on which the U.S. Administration included the Island on the list of state sponsors of terrorism – came into force, a reason that may be behind the decrease in European tourists.

Visits by Cubans living abroad also decreased by 14.4%: in 2023 there were 210,026 such visitors between January and July, in the same period this year there were 179,746.

Year-on-year comparison of international travelers to Cuba / ONEI

On the other hand, visitors from Russia rose by 41%. With 123,358 travelers in the first seven months of 2024, it is still the second largest market, and with the bilateral agreements signed in the last two years, Russian tourism is expected to continue growing.

In any case, the Regime’s goal is to achieve 3.2 million international visitors in 2024, which was already a figure much lower than the data prior to the COVID-19 pandemic (4.2 million in 2019 and 4.6 million in 2018), and which contrasts dramatically with the Island’s direct Caribbean competitors – the Dominican Republic and Mexico – which have had historic high numbers of tourists in these post-COVID years.

The authorization, a few days ago, of the eVisa to facilitate the entry procedures into Cuba is also not expected to help much, taking into account the internet connection problems on the Island.

At the same time, and according to another report published on Tuesday by ONEI — Cuba’s National Office of Statistics — Cuba increased by 112% per year, more than double, its investment in hotels and restaurants in the first half of 2024. In absolute terms, it allocated 15,779.1 million pesos to the Tourism sector, 36.5% of the 43,12 billion pesos authorized in the first six months of the year.

For Pedro Monreal, these data confirm the “persistence of a very deformed investment structure”

If the investments are divided by segments, the Business Services, Real Estate and Rental Activities section – which includes the construction of hotels – accumulated 26.4% of the total investment. It is followed by the manufacturing industry, with 19.5%, and hotels and restaurants, with 11.4%.

Faced with this, public spending decreased by more than 20% in education, construction and public administration.

For the Cuban economist Pedro Monreal, these data confirm the “persistence of a very deformed investment structure in Cuba,” with almost 40% of spending concentrated on tourism-related activities. In a thread on X, the specialist highlights the growing investment in hotels and restaurants “despite the low occupancy rate of 28.4%.”

Similarly, he draws attention to the low agricultural investment, only 2.5% of total public spending (15 times less than what is allocated to tourism), which, in his opinion, indicates that the official “priority” “with respect to food security is no more than a slogan.”

Translated by Regina Anavy

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