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Tourism Geographies: An International Journal of

Tourism Space, Place and Environment
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Challenges of Tourism in a Dynamic Island

Destination: The Case of Cuba
a a
Sheryl Marie Elliott & Lisa Delpy Neirotti
a
Department of Tourism and Hospitality Management , The George Washington
University , Washington, D.C., USA
Published online: 28 Jul 2008.
To cite this article: Sheryl Marie Elliott & Lisa Delpy Neirotti (2008) Challenges of Tourism in a Dynamic Island Destination:
The Case of Cuba, Tourism Geographies: An International Journal of Tourism Space, Place and Environment, 10:3,
375-402, DOI: 10.1080/14616680802236386
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Tourism Geographies
Vol. 10, No. 3, 375–402, August 2008
Challenges of Tourism in a Dynamic

Island Destination: The Case of Cuba
SHERYL MARIE ELLIOTT & LISA DELPY NEIROTTI
Department of Tourism and Hospitality Management, The George Washington University, Washington
Downloaded by [University Library Utrecht] at 17:27 16 March 2015
D.C., USA
ABSTRACT Shifting political and economic structures have put Cuban tourism on a fluctuat-
ing course of economic development. With the fall of the Soviet Union, Cuba has turned again
to tourism – an economic partner reminiscent of the pre-revolutionary era – to generate foreign
exchange and stimulate investment The study analyses tourism in a non-market economy by ex-
amining Cuba’s historic relationship with tourism. A literature review clusters Cuban tourism
development issues and a destination audit and visitors’ satisfaction survey evaluates Cuba’s
tourism product and key service issues. The rise of Cuban tourism is associated with a thriving
black market, supply shortages, absent employee incentives, poor quality service delivery, res-
ident apartheid, prostitution and telecommunication shortfalls. Regardless of these problems,
Cuba maintains an exotic appeal due to its natural and cultural resources, its politics and its
people. The case study raises questions regarding Cuba’s long-term viability as a non-market
economy in a competitive global and service-minded marketplace.
KEY WORDS: Cuba, Castro, non-market economy, embargo, apartheid, package tourism, cuen-
tapropias, paladares
Introduction
Cuba . . . the mere mention of the name evokes an exoticism tempered by egalitarian
revolution and frozen in time by more than four and a half decades of a US trade
embargo. Cuba’s economic and political history has been linked sequentially to Spain,
the USA and, finally, the former Soviet Union. Recognizing that these relationships
have been unwise long-term choices, Cuba claims it will never again make the mistake
of relying on one partner.
Today, Cuba is openly hedging its economic future on engagement with multi-
ple partners, such as Spain, Mexico, Canada, Japan, France and Jamaica, through
a strategy of public and private joint-venture hotel company relationships. This ac-
tion has rekindled for Cuba a dance with a paradoxical partner reminiscent of its
Correspondence Address: Sheryl Marie Elliott, Department of Tourism and Hospitality Management, The
George Washington University, 2201 G. Street, NW, Suite 301, Washington, DC 20052 USA. Fax: 011
(202) 994-1630; Tel.: 011 (202) 994-7047; Email: sherylgwu@aol.com
ISSN 1461-6688 Print/1470-1340 Online /08/03/00375–28

C 2008 Taylor & Francis
DOI: 10.1080/14616680802236386
376 S. M. Elliott & L. D. Neirotti
pre-revolutionary prime: Cuba’s partner once again is tourism. But this time, the
dance exists within a centrally-planned, non-market economy where the state con-
trols the rhythm.
Cuba is considered by the United Nations World Tourism Organization (UNWTO
2001: 25) as one of the world’s top emerging destinations. Cuba is currently second in
the Caribbean region (after the Dominican Republic) in terms of yearly international
arrivals, and is third in the region for visitor expenditures (Caribbean Tourism Organi-
zation [CTO] 2004: 16, 98). At the same time, Cuba has one of the lowest visitor return
rates in the Caribbean (Economist 2007) and is market-dependent on low-cost pack-
age tours. Additionally, international arrivals to Cuba in the first five months of 2007
have slowed over 2006 year-to-date figures (Oficı́na Nacional de Estadı́sticas [one]
2006: 6) due, in part, to prohibitive landing fees, growing competition from neigh-
bouring countries, lack of product diversification and a general lack of investment in
infrastructure.
While many academic studies on Cuban tourism have emerged in the past decade,
they tend to focus on the potential and the problems of specialized forms of tourism:
health tourism, medical tourism, ecotourism, sex tourism, Havana tourism, arts
tourism, post-Castro tourism and regional tourism. In the few studies that have ad-
dressed the longer-term socio-economic problems that might impact Cuba’s future
tourism development, Jensen (2003: 435) concluded that the recognized lack of in-
centive on the part of Cuban tourism and hospitality workers would be difficult to
overcome without major market reforms. Falcoff (2003: 49) observed that ‘Cuba,
bereft of resources and markets, with a tourism industry of rather limited potential’ is
basing its future on the false hope that the end of the US embargo will make its eco-
nomic system workable. Considering the general failure of the non-market economy
throughout the world, Falcoff is highly sceptical of such hopes.
Cuba, nevertheless, has had an unusual history with tourism and hospitality, far
pre-dating any other destination in the Caribbean region. It is the largest island in the
Caribbean and has significant natural and cultural resources that would complement
a successful tourism development strategy. At the same time, Cuba must leverage
this comparative advantage in a competitive region that spent three key decades in the
latter quarter of the twentieth century developing sophisticated markets while tourism
in Cuba lay largely dormant.
This case study analyses whether there are economic and social issues resulting
from a planned economy that are individual to Cuba, and whether these issues will
pose problems for long-term sustainable tourism growth. This study aims to assess
the historic and fluctuating relationship Cuba has with tourism; identify key issues
and shortfalls in the delivery of Cuba’s tourism products and services; and assess the
future implications of tourism as a long-term development strategy for the country.
Few studies to date have examined the totality of Cuba’s new tourism development
strategy within the context of its current economic system.
Cuba and Tourism 377
Methodology
This study involved both primary and secondary research. A literature review provided
a history of the past eleven decades of tourism in Cuba, including an evaluation of the
Cuban government’s vacillating policies towards international tourism development.
Additionally, the literature review identified a cluster of problematic issues for the
Cuban tourism sector.
Primary research included observational and exploratory research based on in-depth
personal interviews; a supply-side destination audit of attractions, tourist facilities and
services; and a visitor satisfaction survey conducted in Cuba in 2000. The field work
was accomplished through a US State Department-licensed visit to Cuba, involving
32 graduate students from a business school at a national university. The qualitative

supply-side destination audit and field survey produced a consensus on issues and
problems for Cuba’s tourism industry.
Interviews followed an unstructured format and were designed to provide ad-
ditional insight into the Cuban economy and idiosyncratic tourism issues from
the varied perspectives of multiple stakeholder groups. Interviews included ones
with representatives from the following organizations and agencies: Cuba Ministry
of Tourism, Cuba Ministry of Health, Cira Garcia Clinic, Cuba Ministry of For-
eign Affairs, University of Havana., Cuba Ministry of Education, Cubatur, Cubana
Airlines, Cubanacan (Cuba-operated hotel chain), Sol Melia Spanish management
team, local tourism representatives in each field study destination, Varadero Golf Club
(Director), US Interest Section (Cuba), US multinational hotel corporation (Corporate
Director of Public Relations). Interviews with Cuban scholars included: Philip Peters
(Lexington Institute), Wayne S. Smith (Johns Hopkins University), Alejandro Lopez
(Interplanner), Ana Julia Jatar-Hausmann (Inter-American Dialogue in Washington).
To better evaluate the challenges tourism faces as a current economic development
tool, a visitor satisfaction survey was employed in order to identify and examine
product quality and service issues. The survey was administered in English, Spanish,
French and German during the third and fourth weeks of May 2000; used a conve-
nient sample approach; produced 273 completed surveys; and was conducted in five
principal tourist areas of Cuba: Havana, Pinar del Rio Province, Varadero, Camagüey
and Santiago de Cuba. The surveys were conducted each day during the field study
period and, as indicated in Figure 2, occurred in a month that tends to yield less visitor
arrivals than most other months. The number of visitor arrivals in Cuba in 2000 aver-
aged 147,832 per month and in May of that year the number of visitors was 116,558
(CTO 2004: 151). Though the study relied on a time period slightly under the average
monthly figure for tourist arrivals, this was deemed as having minor impact on the
qualitative design aspect of this research study. The field study areas and tour route
are provided in Figure 1.
In Table 1 the survey respondents’ country of residence is compared against total
tourist arrivals to Cuba by major markets (CTO 2004: 10). The higher percentage of
Figure 1. Cuba field study areas (broken black line indicates tour route). Visitors’ survey and
destination audit occurred in the field study areas circled as well as along the tour route.
English-speaking respondents compared to the actual percentage of arrivals reported

by the CTO suggests a possible bias in the survey results and is considered a limitation
of the study. A comparison of survey respondents by age groups was similar to actual
arrivals by age groups reported by the CTO (2004: 55). Of the actual visitors to Cuba,
51 percent are between 20 and 39 years of age, whereas, 45 percent of the respondents
were between 25 and 34 years of age. Of the respondents, 48 percent were male and
51 percent female compared to actual 2004 arrivals to Cuba in which 55 percent were
male, and 45 percent female.
Table 1. Country of residence of survey respondents compared with tourist arrivals

to Cuba
Survey CTO Country Report 2004
Country of residence respondents (%) tourist arrivals (%)
Canada 36 24
USA 11 4
South America 8 4
Italy 7 9
Spain 11 7
Germany 11 8
Other Europe 16 26
Rest of world 0 8
A destination audit was also performed, which included an analysis of the field
journals maintained by the 32 field investigators. These investigators were instructed
to note the strengths and weaknesses of tourism products and services and to
indicate areas for potential development and improvement. Specific attractions and
tourism establishments visited in the study areas included: Revolution Museum, a
tobacco factory, Vinales in Pinar del Rio Indian Cave and Prehistoric Mural and
Eco-Center, Jose Marti International Airport, Hotel Nacional, Hemingway Museum,
Cira Garcia Clinic, Varadero Beach in Matanzas, City tour of Santa Clara and visit
to Che Guevara Memorial, Trinidad Romantic Museum, Escambray Museum and La
Canchancharra Tavern, Gran Hotel Camaguey, Santiago de Cuba, El Cobre Shrine,
Moncada Garrrison and Morro Castle, Prehistoric Valley, Havana Club Rum factory,
Don Giovanni Restaurant, El Pedregal Restaurant, La Dominica Restaurant, La

Terraza Restaurant, Hotel Comodoro, La Ermita, Florida Restaurant, Los Caneyes
Restaurant, El Jigue Restaurant, El Zun Zun Restaurant, and the Tropicana.
The data from the journals were then summarized individually by the field investiga-
tors according to the following categories: infrastructure, communication, transporta-
tion (ground and air), safety and security, sanitation, accommodations/food service,
attractions and receptive tour operations. A category of ‘other’ was also provided.
The data were submitted by the investigators in an online form and then downloaded
into a database for further analysis. Greater than 600 observation statements were
then clustered according to discrete domains and sorted for frequency of occurrence.
Admittedly, the categories were somewhat nebulous and, in some instances, overlap
occurred. For example, comments on food service often related to sanitation, com-
ments on transportation also related to safety and security. Nevertheless, the electronic
online form provided a useful method for aggregating disparate data for analysis.
The data from the visitors’ survey and destination audit were analysed against
Bartol and Martin’s (1991) Eight Dimensions of Quality: performance, uniqueness,
reliability, conformance, durability, serviceability, aesthetics, and perceived quality.
An acknowledged weakness is that some of these dimensions are mutually reinforcing.
while others are not. The interviews, destination audit and field survey were designed
to produce qualitative rather than inferential data.
Characteristically, qualitative studies rely on gathering information with depth and
detail in a ‘search for meaning, ideas and relevant issues’, whereas, quantitative
studies seek ‘information – but limited – from a sizeable number of individuals
in order to draw inferences about the population at large’. Qualitative research is
often the ‘first step in a research program ... uncovering issues and topics for later
quantitative evaluation’ (Peterson 1987: 433). As such, qualitative research may be
necessary for the generation of hypotheses in later quantitative studies. Thus, the
broad research premise of this study is approached appropriately as a qualitative
assessment, exploring a full range of viewpoints in the development of a range of
issues critical for future investigations and research.
Background and Literature Review

Historic Precedent of Tourism and Cuba
Tourism in Cuba has experienced significant fluctuations due to both internal and
external factors, as indicated in Figures 2 and 3. Cuba and North America began to
realize the potential of tourism in Cuba at the turn of the nineteenth century, when
Cuba’s political economy shifted from Spanish domination to US ‘semi-colonialism’.
Cuba grew heavily dependent on the US ‘as U.S. capital came to dominate the island’s
sugar economy while modernizing production and greatly expanding the extent of the
sugar complex’ (Winson 2006: 9). Cuba also began relying on the USA for tourism
revenues during this period.
A bill introduced in Cuba’s Congress in 1910 secured a thirty-year concession

for the newly formed Cuban Tourism Development Corporation to operate numer-
ous activities for foreign visitors, including horse racing, gambling and sports. By
the 1920s, tourism was Cuba’s second cash crop after sugar, and the USA became
the primary source of hard currency and employment for Cubans (Schwartz 1997:
26). For Americans, Cuba was a desired escape from prohibition and an attractive
warm weather destination geographically closer than similar haunts on the French
Rivera (Schwartz 1997: 8). From 1927 to1932, added air transportation infrastructure
made Cuba a regional – if not world-class – destination which, during this period,
accommodated over 600,000 visitors at its peak (Schwartz 1997: 68).
As indicated in Figure 4, a series of events greatly fluctuated early tourism arrivals
in Cuba. The US Stock Market Crash of 1929, however, severely assaulted the Cuban
economy and its tourism sector. Significant political and civil unrest followed until
Figure 2. Monthly tourist arrivals to Cuba. Source: CTO (2004: 146).

Figure 3. Tourist arrivals to Cuba over seven and a half decades. Source: Cuba’s National
Office of Statistics, WTO, CTO, Garrido (1993), Mesa-Lago (1981).
Batista seized power in 1933. Under this new regime, and influenced by US President
Franklin D. Roosevelt, Cuba’s tourism shifted from being solely pleasure or leisure-
based (sun, sex and gambling) to a more civic-minded form that emphasized Cuba’s
culture and heritage (Schwartz 1997: 128). The result of diversifying Cuba’s tourism
product was an increase in visitor arrivals and domestic tourism.
By 1937, casino tourism reappeared as a leading contender for the tourism dol-
lar. Batista responded by seizing control of the gaming establishments and bringing
in American mob boss Meyer Lanksy to oversee operations (Schwartz 1997: 148;
Jayawardena 2003: 52). This action drew a new type of American to Cuba: a largely
wealthy and older business set of travellers who indulged heavily in gambling, prosti-
tution and drug use. This new sordid form of tourism, coupled with its more diversified
parts, was a successful endeavour and Cuba captured between 40 and 60 percent of
total tourist arrivals to the Caribbean. (Jayawardena 2003: 52). At the onset of World
War II, tourism in Cuba came to a standstill. By the war’s end in 1945, the tourist land-
scape had changed in the Caribbean. Many more destinations, including Mexico, were
now competing for the North American tourism dollar (Schwartz 1997: 109–111).
Despite the more destination-competitive environment, Cuba continued to dom-
inate regional tourism during the 1950s, increasing the country’s tourist arrivals
by over 94 percent from 1948 to 1957 (Jayawardena 2003: 53) and receiving over
one-third of all tourist arrivals to the Caribbean, totalling $US50 million in revenues
per year (Hinch 1990: 215). Arrivals from the USA accounted for 86 percent of the
total arrivals to Cuba (Jayawardena 2003: 53). With 10,134 hotel rooms in 1956,
Cuba claimed one-third of all room stock in the Caribbean, which then included
Puerto Rico, Jamaica, the Bahamas and the Dutch Antilles (Jayawardena 2003: 53).
However, according to Miller and Henthorne (1997, as cited in Jayawaradena 2003),
at the end of the 1950s there were more than 100,000 prostitutes and 279 brothels in
operation, creating a questionable form of tourism development for Cuba during this
period (Jayawaradena 2003: 56). According to Hinch (1990: 216), ‘The decadence
associated with the Havana tourist industry of the 1950s soon became accepted as
a classic example of the high social costs associated with this exploitative form of
international tourism’.
Unsurprisingly, the revolution of 1959 ended the growth of tourism in Cuba. The
Communist ideology and the state-planned economy made tourism synonymous with
crime, vice and prostitution. With the revolution, Castro bulldozed golf courses and
ordered the slot machine, roulette wheels and blackjack tables of Havana’s casinos
destroyed as symbols of evil foreign rule. Under new socialist ideals, Cuba shifted
from an international focus to a domestic focus on tourism (Schwartz 1997: 203) that
resulted in a decentralization of tourist facilities away from former urban tourism
centres to residential centres encouraging an increase in domestic travel. In October
1959, the Cuban government nationalized all leading hotels, as well as 150 other US
investments (Jayawardena 2003: 53). Social or domestic tourism, subsidized by the
Cuban government, reached an all-time high ratio of 50 domestic visitor-nights for
every 1 foreign visitor-night. This figure moderated only slightly throughout the late
1970s and 1980s (Hinch 1990: 217).
The most significant setback to Cuba’s tourism industry came with the 1962 US-
declared trade embargo that restricted travel to Cuba by Americans (Barclay and
Ferguson 1992: 378–385). Jayawardena (2003: 54) observed that the embargo turned
Castro’s opinions even further against international tourism.
The next ten years saw continued deterioration of the tourism sector, an absence of
foreign investment and, subsequently, a lack of infrastructure development (Espino
1992: 327–342). Between 1960 and 1970, Cuba’s share of the total Caribbean tourism
market dropped to less than five percent (Webster 1992: 226). According to Winson
(2006: 11), ‘The Cuban government had resisted developing international tourism in
any major way in the 1960s and the 1970s because of the corrosive effects it had in
the pre-revolutionary era’. However, the continued lack of capital flow forced Cuba
to reconsider its tourism policy in the latter part of the 1970s and the early part of the
1980s, creating the Instituto Nacional del Turismo (INTUR) in 1976 and the Cuban
Joint Venture Law in 1982 (Espino 1991: 50–55).
Hinch (1990) suggested that with these lead reforms Cuba entered another distinc-
tive phase in which it diversified its economic dependence on sugarcane through
renewed openness to international tourism. In the early 1970s Cuba instituted
package tours from Canada and, by the 1980s, Cuba had permanent tourism offices
in Toronto, Montreal, Frankfurt and Paris. By 1987, Cuba recorded 310,000 tourist
arrivals (Hinch 1990: 217–218) and, between 1985 and 1994, foreign visitors to Cuba
increased nearly five-fold (Crespo and Dı́az 1997: 153).
Despite Cuba’s efforts to diversify its economy, an aggressive tourism campaign
did not begin until the economic assistance of the Soviet Union ended in 1991.
According to Miller and Henthorne (1997, as cited in Jayawardena 2003: 54), ‘Prior
to 1989, the Soviet/Eastern European Bloc accounted for approximately 85 percent of
Cuba’s total foreign trade – about 70 percent with the Soviet Union alone’. The Cuban
tourism industry was, in fact, plagued by hard currency deficiencies, consumer item
shortages and inherent inefficiencies of centralized planning and management under
Communist rule. With the collapse of the Soviet Union, Castro began the five-year
‘Special Period in Time of Peace’ which aimed to enact strict economic measures as
a means to transition out of Soviet economic dependence and revive Cuba’s crippled
economy. The reforms implemented between 1993 and 1994 included the creation of
the Ministry of Tourism (MINTUR), the legalization of dollar holdings, the opening
of the island to joint ventures, and the sanctioning of ‘cuentapropias’, or private
micro-enterprises (Jatar-Hausman 1999: 69).
By the mid-1990s, Cuba was responding further to the island’s economic crisis
by decentralizing many state enterprises and creating para-statal enterprises within
the tourism sector that would compete with each other for the tourist dollar (Winson
2006: 12). Winson (2006: 12) stated: ‘The strategy to dramatically expand tourism
met with early success, as the rate of annual growth of tourist arrivals in Cuba in the
1992–1996 period was 21.7 percent, by far the highest of all the Caribbean countries’.
Cuba’s Present-day Tourism Development

Economic and labour reforms enacted in the 1990s were extremely important for the
development of the tourism sector in Cuba. Despite these efforts,
expectations of a full transition to a market economy have not been met. Private
ownership of land and productive capital by Cuban citizens is still limited to
farming and self-employment, and at present the government is unwilling to
contemplate a mass privatization program (Economist Intelligence Unit Limited
[EIU] 2006: 26).
Agarwal (2004: 312–313) observed that while there was a marked trend in Cuba of
opening to a market economy, ‘Cuba remains the slowest [compared to Viet Nam and
China] at implementing a long-term plan for transition and development’.
Nevertheless, international tourism is making huge inroads in Cuba’s economic
landscape. It is well ahead of traditional sugar and nickel exports, surpassing both in
1997 as the single largest earner of hard currency (Jensen 2003: 440). In 2005, the ser-
vice sector, which consists primarily of government services and tourism, accounted
for 67.8 percent of Cuba’s GDP (EIU 2006: 24). However, while hard currency in-
come from foreign international visitors to Cuba in 2004 totalled $US2,282,751.92
(Oficı́na Nacional de Estadı́sticas [ONE] 2006), there are no official figures for net
revenue generated by tourism in Cuba, and estimates vary widely. Castro (2003) con-
tended that domestic producers meet 68 percent of supplies needed by the tourism
industry, whereas only 12 percent did so in the early 1990s. Jensen (2003: 440) ob-
served that the direct import coefficient associated with the tourism sector dropped
from 90 percent to 35 percent since 1989.
The potential of Cuba’s tourism industry has been supported by record growth
in the number of hotels to accommodate the growing tide of incoming travellers as
indicated in Figure 5. The number of hotel rooms in Cuba has more than tripled
from 12,866 rooms in 1995 to over 55,000 rooms in 2005 (ONE 2006). According to
Winson (2006: 12), ‘between 1995 and 2001 the number of hotels increased by about
20 percent and room capacity almost doubled, with the most dramatic expansion in
the four and five star hotel categories’.
At the same time, lodging growth in Cuba requires additional investment in infras-
tructure and transportation development, ushering in additional challenges for Cuba
as it expands its tourism sector. The EIU (2006: 20) reported that ‘a decade of neglect
in the 1990s left the [transportation road] network in poor condition’. A road repair
programme for tourist areas has been prioritized but not yet realized. While the energy
demands of the tourism sector increased in the 1990s with the growing number of
hotels, power plants continued to deteriorate. In 2004 and 2005 problems with the
largest generating plant caused serious disruptions of power and resulted in several
hotels having to close their doors (EIU 2006: 23). According to one report, general
neglect of the energy grid and the damage caused by recent hurricanes have caused
the island’s seven power plants to operate at only 50 percent of their capacity, whereas
65 percent is needed to meet current demand (Robles 2005).
Issues Unresolved
Salient issues emerged from the literature review that pose perplexing long-term
challenges Cuba must face in order to make its tourism sector functionally compatible
in a state-controlled economic system. In essence, these issues could produce a set
of obstacles if they are not weighed adequately against visitor expectations in a
competitive global marketplace.
Capitalism à la Cubana. Cuba’s national restructuring in the 1990s resulted in a

GDP growth that reached 11.8 percent in 2005 (Spadoni 2006: 3). However, behind
the revamping of Old Havana and the proliferation of new cars, there remains a
large population of Cubans trapped in a dysfunctional system of ‘capitalism a la
Cubana’ (Jatar-Hausman 1999: 69). Castro has remained a dogmatic communist and
has never fully recognized the importance of private ownership. The result is a lineage
of economic policies moving in the direction of entrepreneurship, yet vacillating

between encouraging and punitive actions (Benzing 2005: 78). This dysfunction arises
from limitations imposed on the cuentapropias, or self-employment establishments,
and creates a contradictory economic system.
For example, one form of private entrepreneurship opportunity sanctioned by the
government are paladares, small restaurants limited to 12 seats, and operated in
private homes. Cuban law ‘established a peculiar regulation prohibiting “salaried
employees” on the one hand, while mandating that at least two “family helpers” be
employed’ (Henken 2002: 346). The paladares must also pay set monthly fees to the
government regardless of income earned (Travel Document Systems 2003), of which,
a supplemental 20 percent must be paid for the right to advertise (Henken 2002: 346).
The seat limit, the labour restrictions and the requirement to buy all agricultural goods
from state-owned markets hinder the paladare owner’s chance at growth and financial
viability. Nearly all paladares find it necessary to operate outside the law in order to
survive (Henken 2002: 350). A typical response to the twelve-seat limit is to have
secret ‘backrooms’ of additional seating.
The difficulties in obtaining self-employment licences and the inability to own
private property aggravate the current situation further and oppose the entire concept
of entrepreneurship. With the accessibility to the US dollar and other hard currency
limited to less than 50 percent of the Cuban population, the notion of Cuba evolving
into a quasi-capitalist society remains unlikely.
Black market. The collapse of the Soviet trading bloc coupled with the inefficiencies
of the state-controlled economy has created widespread poverty in Cuba. This has
perpetuated a vast black market and a silent economy more important than the official
one. Cubans must turn to the black market for food, household goods and medical
supplies. Remittances from abroad plus currency generated from tourism fuel the
black market economy, and there appears little chance of the government being able
to shut it down. As of January 1998 the number of registered micro-enterprises was
159,506, which is lower than the 208,786 such enterprises registered in 1995. How-
ever, these numbers may be deceiving since many functioning micro-enterprises have
gone underground to escape the ‘uncertain, punitive tax structure’ inflicted by the
Cuban government (Benzing 2005: 79).
It is commonplace for individuals to steal goods from the workplace to sell later on
the black market. According to one report, ‘the anti-corruption campaign claimed that
the market-oriented reforms of the 1990’s had created widespread tolerance for petty
theft, indiscipline and corruption’ (Economist 2004: 45). Cerviño and Bonache (2005:
464) called it a socialistic form of stealing, with all employees in a hotel department,
including managers, engaged in the activity and splitting the proceeds from the thefts.
Sex tourism and prostitution. In a book that explored public health interests related
to tourism sociology, human rights and elemental morality, Clift and Carter (2000:
271) listed Cuba among the top seven destinations where sex tourism is a flourishing
trade. Prostitution in Cuba may be tourist-driven, but unlike other countries in the
West, Thailand or the Philippines, it does not exist through organized networks of
third party individuals or brothels. Nevertheless, prostitution and sex tourism do thrive
in Cuba, motivated by the relatively cheap price of prostitutes and the growing influx
of hard dollar-paying customers via the tourism sector.
Castro eradicated prostitution after the revolution but, in the 1990s, there was a
large resurgence after the economy turned to the official international tourism and
the unofficial tourism sector (namely prostitution) for badly needed foreign exchange
(Eaton 2003). Though the government does attempt to crack down on prostitution
from time to time, Clancy (2002: 84) claimed these efforts are infrequent, and that
sex tourism remains a robust industry today, and will be a robust industry for the
foreseeable future.
Structural shift and the incentive problem. There is a large demand for jobs in the
tourism sector because it is the only means to acquire hard dollars. Professionals
educated in medicine, engineering and education are quick to flock to tourism service
jobs, whether it is being a taxicab driver, a waiter or even a prostitute. The Cubans who
choose to be self-employed earn on average twenty times more than their previous
state job. According to Benzing (2005: 79), ‘Those working in food services reported
the highest average earnings at approximately 8,000 pesos (US$400)/month’. This
structural shift in the work force toward the tourism sector continues to cause severe
labour shortages in other important sectors. The medical profession has been the
hardest hit. The lure of a lucrative career in tourism is a compelling enticement in com-
parison to the meager 400 pesos, or $US20 per month paid to medical professionals.
At the same time, the large demand for tourism jobs makes employers disinterested
in the importance of employee satisfaction. General disdain of the tourism sector and
feelings of resentment against tourists result in poor service quality, further aggravated
by a poor incentive system for upward mobility among those with tourism jobs.
Cubans are limited to staff and service positions, while management positions are
occupied largely by foreigners and Cubans who have political party connections
(Cabezas 2006: 512).
Tourism apartheid. Current tourism in Cuba is establishing a system of apartheid:

tourists have access to lush facilities, numerous products and fine food, while resi-
dents struggle in their daily existence. According to Facio et al. (2004: 14): ‘Foreign
tourists frequent dollar restaurants and dollar stores, use dollar taxis, eat food and use
transportation that Cubans cannot, and spend no time standing in lines for goods and
services’.
Attractions such as Varadaro Beach, once accessible to Cubans, are now available
only to foreign tourists and those working the region’s travel companies and tourist
establishments. Cave (2002: 1) suggested that Cuba’s attractions are systematically

being taken away from the Cuban people: ‘Unless something changes, more and more
of the country’s most beautiful places will soon be off limits to the people who built
or founded them’.
Cuba has been able to exploit its high-quality and low-cost medical environment
by developing a medical tourism industry for foreigners seeking a specific treatment
that is either unavailable or cost-prohibitive in their country of residence. The growth
of medical tourism has contributed to another type of tourism-related apartheid –
medical apartheid – where there is ‘disproportionate emphasis in terms of resources,
knowledge, technical expertise and attention, on caring and treating international
medical tourists instead of the Cuban people’ (Goodin et al. 2006: 32) .
Technology, telecommunications and tourism. The establishment of a new Min-

istry of Information Technology and Communications in 2000 has resulted in im-
provements to the Cuban telecommunications industry. However, much of the Cuban
telecommunications system is operating with obsolete technologies, such as fibre-
optics incapable of handling internet connections (Central Intelligence Agency [CIA]
2007).
In 2006, ‘Cuba still occupie[d] last place in Latin America for both mobile phone
and Internet penetration, and [was] fifth from the last in fixed-line teledensity’ (Paul
Budde Communication Ltd 2007). Telecommunications infrastructure is critical to the
information-intensive tourism sector and Cuba has not invested in telecommunications
to the degree that other tourist destinations have in the Caribbean. Cuba blames their
poor telecommunications development on the embargo, not being able to implement
underwater cable and having to rely largely on satellite technology (Paul Budde
Communications Ltd, 2007).
Findings
To investigate further the potential challenges Cuban tourism development may face,
personal interviews were conducted with government officials and tourism managers
from the USA and Cuba. In addition, a field destination audit of tourist attractions,
facilities and services was conducted in Cuba, together with a visitors’ survey, which
assessed Cuban tourism product quality and service issues.
Personal Interviews
The personal interviews provided insight into stakeholders’ impressions on how
tourism could be employed as an effective strategy for economic development in
Cuba. Several central ideas surfaced throughout the process and are described below.
Cuba depends on tourism for its economic future. Cuba’s current tourism product
includes the traditional sun, sea and enclave tourism, but also incorporates some niche
markets such as health tourism and, more recently, ecotourism and adventure tourism.
The overdependence on leisure-based tourism, some 94 percent of all travellers (CTO
2004: 52), has some Cuban officials and managers interested in strategies to develop
more conference and meeting tourism. While these commercial forms of tourism are
more costly to develop, those interviewed believe development in this area would
ease the strong seasonal fluctuations that characterize much of the Caribbean. The
seasonal fluctuations are somewhat more exaggerated in Cuba due to the country’s
reliance on the price-sensitive wholesale market segment, which is more volatile than
the free independent tour (FIT) and package tour markets. The economic impact of
seasonality in Cuba is compacted by the country’s low tourism price points – currently
the lowest in the region.
Aircraft landing fees in Cuba, conversely, are some of the highest in the world.
As a result, airlines have begun curtailing service to the Island, causing concern
among stakeholders as to the tourism sector’s sustained growth performance. There
are additional concerns that joint venture management companies have lost some
enthusiasm for direct investment in Cuba due to associated risks resulting from the
1996 Helms Burton Bill, a controversial US law designed to discourage foreign
investment in Cuba.
Cuban officials acknowledge the lack of adequately developed facilitates and in-
frastructure and consider this a serious obstacle to the development of Cuba’s tourism
sector. They are responding to this issue as a priority area and are making considerable
advances towards addressing the problem, such as the development of a long-term
strategic plan for Havana and other urban tourist areas, which would include the
restoration of historic buildings. Their efforts, though, are made difficult by scarce
resources and the enormity of the task at hand.
Officials recognize the many ideological contradictions of tourism development
within the context of a Marxist state. This political ideology has affected much of
the economic and social fibre of the island such that there was uniform belief among
those interviewed that if Castro were to die there would not be a rush to a fully-
fledged market economy. One Cuban tourism manager did comment that it was not
so much Castro’s death but the US embargo that was keeping Cuba from moving
more aggressively in free market reforms. In his opinion, the embargo actually is an
aid to Castro, keeping the leader in power.
It is not uncommon for native Cubans to approach visitors and ask for donations
of toiletry items and other such necessities. Although such obvious issues of poverty
are readily observable to tourists, Cubans feel great pride in being a member of an
egalitarian society where education is free and food and jobs are guaranteed, despite in
insufficient quantities and meagre pay. Cuban scholar, Ana Julia Jatar-Hausman, noted
in an interview that these insufficiencies in the non-market economy force Cubans to
live in illegality every day in order to survive: buying and selling goods and services
on the black market, bribing officials for the most coveted tourist licences, or selling
goods such as cigars ‘under the table’ to tourists who are visiting factories. Other
problem areas, such as prostitution, were acknowledged, but most officials believed
that the government was, in fact, trying to address this issue through stricter law
enforcement and a system of ‘re-education camps’.
While some interviewees believe a centrally planned economy allows the Cuban
government to dictate more effectual environmental policies related to tourism devel-
opment, others believe that the non-market economy provides fewer technologies and
financial resources necessary to mitigate serious environmental problems created by
low-revenue and enclave-based tourism. There are suggestions that the environmental
impact of mass enclave tourism development is worse in Cuba than in other market-
orientated Caribbean countries. Portela and Aguirre (2006: 20) reported that tourism
growth is threatening many coastal areas, specifically the construction of a causeway
in the northern keys intended to provide direct tourist access to pristine areas, but
resulting in the obstruction of water circulation and a subsequent ecosystem collapse.
Similar events were recorded in conjunction with the development of the Caya Coco
causeway.
Despite the enthusiasm expressed for tourism as a development strategy by the
interviewees, the US Cuban Interest Desk in Havana is less sanguine about Cuba’s
economic development potential and tourism, noting the increasing number of Cubans
trying each day to emigrate to the USA.
Destination Audit
An analysis of the destination audit data confirmed many of the issues identified
in the literature and the personal interviews. Cuba’s observed strengths were the
potential for developing a diverse tourism product, beautiful beaches, many colonial
sites, music, culture, good security, friendliness of the host society, and the growth
of joint venture hotels which have set better service and quality standards. Signature
parts of Cuba’s history, such as Hemingway and Ché Guevara, were identified as
positive attributes, albeit, somewhat over-marketed. Robust potential for developing
niche tourism products, such as ecotourism, adventure tourism, dive tourism, health
tourism and medical tourism, were also observed. Cuba’s highly educated workforce
was considered among Cuba’s strongest assets.
However, observations uncovered more weaknesses than strengths. Lack of
telecommunication and internet access, an unreliable power supply and non-potable
water were significant issues. Large areas in key cities remain in ruins and are haz-
ardous for tourists and residents alike. Numerous transportation weaknesses were
identified, such as poor road signage, maps lacking street names and highway ex-
its, insufficient petrol stations and rest stops, intra-Cuban air travel complicated by
frequent unexplained delays and aging aircraft, an enigmatic bus system, poorly lit
roads hampering night-time travel, perilous roads lacking guard rails and, in general,
a public transportation system that is not safe or regulated.
Hotels were found to suffer from a lack of standards. State-operated accommoda-

tions frequently lacked clean towels and regularly changed sheets. Sanitation issues
undercut many aspects of the tourist experience; hotels swimming pools were non-
chlorinated, restaurant kitchens have observably poor sanitation standards, and public
bathrooms lacked cleanliness and working equipment, such as flushable toilets. Lack
of toilet paper and soap were also mentioned frequently.
The destination audit also revealed the need for more restaurants with greater menu
choices and variety. There were frequent observations that individual and small party
dining, rather than large group dining, was always a preferred experience in terms of
both food choices and better service. Attractions were deemed plentiful, but appeared
to be lacking in maintenance as well as the ability to handle emergency situations,
such as power outages. Poor communications were observed between tour operators
and tour groups, with frequent misunderstandings occurring in the tour routing and
scheduling process. In the ‘other’ category, investigators found Cuban art, cigars and
rum were readily available for sale, but there was a conspicuous shortage of other
novelty and necessity items sought by tourists.
Visitors’ Survey
The visitor survey supported the destination audit findings and personal interviews,
while providing further insight into specific service areas using the Bartol and Martin
quality service measurement model. The tourism product is defined as a combination
of services and product tangibles. While hotels, restaurants and attractions have as-
sociated tangibles, many of which were addressed in the destination audit, how these
are delivered to the consumer (the service) is critical to the success of the overall
product. Tourism, as a product, is categorized as having inseparability: travellers are
physically present and must participate actively with the service providers to create
the experience. As a result, the quality and consistency of the service is critical to the
traveller’s experience.
Cuba’s tourism sector, however, as Cerviño and Bonache (2005: 460) explained, is
based on a production-orientation model consistent with a planned economy rather
than a service or marketing orientation model common to market economies. To
determine the extent that this approach is affecting tourism service delivery in Cuba,
a visitors’ survey was conducted in five tourist regions. The results were analysed
using Bartol and Martin’s (1991) eight dimensions of quality; dimensions that Gardner
(1996: 443) contended should be monitored constantly within the tourism/hospitality
sector.
The countries of residence of respondents included: the USA, Argentina, UK,
Canada, France, Germany, Italy, Mexico, Portugal, Spain and Switzerland (Table 1).
The Bartol and Martin (1991) performance dimension involves the primary character-
istics of the tourism product. Survey data, as illustrated in Table 2, suggest that from
a performance perspective Cuba is generating somewhat positive results in terms of
Table 2. Performance dimension (%)

Highly Highly No
Performance satisfied Satisfied Neutral Dissatisfied dissatisfied opinion
Satisfied with the overall 16 46 19 9 1 6
tourism product
It is relatively easy to 11 40 13 22 9 5
travel to and within
Cuba
n = 273.
Note: Source of quality dimension framework for tourism and hospitality sectors used in Tables 1–8 drawn
from Bartol and Martin (1991).
overall satisfaction of the tourism product, with 62 percent of respondents report-

ing to be satisfied or highly satisfied. However, it should be noted that the largest
proportion of leisure tourists to Cuba are on low to mid-price package tours. It was
reported that at the 270-room Sol Club Cayo Coco, 95 percent of the occupancy is
generated through package tours (Marsan 1999: 3). Further investigation is required
to uncover the extent to which Cuban quality performance appeals to other types
of travellers (higher-end markets, incentive market, convention market, independent
travellers, etc.).
Bartol and Martin (1991) advised that performance can be measured by how the
service is executed and how it is received by the guest. In terms of ease of travel to
and within Cuba, 51 percent of the survey respondents thought travel was efficient;
but a significant percentage, 44 percent, were either neutral or disagreed with this
performance dimension. The destination audit also revealed considerable concern
with the performance dimension, suggesting that there was: lack of efficient passenger
management systems at air terminals, lack of variety in restaurant menus, lack of guest
management systems and room amenities in hotels (from check-in to check-out), lack
of adequate information services provided by the receptive tour operator, and a general
lack of any system for addressing service failures.
The uniqueness dimension refers to supplemental characteristics of the product or
service. The data from the survey imply that in this dimension Cuba is exceptional: 70
percent of visitors agreed that Cuba’s tourism product stands out from other Caribbean
destinations, and 86 percent indicated that there is much to do and see in Cuba (Table
3). Despite the failures and inadequacies raised in the destination audit, it is possible
that first-time travellers to the island will tolerate poor service and lack of infrastructure
in compensation for a unique experience.
The reliability dimension depends on whether a destination consistently delivers
what is promised. To this end, reliability predicts the probability of success for the
destination. To address this question, visitors were asked whether they felt Cuba
offered good value for price. As depicted in the data shown in Table 4, this is more of
Table 3. Uniqueness dimension (%)

Highly Highly No
Uniqueness agree Agree Neutral Disagree disagree opinion
Cuba has many unique 26 44 15 4 1 11
features that set it out
from other Caribbean
destinations
There is much to do and 38 48 8 3 — 1
see in Cuba
n = 273.
a critical issue, with less than half of those interviewed feeling that Cuba represented
good value for price. Many respondents commented that they felt being ‘squeezed’
out of every dollar and that their perception of Cuba as a low-cost destination had been
altered seriously. This finding was also confirmed in the destination audit, where Cuba
was noted as being far from inexpensive in terms of the price of food and beverage,
sundry goods and entertainment services.
The conformance dimension refers to product consistency. As shown in Table 5,
product conformance is by far the most concerning quality service issue for Cuba.
A slightly larger percent disagreed (35%) than agreed (30%) that there was equal
consistency in quality among the various Cuban tourism products and services.
The durability dimension measures the expected stability of the product or service.
According to the survey, 61 percent of the respondents agreed that Cuba met their
expectations. This is consistent with 62 percent of the respondents agreeing or highly
agreeing that they were satisfied with Cuba’s tourism product (Table 6). The dura-
bility of Cuba as a travel product can also be measured by whether a visitor would
recommend Cuba to someone else as a vacation choice and, as the data indicate, 53
percent of the respondents would recommend Cuba to a friend and 25 percent of the
respondents might recommend Cuba to a friend.
The serviceability dimension refers to ease, speed, and service adjustments. As
shown in Table 7, 66 percent of the visitors surveyed agreed or highly agreed that
hotel staff provided good service to guests. However, when the data were analysed
Table 4. Reliability dimension (%)

Highly Highly No
Reliability agree Agree Neutral Disagree disagree opinion
Cuba offers good value for 15 33 21 19 10 3
price
n = 273.
Table 5. Conformance dimension (%)

Highly Highly No
Consistency agree Agree Neutral Disagree disagree opinion
There is equal consistency 5 25 28 29 6 7
in quality among the
various tourism-related
products and services in
Cuba
n = 273.
according to tour type (independent travel, hosted travel, group tour and independent
group tour), 78 percent of hosted group travellers agreed with the statement, whereby
only 55 percent of group tour travellers or independent tour travellers agreed with
the statement. The highest disagreement with this statement (20%) came from tour
groups, i.e. non-independent travellers.
The aesthetics dimension is an aspect of tourism that helps destinations differentiate
themselves from the competition. According to Bartol and Martin (1991), aesthetics
is an important determinant for a traveller’s desire to return to a destination. Cuba has
a challenging road ahead as it embarks on massive renovation and restoration of its
Table 6. Durability dimension (%)

Highly Highly No
Durability agree Agree Neutral Disagree disagree opinion
Cuba met all of my 21 41 20 12 3 2
expectations as a
tourism
destination
Highly Highly No
satisfied Satisfied Neutral Dissatisfied dissatisfied opinion
How satisfied are 16 46 19 10 2 6
you with the
overall tourism
product in Cuba?
Definitely Maybe Not Sure Never No Opinion —

Would you 53 25 13 5 3 —
recommend Cuba
to a friend as a
travel
destination?
n = 273.
Table 7. Serviceability dimension (%)

Highly Highly No
Serviceability agree Agree Neutral Disagree disagree opinion
Staff in hotels provide 21 45 18 11 2 5
good service to guests
n = 273.
decaying historic buildings and sites. In regards to the current attractions promoted by
Cuba, respondents were indecisive in determining whether these attractions appeared
well maintained, with 23 percent agreeing with the statement, 30 percent neutral and
29 percent disagreeing (Table 8).
In terms of the perceived quality dimension, the data in Table 9 suggest that the
respondents were less enthusiastic in determining whether Cuba offered a high-quality
tourism product: 45 percent agreed with the statement and 24 percent disagreed with
the statement. Since many studies have pointed to the tourist’s perceived safety and
security as one of the most critical factors in the vacation choice decision process,
it should be noted that Cuba was considered a safe destination by 81 percent of the
respondents, with only slightly more than five percent disagreeing.
The fairly large percentage of neutral responses should be taken into considera-
tion during the analysis of the visitor survey results. Ghopade and Lackritz (1986:
123–129) challenged previous research that suggested neutral responses should be
considered only as respondent uncertainty and ambivalence. In their study, Ghopade
and Lackritz analysed neutral responses based on various demographic factors (age,
nationality, gender and race) of the survey respondents. While the findings were not
consistent for all demographic factors analysed, their research did ‘confirm that the
traditional view of neutral responses is overly simplistic’ (Ghopade and Lackritz
1986: 128). They suggested administers of structured questionnaires consider the re-
sponse patterns of different respondent groups before deriving statistical results when
the neutral response is significant.
The design of this study was a qualitative assessment for uncovering issues
and topics for later quantitative evaluation. Any follow-up visitor surveys, and
particularly surveys designed for quantitative assessment using a random rather than
Table 8. Aesthetic dimension (%)

Highly Highly No
Aesthetics agree Agree Neutral Disagree disagree opinion
Cuba’s attractions look 5 23 30 29 9 4
well and are maintained
n = 273.
Table 9. Perceived quality dimension (%)

Perceived Highly Highly No
quality agree Agree Neutral Disagree disagree opinion
Cuba offers a high quality 10 35 26 20 4 5
tourism product
Cuba is a safe destination 33 47 11 5 — 4
n = 273.
the convenient sample employed in this study, should minimize the neutral response
issue by eliminating the ‘no opinion’ option. Additionally, variation of response rates
of different groups based on demographic factors should be analysed if the neutral

response continues to be large.
Discussion
International tourist arrivals to Cuba have grown an impressive 19 percent from
1995 to 2004 (UNWTO 2007: 69). Cuba has also been identified by the UNWTO
as one of the world’s top emerging destinations, with international tourist arrivals
surpassing that of many other Caribbean islands. However, the results of the visitors’
survey and destination audit indicate that Cuba must make corrections on the mixture
of product and price in order to optimize the growing demand of tourism in the
highly competitive Caribbean region. This will require improvements in attractions
and interpretation, transportation and tour circuits, receptive tour operations, food
Figure 4. Fluctuations in tourism arrivals in early Cuban history. Source: Cuba’s National
Office of Statistics, WTO, CTO, Garrido (1993), Mesa-Lago (1981).
Figure 5. Growth of hotels in Cuba 1952–2005. Source: Cuba’s National Office of Statistics.
service, hotel standards, shopping outlets, general infrastructure, and quality customer
service dimensions identified in the visitors’ survey. The structural issues, if not
addressed, will continue to limit the viability and sustainability of tourism in Cuba.
Jensen (2003: 438) noted that while tourist arrivals increased in the latter part of
the 1990s, income per tourist declined; she claimed that this phenomenon could be
‘an indicator of dwindling competitiveness in terms of quality of the Cuban tourist
offer’.
The visitors’ survey and destination audit noted higher dissatisfaction among group
tour travellers. This likely relates to the difficulties imposed on hotel and restaurant
staff in providing timely and efficient service to large groups at the time of check-in
and check-out, the delivery of bags to rooms, as well as the fulfillment of food and
drink orders in restaurants and dining areas. Prearranged dining is also often part of
the tour package and, rather than ordering à la carte, tour members may be offered
only two or three food choices and, in some cases, no choice at all. The transportation
of group tours to attractions and sites also requires a high level of group management
skills on the part of guides, bus drivers and tour escorts who are facilitating the
tour experience. This adds another potential area for a service failure. In general,
when choices are limited, which is often the case in packaged tours, this in itself
will inherently influence customer satisfaction. Since pre-package tours constitute
the major portion of travel in Cuba, further research is needed in order to understand
more about the satisfaction levels among different types of tour groups and whether
demographics factors within these groups influence satisfaction levels.
Shortages in service areas, as the visitor survey data suggest, are not perceived
entirely in a negative context by Cuba’s international visitors. This leads to the as-
sumption that shortfalls, at least for the immediate term, are somewhat offset by
Cuba’s exotic allure after 40 years of relative isolation and its ability to stimulate
demand through the perceived value of package tours. However, such blessings may
be short lived; when the numbers of these package tour visitors increase and the price-
over-cost trip margins slip lower for travel operators, Cuba may stretch its limited
capacities for consistent delivery of quality service acceptable to the international
mass traveller.
This study puts forth the need to design a strategy that reconciles capitalism and
entrepreneurship with Marxist ideologies. There are many contradictions identified
and questions raised when viewing Cuba’s current partnership with tourism as it
operates in a state-controlled economic system: (1) Will the current black market
return Cuba to the pre-revolutionary dance and its distasteful partnership with tourism?
(2) Will growing forms of sordid tourism, such as sex tourism, taint the overall tourism
product for Cuba? (3) Will the structural shift in the professional labour force to
the tourism sector weaken Cuba’s diversified economy and the country’s ability to
optimize tourism as a development strategy? (4) Will the current levels of demand
and growth exacerbate supply shortages and render tourism an ineffective strategy?
(5) Will the continued expansion of tourism create an intolerable gap between those
who have access to foreign dollars and those who do not? (6) Will Cuba be able to
meet the infrastructure demands associated with the growing tourism sector while
simultaneously preserving the country’s cultural and natural environment?
It is evident from this study that Cuba has vast resources for developing tourism
and a clear regional competitive advantage in tourism: a history of hospitality, close
proximity to one of the world’s largest tourism-generating markets (assuming the US
embargo were to end), a plentiful supply of natural resources and a cultural dimension
that adds distinction and richness to its product.
Nevertheless, as the findings from this study suggest, Cuba needs to upgrade
its tourism products and services and adopt new strategies that attract more
environmentally- and socially-responsive markets in addition to packaged tourism.
This is important for the sustained growth of Cuba’s tourism industry and is a neces-
sary precondition for using tourism to improve the overall standard of living for all
Cubans. In the industrialized world tourist dollars have a multiplier effect of 1.5–3.5
in local economies, which is not the case in Cuba where packaged wholesale tours
prevails. In Cuba, pre-packaged tours generate volume numbers of visitors but do not
generate significant cash flows (economic linkages to local communities) outside the
organized tour. Because of this effect, Cuba can remain stagnant economically even
though it may attract more visitors.
Cuba is at a crossroads in terms of its future economic development and the gov-
ernment has to balance its strategic direction carefully, deciding how to exploit fu-
ture opportunities to reconcile two dissimilar tourism segments in the context of a
tangled economy of market and non-market values. Varadero is the model of mass
tourism development and has followed an intensive development strategy. Accord-
ing to Guitierrez and Ganedo (2002, as cited in Becker 2003), tourism in Cuba
is highly concentrated and polarized, with nearly 70 percent of tourism revenue
generated in and between Varadero and Havana. Varadero is overdeveloped, but can
continue for mass-tourism, employing a low-cost pricing strategy to attract patrons,
and hopefully making the environmental adaptations and improvements necessary
to ensure sustainability. The rest of the country has the potential to be marketed for
either regionally based eco-tourism, adventure tourism and nature tourism, or a high-
end market tourism constrained for growth. These forms of tourism generally have
a greater economic impact on the local community and, at the same time, minimal
negative impacts on the local environment. This option, though, is available only if
the associated delivery of quality services and products measures up to the competi-
tive regional – if not global – market place standards. This more diversified tourism
strategy will also require dedicated improvements and investment in hard and soft
infrastructures to make Cuba’s tourism sustainable for the long term.
Conclusions
In sum, there are unique conditions and situations that pose an unusual set of chal-
lenges for Cuba to address in the future development of its tourism sector. Cuba
has been able to adapt to market forces in their tourism development strategy and,
at the same time, without much movement to political pluralism. However, Cuba’s
notions of nationalism, sovereignty, morality and culture are deeply affected by the
consequences of tourism, such as the rise in corruption, prostitution, tourism-related
apartheid and the disparity in quality of life. Such troublesome activities are increas-
ingly apparent as the government oversees competition for licences, the high demand
for contracts to construct and operate tourism establishments, and the overall race to
build and manage a world-class destination that can salvage a long-grieved economy.
Without doubt, Cuba’s marketing advantage includes its unique history and culture.
But, the degree to which future tourism activities will create economic prosperity over
social hardship for the Cuban people will require a further assessment of the service
and product issues identified in this study, as well as a reconciliation of the economic
and social contradictions that currently limit the country’s true tourism potential.
Additional research is required to assess more carefully the service quality and
product issues singular to a country that has been limited by years of Communist
production, where management and marketing have had to be purchased internation-
ally through arrangements with foreign hotel and tour operator companies (Martin de
Holan and Phillips 1997: 788). While this study focused on the macro-socio-economic
and service quality issues, the requirements and attitudes of the resident population
also need to be considered, measured, analysed and monitored. More definitive stud-
ies on visitors are also warranted; using probability samples to assess more accurately
the visitor perceptions and expectations, as well as differing visitor demographics and
lifestyle attributes. A better analysis of both residents and visitors alike will help in
the development of a sustainable tourism strategy that will meet economic, social and
environmental goals.
The concept of sustainable tourism is dependent on critical long-term considera-

tions of tourism’s impacts, notions of equity, an appreciation of the importance of
linkages (economic, social and environmental) and the facilitation of co-operation
and collaboration between different stakeholders. Any future development strategy
for Cuba should be determined only after a careful evaluation of issues and options,
and an uncovering of what actions will place all stakeholders – government, busi-
nesses, tourists and the local residents – centre stage. For the moment, however, it
appears that businesses, tourists and the Cuban people can only follow in the devel-
opment process. It is the government who continues to lead.
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Notes on Contributors
Sheryl Marie Elliott is associate professor at the George Washington University,
School of Business, Department of Tourism & Hospitality Management. She serves
as the director for the undergraduate programme in Sport, Event and Hospitality Man-
agement. Dr Elliott has written extensively on development, culture and ecological
aspects of tourism.
Lisa Delpy Neirotti is associate professor at the George Washington University,
School of Business and Public Management, Department of Tourism & Hospitality
Management. Dr Neirotti’s expertise is in the field of sport tourism and economic
development.
Résumé : Défis du tourisme dans une destination insulaire dynamique: le cas de

Cuba
Les structures politiques et économiques en mutation ont influencé l’importance fluctuante du
tourisme comme outil de développement économique. Depuis que l’Union Soviétique est déchue,
Cuba s’est de nouveau tourné vers le tourisme –partenaire économique aux relents de l’ère pré-
révolutionnaire – pour fournir des devises et stimuler les investissements. Cette étude analyse le
tourisme dans une économie hors-marché et examine la relation historique de Cuba avec le tourisme.
Une lecture des publications sur le tourisme cubain indique un regroupement autour de questions de
croissance économique et un contrôle de la destination ainsi qu’un compte-rendu de la satisfaction des
visiteurs évaluent Cuba en tant que produit touristique ainsi que les principaux problèmes concer-
nant les services aux touristes. La croissance du tourisme à Cuba est associée à un marché noir floris-
sant, des manques de fournitures, une absence de stimulant pour les travailleurs, une qualité médiocre
des services, la ségrégation des résidents, la prostitution et des défaillances des télécommunications.
Malgré tous ces problèmes, Cuba garde son attrait exotique de par ses ressources naturelles et
culturelles, ses politiques et son peuple. Cette étude de cas soulève des questions au sujet de la
viabilité à long terme d’une économie hors-marché dans un contexte global compétitif de services
marchands.
Mots-clés: Cuba, Castro, économie hors-marché, embargo, ségrégation, tourisme tout-compris, cuen-
tapropias, paladares
Zusammenfassung: Touristische Herausforderungen einer dynamischen

Inseldestination: der Fall Kuba
Wandelnde politische und wirtschaftliche Strukturen haben dem Kurs der wirtschaftlichen Entwick-
lung des kubanischen Tourismus einen Zickzackkurs auferlegt. Mit dem Zerfall der Sowjetunion hat
sich Kuba wieder des Tourismus entsonnen, eine wirtschaftliche Reminiszenz der vorrevolutionären
Ära, um ausländische Deviseneinnahmen und Investitionen anzuregen. Diese Studie beleuchtet den
Tourismus in einer nicht-marktorientierten Wirtschaft durch die Untersuchung von Kubas his-
torischem Verhältnis zum Tourismus. Eine Literaturübersicht verdichtet Aspekte der kubanischen
Tourismusentwicklung mit einem Zielgebietsaudit und einer Besucherzufriedenheitsbefragung, um
eine Einschätzung des Produktes und der Schlüsseldienstleistungsaspekte des kubanischen Touris-
mus zu gewinnen. Der Aufstieg des kubanischen Tourismus ist verbunden mit einem boomenden
Schwarzmarkt, Angebotsknappheiten, Mitarbeitervergrämungsprämien, schlechter Dienstleis-
tungsqualität, verbreiteter Apartheid, Prostitution und Telekommunikationslücken. Ungeachtet
dieser Probleme bewahrt sich Kuba dank seiner natürlichen und kulturellen Ressourcen sowie
seiner Politik und seiner Menschen ein exotisches Image. Diese Fallstudie stellt Fragen bezüglich
der Überlebensfähigkeit von Kuba as einer nicht-marktorientierten Wirtschaft in einem service-
und wettbewerbsorientierten globalen Marktplatz.
Stichwörter: Erbe Kuba, Castro, nicht-marktorientierte Wirtschaft, Embargo, Apartheid, Pauschaltouris-

mus, Cuentaproprias, Paladares

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On: 16 March 2015, At: 17:27

Tourism Geographies: An International Journal of

Challenges of Tourism in a Dynamic Island

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Challenges of Tourism in a Dynamic

ISSN 1461-6688 Print/1470-1340 Online /08/03/00375–28

32 graduate students from a business school at a national university. The qualitative

English-speaking respondents compared to the actual percentage of arrivals reported

Table 1. Country of residence of survey respondents compared with tourist arrivals

Don Giovanni Restaurant, El Pedregal Restaurant, La Dominica Restaurant, La

Background and Literature Review

A bill introduced in Cuba’s Congress in 1910 secured a thirty-year concession

Figure 2. Monthly tourist arrivals to Cuba. Source: CTO (2004: 146).

Cuba’s Present-day Tourism Development

Capitalism à la Cubana. Cuba’s national restructuring in the 1990s resulted in a

of economic policies moving in the direction of entrepreneurship, yet vacillating

Tourism apartheid. Current tourism in Cuba is establishing a system of apartheid:

establishments. Cave (2002: 1) suggested that Cuba’s attractions are systematically

Technology, telecommunications and tourism. The establishment of a new Min-

Hotels were found to suffer from a lack of standards. State-operated accommoda-

Table 2. Performance dimension (%)

overall satisfaction of the tourism product, with 62 percent of respondents report-

Table 3. Uniqueness dimension (%)

Table 4. Reliability dimension (%)

Table 5. Conformance dimension (%)

Table 6. Durability dimension (%)

Definitely Maybe Not Sure Never No Opinion —

Table 7. Serviceability dimension (%)

Table 8. Aesthetic dimension (%)

Table 9. Perceived quality dimension (%)

of different groups based on demographic factors should be analysed if the neutral

infrastructures to make Cuba’s tourism sustainable for the long term.

The concept of sustainable tourism is dependent on critical long-term considera-

Falcoff, Mark (2003) Castro’s Gamit, Commentary, 115(6), p. 46.

Résumé : Défis du tourisme dans une destination insulaire dynamique: le cas de

Zusammenfassung: Touristische Herausforderungen einer dynamischen

Stichwörter: Erbe Kuba, Castro, nicht-marktorientierte Wirtschaft, Embargo, Apartheid, Pauschaltouris-

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