Travel And Tourism in Cuba
Euromonitor International's Travel And Tourism in Cuba report offers a comprehensive guide to the market at a national level. It looks at travel accommodation, transportation, car rental, tourist attractions and retail travel. It identifies the leading companies and offers strategic analysis of key factors influencing the market, including background information on disposable income, annual leave and holiday taking habits.
Get immediate access to strategic market analysis when you buy reports online
Chapters: 8 | Tables: 41 | Publication date: Dec 2006
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Airline capacity and utilisation; Arrivals by country of origin; Arrivals by mode of transport; Arrivals by purpose of visit; Car rental services by sector; Demand factors; Departures by destination; Departures by mode of transport; Departures by purpose of visit; Domestic tourism by destination; Domestic tourism by mode of transport; Tourism receipts and expenditure; Tourist attractions; Transportation; Travel accommodation; Travel retail services
Executive summary
Tourism boosts Cuba’s economy, outperforming sugar
Like so many other Caribbean countries, Cuba’s economy has historically been dependent on agriculture, specifically on sugar production. As of 1990, tourism accounted for 6% of the country’s balance of payments, while sugar accounted for nearly 70%. In the last fifteen years, 25% of all investments in Cuba have been made in tourism. Therefore, by the year 2000, tourism had boomed to account for almost 45% of Cuba’s economy. By 2005, the number of tourists visiting Cuba was up more than 13%, while the rest of the Caribbean averaged just a 5% increase (UNWTO Annual Report). Today, Cuba is the second most visited destination in the Caribbean after Puerto Rico, and the 8th most visited destination in the Western Hemisphere. Notably, in 2006, Cuba broke its record for number of annual visitors, welcoming 2,319,334 foreigners in 2005.
Strategising around the US embargo
Cuba estimates that it is losing a minimum of an estimated US$7 billion per year from prospective American tourists because of the US embargo. However, Cuba is increasingly vocal about wanting to open the doors to trade, which may well slowly pry open the tourism door as well. Cuban Government officials frequently, publicly state that all visitors, no matter what their country of origin, are welcome in Cuba. The state’s larger economic strategy appears to be tempting foreign corporations with investment opportunities so enticing, that they increasingly lobby the US into amending (or dismissing) the Helms-Burton Act. As an illustration, Cuba issued an open invitation to corporations interested in drilling for oil off their coast (neighbour Trinidad has done well thanks to such reserves). The question is will power players such as Halliburton or say, Trump (who has publicly stated he wants into Cuba), really pass up tourism development opportunities without a fight? It seems doubtful. In the meantime, the island still enjoys over 2 million visitors per year from over 44 nations.
The countries that trade with Cuba, tour Cuba
With new tourism promotion offices in Venezuela, China, Holland, and in the Caribbean, it is obvious which visitor markets Cuba is courting. Yet the giant known as China is happily reciprocating with new trade deals and new direct flights to the island. In addition, Holland and Cuba recently inked a deal to build a train that takes tourists throughout the country. To date, the greatest number of visitors to Cuba has come from Canada, whose Sherritt Power corporation is rebuilding the power grids in Cuba. Next are the tourists from the United Kingdom, whose Virgin airlines began direct flights from Gatwick to Havana in 2005. After Canada and the UK come visitors from Spain, whose Sol Melia hotel chain runs over half the islands hotels. Equal in numbers are visitors from Italy and Venezuela – Cuba’s ally in healthcare and oil. Cuba is indeed choosing its trade partners intelligently; to ensure its best tourism consuming countries receive economic benefits too.
Capitalism meets Socialism
Cuba’s greatest challenge may be that this new economic engine known as tourism is purely capitalist directly contradicts its socialist values. For example, Cuban citizens are not even allowed to be inside any of the country’s hotels, not to visit guests, nor to spend a night. The only locals allowed inside Cuba’s hotels are workers – creating a de facto “servants only” atmosphere that directly contradicts the government’s “socialism or death” motto. More importantly, this “no rubbing elbows” policy could be intended to keep the Cubans ignorant about how the rest of the free world works. Lastly, building the tourism infrastructure requires money to be invested in areas that benefit the visiting minority, instead of the masses. As tourism continues to swell, Cubans will inevitably catch wind of or learn other ways of living and taste capitalism through tips. In short, tourism is sure to change popular sentiment about the existing political structure – it is just a question of how much and how quickly. However, no matter whether it is Fidel Castro or his brother Raul, tourism is set to stay as Cuba’s economic engine. Tourism revenues are the main fuel for the country’s political-military machine and its agenda. Therefore, the country’s leaders will continue to aid revenue-generating tourism developments in all ways possible.
Table of contents
EXECUTIVE SUMMARY
TOURISM BOOSTS CUBA’S ECONOMY, OUTPERFORMING SUGAR
STRATEGISING AROUND THE US EMBARGO
THE COUNTRIES THAT TRADE WITH CUBA, TOUR CUBA
CAPITALISM MEETS SOCIALISM
KEY TRENDS AND DEVELOPMENTS
TOURISM: THE ECONOMIC ENGINE THAT COULD DEFEAT COMMUNISM
Outlook
Impact
TARGET AUDIENCES: BRANCHING OUT WHILE RENEWING OLD TIES
Outlook
Impact
THE EMBARGO
Outlook
Impact
BEYOND THE EMBARGO - OTHER NEGATIVE FACTORS
Outlook
Impact
BEYOND HAVANA AND VARADERO
Outlook
Impact
SPECIALTY TOURISM
Outlook
Impact
TRAVEL ACCOMMODATION
TRENDS
PROSPECTS
TRANSPORTATION
TRENDS
PROSPECTS
TRAVEL RETAIL
TRENDS
PROSPECTS
MARKET DATA
Table 1 Length of Trip: 2000-2005
Table 2 Arrivals by Country of Origin: 2000-2005
Table 3 Arrivals by Method of Transport: 2000-2005
Table 4 Arrivals by Purpose of Visit: 2000-2005
Table 5 Departures: 2000-2005
Table 6 Departures by Destination: 2000-2005
Table 7 Departures by Mode of Transport: 2000-2005
Table 8 Departures by Purpose of Visit: 2000-2005
Table 9 Domestic Trips by Mode of Transport: 2000-2005
Table 10 Incoming Tourist Receipts: 2000-2005
Table 11 Incoming Tourist Receipts % Growth: 2000-2005
Table 12 Outgoing Tourism Expenditure: 2000-2005
Table 13 Outgoing Tourism Expenditure % Growth: 2000-2005
Table 14 Domestic Tourist Expenditure: 2000-2005
Table 15 Forecast Arrivals by Country of Origin: 2005-2010
Table 16 Forecast Arrivals by Method of Transport: 2005-2010
Table 17 Forecast Departures: 2005-2010
Table 18 Forecast Departures by Destination: 2005-2010
Table 19 Forecast Departures by Mode of Transport: 2005-2010
Table 20 Forecast Incoming Tourist Receipts: 2005-2010
Table 21 Forecast Domestic Tourist Expenditure: 2005-2010
Table 22 Forecast Outgoing Tourism Expenditure: 2005-2010
SECTOR DATA
Table 23 Hotels: Units 2000-2005
Table 24 Regional Hotel Parameters 2005
Table 25 Travel Accommodation Sales by Sector: Value 2000-2005
Table 26 Hotel Company Rankings 2005
Table 27 Forecast Hotels: Units 2005-2010
Table 28 Forecast Travel Accommodation Sales by Sector: Value 2005-2010
Table 29 Transportation Sales by Sector: Value 2000-2005
Table 30 Airline Company Rankings 2005
Table 31 Forecast Transportation Sales by Sector: Value 2005-2010
Table 32 Car Rental Sales: Value 2000-2005
Table 33 Car Rental Company Rankings 2005
Table 34 Forecast Car Rental Sales: Value 2005-2010
Table 35 Travel Retail Outlets: Units 2000-2005
Table 36 Travel Retail Sales: 2000-2005
Table 37 Travel Retail Company Rankings 2005
Table 38 Forecast Travel Retail Outlets: Units 2005-2010
Table 39 Forecast Travel Retail Sales: 2005-2010
Table 40 Tourist Attractions: Value 2000-2005
Table 41 Forecast Tourist Attractions: Value 2005-2010
DEFINITIONS
TRAVEL AND TOURISM
DEMAND FACTORS
Length of Trip
TOURISM PARAMETERS
Arrivals
Departures
Outgoing tourism expenditure
Domestic tourists
Domestic trips
Domestic tourist expenditure
TRAVEL ACCOMMODATION
Hotels
Other travel accommodation
Number of bed nights
Occupancy rates
Number of rooms and beds
TRANSPORTATION
Air
Other transportation
CAR RENTAL
TRAVEL RETAIL
TOURIST ATTRACTIONS
INTERNET SALES