News / Americas

Cuba Allows Tourism Industry to Hire Private Contractors

Tourists look at portraits of revolutionary leader Che Guevara at an artisans' fair in Havana, Oct. 8, 2013.
Tourists look at portraits of revolutionary leader Che Guevara at an artisans' fair in Havana, Oct. 8, 2013.
Reuters
Cuba has authorized its state-run tourism industry to contract out lodgings, meals, excursions and other activities to private businesses in a boost to a growing “non-state” sector.

While the government has allowed some state contracting to private businesses since 2012, up until now the tourism industry was off limits.

Tourism is the country's largest industry, attracting 2.8 million visitors in 2012 with revenues approaching $3 billion.

The new regulations, published on Wednesday in the official gazette, authorize state-run tourism agencies to use the more than 5,000 bed and breakfasts and 1,700 private restaurants now operating in the communist-run country, as well as private entertainment and transportation.

Further, hotels and other tourism facilities can now contract with private businesses to provide meals for workers, gardening and other services.

“Cuba's tourism has been stuck in a 'state provides all' framework for years,” said Paul Webster Hare, former British ambassador to Cuba, who currently lectures on international relations at Boston University.

“As a service industry, small and imaginative often attracts tourists better than the 'one size fits all,' which has been a feature of the way the big Cuban state- and military- owned companies have run the sector,” he said.

Cuban President Raul Castro, who took over for his ailing brother Fidel in 2008, has opened up retail services to small entrepreneurs as part of a larger reform effort aimed at modernizing a Soviet-style economy where the state up until 2010 administered just about everything, down to shoe shining.

Castro is encouraging private sector growth to create jobs for the 1 million employees he hopes to slash from bloated government payrolls over the next few years. His goal is to strengthen Cuban communism to assure its future.

There currently are more than 450,000 people operating or working in small businesses, or they are self-employed, in the building trades, transportation, entertainment and other sectors, as well as more than 200 cooperatives.

State-run tourism agencies have been sounding out the owners of restaurants and small lodgings throughout the year, and many, at least in Havana, have expressed little interest, according to industry sources. They point out that individuals visiting the Caribbean island already are free to rent rooms and eat at private establishments.

Cuban economists say opening the tourism industry, however, is sure to be viewed by some as a business opportunity.

“During the tourism season the good restaurants and bed and breakfasts are usually booked solid, without having to sign a contract with the state,” said one economist, wishing to remain anonymous.

“But now, if you are thinking of venturing into the private sector, this could be an opportunity to get started,” he said.

You May Like

Tired of Waiting, South Africans Demand Change ‘Now’

With chronic poverty and lack of basic services largely fueling recent xenophobic attacks, many in Rainbow Nation say it’s time for government to act More

Challenges Ahead for China's Development Plans in Pakistan

Planned $46 billion in energy and infrastructure investments in Pakistan are aimed at transforming the country into a regional hub for trade and investment More

'Forbidden City' Revisits Little Known Era of Asian-American Entertainment

Little-known chapter of entertainment history captured in 80s documentary is revisited in new digitally remastered format and book More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Cinema That Crosses Borders Showcased at Tribeca Film Festivali
X
April 24, 2015 4:09 AM
Among the nearly 100 feature length films being shown at this year’s Tribeca Film Festival in New York City are more than 20 documentaries and features with international appeal, from a film about a Congolese businessman in China, to documentaries shot in Pakistan and diaspora communities in the U.S., to a poetic look at disaffected South African youth. VOA’s Carolyn Weaver has more.
Video

Video Cinema That Crosses Borders Showcased at Tribeca Film Festival

Among the nearly 100 feature length films being shown at this year’s Tribeca Film Festival in New York City are more than 20 documentaries and features with international appeal, from a film about a Congolese businessman in China, to documentaries shot in Pakistan and diaspora communities in the U.S., to a poetic look at disaffected South African youth. VOA’s Carolyn Weaver has more.
Video

Video UN Confronts Threat of Young Radicals

The radicalization and recruitment of young people into Islamist extremist groups has become a growing challenge for governments worldwide. On Thursday, the U.N. Security Council heard from experts on the issue, which has become a potent threat to international peace and security. VOA’s Margaret Besheer reports.
Video

Video Growing Numbers of Turks Discover Armenian Ancestry

In a climate of improved tolerance, growing numbers of people in Turkey are discovering their grandmothers were Armenian. Hundreds of thousands of Armenians escaped the mass deportations and slaughter of the early 1900's by forced conversion to Islam. Or, Armenian children were taken in by Turkish families and assimilated. Now their stories are increasingly being heard. Dorian Jones reports from Istanbul that the revelations are viewed as an important step.
Video

Video Migrants Trek Through Western Balkans to Reach EU

Migrants from Africa and other places are finding different routes into the European Union in search of a better life. The Associated Press followed one clandestine group to document their trek through the western Balkans to Hungary. Zlatica Hoke reports that the migrants started using that route about four years ago. Since then, it has become the second-most popular path into Western Europe, after the option of sailing from North Africa to Italy.
Video

Video TIME Magazine Honors Activists, Pioneers Seen as Influential

TIME Magazine has released its list of celebrities, leaders and activists, whom it deems the world’s “most influential” in 2015. VOA's Ramon Taylor reports from New York.
Video

Video US Businesses See Cuba as New Frontier

The Obama administration's opening toward Cuba is giving U.S. companies hope they'll be able to do business in Cuba despite the continuation of the U.S. economic embargo against the communist nation. Some American companies have been able to export some products to Cuba, but the recent lifting of Cuba's terrorism designation could relax other restrictions. As VOA's Daniela Schrier reports, corporate heavy hitters are lining up to head across the Florida Straits - though experts urge caution.
Video

Video Kenya Launches Police Recruitment Drive After Terror Attacks

Kenya launched a major police recruitment drive this week as part of a large-scale effort to boost security following a recent spate of terror attacks. VOA’s Gabe Joselow reports that allegations of corruption in the process are raising old concerns about the integrity of Kenya’s security forces.
Video

Video Japan, China in Race for Asia High-Speed Rail Projects

A lucrative competition is underway in Asia for billions of dollars in high-speed rail projects. Cambodia, India, Indonesia, Malaysia Thailand and Vietnam are among the countries planning to move onto the fast track. They are negotiating with Japan and the upstart Chinese who are locked in a duel to revolutionize transportation across Asia. VOA Correspondent Steve Herman in Bangkok has details.
Video

Video Scientists: Mosquitoes Attracted By Our Genes

Some people always seem to get bitten by mosquitoes more than others. Now, scientists have proved that is really the case - and they say it’s all because of genes. It’s hoped the research might lead to new preventative treatments for diseases like malaria, as Henry Ridgwell reports from London.
Video

Video Bible Museum Coming to Washington DC

Washington is the center of American political power and also home to some of the nation’s most visited museums. A new one that will showcase the Bible has skeptics questioning the motives of its conservative Christian funders. VOA religion correspondent Jerome Socolovsky reports.
Video

Video Armenia and Politics of Word 'Genocide'

A century ago this April, hundreds of thousands of Armenians of the Turkish Ottoman empire were deported and massacred, and their culture erased from their traditional lands. While broadly accepted by the U.N. and at least 20 countries as “genocide”, the United States and Turkey have resisted using that word to describe the atrocities that stretched from 1915 to 1923. But Armenians have never forgotten.
Video

Video Afghan First Lady Pledges No Roll Back on Women's Rights

Afghan First Lady Rula Ghani, named one of Time's 100 Most Influential, says women should take part in talks with Taliban. VOA's Rokhsar Azamee has more from Kabul.
Video

Video Keeping Washington Airspace Safe Is Tall Order

Being the home of all three branches of the U.S. federal government makes Washington, D.C. the prime target for those who want to make their messages and ideas heard. Unfortunately, many of them choose to deliver them in unorthodox ways, including from the air, as a recent incident clearly showed involving a gyrocopter landing on the Capitol’s West Lawn. VOA's George Putic has more.
Video

Video New Brain Mapping Techniques Could Ease Chronic Pain

From Boulder, Colorado, Shelley Schlender reports that new methods for mapping pain in the brain are providing validation for chronic pain and might someday guide better treatment.
Video

Video Hope, Prayer Enter Fight Against S. Africa Xenophobia

South Africa has been swept by disturbing attacks on foreign nationals. Some blame the attacks on a legacy of colonialism, while others say the economy is to blame. Whatever the cause, ordinary South Africans - and South African residents from around the world - say they're praying for the siege of violence to end. Anita Powell reports from Johannesburg.

VOA Blogs

More Americas News

Colorful Macaws Bring Beauty to Chaotic Caracas

Long-tailed birds color Venezuelan capital's sky, giving its 5 million residents a moment of quiet respite from noise and crime
More

Colombia's ELN Rebels: Peace Talks Near, Rule Out Jail

Commander's comments come as pressure mounts for President Santos to conclude peace talks with far larger FARC group and to show progress with ELN
More

Photogallery Chile Volcano Still Puffing; Flights Canceled in Argentina

Calbuco, which erupted Wednesday without warning, continues to spew ash, smoke
More

Former Spy Master Flees Argentina Amid Threats

Antonio Stiuso contends government is trying to sully his reputation following death of prosecutor Alberto Nisman
More

Chile, Argentina Cancel Flights as Volcanic Ash Cloud Spreads

Argentina's meteorology service forecast ash cloud could reach La Pampa; more than 4,000 people have been evacuated from immediate area
More

Deals Extend Russia's Energy Cooperation With Argentina

Accords underscore Moscow's effort to enhance South American ties since coming under Western sanctions over Ukraine crisis
More