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

Taliban's New Leader Says Jihad Will Continue

Top US Afghan diplomat also meets with Pakistani, Afghan officials following news of Mullah Omar's death More

Video US Landmark Pushes Endangered Species

People gathered in streets, on rooftops in Manhattan to see image highlights that covered 33 floors of Empire State Building More

World’s Widest Suspension Bridge Being Built Over Bosphorus

Once built, Yavuz Sultan Selim Bridge will span 2 kilometers with about 1.5 kilometers over water, and will be longest suspension bridge in world carrying rail system More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Astronauts Train Underwater for Deep Space Missionsi
|| 0:00:00
...    
🔇
X
George Putic
July 30, 2015 8:59 PM
Manned deep space missions are still a long way off, but space agencies are already testing procedures, equipment and human stamina for operations in extreme environment conditions. Small groups of astronauts take turns in spending days in an underwater lab, off Florida’s southern coast, simulating future missions to some remote world. VOA’s George Putic reports.
Video

Video Astronauts Train Underwater for Deep Space Missions

Manned deep space missions are still a long way off, but space agencies are already testing procedures, equipment and human stamina for operations in extreme environment conditions. Small groups of astronauts take turns in spending days in an underwater lab, off Florida’s southern coast, simulating future missions to some remote world. VOA’s George Putic reports.
Video

Video Civil Rights Leaders Struggled to Achieve Voting Rights Act

Fifty years ago, lawmakers approved, and U.S. President Lyndon Johnson signed, the Voting Rights Act of 1965. The measure outlawed racial discrimination in voting, giving millions of blacks in many parts of the southern United States federal enforcement of the right to vote. Correspondent Chris Simkins introduces us to some civil rights leaders who were on the front lines in the struggle for voting rights.
Video

Video Booming London Property a ‘Haven for Dirty Money’

Billions of dollars of so-called ‘dirty money’ from the proceeds of crime - especially from Russia - are being laundered through the London property market, according to anti-corruption activists. As Henry Ridgwell reports from the British capital, the government has pledged to crack down on the practice.
Video

Video Hometown of Boy Scouts of America Founder Reacts to Gay Leader Decision

Ottawa, Illinois, is the hometown of W.D. Boyce, who founded the Boy Scouts of America in 1910. In Ottawa, where Scouting remains an important part of the legacy of the community, the end of the organization's ban on openly gay adult leaders was seen as inevitable. VOA's Kane Farabaugh reports.
Video

Video 'Metal Muscles' Flex a New Bionic Hand

Artificial limbs, including the most complex of them – the human hand – are getting more life-like and useful due to constant advances in tiny hydraulic, pneumatic and electric motors called actuators. But now, as VOA’s George Putic reports, scientists in Germany say the future of the prosthetic hand may lie not in motors but in wires that can ‘remember’ their shape.
Video

Video Russia Accused of Abusing Interpol to Pursue Opponents

A British pro-democracy group has accused Russia of abusing the global law enforcement agency Interpol by requesting the arrest and extradition of political opponents. A new report by the group notes such requests can mean the accused are unable to travel and are often unable to open bank accounts. VOA's Henry Ridgwell reports.
Video

Video 'Positive Atmosphere' Points Toward TPP Trade Deal in Hawaii

Talks on a major new trade agreement among 12 Pacific Rim nations are said to be nearing completion in Hawaii. Some trade experts say the "positive atmosphere" at the discussions could mean a deal is within reach, but there is still hard bargaining to be done over many issues and products, including U.S. drugs and Japanese rice. VOA's Jim Randle reports.
Video

Video Genome Initiative Urgently Moves to Freeze DNA Before Species Go Extinct

Earth is in the midst of its sixth mass extinction. The last such event was caused by an asteroid 66 million years ago. It killed off the dinosaurs and practically everything else. So scientists are in a race against time to classify the estimated 11 million species alive today. So far only 2 million are described by science, and researchers are worried many will disappear before they even have a name. VOA’s Rosanne Skirble reports.
Video

Video Scientists: One-Dose Malaria Cure is Possible

Scientists have long been trying to develop an effective protection and cure for malaria - one of the deadliest diseases that affects people in tropical areas, especially children. As the World Health Organization announces plans to begin clinical trials of a promising new vaccine, scientists in South Africa report that they too are at an important threshold. George Putic reports, they are testing a compound that could be a single-dose cure for malaria.
Video

Video 'New York' Magazine Features 35 Cosby Accusers

The latest issue of 'New York' magazine features 35 women who say they were drugged and raped by film and television celebrity Bill Cosby. The women are aged from 44 to 80 and come from different walks of life and races. The magazine interviewed each of them separately, but Zlatica Hoke reports their stories are similar.
Video

Video US Calls Fight Against Human Trafficking a Must Win

The United States is promising not to give up its fight against what Secretary of State John Kerry calls the “scourge” of modern slavery. Officials released the country’s annual human trafficking report Monday – a report that’s being met with some criticism. VOA’s National Security correspondent Jeff Seldin has more from the State Department.
Video

Video Washington DC Underground Streetcar Station to Become Arts Venue

Abandoned more than 50 years ago, the underground streetcar station in Washington D.C.’s historic DuPont Circle district is about to be reborn. The plan calls for turning the spacious underground platforms - once meant to be a transportation hub, - into a unique space for art exhibitions, presentations, concerts and even a film set. Roman Mamonov has more from beneath the streets of the U.S. capital. Joy Wagner narrates his report.
Video

Video Europe’s Twin Crises Collide in Greece as Migrant Numbers Soar

Greece has replaced Italy as the main gateway for migrants into Europe, with more than 100,000 arrivals in the first six months of 2015. Many want to move further into Europe and escape Greece’s economic crisis, but they face widespread dangers on the journey overland through the Balkans. VOA's Henry Ridgwell reports.
Video

Video Stink Intensifies as Lebanon’s Trash Crisis Continues

After the closure of a major rubbish dump a week ago, the streets of Beirut are filling up with trash. Having failed to draw up a plan B, politicians are struggling to deal with the problem. John Owens has more for VOA from Beirut.
Video

Video Paris Rolls Out Blueprint to Fight Climate Change

A U.N. climate conference in December aims to produce an ambitious agreement to fight heat-trapping greenhouse gases. But many local governments are not waiting, and have drafted their own climate action plans. That’s the case with Paris — which is getting special attention, since it’s hosting the climate summit. Lisa Bryant takes a look for VOA at the transformation of the French capital into an eco-city.

VOA Blogs

More Americas News

Outlook Mixed After TPP Talks End

No deal was reached at what was intended to be the concluding round last week in Hawaii; Elections are approaching in Canada, US
More

Mexican Journalists Protest After Colleague's Killing

Activists say 34 journalists have been killed in Mexico since 1992, making it the 10th deadliest country for reporters
More

Canada’ Harper Dissolves Parliament, Calls Early Poll

Prime Minister, his Conservative party are seeking fourth term in office after nearly decade in power; election set for October 19
More

Mexican Journalist Found Dead After Receiving Threats

Ruben Espinosa worked for investigative magazine 'Proceso,' which said his sister identified his body Saturday
More

Looting in Venezuelan Market Leaves One Dead, Dozens Hurt

Violence ensues after shoppers seeking scarce consumer staples break into a supermarket warehouse in Ciudad Guayana
More

Bomb Hurled at Former Brazilian President Lula's Foundation

Institute, located in downtown Sao Paulo, says no one was hurt in Thursday night explosion that damaged a garage entrance, calling blast a 'political attack'
More