Introduction

Cuba is the Caribbean's largest island which is drenched in faded grandeur with a

captivating mystique, history, and culture. Live music floats through the cobbled squares

in World Heritage-listed Old Town of Havana. The beautiful old buildings of Cuba's colonial

cities evoke the feel of a country frozen in time and the vintage cars still cruise the streets.

This vast island has more than three thousand kilometers of coastline which are rimmed by

dazzling beaches and the turquoise waters twinkle with the coral reefs (Hastings, 2017).

The sublime islands and lush countryside of Cuba inspired writers from all over the

world Cuba has played a great host to presidents and also provided refuge to revolutionaries.

Cuba offers a diversity and depth few Caribbean islands can provide along with all this

history, fishing, and superb diving. Cuba also swarms in natural beauty and all these reasons

have made Cuba a trophy destination which the tourists like to brag about to their friends

(Hastings, 2017).

The number of foreign visitors could increase from 3.5 million in the year 2015 to

over 10 million in the year 2030 based on Cuban government strategies to create new resorts

and hotels and this proportion is estimated after excluding an additional 5 million in cruise

passengers. The 2030 Vision Plan of Cuban government realizes the centrality of tourism to

the future of the nation, whereby making it a strategic sector. The purpose of the research is to

explore the tourism in Cuba and its social and economic impacts in this region (Feinberg, &

Newfarmer, 2016)
Economic Effects

The citizens of United States are longing to join the rising number of Canadians,

Europeans, Latin Americans and more and more middle-class Asians to experience the

singular allure of the island thus drawing the flood of tourists just over the horizon. Since the

tourism drive, the foreign investment in the Cuban tourism sector has improved steadily. In

comparison to 3 billion dollars today, the tourism in Cuba could produce 10 billion dollars in

foreign exchange revenues which are more than twice being produced currently by all of the

merchandise export of the island.

Such large returns cannot be generated by any other economic sector in Cuba. The

generation of foreign exchange and future economic expansion necessary to free Cuba from

the hard-currency tourniquet can only be unlocked by this sector that has throttled the growth.

The tourism in Cuba only has a strong foundation to enjoy favorable market conditions. More

tourism improves the economic prospects of the island where according to the estimate of

Cuban Government the GDP growth slowed in the year 2014 but 2105 was better due to the

progress on credit contracts, liquidizing assets, and reduced import prices (Feinberg, &

Newfarmer, 2016)

The ability to generate benefits for the host country is where the real importance of

international tourism lies. The Economic benefits that resulted from tourism in Cuba include

generation of government revenues, improvements in the balance of payments, a push for

improved quality, promotion of economic development and growth, the motivation for

domestic production, the creation of employment and income (Ritter, 2017)

 Tourism has strengthened economic strategy of Cuba as it produces a market for

diverse services and goods which are supplied by the domestic industry of Cuba and produces

hard currency from abroad (Ritter, 2017).

Social Effects

The economic impact of tourism in Cuba is mainly positive but the social impacts

present a downside picture. Last year a record influx of almost 3.5 million tourists resulted in

a growing demand for food whereby influencing the very promise of Cuba due to the rippling

effects caused due to this surge. Cuba has turned into a very famous destination which is why

the locals are no more able to afford even the simple foods that they enjoyed earlier.The

demand that restaurants are getting for food supply to provide to the visitors is so high that it

every so often leaves vacant store shelves and much higher prices (Ahmed, 2016).

The Cuban due to the rise in prices can no longer afford simple things like onions,

garlic, limes, pineapples tomatoes and many other ordinary things. In an interview conducted

by Azam Ahmed, a mother told him that the effort to buy tomatoes was an insult. Some of the

food has become so costly that it is becoming unaffordable for the regular Cubans to have

basic staple and this is happening without supplies to match the increased appetite (Ahmed,

2016).

These visitors are eating the food of Cuban people in literal terms and depriving them

of the local resources. People of Cuba consider this surge in tourism as disaster although

many of them did not live a life of luxuries nonetheless the comfort they had once is now

vanished from their lives (Ahmed, 2016)

Main Findings

A large fraction of young people migrates to resort towns as tourism has played an

increasing role in the economy, therefore, they look for the employment in the tourism

industry. Many of them work in not very skilled jobs and earn more through tips in

comparison to those employed as professionals. As a result, there is a social and economic

divide between those employed in the tourist industry and others emerging in Cuba.

Most Cubans have yet to work within the state-run economy and strive to make ends

meet whereas the arrival of revenue from the tourists and other guests has been a bonus for

the rising private sector of Cuba Therefore, this research has successfully presented a great

contrast between the economic and social impacts of tourism in Cuba.

Conclusion

As with the country as a whole, the tourism industry in Cuba holds a great promise. It

has the power to contribute to greater participation of Cuba in the world economy, help

increase national incomes and surge employment in well-paying jobs. Both Cuban authorities

and the U.S. government have to take measures to realize this promise fully in order to

connect latent market forces to the cause of sustainable economic growth. Using industry

norms, we estimate that Cuba would have to invest a great amount of money to achieve these

targets which would be a massive sum as compared to the complete size of the Cuban

economy.

Given the current policies and low domestic savings, it seems unlikely that the

country can fulfill these ambitious goals. There is also a need for proper planning by the

government of Island to provide the Cubans with the goods that they have long relied on

which is now going to the wealthy tourists. A plan should also be devised for a number of
restaurants that are catering the tourists and leaving the locals with empty shelves and soaring

prices.
 References

Ahmed, A. (2016). Cubas Surge in Tourism Keeps Food Off Residents Plates.

Nytimes.com. Retrieved 1 May 2017, from

https://www.nytimes.com/2016/12/08/world/americas/cuba-fidel-castro-food-tourism.html?

_r=2

Feinberg, R., & Newfarmer, R. (2016). Tourism in Cuba Riding the Wave Toward

Sustainable Prosperity (1st ed.)

Hastings, K. (2017). 14 Top-Rated Tourist Attractions in Cuba | PlanetWare.

Planetware.com. Retrieved 1 May 2017, from http://www.planetware.com/tourist-

attractions/cuba-cub.htm

Ritter, A. (2017). | Small EnterpriseThe Cuban Economy La Economa Cubana.

Thecubaneconomy.com. Retrieved 1 May 2017, from

https://thecubaneconomy.com/articles/tag/small-enterprise/