Tag Archives: Tourism

Recuperation and Development of the Bahi ́a de la Habana

By Arch Ritter

The Bahia de la Habana has been a centre for international shipping and trade since the early 1500s. It served as a haven from storms and pirates, a fortification against the British, a provisioning center and a gathering point for the Spanish fleet sailing between Seville and Cadiz and the ports of the New World. It is still a hard-working port, handling much of Cuba’s container and bulk shipping, as well as naval installations, cruise ship facilities and industry. After almost 500 years as a working port, however, it appears to be in the process of transformation to a modified and redeveloped tourist and transport center.

“His Britannic Majesty’s Land Forces Taking Possession of Havannah (sic.), August 14, 1762 and Sloops of War Assisting to Open the Booms” Artist: Philip Orsbridge.    Less than a year after Havana was captured by the British in the Seven Years War it was returned to Spain in exchange for Florida by the Treaty of Paris. By the same treaty, France chose to retain Guadalupe and Martinique in exchange for Quebec which went to the British.

The Oficina del Historiador de La Habana, established in 1938 by Dr. Emilio Roig de Leuchsenring for the restoration of historic Havana has played a vital role in restoring Old Havana under the leadership of Eusebio Leal Spengler in 1967. His work has been exemplary, and the historical quarter certainly deserves its UNESCO designation of “World Heritage Site”, awarded in 1982. The restoration and preservation of historic Havana continues to radiate out from the Cathedral quarter and now includes the Plaza Vieja and various locales alongside the Avenida del Puerto to the Iglesia San Francisco de Paula.

It now appears that the whole port area has been designated as a development zone. The old derelict wharves and warehouses are being dismantled and removed. The Arts and Crafts Market has been transferred from close to the Cathedral to the old Almacenes San José into the interior of the port, which have been restored and renovated.  New hotels such as the Armadores de Santander have opened. The new Russian Orthodox Church is in this areas as well

Bahia de La Habana

Removing Derelict Wharves, February 2011, Photos by Arch Ritter

Furthermore, the container port and much of the bulk shipment port will be moved to a new facility in the excellent harbor at Mariel, 50 kilometers west of Havana, which will also generate some regional development impulses in that region. The old Havana petroleum refinery, formerly owned by Esso and Shell, will shut down when to the new refinery in Cienfuegos opens. And the electrical generation plant at the edge of the port, a heavy air polluter for the capital, will relocate to Matanzas. In time, the serious pollution of the port will be reduced, and one hopes cleaned up definitively. [For a glance at current pollution in the harbor, check this web site: Pollution from the Oil Refinery]. This will be an expensive process taking many years. It is also likely that there are significant toxic residues in much of the land used for industrial purposes for past decades. Cleaning this up also will be costly and time-consuming.

At this time, there seems to be no master-plan for the development of the harbor region available to the public. However, there was some talk in February 2011 of such a plan becoming available in May of 2011.

In time, it is expected that new hotels will ring part of the harbor. With normalization of relations with the United States, the port of Havana also will become a key destination for virtually all of the cruise ships entering the Caribbean region. Quick access to Casablanca and the fortifications on the east side of the harbor will likely be provided with transit by improved cross-harbor ferryboat. One could imagine as well circum-harbor excursion ferry boats plying a vigorous trade. With normalization of travel between the United States and Cuba, high-speed hydrofoil passenger transportation and normal traditional ferry boat service from Key West and Miami to Havana will likely be established, providing further stimulus to the port area. A good deal more of the area around the port thus will become an attractive tourist, commercial and perhaps residential zone. It may also be possible that office complexes are eventually developed in the area as well, shifting part of the commercial center of gravity of Havana from the far west back to the harbor zone.

If the redevelopment of the harbor area proceeds with the same deliberativeness as the restoration of Old Havana, we can anticipate a fine citizen- and tourist-friendly extension of the Old Havana zone southwards into the Baha de La Habana and across the harbor to Casablanca, Regla and the Fortaleza San Carlos de la Cabana area.

[Note: The basic idea for this note came from Omar Everley Perez, Centro de Estudios sobre la Economa Cubana on March 8, 2011]

New Artisanal Center at the restored  Almacenes San José, Avenida del Puerto, Photo by Arch Ritter, February 2011

Russian Orthodox Church, Avenida del Puerto, Photo by Arch Ritter, March 2008

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Cuba in Transition: Volume 20 Proceedings of the Twentieth Annual Meeting of the Association for the Study of the Cuban Economy

The papers from the 2010 meetings of the Association for the Study of the Cuban Economy have just been posted on the ASCE Web Site and can be found at Papers and Proceedings of the Twentieth Annual Meeting of ASCE.

As usual, a wide range of excellent papers are presented at ASCE’s annual meetings Many essays include valuable, original and ground-breaking analyses on a wide range of economic as well as socio-economic and politico-economic issues..

A Table of Contents with hyperlinked titles of the papers is included below.

Preface

Conference Program

Table of Contents

The Cuban Economy in 2010 as Seen by Economists Within the Island and Other Observers

Joaquín P. Pujol

La Economía Cubana: ¿Tiempos de Esperanza?

Oscar Espinosa Chepe

Crisis Management of Cuban International Liquidity

Luis R. Luis

If It Were Just the Marabú… Cuba’s Agriculture 2009-10

G.B. Hagelberg

The Numbers Diet: Food Imports as Economic Indicators

Lauren Gifford

Government-Controlled Travel Costs to Cuba and Costs of Related Consular Services: Analysis and International Comparisons

Sergio Díaz-Briquets

Envios de Remesas a Cuba: Desarrollo, Evolución e Impacto

Emilio Morales Dopico

Dashed Expectations: Raúl Castro’s Management of The Cuban Economy, 2006–2010

Jorge F. Pérez-López

Cuba: ¿Hacia otro “Periodo Especial”?

Mario A. González-Corzo

Cuban Education and Human Capital Formation

Enrique S. Pumar

La Masonería Cubana y su Contribución a la Sociedad Civil

Jorge Luis Romeu

The Internet and Emergent Blogosphere in Cuba: Downloading Democracy, Booting Up Development, or Planting the Virus of Dissidence and Destabilization?

Ted Henken

El Insostenible Apoyo Económico de Venezuela a Cuba y sus Implicaciones

Rolando H. Castañeda

Cuba-Venezuela Health Diplomacy: The Politics of Humanitarianism

Maria C. Werlau

British Policy-Making and Our Leyland in Havana (1963–1964)

Maria Carla Chicuén

La Desigualdad en Cuba: El Color Cuenta

Natalie Kitroeff

A Macroeconomic Approach to Foreign Direct Investment (FDI) Inflow from the People’s Republic of China to Cuba

Orlando R. Villaverde

A Survey of the Relationship between Cuba and China: A Chinese Perspective

Pin Zuo

The Evolution of the Cuban Military: A Comparative Look at the FAR with the
Bureaucratic-Authoritarian Model of South America

Michael Aranda

Empowering the Cuban People Through Access to Technology

Cuba Study Group

The Global Economic and Financial Crisis and Cuba’s Healthcare and Biotechnology Sector: Prospects For Survivorship and Longer-term Sustainability

Elaine Scheye

Globalization and the Socialist Multinational: Cuba and ALBA’s Grannacional Projects at the Intersection of Business and Human Rights

Larry Catá Backer

Racismo Estructural en Cuba y Disidencia Política: Breves Antecedentes

Ramón Humberto Colás

Arbitration and Mediation: Impartial Forums to Resolve International Commercial Disputes in Cuba

Rolando Anillo-Badia

Gazing at the Green Light: The Legal and Business Aspects of Real Property Investment in Cuba

Richard M. David

The Creation and Evolution of the Legal Black Hole at Guantánamo Bay

Michael J. Strauss

Las Relaciones Cuba-Israel: A la Espera de una Nueva Etapa

Arturo López-Levy

Revolutionary Cuba’s GDP: A Survey of Methods and Estimates

Jorge F. Pérez-López

A Dynamic Factor Model of Quarterly Real Gross Domestic Product Growth in the Caribbean: The Case of Cuba and the Bahamas

Philip Liu and Rafael Romeu

Cuba’s Attempts at Democracy: The Colony

Roger R. Betancourt

Lessons Learned from 20 Years of Privatization: Albania, Estonia and Russia

Jorge A. Sanguinetty and Tania Mastrapa

The Cuban Tourism Sector: A Note On Performance in the first Decade of the 21st Century

María Dolores Espino

Prospects for Tourism in Cuba: Report on the Residential Sales/Leases in Golf and Marina Developments

Antonio R. Zamora

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Has the US Tourism Tsunami to Cuba Already Begun?

By Arch Ritter

The Economist noted recently that the number of US tourists to Cuba in 2010 reached about 400,000 (January 20, 2011). Surprisingly, the Cuban Oficina Nacional de Estadisticas did not include the United States in its tourism statistics for 2010. (See Oficina Nacional de Estadisticas, Llegada de visitantes internacionales, Diciembre 2010). If the Economist’s number is correct, it represents a huge increase over the 2009 figure of 52,455 tourist arrivals from the United States. The US already appears to be the second source of tourists to Cuba, well ahead of every other country except Canada for 2010.

With the latest easing of travel restrictions for US citizens, one might expect a further large increase in US tourism to Cuba. In 2010, the increase in tourism was likely mainly of a family-reunification character. But in 2011, curiosity tourism will increase dramatically under the new travel rules. Much of this tourism will be in the cities and in Havana in particular – and not in the isolated beach areas where Canadians tend to go. One indeed can expect a surge in tourist services and activities in both the public sector and the reviving private sector. The  Paladares. Casas Particulares and other activities should be in expansion mode and should contribute – along with remittances – to a reconstruction boom in Cuba.

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Cuba’s Best Friend: the Canadian Winter

Winter in Ottawa

By Arch Ritter

As I trudge through the snow to the University here in Ottawa with the temperature below minus 30 degrees Celsius (or about minus 25 Fahrenheit) in a Canadian “cold snap”, my thoughts turn towards the Tropics and Cuba and also to global warming. This is a characteristic shared by many Canadians in winter- though I also must confess that I am always thinking about Cuba. .

As everyone knows, Cuba has regained its position as a foremost tropical tourist destination. Canada has been the largest single national source of tourists consistently from 1990 to 2009. (See Chart 1) By 2009, Canadian citizens were by far the most numerous with about 915,000 tourist “arrivals”, or 37.6% of total (see Table1). Tourism is of course a major source of foreign exchange earnings for Cuba, larger than any single merchandise export but also smaller than other service exports (mainly medical and educational services.)

Most Canadian tourists head to the beach with a package tour – seldom making it to Havana or another city.  For this reason, they have been sometimes derided as “el cheapo” tourists who spend as little as they can in the Cuban economy.  There may be some truth in this, but most other tourists also are in similar package tours. Foreign exchange earnings from Canadian tourism were likely in the area of US$ 882 million for 2008, (calculated as 37.6% of total tourism earnings of U.S. $ 2,346.9 million.) If one takes both Canadian tourism plus Canadian merchandise imports (mainly nickel) from Cuba into consideration, Canada contributed about U.S. $1.6 billion in 2008, a substantial proportion of Cuba’s foreign exchange availability.

When US citizens are free to travel to Cuba, there undoubtedly will be a “tsunami” of curiosity tourism, sun, sea and sand tourism, “snowbird” tourism, convention tourism, cultural and sport tourism, medical tourism, “March-Break” tourism, and retirement tourism. Will Canadian tourists be squeezed out and priced out of the market as demand increases? Perhaps, for a while. But I expect that Cuba will continue to expand its tourist facilities of all sorts very rapidly. Until “global warming” has eliminated the winter up here in the True North, or until escalating jet fuel prices make air travel prohibitively expensive, my guess is that Canadians will continue to head south in winter and Cuba will continue as a top choice location.

Varadero Cuba

Guardalavaca, Cuba

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Tourism

María Dolores Espino, International Tourism, An Up-Date, Cuba in Transition • ASCE 2008

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The Economic Consequences of Lifting the US Travel Restrictions on Cuba

On Wednesday, June 30, 2010,  the House Agriculture Committee approved  by 25 to 20 to take the Travel Restriction Reform and Export Enhancement Act (H.R. 4645) for a vote in the House of Representatives. This bill was introduced in the United States House of Representatives on February 23 2010 by Representatives Collin Peterson (D, Minnesota) and Jerry Moran (R, Kansas) with forty bi-partisan House cosponsors.

The Peterson-Moran Bill may be a winner. It would be difficult for Congressmen and Senators in the Republican farm states to vote down an agricultural promotion bill – even with the travel provision. The Bill is supported by a coalition of some 130 US organizations including the U.S. Chamber of Commerce, National Farmers Union, the American Farm Bureau Federation, AFL-CIO, the U.S. Conference of Catholic Bishops, the Brookings Institution, the Council on Foreign Relations and the Cato Institute.

A group of 74 of Cuba’s most prominent political prisoners, independent librarians, bloggers, independent journalists, magazine editors, clerics, intellectuals, artists, members of the civil society and of political organizations also supported the Bill in a letter to the Members of the United States House of Representatives and its Agriculture Committee. It is therefore difficult for remaining hard-liners in the US Congress to argue that the Bill is objectionable because it would be supportive of the Cuban Government.  Of course the Cuban Government would benefit from the foreign exchange earnings from tourism. But all citizens would benefit. Most important,  the process of normalization would be well launched.

Enactment of the Bill would generate major benefits for both countries. By modifying financial terms and requirements of sales to Cuba, it is expected that the US share of Cuba’s food imports will increase further. It is already the largest exporter of agricultural products to Cuba, with food exports reaching US$ 711 million in 2008. The U S quickly displaced Canada as the main food supplier following the 2000 liberalization of agricultural exports by the Bush Administration.

American citizens will acquire a right to travel that they lost, in large part, in 1961. However, Cuban Americans have been able to return to Cuba and many other US citizens have travelled to Cuba for educational and religious reasons, or illegally. In fact, in 2003, there were some 85,000 US visitors.  Last year, following the liberalization of travel for Cuban-Americans, this number was estimated at around 300,000.

Cuba will benefit from lower cost food imports from the US – though this will further reduce the incentive for Cuba to improve its own faltering agricultural economy, where the 2010 sugar harvest will likely be about 1 million tons, the lowest since 1908.

A Tourism “Tsunami ” for Cuba?

Free travel for US citizens to Cuba will produce a deluge of US visitors to Cuba. Among the varieties of tourists would be the following:

  • Curiosity tourism. There could be a huge tourist influx of US citizens wanting to see Cuba for the first time since 1961. Relatively few US citizens appear to have broken US travel restrictions so that the pent-up demand is enormous.
  • Family Reunification tourism. When all controls are lifted on the US side for travel to Cuba, a large increase in short-term visits by Cuban-Americans for family purposes is likely to occur. Such an increase already occurred in 2009-10.
  • Sun, Sea and Sand tourism. Many US citizens, especially from the North Eastern and Central parts of the country will likely follow the winter-escaping Canadians to Cuban beaches for one to two week periods.
  • “Snow-bird” tourism. Some US citizens, mainly retirees, will spend several of the winter months in Cuba. This will be limited until accommodation arrangements such as time-share condominium arrangements are possible.
  • Medical tourism. There may be some travel to Cuba for access to medical services which will likely continue to be inexpensive relative to the United States.
  • Convention tourism. Short-term visits for conventions could increase significantly.
  • Cultural and Sport tourism. One might expect more visits for purposes of interacting with and experiencing Cuban art, music, cinema, and sports.
  • Educational tourism. It is likely that American students and teachers at various levels would enroll or visit Cuban institutions of higher learning or cultural and sports centers for courses, years abroad, sabbaticals, language training etc., in much greater numbers than have been possible under the embargo.
  • March-Breaker” tourism. Students from the US are likely to try a visit to Cuba for the March Break, instead of the Maya Riviera, Florida or elsewhere.

One could imagine US tourism quickly doubling the 2009 Canadian level of 915,000 and redoubling again in a decade or so, as Cuba’s capacity to accommodate more tourists expanded. This would perhaps double Cuba’s total foreign exchange earnings from tourism within a decade, which were already at about $US 2.6 billion by 2008.

The “Jitters” for President Raul Castro?

The Peterson-Moran Bill will also give the Cuban leadership the jitters as 50 years of pent-up tourism from the US inundates the Island.  While the Act is an economic “win-win” for both countries, the deluge of US visitors could have an impact on internal politics in Cuba.  It has often been said – perhaps with some truth – that the best ambassadors for the US are its own citizens. They undoubtedly will be treated warmly and will bring charm and goodwill as well as dollars. They may also bring “contamination” from the perspective of the Government of Cuba  as Cuban citizens learn more about life in the United States on a first hand basis. Increased knowledge and independent income generation will make Cuban citizens more restless – especially if the Cuban government does not immediately liberalize foreign travel for its own citizens.  Indeed, the Cuban government may attempt to decelerate the wave.

Negotiating normalization with Cuba is a politically contentious, complex but ultimately low priority issue for the Obama Administration given all the other problems it faces. It is helpful for Obama to have the normalization process move forward by independent bi-partisan Congressional action.

Will the Cuban Government respond constructively by releasing the political prisoners incarcerated in 2003, or by dropping the 10% tax on US dollar remittance payments and transfers?

Will the Cuban Government, in reply, liberalize travel abroad for its own citizens to the US and elsewhere?

Actions such as these would facilitate additional steps by the United States in the difficult process of normalization and reconciliation.

School Children, Parque Central Havana, Circa 1996

Photograph by the Author

 

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