U.S. study finds mixed outlook for Cuba's tourism industry

U.S. study finds mixed outlook for Cuba's tourism industry
Published September 03, 2015 EFE

The development of Cuba's tourism industry following the
re-establishment of diplomatic relations with the United States will be
limited by conditions on the island, a Florida International University
study found.

The report, titled "Future Hospitality and Tourism Business in Cuba:
Opportunities and Obstacles," concluded that despite progress in
diplomatic links, the U.S. embargo remains in place, affecting an
industry that plays a major role in the island's economy.

While the U.S. government ponders further steps, such as opening
commercial flights to the island, the FIU researchers estimated that
certain areas could be expanded right now to exploit the hospitality
business to its maximum.

"Tourism in Cuba will certainly increase as restrictions for U.S.
tourists are gradually lifted," John Thomas, an FIU professor and lead
author of the report, told EFE. "To expand its tourism industry, Cuba
must implement significant changes in infrastructure, in particular in
transportation and communications."

The researcher said the Caribbean's largest island offered many
attractions, such as beaches, mountains and nature reserves, as well as
its culture, including cuisine, which contribute to a rich tourism proposal.

Thomas noted that among the challenges for tourism in Cuba were limited
banking and insurance services; a dual exchange rate system; and
regulations that prevent foreign companies from acquiring real estate.

"A major obstacle that makes investment in Cuba less appealing is the
government's requirement that foreign companies form partnerships with
the state and hire workers through the government's employment
agencies," the FIU professor said.

As long as the U.S. embargo remains in place, hotel and tourism
companies seeking to do business on the island "must navigate through
regulations by the Cuban government," which lacks credibility in the
resolution of disputes between commercial entities, whether in the
courts or before arbitration panels, Thomas said. EFE

Source: U.S. study finds mixed outlook for Cuba's tourism industry | Fox
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