1. 1
CUBA RESPONSIBLE TURISM ISSUES- REPORT
CONTENTS
1. Introduction
2. Identification of the issues
2.1. People
2.2. Prosperity
2.3. Planet
3. Prioritisation of the issues
4. Justification
5. Recommendations
6. Conclusion
Bibliography
Appendix A
United Nations. Transforming our world: the 2030 Agenda for
Sustainable Development, Goals and Targets.

2. 2
CUBA, Tourism Issues
(Ciudad de la Habana, Cuba. Source, www.oneworld365.org)
1. Introduction
The Republic of Cuba is located in the northern Caribbean Sea at the
confluence with the Gulf of Mexico and the Atlantic Ocean. The country
consists of/is made up of the main Island of Cuba, the Isla de la Juventud and
many archipelagos such as Cayo Coco, Cayo Guillermo, Cayo Largo del Sur
andCayo Jutía, making a total territory of 110860 Km2. It is located 150 Km
away from Key West (Florida, USA), neighbouring The Bahamas (21 Km), Haiti
(77 Km), Jamaica (140Km) and the Cayman Islands. The Main Island, Cuba, is
1250 Km long, and is the largest island in the Caribbean.
The island is divided into 13 administrative provinces as shown on Figure 1 :
Pinar del Rio, Havana, Matanzas, Cienfuegos, Villa Clara, Sancti Spíritus,
Ciego de Ávila, Camaguey, Las Tunas, Bayamo, Holguín, Santiago de Cuba,
and Guantanamo. Those provinces are subdivided into municipalities, with one
special municipality, Nueva Gerona (Isla de la Juventud).
Figure 1.0. Large detailed administrative map of Cuba with cities and roads (Source, vidiani.com)

3. 3
Cuba has a subtropical climate with 2 differentiated seasons. From November
to April the dry season falls, with average temperatures of 18-28 ºC . The
humid season has average temperatures of 30 ºC and the risk of hurricanes is
mainly during June to November, with the risk of storms between September
and October.
Cuba is mainly flat and has some rolling plains with the exception of the Sierra
Maestra Mountains, at the South East of the Island with the highest point being
Pico Turquino at (1,974m). The island is home to an important biodiversity with
7,000 different flora species, more than half of which are endemic (i)
92% of the population in Cuba is educated to a high school education level,
and the national literacy is about 99.8% (Youngblood Coleman, 2014). Cuba
has a socialized healthcare system, being one of the most sophisticated
systems of health care in the Caribbean. The access to water and sanitation is
considered good although with limitations in some rural areas. About 13.60%
of the GDP is spent on education and 11.8% in Health Care (Youngblood
Coleman, 2014)
Cuba is a communist state, with a national constitution created in 1976
inspired by the Soviet political model, where the National Assembly and its
Council of State have supreme authority. The Communist Party is the only
recognized political party and it monopolizes all the government positions,
Council of State and judicial offices (“Cuba”, 1-Apr-2014, pp.8, 2015). The
Cuban constitution (1979) focuses on an economic system based on the
socialist property of the population in all the areas of production. The main
foundations of this political system are political freedom, social justice and
democracy, and individual and collective wellbeing. The government is acting
as the creator of policies, executor of justice and regulations, and control of the
nation´s economy (Yury Perez Martinez, 2012).
Development of the international tourism in Cuba has been led by a long
confrontation with the US, and restrictions on travelling to the island by both,
the USA and the Cuban government. The Cuban government's strategy in the
face of this confrontation was to prioritize the currency flow from other
international tourism markets. Tourism in Cuba can be split into three different
stages: before the success of the revolution in 1959, the boom of the nineties,
and the actuality. The first stage saw a growth but with a high dependence on
the US market, while in the second stage we noted a sustained increase in
tourism with a positive government attitude and action plans to use tourism to
develop the nation. The current, and third, stage in Cuba's development sees
the definite position of the country as a ' travel destination', and the concerns
that the country is facing in sustaining their tourism development goals.
(I) THE CUBA TOURIST BOARD (http://www.travel2cuba.co.uk/explore-cuba/general-information/)

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Since 1978, with the relaxation of internal policies by the Cuban government
towards Cuban expats who until now were not allowed to come back to the
island, There it´s been an important impact on the Cuban tourism industry. In
relation to the apparition of new products with specific packages directed to
this market, such as flight tickets combined with accommodation and car rental
(Jose Luis Perello Cabrera et la, 2015) and also to the increase of arrivals into
the island, resulted by the migratory mobility from Cuban nationals resident
abroad that also expanded the national tourism, as they are in many occasions
be bringing their families living in the island into their holiday. Research
undertaken by the University of Tourism in Havana states that from 2010 to
2014, Cuba received around 560,000 travellers yearly from the USA alone, of
which 90% were Cubans residents in North America (Jose Luis Perello
Cabrera et la, 2015).
Some studies in tourism development suggest that the travel and tourism
industry is the most important component of the Caribbean economy (Hayle
Singh et al, 2010). In the particular case of Cuba, in 2014, tourism represented
2.6% of the total GDP in Cuba with a direct contribution of CUP2, 023.6mn,
with a forecast to rise by 3.9% in 2015 and by 4.4% from 2015- 2025. The
direct government collective spending for this sector was, in 2014, 1,662.9
CUP mn (Jose Luis Perello Cabrera et la, 2015). These figures show the
possibility of the destination to grow and the aim for the government to develop
tourism in the upcoming years.
Cuba´s major competitor as a destination within the ranking of destinations in
the Caribbean is the Dominican Republic, as shown on the Figure 1.1. In the
period of time from 2007-2011 the Dominican Republic experienced a growth
of 7.03% income from tourism, whilst Cuba achieved only 5.03%.
Figure 1.1 Arrivals of tourist and income from tourism in millions of USD (Source: Miguel Alejandro
Figureras et la, 2015).
Due to the current empowerment of the government as a legislator,
administrator and enforcer of regulations and laws, together with the economic
importance of black market activity on the island, there is a large scope for

5. 5
corruption (The PRS Group, Inc “Cuba”, 1-Apr-2014, p.p.4, 2015).Corruption in
Cuba has always been a point of observation by international human rights
associations and fighters. It is believed to have been accepted since the
revolutionary party came into power, being initiated by its authority, and
socially assumed due to the lack of regulations (Ricardo A. Puerta, pp. 129,
2002). In 1997, the “El Codigo de Etica de los Cuadros Del Estado Cubano”
was created, which regulates the ethical code of the employees representing
the government in authority positions. Although this legislation was created, it
didn´t define actions and thus there is the belief that it is not being enforced.
This issue generates an uncertain atmosphere to attract foreigner investors
(Ricardo A. Puerta, 2002).
According to the World Wildlife Fund (WWF) report in 2006, Cuba has
achieved a sustainable development, due to the national achievement of
advances in literacy and education, health, culture, sports, social security and
per capita of the gross domestic product (Jose Antonio Suarez et al, pp.1,
2012). The country attended the Global Conference on sustainable
development of Small Island Developing states, led by the United Nations,
which took place in Bridgetown, Barbados from the 26th April to the 6th May
1994. This conference resulted in the Barbados declaration, which
recommended the General Assembly of the UN to adopt the Declaration of
Barbados and the programme of action for the sustainable development of
Small Island Developing states. All the participants and represented countries
recognized this Global conference and specific policies, to be taken into
actions and measures at a national, regional and international level to enable
Small Islands Developing States to achieve sustainable development (United
Nations, 1994).
The seasonality of Cuba as a sun and sand destination for incoming markets,
coupled with the effect that the US embargo has had on their economy, has
given Cuba an economic instability that impacts employment, waste
management, access to clean water and degradation of infrastructure.
The aim of this report is to highlight just some of the many issues in existence
in Cuba. They will be identified, scored following a criteria and justified
accordingly, giving a recommendation to address those issues.
2. Identification of the issues
The United Nations Sustainable Development Goals Agenda, 2030 (Appendix
A), was used to establish the issues found in Cuba as a destination, and to
assess the capability of the destination to develop responsibly towards tourism.
From the development goals, People, Prosperity and Planet were used as the

6. 6
main identifications, and will be explained and prioritized using the VERB
model in a later stage.
2.1 People
2.1.1 - Labour conditions and low productivity
As shown in Figure 1.2, 63% of the total workforce in the destination is focused
on the services sector, a fact that illustrates the importance of the role of the
tourism industry in the direct and indirect employment of the population. The
direct and indirect employment through tourism represents 7% of the total
national workforce (Miguel Alejandro Figueras et la, 2015). It is estimated that
about the 75% of the labour force is employed by the state, and The State
Committee for Work and Social Security, is in charge of setting the wages and
salaries for the state sector (The PRS Group, Inc “Cuba” , 1-Apr-2014, pp.5,
2015). The combination of the high rate of labour employed by the
government, the low salaries, limited competition within the sector, low
productivity and lack of quality services provided, has contributed to the
negative achievements in true development and growth. (Dr. Jose Luis Perello
Cabrera, 2015).
Figure 1.2 Total country work force distributions (source: The PRS Group, Inc “Cuba” 2015)
2.2 Prosperity
2.2.1- Seasonality
Cuba received a total of 151,916 international arrivals in 2014 and 193,493 in
2015 (ONEI, Oficina Nacional de Estadistica e Informacion Republica de
Cuba 2015). Canadians are the highest representation with 39.9%, (1 021 949)
of these total arrivals as seen in Figure 1.3.
Because of the nature of the international visitor markets, mainly Canadians
and Europeans, seeking “all-inclusive” beach holidays (Jose Luis Perello
Cabrera, pp.1, 2015), Cuba has been experiencing a very clear seasonality as
shown on Figure 1.4. Looking at this table, we can see that arrivals even at the
lowest point in September 2014, Cuba received twice as many tourists as the
highest point in March of the same year. The impacts of this seasonality are
far reaching, and touch even sectors such as agriculture and energy

7. 7
production. National production limitations on agriculture are hindering the
nation's ability to supply the high quantities of foodstuffs needed, while the
nation is becoming more dependent on petroleum imports to supply increased
levels of energy during the high season (M. Dawn King, 2012).
Figure 1.3 International Arrivals by Country (source: ONEI, Oficina Nacional de Estadistica e
Informacion Republica de Cuba, 2015)
Figure 1.4 –International arrivals by month (source: ONEI, Oficina Nacional de Estadistica e
Informacion Republica de Cuba, 2015)
2.2.2- Inflation and salaries
Cuba has a dual circulation of currency: 75% of the labour force is employed
by the state getting paid in CUP (Cuban peso), while the dual circulation of
currency means that many goods are sold in CUC (convertible peso), which is
believed to be worth approximately 23 times the Cuban peso, making the
access to many goods very difficult. This includes basic goods to be sold in

8. 8
CUC for the local population, and has generated a growth of the black market
(The PRS Group, Inc “Cuba”, 2015).
2.2.3- Foreign investment restriction
In 1995, the Foreign Investment Act was created by the National Assembly.
This is a legislation stand on accepting foreign investment but based on the
government approval, the foreigner company seeking to operate in Cuba
territory must demonstrate that its investment will provide an economic and
social benefit to Cuba. Foreigner enterprises must be as a joint venture with
the Cuban state that is in charge of the intervention towards the economic
leading for the society. The Cuban state acts as a shareholder and therefore
dictates the contract under which the investors can operate (Youngblood
Coleman, pp103, 2014)
There is a lack of reliable data provided by the Cuban government, but it is
estimated that currently exist 26 joint ventures resulted by foreign investment,
24 of which are in the hotel sector of the Tourism Industry in Cuba, with an
approximate value of $900 million (Youngblood Coleman, pp.103, 2014).
Investor tax rates are very high. These are imposed by the Council of Ministers
and vary in amounts. however in general rules they are among the erbhighest
in the world with a general income tax at 30% of the net taxable income (The
PRS Group, Inc “Cuba” , 1-Apr-2014, pp.1, 2015). Altogether with the current
restriction on foreign investment law that impose each project to be reviewed
and approved by the government, which any sector not considered a high
priority will remain effectively closed to investment, and the Helms–Burton Act
of 1996, that allow America to sue and punish foreign companies in US courts,
if they invest in properties confiscated from US citizens (The PRS Group, Inc
“Cuba”, 1-Apr-2014, pp.3, 2015)
2.3 Planet
2.3.1- Waste management and lack of water
Recent research identified soil degradation, deforestation, pollution, loss of
biological diversity and lack of water as the main environmental problems in
Cuba (Jose Antonio Suarez et la, 2012). It also mentioned as the major
challenge for future development the diversification of fossil energies,
energetic technologies suppliers, energy efficiency, use of renewable energy,
the protection of the environment developing research about adaptation and
mitigation of climate change, and the rational use of natural resources (Jose
Antonio Suarez et la, 2012).
The government created a strategy and policies for environmental protection
(NES), 1997; however the current economical situation has made the

9. 9
investment in infrastructure and research to achieve environmental
sustainability very difficult (Jose Antonio Suarez et la, 2012). There are existing
policies in place towards waste management within the tourism industry, but
those require extra organization and financial resources to make them work
efficiently (Jose Antonio Suarez et la, 2012). Currently 95.6% of the population
have access to safe water, although it is still insufficient to cover agricultural
and industrial needs, especially during the dry season, which also happens to
be the high tourism season (Jose Antonio Suarez et la, 2012).
2.3.2- Shortages of fuel and electricity
Infrastructure in Cuba is advanced, having 9 airports that can operate
international traffic, 11 main sea ports that can handle more than 27 million
tons of cargo and a road network considered among the most highly
developed in Latin America. Anyhow, there are frequent shortages of fuel and
electricity to the island, that don´t allow and the reconstruction and expansion
of the infrastructure networks (The PRS Group, Inc “Cuba”, 1-Apr-2014, pp.4,
2015).
The tourism sector consumes a huge amount of energy, and due to the
shortages of fuel and electricity the island as a whole suffers. The lack of
development of alternative energies has limited the planning of, and
investment in, new hotel constructions (Miguel Alejandro Figueras et la, 2015).
3. Prioritisation of the issues
As the UNWTO states,”The advancement of sustainable tourism is one which
establishes a suitable balance between the environmental economic and socio
cultural aspects of tourism” (UNWTO 2010, pp.24). Based on this statement,
we will assess the issues identified into these 3 categories, using the criteria
measured by their level of contribution to Cuba's sustainable tourism
development, and the level of difficulty in achieving a resolution to these
issues. The scores are given from 1 to 9, showing 1 as the most difficult to
achieve and with the highest contribution, and 9 being the easiest to achieve
and with the least level of contribution, towards sustainable tourism
development.

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SUSTAINABLE TOURISM DEVELOPMENT
Highest
Contributi
on
Inflation Labour Seasonality
Conditions
7 4 1
Middle Salaries Foreign Lack of water
Contributi
on
Investment restriction
8 5 2
Least Low productivity Waste management Shortage of fuel and
electricity
Contributi
on
9 6 3
Easiest Middle Most Difficult
To achieve To achieve To achieve
4. Justification
4.1 Seasonality
Seasonality affects all the stakeholders. It puts pressure on the rest of sectors
to be able to produce goods to cover the visitor´s needs, whose production
levels are already limited in Cuba (M. Dawn King, 2012). It creates uncertainty
in the job market and affects working conditions. It may also affect inflation
during the high season, with the knock-on effect of the local population not
being able to access basic goods. The environment is also under pressure, as
it is not able to absorb the quantity of waste generated and it might impact on
protected and natural areas, due to a overcrowding of visitors during the high
season.
4.2 Lack of water
Lack of water is an important factor, due to the potential to cause health issues
if the quantity of water is not enough to cover the basic needs of the local
population, agriculture and industry. This will affect Cuba's internal economy
and generate more dependency on international imports, which in turn may
cause negative repercussions for the tourism industry, as the destination might

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be seen unsafe, and the prices may rise due to the country's need for foreign
exchange.
4.3 Shortage of fuel and electricity
The current shortages of fuel and electricity that the island currently suffers, is
affecting the possibility of development and maintenance of infrastructures.
This might create safety issues on the existing infrastructures that affect both
the visitors and the locals. The shortages also slow down the production and
distribution of basic goods, which clearly cause production limitations affecting
the national economy, as well as providing a limited range of products for
tourists. It might also have repercussion on the population's health due to the
limitation of good food refrigeration.
4.4 Labour conditions
Seasonality creates temporary working conditions, and the adaptation of
working hours to cover tourism demand. It will certainly affect workers not
having a balanced working and personal life, and may also lead to low job
development opportunities, lack of motivation among the workforce and lower
quality of service delivered, affecting the general economy and the
competitiveness of the destination with others.
4.5 Foreign Investment restrictions
Foreign investment restrictions are currently affecting the economic growth of
the country as the government does not have enough funds to invest in areas
of essential development, such as infrastructure and technology investment for
industries and research. In the specific case of tourism, it will also affect the
lack of competition within the sector, and therefore also affect labour salaries,
job opportunities and development of new products for the destination.
4.6 Waste management
The tourism industry, particularly hotels and hotel chains in Cuba, are
attempting to develop strategies for efficient waste management, It currently
doesn´t exist a defined or effective policy, neither methods to guarantee the
reduction and impact made by inefficient waste management (Broche
Fernández et la, 2010). These inefficiencies will have large contamination
impacts on the environment at long term, if they are not controlled. They might
also have an impact on the population´s health and also on the way tourists
will see the destination, as dirty and unsafe, contributing negatively to the
country's development.
4.7 Inflation
Easy access to goods by local people is of high importance for any society,
and when rising prices make basic goods inaccessible for the local population,

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it has a huge impact for family economies, as well as negatively impacting the
general country development.
4.8 Salaries
The dual currency system and the low salaries received by the local
population, makes it very difficult for locals to purchase goods, in some cases
basic ones for the household. This issue will slow economic development and
will also make achieving true sustainable development very difficult.
4.9 Low productivity
Low productivity in industry and services will have a great impact on economic
development, the access by the population and tourists to basic goods, and
also the quality of services provided by the workforces. In a competitive market
such as the tourism industry, tourists can develop a negative perception of the
quality of the services provided by the destination, which contributes to a
slowing down of the development of the destination.
5. Recommendations
5.1 Seasonality
Seasonality will require great attention and work by the public and private
stakeholders (tour operators, government and private business), creation of
new products to develop the destination in a more lineal path during the whole
year i.e. through health tourism and nature packages. It will reduce the
pressure on certain areas during the peak season and reduce the social
impacts associated to the seasonality.
5.2 Lack of water
This is a very challenging issue that the public stakeholders have to face,
through investment in maintenance and creation of new structures to ensure
the global distribution and access to safe water for the population and
industries to generate production and development. I would also recommend
providing educational policies to educate society about the limited water
resources, such as to consume water responsibly and avoid wasting it.
5.3 Shortage of fuel and electricity
Shortage of fuel and electricity is another issue that will mainly require
attention by the government. The investment required by the public
stakeholder is important to research renewable energies, low energy
consumption policies, maintenance and creation of new infrastructures to
guarantee power to the population and industries. Education to the population
about how to save energy will also help to release the pressure on this area.

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5.4 Labour conditions
The government will play an important role in this case, due to the fact that the
majority of the workforce of the country belongs to the government workforces.
The creation of internal policies, the provision of career development
opportunities, tackling the lack of motivation through training and setting up
goals towards career development would be some of the recommendations to
improve on current labour conditions. The private sector will also play a big
role on the creation of opportunities, competition and labour working life
balance.
5.5 Foreign Investment restrictions
The creations of new policies by the government are needed to allow foreign
investment, so that the country can benefit and achieve a level of economic
growth through the different sectors of the nation.
5.6 Waste management
Firstly through the conscious compromise by the government to protect the
environment, creating policies and providing the infrastructures for recycling
and waste destruction. Once this is planned, through educational lessons
within communities, to train and engage the population in helping to protect the
environment. The industries will also play a big role in putting the policies in
practice and implementing them within the company, which they could do by
seeking the contribution by its workforces, offering the training required, and
even as an example through internal rewards for lowest waste generation
within departments, teams or individually.
5.7 Inflation, salaries and low productivity
The implication of the public sector in this point and with the current political
situation of the country is absolutely vital. The need to review the current
working law and elimination of the dual currency will be a solution to make
accessible the consumption of basic goods to the population, aligning the cost
of living and salaries, generating competition and access to employment
development. It will have also an impact on low productivity, as the workers will
have some motivation to produce and provide a quality product, when they will
be rewarded economically to help family economic development and access to
cover their family basic needs.
6. Conclusion
Tourism is one of the main economic growth generators in Cuba, relying on
their natural resources and limited infrastructures, which are highly impacted
by the tourism flow. Cuba will need to consider strategies for achieving a
sustainable growth by giving more priority to the maintenance and investment

14. 14
in solid infrastructure to reduce the impacts on their limited natural resources.
The importance of creating new policies that guarantee the wellbeing of the
population will mitigate some of the current issues, and will increase the
attractiveness of the destination to international markets. Altogether, allowing
the creation of new business will bring more internal competition and an
opening up to new tourism products, which will allow Cuba in turn to develop
more competition externally, with their neighbouring islands, growing a more
sustainable tourism base that benefits the local population.
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Appendix A
Transforming our world: the 2030 Agenda for Sustainable Development
(Source: “Transforming Our World: The 2030 Agenda for Sustainable Development:
Sustainable Development Knowledge Platform” 2015)
(United Nations:https://sustainabledevelopment.un.org/post2015/transformingourworld
l[Accessed 20/11/2015])
The Goals and targets
Will stimulate action over the next fifteen years in areas of critical importance for
humanity and the planet:
People
We are determined to end poverty and hunger, in all their forms and dimensions, and
to ensure that all human beings can fulfil their potential in dignity and equality and in a
healthy environment.
Planet
We are determined to protect the planet from degradation, including through
sustainable consumption and production, sustainably managing its natural resources
and taking urgent action on climate change, so that it can support the needs of the
present and future generations.
Prosperity
We are determined to ensure that all human beings can enjoy prosperous and fulfilling
lives and that economic, social and technological progress occurs in harmony with
nature.
Peace

16. 16
We are determined to foster peaceful, just and inclusive societies which are free from
fear and violence. There can be no sustainable development without peace and no
peace without sustainable development.
Partnership
We are determined to mobilize the means required to implement this Agenda through
a revitalised Global Partnership for Sustainable Development, based on a spirit of
strengthened global solidarity, focussed in particular on the needs of the poorest and
most vulnerable and with the participation of all countries, all stakeholders and all
people.
The inter linkages and integrated nature of the Sustainable Development Goals are of
crucial importance in ensuring that the purpose of the new Agenda is realised. If we
realize our ambitions across the full extent of the Agenda, the lives of all will be
profoundly improved and our world will be transformed for the better”